Knowledge Base

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Here are the QuickBooks Answers You Have Been Looking For…

Finding answers to your QuickBooks® Accounting Software questions exactly WHEN you need them has not always been that easy… books and seminars are great, but printed guides may not be current or workshops scheduled when and where you need them. Even if you do have them available, you know it can be very time consuming to find exactly what you need when you need it.

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Hundreds of searchable pages on using QuickBooks, all written from an Accountant's and Consultant's perspective.
Over 100 cross-indexed pages on Reports in QuickBooks including those most requested by accounting professionals.
A built-in file Troubleshooting Guide that will help you solve the toughest problems in client files.
An index of unique checklists that you can print and use to speed your work.
A special sections on Data Transfer and Remote Access.
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A comprehensive and growing list of QuickBooks Add-ons including where to find them and how they work.
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Coming in December 2005 - More industry specific information, additional case studies, online training videos
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Using Quickbooks

Overview

Computer Issues

Outgrowing Quickbooks?

QuickBooks Tips and Tricks - Outgrowing QuickBooks

Ever wonder if a business has outgrown QuickBooks? We would like to share some information with you to aid in determining if a client has, or soon will, outgrow QuickBooks.

Here are some of the criteria to help you make the decision:

Number of Transactions - a business that has outgrown QuickBooks may do so based on the number of transactions entered each month. While all transactions are not created equal (for example 10 one line invoices do not take the same amount of space as 10 multi-line invoices) some general rules do apply. First, determine the number of transactions entered in a month. This can be estimated based on pressing Ctrl and 1 together and looking to see the number of transactions in the QuickBooks file and dividing by the number of months that QuickBooks has been used. This calculation can then be performed each subsequent year by taking the new number of transactions, subtracting the number from the previous year and dividing by 12. To calculate the growth, take the number of transactions each month times 2 KB to get the monthly growth rate, take that amount times 12 for the annual KB growth per year then divide that amount by 1024 for the number of MB per year. Typically the file should grow by 15 MB per year or less to maintain reasonable performance. Obviously the age and processing speed of the computer with other factors may also affect the software"s performance

Employee List - Less than 100 employees on the employee list and less than 50 active at any one time is the recommendation from Intuit.

Total Items on Lists - As a general rule, it is recommended that the total number of names on the lists be less than 14,500. To view the number of names, press Ctrl > 1 and look on the right side in the list information box.

If you determine that based on the above calculations, and the performance of the software, QuickBooks is outgrown; a possible solution is the QuickBooks Enterprise Solution. This accounting software package was released by Intuit in 2002 to provide an alternative as small businesses grow. In the past, as a business outgrew QuickBooks either due to size or sophistication, most migrated towards industry specific solutions. But with the Enterprise Solution, the user maintains the same interface as with QuickBooks Premier, but most everything is doubled (i.e. the number of users is 10, number of items on any list is twice what is available with QuickBooks Premier, etc.). For more specifics, contact Steve Brummet at Intuit 800-365-9608 x 72513. In addition to the Enterprise Solution, it is possible to use the condense feature to reduce the size of the file, or to start a new file (a>)

and transfer the lists and some of the transactional history.

01/07/03 Newsletter

What if Your Hard Drive Crashes?

What If Your Hard Drive Crashes?

I know it is something no one wants to think about. Like everything else, it won"t happen to me, especially during this time of the year. Well, even if you have a relatively new computer, and try to be aware, sometimes things just happen. How prepared would you be if (or when) it happens to you?

That is what happened to me.

Late Friday night a week ago a strange noise began (after a couple of weeks of what I thought was simply an Outlook problem). The next morning, when the computer was turned on, the dreaded drive read error was displayed. No Windows, no nothing.

To make a long story short, amazingly I only lost two files (both of which there may still be hope). There are three things I recommend everyone do (even if you do not have the time right now):

1. Make a list of all the software on your computer (including user names and passwords). In fact, my notebook of this information now even includes the web sites on my favorites in Explorer. The trick will be trying to keep it current.

2. For any products or services that you use or have purchased that are downloads, make an archive copy (zip disk, CD, etc) or at a minimum include where to go to download them on your listing from number 1 above.

3. If you do not have good back up procedures regularly in place, start immediately. I use connected.com (for $14.95 a month it was definitely cheap insurance). The software automatically backs up my system at least once a day, and asks me each time I shut down the computer if I would like to back up. As soon as the noise started, I started my back up procedures. When it crashed I had no idea if the back up was successful or not. All I knew for sure was that it was backed up at least within the past 24 hours. Luckily it finished before the crash so I did not loose any of my work. The two files being lost were because they were not in the folder I regularly back up. (Just as an aside, connected.com keeps the last 10 versions of the file so you can also go back in time if you need to).

Other possible solutions for back up procedures can include mirror drives, automatic back up procedures from a work station to a server, USB drives, zip drives. For clients who use accountants that have signed up with Remote Accounting Solutions a nightly transfer of the working data also works well (with the added benefit of “off-site” storage).

What started out to be a very stressful situation, actually turned out OK because of planning done ahead of time. Although I preach back up, back up, back up, this was one time I was extremely glad I practice what I preach!

03/11/03 Newsletter

Ask the Expert - File Size and Hardware Requirements

Ask the Expert – File Size and Hardware Requirements

Q – What is a “reasonable” working file size for a QuickBooks data file? Is a 700MB file too large for a WIN NT network using less than GHz processor speeds? (Submitted by GD)

A – There are many variables that come into play when discussing performance such as file size, computer technology used, how many users are accessing the data at the same time, what type of network connection is used for that access, what processes are being completed, what QuickBooks product is used, etc.

The file size limitation varies by the accounting software product used. Based on the last information I have from Intuit, the recommended size for the desktop products (Basic, Pro and Premier) is 100 MB or less. And, for the Enterprise Solution, the recommended size is less than 250 MB. So in the situation described here, yes, a 700 MB file is too large. Although the file size recommendations from Intuit are a guideline, and there are many of our clients that have larger files without any problems, the speed and potential for data integrity loss does increase as the file gets larger. For example, we just started a new file for a client with a 525 MB file size. The software seemed to be a little slow, but still functioning, however, it could not be condensed because it would time out and close QuickBooks. With the add-ons available, starting a new file is not a difficult process: It is possible to transfer the lists from within QuickBooks itself, and with the aid of an add-on it is possible to transfer beginning balances as of a specific date and transactions since that date (with a few exceptions such as payroll). There is a case study available that detailed this client engagement step by step.

As you already mentioned, is computer processing speed. In general, the hardware requirements range from at least 350 MHz (500 MHz recommended) Intel Pentium II (or equivalent) computer with at least 96 MB (256 MB recommended) of RAM and 400 MB of disk space for QuickBooks Basic to at least 500 MHz (1.2 GHz recommended) Intel Pentium III (or equivalent) computer with at least 128 MB (256 MB recommended, 512 MB optimal) of RAM, 850 MB of disk space, and 100 Mb/s or faster network. Depending on the additional software needed, the disk space requirement may be higher. All products are designed to work with Windows 98 (SE), 2000, or XP operating systems.

Editorial Note: Intuit published a valuable resource a couple of years ago entitled “Pushing QuickBooks to the Limit: 99 Tips Every Multi-User Must Know.” In a recent search of the accountant.intuit.com site I found reference to the document in two newsletter archive articles, but the link to the special offer for the complete document is no longer available. For Tips 17-27 that deal with a more productive work environment, visit Intuit"s page on this subject. For Tips 62-71 that deal with multiple companies and locations, visit Intuit"s page on that subject.

Renaming a File

Ask the Expert – Renaming a File

Q - Is it possible to rename a QuickBooks file? Sometimes I want to change just a few things in a "what if" scenario and it"s better to rename the file rather than try to remember which one was version 1 or version 2. (Submitted by Aileen)

A – From within QuickBooks the only solution is to back up the data file (make the name something you will recognize as the “real” copy of the data). Then you can make whatever changes are necessary to see the results of your “what if” scenarios. Once you are done, back up the changed file if you want to have it for future reference (and again, make the name something you will know in an instant that this not your live data), and then restore the original back up of the “real” data over the changed file.

If you are going to need to access both files over a period of time, it may be more efficient to right click on the start button in Windows and click on explorer.

From here you can right click to copy the data file and right click again to paste. Windows will automatically change the name to “copy of” whatever the original file name was so you can access them both. At this time, you can click on the name to change it.

If you choose this alternative, there are two other steps I would strongly recommend:

Open the “new” file that will be used for the “what if” scenarios and change the company name to something like “Test File” and you can even go so far as to remove the address from the file. You want to make sure you do not accidentally enter live data into this file in error.
When you have completed your analysis, this new file will continue to appear on the “Open Previous Company” list, even if the file itself is subsequently deleted. The only way to “clear” this list is to edit the number of previous companies that will appear to 1. Close and open QuickBooks with the “real” file, and then increase the number of companies to show if needed.

Account System Selection

Accounting System Selection

Within our own business and in the businesses of our clients, there seems to be a couple of general themes:

The situation: Software is becoming more specialized and less expensive. It is now possible to automate many of the repetitive tasks that previously required extensive time, paperwork, or spreadsheets. The problem is that many businesses are ending up with fragmented systems that do not talk effectively to each other. There are more and more developers with the skills and tools to bridge these gaps, but often this decision is equivalent to placing a band aid on a flow of blood, rather than investigating the problem back to the source.

Our solution: We believe the first step is to take a step back and really look at what functionality is needed, how these needs are currently being solved, and what is the plan as it relates to integration in the future. Don’t forget to include everything from the accounting software, customer relationship management, spreadsheets, eCommerce solutions (including the cart, the gateway, etc.), operational management systems and anything used in the business.

How to do this: The most effective way we have found to deal with this issue within our own business and as we work with more clients on these issues is to create a simple Excel spreadsheet. Across the columns list the system: software or service filling the need, and include an additional column for what is being done manually or on paper. The rows are the functional needs of the business. Don’t forget to include any “wish list” information. If the document is used as a decision making tool in the future, it is important to not only know what you are getting and what you are giving up, but what you would like to include.

The benefit: This becomes a working document that serves several purposes:

It is an easy way to see if systems are being used as effectively as possible
Often any overlap of services will be easily identified
As an additional functional need is encountered, rather than looking for a solution for this new problem, look at what is currently in place to see if there are features that could be implemented, or, if a change is going to be required, can the new system include some of the functionality of an existing system.
If a change is necessary, this document ensures that key functional components are not overlooked.

Summary: While we love QuickBooks and the availability of solutions from third party developers has expanded the functionality in ways we could have never imagined, it is important to look at the business goals and critical success factors to determine a plan going forward. This may mean something as easy as a custom bridge program to fill a functional duplication in the current business process. Or it may mean making decisions with the long term goal of implementing a system that fills more of the functional and size requirements so the business is managed from one data base.

Performing a Needs Analysis

Performing a Needs Analysis

A needs analysis is a formal process of determining what specific system requirements exist for a business. It can be necessary due to changes in the business (has the business outgrown the current system) or due to changes in technology (software is now available to automate some of what was done manually).

In addition to what is required functionally, documentation of the current system’s strengths and weaknesses will be helpful when evaluating various alternatives. The plans and expectations of management should also be investigated to ensure that the system will be scalable in the future based on anticipated growth, change in the business, etc. Transactional volume (including size of customer list, vendor list, products sold, etc.) and an implementation schedule should be discussed.

The basic steps are:

- Basic discussion of approach to evaluation process
- Gather system requirements
- Compare (and test if needed) various software alternatives
- Discuss pros and cons of each viable alternative
- Determine costs and implementation schedule

Maintenance Releases

Maintenance Release Overview & Resources

Intuit seems to be on a cycle of a new version of their QuickBooks® Accounting Software every year. While this author feels that it is always a good idea to upgrade to the most recent version, for some clients this may not make sense. The reason for not upgrading may include: economic constraints, especially when the multi-user version is purchased; interface with an add-on product that has not yet been updated to the most recent version; some change in look and feel that requires a learning curve; etc. Usually there is at least one improvement that makes the upgrade "worth it." In any event, between the new versions, and even after a new version becomes available there are maintenance releases from time to time. These are free updates that are typically downloaded from the Internet and provide feature enhancements, improve usability and/or fix known problems.

As an example, with the most recent version 2002, the bank reconciliation screens were changed, including the reports. The new reports only show the detail of the cleared items. There was not a listing of the uncleared items on the report. It was possible to work around the problem by creating a report for the uncleared items, but it was not as user friendly as the past. Since that time, there have been two maintenance releases. The first changed the report to include the uncleared checks and deposits. If the maintenance release is not downloaded and installed, the change on the reports would not be fixed.

To determine what version and release are being used, press Ctrl > 1. The very top line will say the product, the version, and the release. To determine if the most recent release is being used, there are two alternatives:

Ø Visit http://www.quickbooks.com/support/updates.html and compare the information found there with what was seen on the screen. This is also where you would go to manually download the update if there were problems when trying to download it from within the QuickBooks software.

Ø Or, it is possible to try to download the update and if nothing new is available, a message will appear stating that fact. Depending on the version used, the keystrokes to find the download or update option may be slightly different: File > Update QuickBooks > Update.

With version 2006, there has already been multiple maintenance releases. When working in a networked environment, be sure to install the maintenance release on the server first, then update the work stations.

Tracking File Size/Growth (Excel Spreadsheet)

Spreadsheet

New File Structure in 2001

With version 2006, Intuit has change the file structure for the QuickBooks products to use a Sybase SQL data base. It is still not an “open API” but the SDK (software development kit) is still available to access much of the data by third party integrated applications. With the change in the underlying file structure, some changes in the size of the file will be noticed.

The following example is for illustrative purposes only using the sample file included with QuickBooks version 2005. Results may vary significantly from one file to another.

QBRA-2005: Ctrl+1, note file size of 6098 KB

QBRA-2005: File > Back Up, note back up size of 1673 KB (qbb is 28% of the qbw file)

QBRA-2006: Convert file from 2005 only, note file size of 10652 KB (58% larger than the same file in version 2005)

QBRA-2006: File > Back Up, note back up size of 7064 KB (qbb is 67% of the 2006 qbw file and 4.23 times larger than the 2005 back up)

While the file size has increased, the information provided from Intuit is that with the change in the data base structure, now bigger is not necessarily bad. With larger files it is still recommended that the client consider Enterprise Solutions since reports will generate 200% faster. Rather than the previous guideline of a file size of 100 MB for the desktop products and 250 MB for Enterprise Solutions, the new recommendation is that Enterprise Solutions is the most appropriate alternative if the file is growing at the rate of 50 MB per year, the client wants improved performance in multi-use mode, more granular permissions are desired, or a VPN (virtual private network) or QODBC requirements are present.

Installation Issues

For stand alone systems, the installation is the same as for previous versions. As the installation of the software occurs, it is possible to choose the folder. This permits replacing the previous version, or installing the new version in its own directory to still permit using the older version.

The installation and upgrade process has changed for version 2006 for multi-user installations. The short answer is that the software needs to be installed on the server, even if only data is stored there. With the change to the Sybase SQL database structure, the software is required to have the data function properly.

For more information, visit /newsletter_view.php?cat=9&id=338 or http://www.quickbooks.com/support/faqs/qb2006/829e206e.html or http://www.quickbooks.com/support/networking or do a search on QuickBooks support web site.

TRICK: Be careful with external drives (such as x-drive or mango-drive) since these systems may not have QuickBooks installed as required to have the data function properly.

Version 2006 Utility Changes

With the new data structure and the additional integration and transfer alternatives available, the menu pull down options that relate to file utility options have changed.

QBRA-2006: File > Utilities

The most significant changes are:

In addition to converting data from Quicken, there is now an option to convert data from Peachtree with a free download conversion tool.
To help to eliminate some of the confusion when transferring data to another product, there are now options to copy the company file to either QuickBooks Mac or QuickBooks Online Edition
The condense option has been renamed to “Clean Up Company Data.”

2007 Installation

With version 2007, the installation process has changed slightly. The screen shots presented here are for the Enterprise Solutions product, although they are the same for Pro and Premier.

First choose the installations method:

Guided Install: which will help you understand the options
Expert Install: By passes the first screen

For the Guided Install, the following screen will be presented:

Both installation methods are the same from this point forward:

Note: We installed both the Enterprise Solutions and Premier Products on two machines:

With AVG Anti-Virus installed fine with the anti-virus protection turned on
With Norton Internet Security, it went through the installation process then said it was interrupted. For that machine we disabled the Norton Internet Security and then it installed fine.

List Limits Expanded

For most QuickBooks users, the list limit for the QuickBooks Pro and Premier products of 14,500 is sufficient. For some, however, that is not the case. We have been seeing increased list size for a variety of reasons. One of the most common is the increased number of customers as the result of web site sales. For version 6 and prior, the list limit was doubled for the Enterprise Solutions Product. New with version 7, the Enterprise Solutions limit has been removed.

Opening A File

One of the most confusing issues for Accountants and Clients alike has been the many different types of files and how to effectively work with each type. With version 2007, this has been simplified. Now there is a new pop up box to help guide the process.

For whichever type of file is chosen, the appropriate dialog box appears to browse to the file location.

For restoring a back up, for example, the choice is if the back up is local or online as the following screen shot illustrates.

List Limits Expanded

Networking Issues

Opening a Data File on the Network

Our recommendation since the change of the data base structure with version 2006, is to install the software on the server, open the data file on the server and complete the conversion process, then install the software on the various workstations. Using this approach continues to be our preferred method with version 2007. In some cases, however, the software may not be installed on the server, in which case an alternative method will be required.

In addition to the server versus software reference in the installation process, version 2007 includes troubleshooting information within the product when the data is located on a computer that does not have QuickBooks installed. In addition to stating the problem, "You are trying to work on a company file that is located on another computer, but that computer needs additional installation and set up" it also provides information about the recommended set up (address the issue on the other computer) or the alternative set up (to make the local computer the host). To use the alternative set up, click the appropriate button.

Copying the file to the local computer is then recommended before the file is converted. At that point, the back up and conversion process appears to be the same as in previous versions.

List Limits Expanded

Save A File

With version 2007, the process of saving a file has changed slightly. There is now a wizard to guide the user through the process of determining the type of file to be saved.

Depending on the choice, the appropriate screens will appear, for example, the portable company file option proceeds directly to where the file should be saved (the desktop, by default) where as the backup copy has an intermediate step to choose to store the back up locally or online.

There are also additional options that can be changed for the back up that are not available for the portable company file choice. The first time through, designating the local folder will be required. The ability to designate the folder and state how many copies will be retained is new with version 2007.

If the folder is chosen on the same drive as the data file, a warning is displayed:

The next screen asks when to create the back up

To schedule future back ups, there is a screen to provide guidance for automatic and scheduled back ups

Summary

This makes the process much easier, the only change I would like to see made is to include the ability to create the Accountant's Copy from this same wizard so the client can easily find it. Navigating to a different location on the file pull down is often confusing to the client. Using the navigation they have become accustom to seem better.

List Limits Expanded

Features of QuickBooks

Back-Up

General Features

Below are several of the more common features of the software package. Please note that features may not be available in all products or all versions. For those issues of most importance in the decision to use QuickBooks or upgrade, please do a search on the term for the most complete and up-to-date information.

· Optimized for 32-bit, Windows® 95/98/Me/NT 4.0 (SP3, 4, or 6a)/2000/XP

· Reasonably quick to setup and learn (the software contains many wizards and intuitive choices to make the process easier, most forms look like what would be completed manually)

· "Feels" like single entry based on the use of forms which record transactions (although the software does the journal entry behind the scenes)

· Very forgiving when correcting data entry errors (although is feature needs to be used very carefully)

· Activity based rather than journal based (designed for small business people based on the logic of choosing tasks, not accountants based on the logic of specific "journals")

· Logical movement using menu bars, keyboard shortcuts and/or navigation bar

· Easily customized forms (templates) and reports

· Framework based on lists (the forms can be quickly and accurately completed using the lists, including adding to the list as needed from within the form itself)

· Department/Location Tracking (this is called "class" in QuickBooks and permit creating a Profit & Loss report by class to view profitability of various segments of a business)

· Optional use of account numbers (up to 7 alpha-numeric digits)

· No easy import of transaction data, only lists without add-on software from other manufacturers (several will be highlighted through out the course, as appropriate)

· Ability to export lists and print reports to a file

· Maximum items per list is approximately 10,000

· Maximum transactions is 2 billion

· Maximum value is $99,999,999.99 for any one transaction.

· QuickBooks Pro and Premier are multi-user ready for up to 5 users in the same data file simultaneously in network environments

· Backup function compresses the size of the file significantly

· Sample company data included

The fully integrated software package provides the following:

· General Ledger

· Journal Entries (adjusting and auto reverse for Premier only)

· Class Tracking (can be required by turning on the preference for version 2003)

· Bank Reconciliation

· Accounts Payable

· Credit Cards (use for purchases by the business)

· Merchant account (use to receive payments from customers)

· Purchase Orders

· Print Checks & Deposit Slips

· Accounts Receivable

· E-mail or Print Invoices/Statements (expanded with 2003)

· Estimates/Bids (Pro or higher only)

· E-mail or Print Estimates (Pro or higher Only)

· Calculate Finance Charges

· Progress Invoicing

· Sales Order Tracking (Premier only)

· Payroll (including access to online direct deposit and online payroll tax service)

· Time Tracking (Pro or higher only)

· Calculate Sales Tax

· Job Costing

· Memorized transactions

· Budgeting

· Forecasting (Premier only)

· Business Plan tool (Premier only)

· Inventory (average cost)

· Building assembly inventory parts from component parts (Premier only)

· Price Levels (Pro or higher Only)

· Report Generating Features

· Easy Customization (forms and reports)

· Batch Report Printing

· Contact Management Features

· Audit Trail

· Free Online Software Updates

· Accountants Review™ feature

· Online Banking (reconcile activity with the bank)

· Online Payments (pay bills and write checks electronically)

· Tips and Reminders

· "How Do I?" context-sensitive help

· Hide inactive customers, vendors, items and employees

· Integrates with Microsoft Word (97 or higher) and Microsoft Excel (97 or higher) (Pro or higher Only)

· Synchronization with Microsoft Outlook (97 or higher) or Symantec ACT! (v.3.08, 4.02) or Interact ACT! 2000 (Pro or higher Only)

· Expert Analysis (Premier Only)

· Password Protection

· Web Site Building

· Fixed Asset Manager (Premier Accountant Edition Only)

· Loan Manager (Premier Accountant Edition Only)

· Vehicle Mileage Tracker (Pro and higher)

· Import lists from Excel (Pro and higher)

· Cash Flow Projector (Pro and higher)

Forms

What are forms?

Forms are the screens that QuickBooks uses to make recording transactions easier without needing to enter activity using debits and credits. For example, a check form looks very similar to a check that would be hand written. The form is linked to the general ledger via a journal entry that happens automatically without any additional user interaction needed. Most forms can be customized by modifying the template.

QBRA-2003: Banking > Write Checks

2/17/04

Lists

What are lists?

Lists are the way QuickBooks organizes the repetitive information needed on forms. This consistency is critical when generating reports on the transactions. Each list has specific functions, for example, the customer list is needed to use the Accounts Receivable functions, or the item list is needed to provide the general ledger account that will be used when an item is purchased or sold. By using the lists, additional report options are possible in addition to improving the efficiency of the data entry link to 621 procedures.

QBRA-2003: Lists > Chart of Accounts

Registers

What are registers?

Registers are the running totals for Balance Sheet accounts based on the transactional information that has been entered into QuickBooks. The register provides an easy way to see the detail of all the increases and decreases to a Balance Sheet account and from the register, it is possible to double click on the transaction directly and "drill down" to the actual entry.

Tip: The balance that appears on the chart of account list is the ending amount in the register, not the balance as of a specific date. For example, if a transaction has been entered with a future date, it will be reflected in the balance visible on the chart of accounts list, but will not match the amount that appears on a Balance Sheet as of today.

Profit and Loss accounts do not have a register. For those accounts, generate a report for a specific period of time to see the transactional information.

QBRA-2003: Lists > Chart of Accounts > single click on account > Activities > Use Register

TIP: The "sort by" field permits the order the transactions appear in the register. Choices include:

· Date, Type, Num/Ref

· Amount (largest first or smallest first)

· Number/Ref

· Order entered

· Date and order entered

· Cleared status

Navigation Alternatives

There are four ways to control movement the software: the Menu Bar, Keystrokes, the Icon Bar, and specific Navigators. There is not a right way or a wrong way to move around in QuickBooks. Each user of the software can use any or all of the alternatives depending on what improves personal efficiency.

Pull Down Menus

Pull Down Menus

This alternative uses the menu bar across the top of the software. It starts with File then Edit. After that, it varies depending on which version and which product is being used. For example, version 99 and prior had a menu bar option called Activities where as version 2000 and higher have additional menu bar options that separate the activities by the list they relate to, for example, customers, vendor, or employees.

By clicking on the pull down menu, the key stroke alternatives are noted to the right of the option, for example Ctrl+I for Create Invoices or Ctrl+W for Write Checks.

QBRA-2004: Vendors > Inventory Activities

Multiple Windows

Multiple Windows Versus Open Window List

It is possible to change the view from one window (which means that the window is maximized to fill the entire screen) to multiple window view (which means that it is possible to see numerous windows on the screen at the same time). To change from one alternative to the other, choose the appropriate option from the View pull down on the menu bar. When using the one window option, consider also choosing to use the open window list that is also available on the View pull down on the menu bar to permit quickly navigating from one task to another.

Example of one window view with open window list turned on

Example of multiple window view

It is also possible to change this setting by editing the preference.

Key Strokes

Keystrokes

Keystrokes improve data entry significantly because there is no need to remove your hands from the keyboard, reach for the mouse, figure out where the cursor is, move it to where you need to go, and click (potentially several times). There are two ways to do this; the first is as data entry is completed, the second is to perform a specific task such as opening a form or memorizing a transaction.

By starting to type the name or item as you are completing a data entry task, the software will try to help by using "QuickFill" to match information already on the list. If it is not found, you will have the option to set it up. By starting to type, this is usually much more efficient than using the scroll down list. The main trick to this feature is to be consistent when setting up list items. For example if the list says Smith, Bob and the user types Bob Smith, QuickFill cannot help to find it.

The keystrokes in QuickBooks are left over from the old QuickBooks for DOS days. Although it may take a little while to get used to them, keeping your hands on the keyboard will reduce the time and effort it takes to enter information. For the complete listing, see the User's Guide that is provided with the software. Here are a few to get started.

Keyboard Shortcuts:

Where you need to be	What it does	What you press together
In any date field	Changes the date to the beginning of the month	Ctrl > M Trick: The first letter of the word Month
In any date field	Changes the date to the end of the month	Ctrl > H Trick: The last letter of the word Month
In any date field	Changes the date to the beginning of the year	Ctrl > Y Trick: The first letter of the word Year
In any date field	Changes the date to the end of the year	Ctrl > R Trick: The last letter of the word Year
In any date field	Changes the date to today	Ctrl > T
Anywhere	Opens the invoice form	Ctrl > I
Anywhere	Opens the check form	Ctrl > W
Anywhere	Opens the Chart of Accounts list	Ctrl > A
On any list	Creates a new entry for the list	Ctrl > Nr
On any list	Edits the entry that is currently highlighted	Ctrl > E
On any form	Move forward to the next field	Tab
On any form	Move back to the previous field	Shift > Tab
When several windows are open in QuickBooks	To close the windows one at a time	Esc

Icon Bar

The Icon Bar

One of the best ways to increase efficiency is to customize the icon bar. This feature has been around for a long time. However, it was removed with Version 2000 then brought back with Version 2001. It is possible to remove icons, as well as add new ones for the functions you do the most (including memorized reports). It is possible to customize the icon bar to be icons only, text only, or both. How the icon bar is changed depends on the version.

If the Icon Bar is not visible - For versions 2001 and higher, the icon bar can be turned on and off from the View pull down in the menu bar (i.e. file, then edit, then view). For version 99, it is a preference that can be turned on and off on the "my preferences" tab.

Remove unused icons - The standard icon bar can be changed to remove those features you do not use. For example, if you only write checks, and never use the Accounts Payable functions, remove the "bill" icon. To accomplish this in version 99, go to the preference, click on the icon, and then choose delete. For versions 2001 and higher, choose view and customize icon bar to click on the unwanted icon and delete it.

Add appropriate icons - In an effort to increase efficiency (and often to eliminate challenges with new users who have difficulty finding the appropriate navigation option) it is possible to add icons to the icon bar. With the form (or report) open, choose view and add to icon bar for versions 2001 or higher. For version 99, choose window (all the way to the left next to help) and then add the window to icon bar.

Customize the icon bar - to make the icon bar most effective move the icons into a logical order. You can even add spaces between groups of icons to make the distinctions clearer. Make these changes from the preference screen for version 99 or the view and customize screen for version 2001 or higher.

8/05/04

Navigator

Versions 6.0 and higher all have the ability to move around the program using the navigator alternative. While this works well for those clients who need to see the flow of transactions through the system, it is the opinion of the author that there are other more efficient ways to choose the features that are used repetitively.

Below is an example of a navigator:

QBRA-2003: Customers > Customer Navigator

TIP: For the various QuickBooks products there is also the ability to set a preference so the navigator automatically opens when the company file is opened.

Find Feature

The find feature is so easy to use compared to many other software packages. Ctrl+F is the key stroke for the feature. The advanced tab is for general look ups (and is the only option available in older versions) where as the simple tab is to find specific types of transactions. With either tab, enter what you know and QuickBooks will find the transactions that match the criteria.

New with Version 2005 the find feature will default to tab that was used last. In previous versions the default for Ctrl + F was the simple tab. For those who prefer to use the advanced the other tab had to be chosen once the window was open, or the navigation required was Edit > Advanced Find. This will improve efficiency when using the program for those individuals. With 2005 the Detail Level default was changed back to "All" rather than "Summary" as was the case in a few of the previous versions.

QBRA-2003: Edit > Find > Advanced

Besides the find feature, there are several ways to find a transaction that has already been entered.

· On all of the forms there is a previous and next button that can be useful. This is not usually the most efficient method since QuickBooks places all the transactions in date order as they are entered. This is not in the order entered, so if bills have been entered through 8/31/03 and a bill is entered dated 7/30/03, to find it would require pressing previous through all the August transactions.

· A more efficient method may be to use the register. This is also in date order, but it is easier to scroll up and down through the list. If a form is open on the screen (a bill for example) pressing Ctrl>R will open the appropriate register (in our example the Accounts Payable register). Once you find the transaction, double click to open the specific transactional form. The register can also be entered from the chart of accounts list.

· If you see a transaction on a report and would like to see detail about it, place the cursor on the line of the transaction. It will change into a magnifying glass. Double click and you will zoom to the detail.

Tracing a Transaction through the System

One of the many advantages of QuickBooks is the ease with which a transaction can be traced through the system. Assuming all the appropriate procedures have been followed so the transaction has progressed from form to form, this process is possible both forwards and backwards. For example, from a bill, it is possible to show the history either forward to the bill payment, or backwards to the purchase order. Another example would be using an invoice. With a form on the screen (an invoice for example) click on the history button and this will show the history of the transaction.

QBRA-2002: Open an Invoice > Edit > Transaction History

From this point, it is possible to go to the other transaction. In our example, to the receive payment screen, choose go to and the receive payment form will appear on the screen. If the same procedures are followed from a transaction such as a receive payment, it is possible to trace the transaction either forward to the deposit, or back to the invoice.

Return to Main Menu | Back | Search Further

QuickFill Enhancement

New with version 2005 is a slight change on the QuickFill. QuickBooks has long been described as easy to use with one of the major reasons being the QuickFill feature. As a name from a list is typed, QuickBooks automatically tries to complete the entry by finding the next entry that matches what has been typed. If a match is not found, it is possible to add the name to the list during that data entry process.

The change with version 2005 combined the best of both of the previous alternatives: rather than typing the name until the correct one appears (which can be well into the word) or choosing the inefficient alternative of reaching for the mouse to use the pull down list to choose the correct name, as the name is typed, the pull down list automatically appears with only those alternatives which match. It is then a couple down arrows and press return to choose that particular name.

Work-Arounds for Limitations

Work Around for Limitations

Automatic reversing entries

· For versions 2002 and prior – Use memorized transaction feature

· For Premier versions 2003 and higher – An automatic reversing option has been added.

Automatic percentage allocation of expenditures

· Use splits manually on the appropriate transactions in a register or on a check.

Close Net Income into any account other than "Retained Earnings"

· It is possible to change the name of the account from "Retained Earnings" but not the function, for any other closing account, a manual journal entry will be required.

Departmentalized Balance Sheets

· Use Excel interface available with Pro or higher

· Use an add-on product

Inventory valuation other than average cost

· Use adjust quantity/value feature

Extensive modifications to the report presentation

· Use Excel interface available with Pro or higher

· Use an add-on product

Merge of data files

· No work around unless programming experience

· Use an add-on.

Calculate depreciation or amortization

· Use decision tools feature prior to version 2004

· Create spreadsheet in Excel or use another software such as the tax preparation software

· Use the Fixed Asset Manager in Premier Accountant Edition version 2004

Amortize loans or leases for principal and interest

· Create spreadsheet in Excel or other software such as TValue

· Use the Loan Manager in Premier Accountant Edition version 2004

Different Version Management

Different Versions Driving You Crazy? We Have a Solution!

One of the biggest issues for Accountants and Bookkeepers who use QuickBooks is managing the different versions of the software, and keeping track of which clients are using which version, updating the system of tracking the issue when they upgrade, not to mention the additional issue of keeping track of their passwords (assuming they provided it to you in the first place). As part of continuing quest to find tools and resources to make your job easier, we have several suggestions to make the process easier. Although we do not endorse all of these ideas, we provide them to help spark the thought process for your own clients. We will start with the most extreme, and end with what we feel is the best solution.

Never return data to the client - one solution is to only have the most recent version of the software and as files arrive, convert them to the latest version. The problem with this approach is that the file cannot go back to the client using the Accountants Review Copy, or if major revisions are needed.

Force all clients to upgrade (or not) - another solution is to keep all clients on the same version. This can be accomplished one of two ways, instruct the clients not to upgrade until you say to, or always require all clients upgrade to the latest version. Some firms have even gone so far as to include the software price in an annual amount charged to the clients.

Different versions on different computers - although this process works well for some QuickBooks consultants, it creates work flow issues as staff members move from desk to desk, not to mention additional work and confusion when a client upgrades.

Data files saved in version specific directory - As a client data file is restored, it can be placed in a folder named for the version i.e. QB2002. This works well if the client does not upgrade. If the client does upgrade, it will be important to move the data file in Windows from one folder to another. The other reason this is a problem is because the data file may not be quickly found when needed (i.e. opening a version of QuickBooks, finding the file and discovering it needs another version, closing QuickBooks and opening the correct version to open the data file).

Password Management - When a client uses the password feature, they improve internal control (a good thing) but they can complicate the accountant"s life (a bad thing). Typically the problems arise because either the client set up a password and did not provide it to the accountant, or changed the password. To track passwords, the procedures vary, but typically one of the following three methods will be used: 1. write the password and version in the front of the client work paper file, 2. passwords are kept in an Excel or Word document for all clients (a master list), or 3. Passwords are kept with the client contact information in some type of contact data base. Any of these solutions can work, but the system breaks down when the information is not kept current (or the client changes the password and forgets to let you know).

Our Best Solution - What we have found works best is a little program called Advanced Intuit Password Recovery. From within the program you choose the appropriate data file. A pop up box then appears with all the passwords for the file (including Admin). In addition, the version used is also displayed. This tool works for versions 4-2002. The update for 2003 should be available soon. All of this can be had for only $60 for the business version. There is a trial version available, but it only provides the version and part of the password. Now obviously, we are assuming that you have permission from the owner of the file to access the file, and that you are not doing anything illegal with the tool.

For more tips and tricks like this, check out our article on Remote Accounting Solutions.

QuickBooks Help Overview

From the help pull down list from the menu bar are many alternatives, some of which change if an industry specific version of QuickBooks is used. These choices include a link to technical support, to submit a suggestion, to a QuickBooks learning Center and to the help documentation itself, just to name a few.

The help documentation within QuickBooks has been expanded in recent versions. When opening the QuickBooks help it is in a separate pop up window so it can be moved to the side as you continue to work with the QuickBooks program directly.

QBRA-2005: Help > QuickBooks Help

It is possible to find information by using the Search, Contents, or Index tabs. If F1 is pressed while using QuickBooks the help topic specific to the screen that is currently open will appear making the process of looking for help on what is being done more efficient.

Help: New Business Checklist

QuickBooks New Business Checklist

New with version 2005 is a new business checklist. This is designed to be a way to focus the new business owner on specific ideas that will help to improve success. The five topics include issues such as choosing a business structure and funding the business. The checklist is set up to permit placing a check mark next to each choice on the list My clicking on the hyperlink next to the checkboxes, that topic is automatically opened from the help menu.

This form has a print icon at the top, plus the ability to save or clear the checkmarks.

QBRA-2005: Help > QuickBooks New Business Checklist

QBRA-2005: Help > QuickBooks New Business Checklist > Focus Your Idea

QuickBooks Learning Center

QuickBooksLearningCenter

New with version 2005 is a QuickBooks Learning Center. By default this pop up will appear when QuickBooks is opened unless the check box is removed. The learning center contains a variety of short videos that includes audio explanations, or by clicking on the audio transcription button the audio is available in written form.

Help: Manage My License

Manage My License

New with version 2005 is a new option on the Help pull down menu. There are two secondary choices: one is to purchase additional licenses, the other is to manage the license on line.

The option to purchase additional licenses on line provides a toll free number to call and the license, product, and source code information appears on the screen along with a validation code box to enter the code provided by the agent when the purchase is complete.

The synchronize option goes online to match the license data from the user computer with that of Intuit. At the end of the process, a pop up box will appear that the sync was successful.

Customizing the Icon Bar

Customize the icon bar

To make the icon bar most effective move the icons into a logical order. You can even add spaces between groups of icons to make the distinctions clearer. Make these changes from the preference screen for version 99 or the view and customize screen for version 2001 or higher.

Version Management

Older Version Notes

Older Version Notes

It has been the practice of Intuit starting 1999, to release an annual upgrade to the product. While it is not required to upgrade each year (when upgrading you can skip versions) if there is a feature that has been added that makes sense, it is recommended. There are exceptions to that rule, for example, tax table subscriptions are only available for the current and two previous versions. The same is true for technical support. If the Assisted Payroll Service is used, the QuickBooks file is required to be converted to the most current version in a reasonable amount of time. While some consultants continue to support the older versions, typically every few years at least each client can find something that makes it worth upgrading.

Intuit has instituted a Sunset Policy which means that payroll subscriptions and technical support are only available for the current and two previous versions. Typically the change takes effect around April of the subsequent year. For example, as of May 2005, only US versions 2005, 2004, and 2003 will be supported.

Different Version Management

Different Versions Driving You Crazy? We Have a Solution!

For more tips and tricks like this, check out our article on Remote Accounting Solutions.

Should You or Your Clients Upgrade?

When determining if you or your clients should upgrade, the general rule we follow is: Intuit has a proven record of releasing a new version of the software each year, and it is possible to upgrade across several versions. For this reason, unless there is a feature or report that makes the upgrade make sense, it is not required that the software be upgraded each year. However, Intuit only provides support for the current and two previous versions, so it is usually worth upgrading at least every third year. The exception to this rule is that some of the QuickBooks services (such as Assisted Payroll) require that the most current version be used.

Some professionals do, however, require their clients to upgrade each year. As far as if this is a good idea or not . . . The answer is really perception. Personally, because of the consulting work, it does not make sense for me to require the clients be on the most recent version. For those professionals who do on-going work with clients, I have seen it work well, to provide an annual "package" of services to the client (that the client pays for monthly or quarterly) that includes a copy of the software and installation of the upgrade. Basically the price is built in and it makes it easier for the professional to only be supporting one version. I have also seen situations where the professional will say no one upgrades until we all do together. The key to "selling" any of these types of programs is to let the clients know and understand the value it has to them personally. Otherwise, their perception may be that they are being forced into purchasing software that is unnecessary for them. The last common issue I see is that the professional only keeps the most current version of the software and all older versions are converted. Any changes are then sent back manually or via an IIF (consider the QuickBooks Transaction Copier) unless the client wants to upgrade so the changes can go back electronically.

The ability to install multiple versions on the same computer (but in different directories) eliminates some of the challenge on the side of the professional, and password recovery products provide information as to the version of the data file.

In the end, like so many other issues, it comes down to a judgment call by each professional.

Converting from QuickBooks Premier to Enterprise Solutions 5

The conversion process from a desktop version of QuickBooks to the Enterprise Solution is very similar to any other version upgrade with a couple of key differences.

Open the QuickBooks Enterprise Solution software and then navigate to open to the QuickBooks data file. A message will appear that warns that the file cannot be used with any other QuickBooks products (as compared to the file being interchangeable between Basic, Pro and Premier products with the desktop solutions) and that the file will need to be "optimized" or converted to work with this software.

Click on continue, a back up will be made, the Admin password will be required, and that is all there is to it.

With the Enterprise Solution, the password protection feature has been enhanced. For this reason, any user names and passwords from the desktop product will convert and a new Role will be created based on the permissions set in the previous file. By going to the role list, it is possible view and/or edit these permissions. The name of the role will be the user's name then role.

QBEA-5: Company > Users > Set Up Users and Roles > Roles List Tab

QBEA-5: Company > Users > Set Up Users and Roles > Roles List Tab > Click on User's Role > View Permissions

The other change in functionality is the ability to search from the customer:job, vendor, and item list. The Enterprise Solution has also been re-engineered for handle larger data files for improved speed and performance and to support remote access via a VPN. Other than that, the user interface is just like that of the Premier product.

Versions Overview Chart

Versions Overview Chart (PDF)

Overview of Version 2004

We have Seen Version 2004

We Have Seen Version 2004

Recently, as part of being a Certified Pro Advisor, we were able to download a Beta Wave 3 of the new QuickBooks Premier 2004. Although it is only a quick cursory review of the pull down menus, here is what we learned about the new version:

First, the trend towards industry specific versions is alive and well at Intuit. When installing the software, the choice of which Premier version to install is available. Included in the list are:

Accountant Edition
Contractor Edition
Healthcare Edition
Manufacturing & Wholesale Edition
Non-Profit Edition
Professional Services Edition
Retail Edition
Premier Edition

For the purposes of our quick review, the Accountant Edition was installed.

Some of the changes noticed include:

Loan Manager (for calculating loan amortization schedules)
Fixed Asset Listing (an item list for the fixed assets that includes fields for additional information such as serial number, notes, warranty expiration as well as purchase and sale fields). This listing will also interface with a Fixed Asset Manager included in the Accountant Edition for calculating depreciation.
Vehicle List and related feature to record mileage that is billable or not, then create reports or invoices based on the information.
Form 1096 is now available to print
It is possible to mark a journal entry as an adjusting entry, and a new report has been added for those specific transactions. And a new Trial Balance Report has been added to include those entries separately in an “Adjusted Trial Balance” format.
In the bank reconciliation window, it is possible to add the memo field as a column when reconciling.
Four new reports were noticed (although there may be more new ones): Transaction list by customer and transaction list by vendor provide the ability to quickly and easily create a summary report of all the different transactions types; Open purchase orders by job; and, as already mentioned, an adjusting journal entry report.
Included in the report list for the Accountant Edition are detail listings of additional reports by different premier editions with the exception of the non-profit edition.
Ability to e-mail reports and Purchase Orders

Still notably missing is the ability to:

Control the closing date by the Accountant (i.e. it is still included on the preference)
A way to filter the audit trail report by user

Overview

Major Enhancements for Version 2004

According to information supplied at the 2003 IDN Conference, with 89% market penetration, Intuit has discovered what small businesses want in their software:

Easy to use
Brand you can trust
Improved efficiency and productivity
Ability to be customized to meet needs

With this in mind, the major enhancements, according to Intuit, with version 2004 fall into three categories:

Capturing Tax Deductions

Fixed Asset List

Vehicle Mileage List

Fixed Asset Manager

Entering Vehicle Mileage

Improve Cash Flow

Loan Manager

Cash Flow Projector

Save Even More Time

Turbo-charged reconcile

Purchase Order from Sales Order or Estimate

E-mail Forms

E-mail Reports

According to Intuit, 1/3 of the enhancements are to save time. In fact, they estimate that approximately 40 hours per year will be saved as a result. Report enhancements, miscellaneous receivable enhancements, packing list forms and expanded price level options should be added to the last category based on the time saved. In addition, a final category is needed to complete the information supplied from Intuit

Accountant Enhancements

Adjusting Journal Entries and Report

Adjusted Trial Balance

Closing Date Warning when changing an item account

Excel import feature

Printable Form 1096

Release 5

Version 2004 Release 5

No, you did not miss the first 4 releases. Each release is numbered for internal purposes by Intuit even if it is not available to the public. We always recommend downloading the most recent release. With this release, however, we have been seeing more complaints of download time and install errors.

Some of the changes with the maintenance release on the current version 2004 products are: the removal of marketing messages from most forms, condensing a file with a large number of payments completed faster, item descriptions now import correctly when using the iif format, several payroll changes, and much more. The list is too extensive to list here, but all the changes are summarized on the QuickBooks Version 2004 Product Updates page.

To remain current with the maintenance releases, there is an option for automatic updates on the newer versions. When this feature is turned on, each time the computer connects with the internet, the software will check to see if a new update is available. Or, it is possible to register with Intuit to be notified as new releases are available by visiting http://pref.enews.quickbooks.com/intuit/qb_prefctr.asp or choosing to sign up for newsletters from the QuickBooks.com home page.

Release 6

Maintenance Release 6

Mid-June 2004 Intuit announced a new release, R6 for QuickBooks 2004 products. This maintenance release includes a long list of feature enhancements and fixes but most notable is the version detector. My scrolling over the file name, the version that was last used to open the file is displayed.

If this update has been installed and the version detector is not working properly, see our <a data-cke-saved-href="http://4luvofbiz.com/kb/premium.php?cat=25&id=%3Ca%20ref=" href="http://4luvofbiz.com/kb/premium.php?cat=25&id=%3Ca%20ref=" 114921"="">instructions</a> to correct the problem. <h2>More information on this topic</h2> <a data-cke-saved-href="http://4luvofbiz.com/kb/premium.php?cat=25&id=1114" href="http://4luvofbiz.com/kb/premium.php?cat=25&id=1114">Overview of Version 2004</a>

Version Detector Isn't Working

Version Detector Isn’t Working

Q - I just downloaded the latest release for version 2004 and one of the highlights was a version detector that will provide the information with what version the file was last opened. I installed the update, but I still do not see the version, what am I doing wrong?

A - Unfortunately, we had the exact same problem. For some reason, there is an additional step required.

Click on the Windows Start button, then choose Run. In the Run box on the open line type the following: regsvr32 "C:Program FilesCommon FilesIntuitQuickBooksQBVersionTool.dll"

Click OK. Now open QuickBooks and choose File > Open Company. When you place the cursor over the *.qbw file, your should see that a line is added for "last opened with:" This also works if you place the cursor over a *.qbw file using the Windows Explorer. If a file has been restored from a back up but not yet opened, the previous version will remain intact. For example, a client sends a back up and you are unsure what version they are using, you can open version 2004 and restore the file (do not convert or open it) then use the version detector to see what version it was last opened with.

Release 7

Maintenance Release 7

Release 7 for Version 2004 was released July 13, 2004. This new release corrects a problem with vendor EIN numbers created by Release 6.

Maintenance releases are an important part of keeping the QuickBooks software up-to-date. These free "patches" are available via download directly from Intuit.

Maintenance releases can be internal within Intuit (i.e. the end user may see release numbers that jump since the release was not made public) or they can be available for the end user.

According to Intuit, maintenance releases provide feature enhancements.

The main issue addressed with Release 7 was a situation where vendor tax identification numbers were converted to an EIN format from a social security number format with Release 6.

The complete information on this issue is available from Intuit"s support web site.

Closing Date Warning

Closing Date Warning/Password Protection

Password protection for QuickBooks has long been one of the pet peeves of this author. While many of the internal control issues still remain, one change has improved the password protection feature in version 2004.

Items

When the coding of an item is changed, the following question appears. "You changed an account associated with this item. All future transactions with this item will use this new account. Would you like existing transactions with these items to use this new account? This will include transactions prior to the closing date that use this item." Three choices are available of Yes (change all the history) or No (just change the account code as the item is used going forward) or Cancel. In the new version, if Yes is chosen the prompt appears for entering the closing date password (assuming a closing date and password have been entered in the preference). This is true even if the item is new and has never been used. If No is chosen, the coding change will only effect future transactions so there is no need to enter the closing date password. The same is true when merging items. Even if the item to be merged is new, the closing date password will be required.

Chart of Accounts

When merging accounts the prompt appears for entering the closing date password (assuming a closing date and password have been entered in the preference). This is true even if the item is new and has never been used. One shortcoming of the new feature, however, is the password is not required to change the account type.

Sample Using Excel Import Feature

New with version 2003 Pro and higher is an import feature the greatly enhances the ease of importing list information for customers, vendors, items, and accounts from a Microsoft Excel spreadsheet. This new feature makes the process of changing from another accounting software (assuming it is possible to get the list information out of the other software and into Excel) to QuickBooks easier.

To begin the process, a separate spreadsheet for each type of list is usually easiest. At a minimum, the different list information should be on separate sheets in the document. Confirm all the information to be imported into QuickBooks is in the Excel spreadsheet. Although it is not necessary to have header columns, this may make the process easier. If there are not headers, be sure the first row in the spreadsheet contains the data because this information will be helpful when mapping the spreadsheet to QuickBooks. Close the spreadsheet and open QuickBooks.

In QuickBooks, choose to import from Excel.

QBRA-2004: File > Import > Excel Files

The file is the Excel file that contains the information to be imported. If the exact drive, folder, and name is unknown, click on the Browse button to navigate to the file.

The sheet is important so the software knows where to look for the information. The sheet titles (i.e. Sheet 1, Sheet 2, etc) will appear if there are multiple sheets in the file. If the sheet names have been edited when the file was open in Excel, the edited names will appear.

Check the box if the spreadsheet has header rows, uncheck the box if it does not.

Typically the mapping will be added new. If this type of list in this format has already been imported into this data file, the mapping has already been set up and can be chosen from the pull down list.

QBRA-2004: File > Import > Excel Files > Mapping pull down > Add New

Type in a name for this mapping then choose the import type. Note that the only choices are customer, vendor, item, or account.

Once the import type has been chosen, the bottom section will be filled in with the fields that can be imported. On the left, it is possible to choose from the pull down list from the spreadsheet which columns the information should be contained in.

QBRA-2004: File > Import > Excel Files > Mapping pull down > Add New > Customer

TRICK: With each import type, there are certain formatting issues that need to be addressed so it is important to know how the fields will be imported prior to setting up the spreadsheet for importing from. For example, the address information for the customers is set up as billing address lines and shipping address lines. I.e. the customer city state and zip should all be in one column in the spreadsheet to import properly.

Once the mapping is set up, click on save to preserve the mapping for use.

Click on Preview and it is possible to see the data as it will be imported. The statistics of how many rows were process with how many errors is available. By clicking on the line with the error, it is possible to see a description of what the error is.

Here are a few examples of situations that will cause errors:

If the contact name is mapped for the Salutation field, an error will occur, because this field is designated as a limited number of characters for titles such as Mr. Mrs. Etc.
It is possible to import jobs or customers, but not with the name containing the colon like was required in the previous iif import procedures.
The types for items may not be consistent with those used in previous versions. For example, an "inventory" item now requires that the type be designated as "inventory part."

While these annoyances may take some getting used to, this process is still preferable over trying to figure out which column in the spreadsheet is causing the problem in the prior versions. In addition, it is nice to see what will be imported prior to the import actually being done. The errors can be ignored, or imported with only the information that did not cause the error when possible.

QBRA-2004: File > Import > Excel Files > Fill in Set Up Screen > Preview

Version 2004 Cut and Paste Address Enhancement

Cut and Paste Address Enhancement

In previous versions the address was restricted by line when trying to cut and paste. With version 2004 this has been expanded to permit cut and paste of the entire customer address. This change is effective for the vendor list and other name list addresses too.

Price Levels

New with QuickBooks Pro version 2001 was the feature for price levels.

To use this feature, first create the list of levels. The pricing levels can be either a fixed percentage to increase or decrease the selling price for all items purchased by a customer using this price level, or, it is possible to enter a custom price by item for the price level. Maximum number of price levels is 100.

QBRA-2004: Lists > Price Level List > Price Level > New

Then the price level can be assigned by customer. For example, if most of the customers are retail type customers, the selling price for each item on the item list would be entered at retail. If some customers are distributors and, there fore receive a discount on the products they purchase, they would be designed as distributors and as each invoice is created, the appropriate sales price would appear for the item.

QBRA-2004: Lists > Customer:Job List > Customer:Job New > Additional Info Tab

TIP: To use price levels, confirm that the sales & customer preference has been correctly marked.

TRICK: If you want to show the discount on the invoice, this may not be the best solution. Entering the retail amount then a separate discount line may be preferred as a price level alternative.

TRICK: To show the price level used on an invoice, use a custom field to match the price level chosen, and then add the field to be printed on the invoice to the invoice template.

Prior Version Note: For versions 2001-2003, Pro and higher the price level is applied to all items purchased by the customer. The ability to designate the price by item was new with version 2004.

QBRA-2003: Lists > Price Level List > Price Level > New

List Limits Expanded

Printable Form 1096

QuickBooks has always had the feature to print the Form 1099-MISC and the Form 1096 information was included on the screen. Now with version 2004, the software will actually print the Form 1096 too.

QBRA-2004: File > Print Forms > 1099s/1096 > Choose Date Range

Fixed Asset List

This feature was new with version 2004 for Pro and higher products (the Basic product only permits viewing and editing fixed asset items, not creating new ones). The purpose is for capturing the details of the asset in a way that was not available previously. These fixed asset items can then also be used on purchase and sales forms (although this use will probably be quite rare). The most significant reason for this new list is for the integration with the Fixed Asset Manager available with the Premier: Accountant Edition or the Enterprise Solution. This will streamline the process for the accountant because the information will already be entered into QuickBooks with the details needed to accurately calculate book value and depreciation amounts.

QBRA-2004: Lists > Fixed Asset Item List > Item > New

Asset Name/Number: is how the fixed asset item will appear on the item listing on sales and purchase forms. Keep in mind that this item will be included in with the item list. Consider, for example, adding a FA before the name or some other way to designate that it is from the Fixed Asset Item List.

Asset Account: is the general ledger account from the chart of accounts that will be used for purchase and sales transactions.

Purchase Information: the default information that will be used when this item is purchased. Enter the description, new or used (important for the depreciation calculation), date, cost, and vendor for when the asset was purchased.

Sales Information: Once the check box is marked that the item has been sold, the additional fields become available to enter the sales date, sales price, and sales expense.

Asset Information: The additional fields here permit the asset description, location, PO number, Serial number, a date for the expiration of the warranty and a field for notes.

TRICK: Until this item is actually used on a purchase or sale transaction, the general ledger does not reflect the acquisition or sale of the asset.

TIP: It can integrate with the Fixed Asset Manager that is included in the QuickBooks Premier: Accountant Edition product to calculate depreciation.

TIP: On the list itself, the FAM Number is the number that the Fixed Asset Manager uses for tracking this asset if the Accountant uses it to calculate the depreciation.

TIP: It is also possible to create a new item as entering a transaction by using the item field. If the fixed asset type item has not been sent up, it will appear as a choice when set up is chosen.

QBRA-2004: Vendor > Enter Bill > Item Tab > Item that has not been set up

Fixed Asset Manager

This tool is an integrated application available in the Premier: Accountant Edition and Enterprise Solution Products. This add-on product adds another option to the Accountant pull down menu and will automatically launch the program from within QuickBooks. The fixed asset list is then used to determine depreciation which can post a journal entry back to QuickBooks automatically.

QBRA-2004: Accountant > Fixed Asset Manager > Apply Query Criteria

According to the help information included with the software, the features include:

Tight integration with QuickBooks Data
A detailed, customizable asset entry screen
Six depreciation bases (Book, State, Federal, Other, AMT, ACE)
Projected depreciation calculations
Disposition tracking
Custom queries and sorting
Full calculation overrides
A wide variety of built in depreciation reports and forms
Multiple ways to export and import data
Integration with ProSeries tax products

Vehicle List

New with version 2004 is the ability to set up a vehicle list then use that list for entering vehicle mileage. The mileage is non-posting (very similar in concept to the time sheet) but can be used for creating invoices and generating reports.

This feature (new with version 2004) permits creating a vehicle list then using the list for tracking mileage, billable or not. This information can then be used on reports.

The first step is to set up a vehicle name and description on the vehicle list.

QBRA-2004: Lists > Customer & Vendor Profile Lists > Vehicle List > Vehicle > New

Entering Vehicle Mileage

Entering/Invoicing Vehicle Mileage

Next, enter the vehicle mileage. This screen looks very similar to the single time activity form. It is possible to assign the mileage to a customer:job, an item, a class, etc. The mileage can be calculated based on the odometer or simply entered as a number of total miles.

QBRA-2004: Company > Enter Vehicle Mileage

Invoicing Mileage

This mileage can be invoiced to a customer or there are several reports that can be created for the vehicle summary, vehicle detail, job summary or job detail. The reports include the total miles as well as the mileage rate, with an extended total amount.

QBRA-2004: Reports > Jobs, Time & Mileage > Mileage by Vehicle Detail

Adjusting Journal Entries

Adjusting Journal Entries

Managing journal entries input by the accountant has always been important. There have been work arounds in the past, but with version 2004 Intuit has addressed this issue in an effective way.

General journal entries have long been the accountant's "domain." Although many of the adjustments that need to be made are handled more effectively by using a QuickBooks form, there are certain instances when creating a journal entry is the only way to enter the transaction. This includes Accountants who are using the Accountant's Review Copy with their clients. Assuming entering the transaction as a journal entry does not have any reporting or feature implications (for example if inventory or payroll features are being used); the new adjusting journal entry feature expands the reporting capability for work paper preparation for the accountant.

QBRA-2004: Company > Make General Journal Entries

TIP: The ability to set a preference to have the software automatically, sequentially number the journal entries was new with version 2002. New with version 2003 was the ability to see a specific date range of journal entries on the screen below the journal entry input screen.

The new addition for QuickBooks Premier –Accountant Edition version 2004 is the ability to mark a journal entry as an adjusting entry by clicking on the check box. This small change has large implications to increase the flexibility of reports. For example, the adjusting column (a check mark in this column designates the entry was an adjusting entry) has been added to the default format for the following reports:

General Ledger
Journal Reports
Profit & Loss Detail
Balance Sheet Detail
Transaction Detail by Account
Transaction List by Date
Audit Trail
Income Tax Detail

TRICK: The ability to filter a report for only the adjusting journal entries is not available.

With Version 2003, there are also two new reports designed specifically to streamline the process for accountants: the adjusted trial balance that includes the unadjusted balance, adjustments, and adjusted balance columns; and the adjusting journal entries report which is a report of only the entries for the time period that have been designated as adjusting journal entries.

New with version 2005 is the ability to have the adjusting entries appear on a working trial balance report.

Cash Flow Projector

The cash flow forecast feature that was available in earlier versions has been enhanced to provide more useful information when planning future cash flow with version 2004. This new option is available for QuickBooks Pro 2004 and higher.

Beginning Balances

For the beginning cash balance, it is possible to include all or just some of the bank type accounts plus undeposited funds. In addition to choosing the accounts based on the check boxes, it also possible to enter an amount to adjust the balance. This type of flexibility is available throughout the feature to provide ultimate control over the projection calculations.

QBRA-2004: Company > Planning & Budgeting > Cash Flow Projector

Cash Receipts

Next, the determination is made on what cash receipts should be expected in the next 6 weeks. There are several different ways the software can help to calculate that estimate including average amounts for the last 6 weeks, same period last year, and many more, or it is possible to choose to project cash receipts manually.

For the manual calculation, this can be based on any criterion that makes sense for the particular business. Some common examples include money that is anticipated from new sales (i.e. not yet invoiced), the Accounts Receivable Aging or Collection reports, other cash inflows such as loan proceeds, etc. The data entry is based on a date and amount in the itemized table format. As was mentioned before, no matter which method is chosen, it is possible to adjust the weekly amounts.

QBRA-2004: Company > Budgeting & Planning > Cash Flow Projector > Next > Next

Business Expenses

The next step in the process is to enter any cash disbursements that have not been entered into Accounts Payable. This would include expenditures such as payroll, payroll taxes, sales tax, estimated cash payments, owner's draws, etc.

The expenditures can be designed by frequency to effect the cash flow projection as appropriate. For example, payments can be entered with the date they will be due like annual or semi annual property taxes, quarterly income tax estimated payments, monthly rent payments, or one time expenditures like year end bonus checks, weekly payroll estimates, etc.

QBRA-2004: Company > Budgeting & Planning > Cash Flow Projector > Next > Next > Next

Accounts Payable

The Accounts Payable estimate for money that will be spent is based on the due dates of the individual bill. It is possible to adjust the payment date based on a best guess of when the funds will need to be available or when the bill will actually be paid. As with the other sections, it is also possible to enter an adjustment as needed for the weekly expenditures.

QBRA-2004: Company > Budgeting & Planning > Cash Flow Projector > Next > Next > Next > Next

Finish Projection

Once the cash inflows and outflows have been entered, reviewed, and accepted, by clicking on the finish projection button, a cash flow projection sheet will appear. It is possible to print this report or save as a PDF.

It is also possible to close the report, which will return to the input screens to make "what if" scenarios more efficient as different receipts and disbursement alternatives are entered.

Throughout the process, it is also possible to "preview projection" without going through all the screens.

QBRA-2004: Company > Budgeting & Planning > Cash Flow Projector > Next > Next > Next > Next > Finish Projection

Purchase Order From Estimate

Create a Purchase Order from Estimate

One of the time consuming activities in the past was to enter the estimate for the customer then when they actually accepted the proposal, entering a purchase order to the vendor. New with version 2004 this process is streamlined as part of Intuit"s NED2 (Never Enter Data Twice) Philosophy.

To use this feature requires Premier or Enterprise Solution, enter the estimate first, then click on the down arrow next to create invoice. New with version 2004 are three options: invoice, sales order or purchase order. Only the create invoice option was available in previous versions Pro and higher.

QBRA-2004: Customers > Create Estimate > Enter estimate info > Down arrow by Create Invoice

By choosing the purchase order option, a pop up box will then appear to create a purchase order for all allowed items or create a purchase order for selected items. This feature allows the user to have control to order only the components needed to complete the work on the estimate that are not already in stock. It also permits creating several purchase orders if different items are purchased from different vendors.

QBRA-2004: Customers > Create Estimate > Enter estimate info > Down arrow by Create Invoice > Purchase Order

TIP: By choosing all allowed items, one purchase order is created without the vendor name. If selected items are chosen and all have the same preferred vendor information, that will appear on the purchase order.

TRICK: When creating a purchase order for the entire estimate, even if some of the items have already been used on a purchase order, all can be transferred onto a new purchase order. This feature is not tracking the link to the purchase order, but rather automating the process for the data entry of the items onto a purchase order.

By choosing the option to create purchase orders for selected items, the next pop up box permits sorting the items by preferred vendor as well as seeing the quantity on hand. This streamlines the process even further by creating an interface where all the necessary information is available in the same place.

QBRA-2004: Customers > Create Estimate > Enter estimate info > Down arrow by Create Invoice > Purchase Order > Create purchase order for selected items

Outstanding Billable Time Warning

In versions prior to version 2004, the time/cost button was available for creating an invoice for items, costs, and time that had been allocated to a specific customer. While this feature was helpful and reports were available to document amounts that were billable but not yet invoiced, there was not a reminder if a customer:job had amounts that had not yet been invoiced. This warning provides an additional safeguard to reduce the likelihood that any amounts will not be charged to the customer.

QBRA-2004: Customers > Create Invoices > Choose customer and press tab

Packing List Forms

Print Invoices

In version 2003 and prior, there was the ability to print invoices as a batch or individually. It was also possible to switch between various templates for forms for different purposes. For example, enter the invoice information, print it, and change to a packing list template and print that. With version 2004, there is now a better way to achieve the same results.

By clicking on the picture of the printer, the invoice will print the same way in which it did with previous versions. It is also possible to preview and/or align the forms using the buttons on the left on this print form also.

QBRA-2004: Customers > Create Invoice > Enter appropriate information > Printer Icon

By clicking on the new pull down arrow next to the printer available with version 2004, several alternatives are possible:

Preview – See what the printed invoice will look like on the screen. In prior versions this is accomplished by clicking on the printer then the preview button.

Print – Send the invoice to be printed on the printer. This option is the same as if the printer is used or File > Print Invoice is chosen.

QBRA-2004: Customers > Create Invoice > Enter appropriate information > Print pull down arrow

Print Batch – Having this option available on the invoice form itself was new with version 2004. In prior versions this was accomplished by clicking on File > Print Forms > Invoices when the check box at the bottom of the form "to be printed" is marked.

Print Packing List – This option was new with version 2004. In the past a packing list template could be created, but it was necessary to switch between the templates to achieve printing both. Now it is possible to just click on this option to print the packing list.

Print Shipping Label – The option was new with version 2004. This option requires a ship to address be visible on the screen for the invoice template. There are several different labels that will work with this option. See the screen shot below for several choices. It is also possible to do rolodex cards, file labels, etc. using this option too.

QBRA-2004: Customers > Create Invoice > Enter appropriate information > Print pull down arrow > Print Shipping Label

Email Forms

Email Invoices

With version 2001 the ability to e-mail estimates and invoices directly from QuickBooks was added. The ability to e-mail statements was added with version 2002. With version 2003 and higher the invoices are attached as a PDF rather than included in the body of the e-mail. With version 2004 additional forms and reports have been added to the list of what is available to e-mail. There has never been a fee for e-mailing forms with any of the versions of QuickBooks.

By clicking on the picture of the envelope with the arrow the invoice can be sent immediately. It is possible to edit the text for this one e-mail message or to edit the default text so it will be different each time going forward.

TRICK: Consider including the business e-mail address in the cc field if a record in the e-mail program is desired. A record of the e-mail being sent will be available from the history button, but that is the only record created automatically.

QBRA-2004: Customers > Create Invoice > Enter appropriate information > Send Icon

By clicking on the new pull down arrow next to the send icon available with version 2004, several alternatives are possible:

QBRA-2004: Customers > Create Invoice > Enter appropriate information > Send pull down arrow

E-mail Invoice – This is the same as the option when clicking on the send icon directly.

Mail invoice – This is an optional service that requires signing up and paying an additional fee. With this service, QuickBooks will print, fold and mail the invoices to the customers. There are also additional features available with the QuickBooks billing service such as confirmation when e-mailed invoices are received, customer access to their account online, automatically sent payment reminders, etc. The fee for this service start at $14.95/month.

QBRA-2004: Customers > Create Invoice > Enter appropriate information > Send pull down arrow > Mail Invoice

Send batch – This is the same feature as is available when choosing File > Send Forms. It is possible to edit the e-mail for each invoice and then select those to send at once.

QBRA-2004: Customers > Create Invoice > Enter appropriate information > Send pull down arrow > Send Batch

Billing Solutions Options – This launches an internet browser to manage or add billing services for the company data file that is currently open.

Make Deposit Enhancement

Receive Payment/Deposit Corrections

Q - I have created a mess that I am hoping you can help me straighten out. I entered several receive payments and the chose the make deposit option. A couple of months later I realized that I have two customers with similar names and the payment had been applied to the wrong customer. When I go to the receive payment and try to change the customer it says I need to delete the deposit. I am afraid to do that since I have already completed my bank reconciliation and I do not want to make the situation even worse. Can you point me in the right direction to get this cleaned up?

A - There are two alternatives. The most efficient answer is to create two journal entries through a "clearing" account. The first entry would be a debit to Accounts Receivable with the incorrect customer in the name column and a credit to the clearing account. The second entry would be a credit to Accounts Receivable with the correct customer in the name column and a debit to the clearing account. Confirm the clearing account balance is zero and look at the customer balances to confirm the journal entries moved the balance as appropriate.

The second alternative is to correct the original entry. To correct the original transaction is not an easy solution, but by using an organized approach, you can accomplish the correction while leaving your previous bank reconciliation intact.

1. Find the appropriate deposit and print it for future reference.

2. Choose Edit from the menu bar and then transaction history (Ctrl > H) and go to the appropriate receive payment.

3. Leave the receive payment screen open and go back to the deposit. Click on the line with the incorrect customer.

4. Choose Edit from the menu bar then delete line.

5. Click on next then previous (to record the deposit without the line then go back to it).

6. Go back to the receive payment, make the appropriate correction, and then save the changes.

7. Go back to the deposit and click on the payments button at the top of the deposit form to "pull" the corrected transaction onto the deposit slip.

8. Confirm the deposit total agrees with the report printed in step 1 then save the transaction.

This process, although many steps which can get confusing, does not delete the deposit in total so the bank reconciliation will not be changed when the correction is done.

Columns to Display and Limiting Transactions

New with version 2004 was the ability to change the bank reconciliation screen. For the checks and deposits, it is now possible to customize what information is visible when reconciling the QuickBooks activity to the bank statement. Turning on or off the columns is as easy as placing a check mark before those columns to be used, or removing the check mark from those that will not be visible.

QBRA-2004: Banking > Reconcile > Enter the ending balance > Continue > Columns to Display

Limiting Transactions

Also new with version 2004 is the ability to check the box and limit transactions to on or before the statement date. This makes the reconciliation process easier because any transactions after the statement date will not appear in the reconciliation window.

Locating Discrepancies

With version 2004, the ability to locate discrepancies has been expanded. From the first screen of the reconciliation process when using QuickBooks Premier or Enterprise Solution software, it is possible to receive help in finding the difference between the opening balance on the reconciliation screen and the bank statement.

QBRA-2004: Banking > Reconcile

By clicking on the "Locate Discrepancies" button, several alternatives are now available.

Discrepancy Report

This feature was new with version 2002 Premier and Enterprise Solution was a reconciliation report designed to aid in determining the specific transactions that have been changed since the last reconciliation with a transaction date prior to the statement date.

Previous Reports

With version 2002 Premier, there is an option for printing the previous reports for any reconciliation completed subsequent to the upgrade. This option is available from the second bank reconciliation window, or by choosing Reports > Banking > Reconciliation discrepancy, summary, or detail.

QBRA-2003: Banking > Reconcile > Ending Balance > Continue > Previous Reports

With version 2004 Premier or Enterprise Solution, this option has been expanded to include a report of the previous reconciliation exactly as it was (this is the only option available in previous version, but with 2004 it has changed to be a PDF report) or the transactions plus any changes to the transactions since the reconciliation was completed. The option of detail or summary was available with version 2002 or 2003, the option to print both (similar to "full" in the older versions) is now available also.

QBRA-2004: Banking > Reconcile > Locate Discrepancies > Previous Reports

Undo Last Reconciliation

This feature was new with version 2004 and will permit undoing the previous reconciliation. It is possible to undo the reconciliation sequentially back in time. It is recommended that a back up be made prior to using this feature.

QBRA-2004: Banking > Reconcile > Locate Discrepancies > Undo Last Reconciliation

Restart Reconciliation

This feature does just that – it returns to the screen to enter the ending bank statement balance and proceed forward in reconciling the account.

Undo Last Reconciliation

QBRA-2004: Banking > Reconcile > Locate Discrepancies > Undo Last Reconciliation

Loan Manager

Loan Manager

In prior versions, creating amortization schedules required Excel or some other product such as TValue to calculate loan repayment schedules. New with version 2004 a loan manager is built in with the Pro and higher products.

Before beginning obtain all loan related information. The actual loan document is preferred, but at a minimum the liability account will need to be set up on the chart of accounts, origination date, the loan amount, payment amount, interest rate, term of loan, payee, loan number, etc. Next, choose Banking > Loan Manager.

QBRA-2004: Banking > Loan Manager

Next, it is time to add a loan.

The Account Name is available from the other current liability and long term liability type accounts. The lender is available from the vendor or other names list. The origination date is the date the loan was funded. The original amount is the amount that was borrowed when the loan was obtained. And the terms should be entered as a number of months (for example, a 5 year loan is 60 months). It is important that all this information is entered accurately to ensure an accurate schedule of principal and interest payments.

TRICK: Be sure that both the account name and lender name are set up on the appropriate list prior to opening the loan manager. If the loan manager is already open and then the names are added, the pull down lists within the loan manager will not be updated.

QBRA-2004: Banking > Loan Manager > Add a Loan

Click the next button to proceed to the payment screen.

On this screen, the date of the next payment is entered; the amount of the payment; payment frequency, and the loan payment number that is optional. If the loan also has an escrow payment, it can be entered on this screen too. By default the check box is marked to show a reminder 10 days before the payment will be due.

QBRA-2004: Banking > Loan Manager > Add a Loan > Next

The next screen is the interest information.

The interest rate is entered as a percentage. The compounding choices are either monthly or based on the actual days. If the latter is chosen it is possible to designate 365/365 for the period or 365/360. The payment account is chosen from the bank accounts. On this screen enter the interest expense account and the fees/charges expense account from the chart of accounts.

Once everything has been entered, click the finish button.

QBRA-2004: Banking > Loan Manager > Add a Loan > Next > Next

Once the loan is set up, clicking on the payment schedule will display the principal and interest portions of each payment of the loan.

Note: A test loan entered using T-Value (difference coded to first payment) and the loan manager resulted in the same amortization schedule. T-Value is much more flexible to control exactly how the amortization schedule is calculated. But using this example, the schedule was the same

QBRA-2004: Banking > Loan Manager > Payment Schedule

With the loan manager open it is possible to have the software enter a check or bill for the payment. It is also possible to enter a regular payment or an extra payment. The principal and interest amounts are filled in based on the payment schedule, but can be overridden as needed.

QBRA-2004: Banking > Loan Manager > Set Up Payment

The "what if scenario" button will permit evaluating the loan based on the following choices:

What if I change the payment amount?
What if I change my interest rate?
How much will I pay with a new loan?
What if I refinance my loan?
Evaluate two new loans.

Enter the new information and click on calculate to see the results.

QBRA-2004: Banking > Loan Manager > What if Scenario

Version 2004 Enhancements

Report Enhancements

The ability to share and manipulate reports, especially by using Excel has always been a strength of QuickBooks. This feature has been expanded to include e-mail and other format options in 2004.

When creating a report in version 2004, the first change is that in addition to the print option, there are now two other buttons: E-mail and Export. The former is new, and the later is a change from an Excel button in the older versions.

QBRA-2004: Reports > Company & Financial > Profit & Loss Standard

Email Reports

E-Mail Report

When choosing to e-mail a report, an Email Security warning appears, "Sending information using Internet e-mail is not secure. Sensitive information could be intercepted and viewed by a third party. Click OK to continue." Once the warning is acknowledged, a screen appears to capture the "to" and "cc" fields as well as the e-mail text.

It is possible to edit the default text on this screen, but it is not possible to have several different text messages depending on the report or recipient. There is also no way to enter the "To" e-mail address short of cut and paste or typing it. The software will then attach the report as a pdf to the e-mail.

QBRA-2004: Reports > Company & Financial > Profit & Loss Standard > E-Mail

There is a QuickBooks add-on product that will permit creating reports (the same choices as from the QuickBooks Reports pull-down menu) and filtering those reports. Once the reports are memorized within AutoReporter, the reports can be run daily, weekly, monthly, or another frequency, then delivered to your screen, a default printer, or to your In Box as a PDF attached to an email. This program runs in the background so QuickBooks does not even need to be open for the reports to be sent.

Export Report

The Export button now has several new options. In addition to the new Excel workbook or existing Excel workbook choices available in previous versions, the later choice also permits using an existing sheet in the workbook. This is different than previous versions that had only a default choice of a new sheet in the workbook. The Excel option also includes the choice of a new worksheet in the workbook that explains Excel worksheet linking or not. The other new option is that the report can be exported as a comma separated values (.csv) file. The options on the advanced tab are not available with this option.

The advanced button in previous versions has been changed to a tab in the new version.

QBRA-2004: Reports > Company & Financial > Profit & Loss Standard > Export

Open Sales Order Report

With version 2003 when Sales Orders were first available with the Premier product, a sales order report was available by customer or by item. New with version 2004, the format has been modified to include not only the quantity but the quantity that has been invoiced.

QBRA-2004: Reports > Sales > Open Sales Order by Item

Adjust Trial Balance (2004 or later)

Adjusted Trial Balance (2004 or later)

Ask the Expert…

Q - In my firm we prefer the unadjusted, adjustments, adjusted type of format for the trial balance. Is there a way to do that when using QuickBooks?

A - The answer will depend on what version of QuickBooks you are using.

New for QuickBooks 2004: Accountant Edition: When entering a journal entry it is now possible to mark a check box that designates the transaction as an adjusting entry. This feature is extremely helpful for Accountants who are performing period end or reclassification entries and have the need to create specific reports documenting the work that they have done. The power of this option is that now additional filter options available, as well as two new standard reports to aid in documenting the adjustments that have been made to the QuickBooks file by the accountant. These reports are useful for the accountant work papers. In addition, it is now easy to print these two new reports (an Adjusted Trial Balance report and an Adjusting Journal Entries Report) for the client to ensure that the adjustments are entered back into their file if the back up or Accountants Review Copy type files are not returned to them.

TRICK: Be careful of the date range at the top of the report. The adjusting entries will be included in the adjustments column only for the last calendar day of the report date range. So, when entering the adjusting journal entries, be sure to only use the last day of the period being adjusted for the adjusted trial balance report to appear as expected.

QBRA-2004: Reports > Accountant & Taxes > Adjusted Trial Balance

Prior to version 2004: There was not a standard adjusted trial balance report available within the system that shows the unadjusted figures, entries made, and ending adjusted balance.

Adjusting Journal Entry Report

To create a report with only the general journal entries (as opposed to invoices, bills, etc.) then choose the journal option from the transaction type pull down menu in the filter window.

QBRA-2004: Reports > Accountant & Taxes > Journal > Modify Report > Filters > Transaction Type

TRICK: Version 2002 and prior default to an amount column. Consider modifying the report to remove the amount column and add the debit and credit column. With version 2003 and higher, the debit and credit columns are the default.

With the Accountant Edition of version 2004, there is a new report available just for those entries marked as adjusting journal entries.

QBRA-2004: Reports > Accountant & Taxes > Adjusting Journal Entries

Maintenance Releases

Maintenance Release Overview & Resources

What's New in Version 2005

Find Feature

QBRA-2003: Edit > Find > Advanced

Besides the find feature, there are several ways to find a transaction that has already been entered.

QuickFill Enhancement

Help: New Business Checklist

QuickBooks New Business Checklist

This form has a print icon at the top, plus the ability to save or clear the checkmarks.

QBRA-2005: Help > QuickBooks New Business Checklist

QBRA-2005: Help > QuickBooks New Business Checklist > Focus Your Idea

QuickBooks Learning Center

QuickBooksLearningCenter

Help: Manage My License

Manage My License

New with version 2005 is a new option on the Help pull down menu. There are two secondary choices: one is to purchase additional licenses, the other is to manage the license on line.

The synchronize option goes online to match the license data from the user computer with that of Intuit. At the end of the process, a pop up box will appear that the sync was successful.

Installation Issues

The installation and upgrade process is the same for version 2005 as for previous versions. As the installation of the software occurs, it is possible to choose the folder. This permits replacing the previous version, or installing the new version in its own directory to still permit using the older version.

At the end of the installation process, there is a change: The ability to check for any updates that may be available immediately. As time progresses, there are usually free, downloadable updates called maintenance releases which provide feature enhancements and/or fix bugs for the software. It is important to download these, and the ability to find out if there are any as the software is installed is a nice touch from Intuit. This automatic update screen also provides information about how to turn on or off the automatic updates as well as Intuit’s privacy policy.

After the automatic update screen has been acknowledged, the next choice is to view the Overview tutorial, create a new file, open an existing one, or open a sample company.

Once that choice is made, the new QuickBooks Learning Center pop up box appears. By default this screen will appear each time QuickBooks is opened unless the box is unchecked for “show this window at start up.” It is possible to click on the buttons and links to learn more about QuickBooks, or to just “Begin Using QuickBooks” by choosing the button at the bottom of the screen.

Simple Start

In September 2004 Intuit announced the newest product to the QuickBooks Accounting Software family in a press release.

Overview

The Simple Start product was new in 2004. It is designed for new businesses and those that have been using a manual system (i.e. spreadsheets, one-write systems, paper and pencil, etc.)

The package is designed to be less intimidating. It is a small, folded package with very easy instructions. The manual is a cardstock sheet folded in half. Included on the CD is a desktop edition and the online edition. The user can choose either.

Getting Started

Once the software is installed, the following screen appears when the software is started.

There is only one sample company included but the software just proceeds to the interview to get the new user started.

The screens for the forms have been simplified. Rather than button on the form itself, the related activities are listed at the bottom of the left navigation pane. Related Help is located there also to make the experience as straight forward as possible for the user. The various Money In, Your Business, and Money Out options have two choices for each. Most are either new or list.

Ease of Use

The find is consistent with the simple find in the other desktop products.

Below is an example of the invoice in Simple Start. Notice how it does not have many of the choices of the other desktop products.

As compared to QuickBooks 2005 Premier: Accountant Edition

That simplification is consistent throughout the product. Below are a few examples:

The data file either has a password or not, there is no need to deal with which areas of QuickBooks the user should have access to:

The preferences have also been significantly reduced in the interest of simplicity:

When setting up an account, the optional information is clearly noted as such:

When creating a new item, there is no choice of item type:

Pull Down Menus

File

New Company

- Open Company

- Company Information

- Add/Change Password

- Preferences

- Maintenance

- Back Up

- Restore

- Verify

- Rebuild

Print Forms

- Checks

- Credit Memos

- Invoices

- Sales Receipts

Email Forms

- Printer Set Up

- Register QuickBooks: Simple Start

- Exit

Edit

- Undo

- Revert

- Cut

- Copy

- Paste

Company

- Lists

- Customer List

- Vendor List

- Other Name List

- Chart of Accounts

- Items List

- Terms List

- Payment Method List

- Pay Sales Tax

- Business Services

- Business Services Navigator

- Manage QuickBooks Billing Solutions

- Synchronize Billing Solutions

- Manage Merchant Account Service

- Download Terminal Payments

- Manage Automatic Credit Card Billing

-For Your Accountant

- Reconcile

- Make Journal Entries

Reports

- Total sales by customer

- Total sales by item

- All activity by customer

- Customer balances

- Invoices that have not been paid

- Total expenses by payee

- All transactions by vendor

- Tax Reports

- Income tax summary

- Income tax detail

- Sales tax due

- Accountant Reports

- Profit & Loss Standard

- Balance Sheet Summary

- General Ledger

- Journal

Warning when Posting to Retained Earnings

Warning when Posting to Retained Earnings

New with version 2005 is the ability to turn on and off a warning when a transaction is posted to Retained Earnings. This preference is turned on by default when a file is upgraded to version 2005.

QBRA-2005: Edit > Preferences > Accounting > Company Preferences

Subsequent to the preference being marked to turn on the warning, if an entry is made directly to Retained Earnings, the following pop up box will appear.

Add to Register for Online Banking

Always use add to register for online banking

There was a new personal preference added to the checking preference list with version 2005. This preference deals with how the online banking transactions will be added into QuickBooks.

QBRA-2005: Edit > Preferences > Checking > My Preferences

With the box "unchecked" the pop up box will appear to choose how the information should be entered. This is the default.

QBRA-2005: Banking > Online Banking Center > View > Click on unmatched transaction > Add one to register

It is also possible to change the preference directly from this screen by marking the "do not prompt me again" check box. If the preference is changed this way or directly through the preference screen, the result will be that transactions in the future will be added directly to the register and the pop up box to make a choice will not appear again.

Online Banking Aliases

With version 2005, one of the frustrations with using online banking has been addressed. This issue is that the name lists become very long and cumbersome since each time a purchase is made with a payee it may show as a slightly different name. This makes reports and "Find" features ineffective and difficult. The checking preference now has an online banking preference that deals specifically with payee aliasing. It is a preference that can be turned on or off.

QBRA-2005: Edit > Preferences > Checking > Company Preferences

By default this option is turned on which means that a pop up box will appear to permit linking an unrecognized payee with an existing payee when matching downloaded transactions. If the preference is turned off, there is no prompt.

The pop up that appears when adding the downloaded transaction to the register looks like this:

If the Create Alias button is chosen it is then possible to choose from a pull down list of all names in QuickBooks (i.e customers, vendors, employees, etc.)

Automatically Open Drop Down Lists Enhancement

New with version 2005 was the QuickFill enhancement and while many people found the ability to see the list, for others the additional key strokes if the first choice that came up was the right one resulted in frustration. With Release 4 for version 2005 and Enterprise Solutions 5.0, this enhancement is now controlled via a General: My Preference choice.

QBEA-2005: Edit > Preferences > General

Workers Comp Preferences

New with version 2005 Enhanced Payroll option is the ability to set up and automatically calculate workers compensation payable.

QBRA-2005: Edit Preferences > Payroll & Employees > Company Preferences

From the Company preference (link to http://www.4luvofbiz.com/kb/premium.php?cat=25&id=135100&kb) click on the set preferences button in the workers compensation section. An additional pop up box will appear.

QBRA-2005: Edit Preferences > Payroll & Employees > Company Preferences > Workers Compensation - Set Preferences

Track Workers Comp turns the preference on or off.

Display message to assign codes provides a reminder as paychecks or time is entered to assign a workers' compensation code

To exclude overtime premium from the workers' compensation calculation this box should be checked.

For example, if the regular hourly rate is $10 and the overtime rate is $15 (assuming the payroll item has been set up properly as an overtime payroll item at 1 ½ times the regular rate) then 8 hours of regular hours and 1 hour of overtime would result in a gross wage amount of $90 for workers compensation premium calculations even though the employee would have been paid $95 in gross wages.

Copy Last Paycheck Earnings

Copy last paycheck earnings

New with version 2005 is a preference to copy last paycheck earnings when creating a new one. What this preference does is automatically enters the information on the preview paycheck screen as it was entered on the previous paycheck including earnings (for all earnings items including salary, vacation, sick, etc), hours, workers comp code, customer:job and class.

QBRA-2005: Edit > Preferences > Payroll & Employees > Company Preferences

TIP: When this preference is turned on, the earnings are used from the last paycheck, not from the employee set up on the employee list. This means that even if there is a rate change entered on the employee compensation tab, it will not affect the paycheck unless the rate change is entered in the preview paycheck window.

TRICK: If the employee has been designated to be paid from timesheets, and no time was entered. When this preference is chosen, a warning box will appear when creating the paycheck and the earnings section of the preview paycheck will be empty.

This preference is different than choosing to create the paycheck by marking the radial button of create check without preview using hours below and last quantities. With the preference unchecked, any changes made to the rates via the employee screen will be reflected on the next paycheck. The only information that is carried forward from the previous paycheck will be the hours and last quantities. The result is a paycheck created for the same amounts as the previous one.

TIP: With either alternative if there are limits that have been entered for the employee the amounts will stop affecting the paycheck when appropriate.

QBRA-2005: Employees > Pay Employees

Job Costing and Item Tracking for Payroll Expneses

Job Costing and Item Tracking for Payroll Expenses

The wording of this preference has changed slightly in version 2005. This preference wording will also change depending on how the class tracking and time tracking preferences have been set.

In version 2004 and earlier for Pro and higher products, it was possible to mark the preference to report all payroll taxes by customer:job, service item and class. The payroll taxes are allocated based on the allocation of the earnings used as the basis for calculating those payroll taxes. By default this preference was turned off.

The payroll taxes are allocated based on the allocation of the earnings used as the basis for calculating those payroll taxes. If the preference is turned on and the company contribution or addition payroll item is marked to track expenses by job, the additions and company contributions will be tracked as expenses by job. The result is allocation based on earnings as with the payroll taxes.

Note: the company contributions and addition type payroll items are allocated on the basis of earnings, there is not currently a way to specifically allocate those amounts on the preview paycheck screen.

QBRA-2004: Edit > Preferences > Payroll & Employees > Company Preferences

With version 2005 for Pro and higher products, this has been re-worded to say job costing, class and item tracking for paycheck expenses.

QBRA-2005: Edit > Preferences > Payroll & Employees > Company Preferences

Receive Payments: Preferences

Receive Payment Preferences (Version 2005)

New with version 2005 are additional receive payment preferences. In addition to some layout changes, the most significant changes are the ability to automatically calculate payments and use undeposited funds as a default deposit account. This is a company preference so in order to make any changes, the user must be logged in with the "Admin" password.

QBRA-2005: Edit > Preferences > Sales & Customers > Company Preferences

The sales & customer preference contains all the same choices such as a default shipping method, default markup percentage, and the ability to automatically apply payments. What is different is:

Automatically Calculate Payments – with this change, it is possible to choose the invoices and the payment amount will be calculated. This change is helpful if a check is received and it is necessary to play"what if" scenarios to discover how the payment should be applied.
Use Undeposited Funds as a default deposit to account – this is significant because when this check box is marked, the ability to choose "group with undeposited funds" or "Deposit to" are no longer present on the receive payment screen. If the preference is not checked, the pull down next to "deposit to" includes the bank and other current asset type accounts. If the check box is marked and subsequently a receive payment should be deposited directly to a bank account, for example, it would be necessary to uncheck this preference, record the entry, and then turn it back on, if appropriate.

QBRA-2005: Customers > Receive Payments (with use undeposited funds preference chosen)

QBRA-2005: Customers > Receive Payments (with use undeposited funds preference not chosen)

Show All vs. Include Inactive

The wording of the check box at the bottom of the lists changed with version 2005. It now says "Include inactive" where as in prior versions it says "Show All." The icon to the left of the name on the list has changed over time. When the feature was first introduced with version 5 it was a ghost, it then was changed to a hand, and now it has been an "X" for the last several versions. If there are not any inactive accounts, this check box will be gray.

QBRA-2005: Lists > Chart of Accounts > Include Inactive

QBRA-2004: Lists > Chart of Accounts > Show All

Lists: Customize Columns View

Version 2005 – Customize Column View

New with version 2005 is the ability to change which columns are displayed when viewing the list. Also with version 2005 is the ability to change the column widths.

QBRA-2005: Lists > Item List

To change the columns, right click on a item and choose "Customize Columns." At that point a pop up box will appear that will permit you to add or remove columns. The left side contains the extensive list of columns that are available and the right side shows the columns that will be displayed. In addition, it is possible to change the order of the columns that have been chosen, or to return the list to the default view but clicking on the appropriate button.

QBRA-2005: Lists > Item List > Right click on an item > Customize Columns

Once the changes have been made, click on OK to show the list with the new columns.

QBRA-2005: Lists > Item List > Right click on an item > Customize View > Add COGS account and cost, remove description and reorder columns > OK

Version 2005 - Customize Column Widths

Version 2005 – Customize Column Widths

New with version 2005 is the ability to change the column widths when the list is open. Also in version 2005 is the ability to change which columns are displayed.

To use this feature, open the list then place the cursor at the top of the column. The right dividing line is used to make a column wider or narrower. When the cursor is over the dividing line, it will change to permit clicking and dragging the column to the desired width. Let go of the mouse button to save the changes.

QBRA-2005: Lists> Item List

QBRA-2005: Lists > Item List > Make Name column wider and Description column narrower

Banking Aliases

Online Banking Alias Management

With version 2005 there was a new online banking preference available to manage multiple payee names with one name on the lists in QuickBooks. The way this change is managed on the list is with an additional button on the additional information screen. Here is an example from the vendor list, but it looks similar on any of the other lists.

QBRA-2005: Lists > Vendor List > Click on a name > Vendor > Edit > Additional Information Tab

If online banking transactions have been linked to the name on the list using aliases, it is possible to manage the aliases by clicking on the button

QBRA-2005: Lists > Vendor List > Click on Vendor > Vendor > Edit > Additional Info Tab > Manage Aliases

If there have not been any aliases associated with the name, a warning pop up will appear if the manage aliases button is chosen.

When online banking transactions have been downloaded, click on the downloaded transaction from the unmatched list. If the name is not found, a pop up box will appear stating the name is not recognized.

If the choice is to create alias, another pop up box will appear with a pull down of all the names from all the lists (i.e. customers, vendors, employees, etc) to create the link from the name provided by the downloaded transaction as compared to the names on the lists.

Once a name has been chosen, an alias confirmation pop up box will appear.

List Limits Expanded

Workers Comp Set Up

New with version 2005 is the ability to calculate workers compensation payable amounts. It is possible to assign the rate to the wages at the time the paycheck is created, but it is often more efficient to enter the workers comp code as part of the employee set up process. The workers comp code is chosen from the workers comp code list.

QBRA-2005: Lists > Employee List > highlight Employee > Employee > Edit > Workers Compensation Tab

Sick & Vacation Calculation Enhancements

Sick & Vacation Calculation Enhancements

New with version 2005 is additional control over the timing of the sick and vacation accrual amounts.

Several versions ago the choice of how to accrue sick and vacation was expanded to include "for every hour worked." Prior to that there were only two choices, as of the beginning of the year, or for each paycheck.

The flexibility of the calculation process has been enhanced again by two additional dates for the sick and vacation accruals.

QBRA-2005: Lists > Employee List > Edit Employee > Payroll and Compensation Info > Sick/Vacation

The "year begins on" date is important if the choice is made to accrue a specific number of hours at the beginning of the year and/or if the check box has been marked to reset the hours each new year.

The begin accruing time on date is extremely helpful for those businesses that have an employee handbook or policy that states that no sick or vacation time will accrue during a probationary period.

Lists: Payroll Items Enhancements - Overtime Earnings

Overtime Earnings Payroll Items Enhancements

For version 2005 the payroll items have been changed slightly. With the additional choice of the Enhanced Payroll the functionality within the payroll section has been greatly expanded. One of these ways is evidenced in the overtime item. All the other payroll earnings item set up remains the same except for the overtime earnings. In previous versions, the only difference between a regular wage and an overtime wage was the name the user assigned and the rate the user manually assigned when using the item. Now with version 2005 there is a specific overtime type payroll item that contains the calculation for the overtime rate based on the regular rate.

The first three screens are the same as in previous versions of QuickBooks.

QBRA-2005: Lists > payroll Item List > Payroll Item > New

QBRA-2005: Lists > payroll Item List > Payroll Item > New > Custom Set Up

QBRA-2005: Lists > payroll Item List > Payroll Item > New > Custom Set Up > Wage > Next

QBRA-2005: Lists > payroll Item List > Payroll Item > New > Custom Set Up > Wage > Next > Overtime > Next

Now is when the real difference is apparent. For the new overtime type of payroll item it is now possible to designate exactly what the overtime rate is. Time and a half and double time are set up, but a custom rate is also available for creating other overtime multipliers.

QBRA-2005: Lists > payroll Item List > Payroll Item > New > Custom Set Up > Wage > Next > Overtime > Next > Type in a name > Next

QBRA-2005: Lists > payroll Item List > Payroll Item > New > Custom Set Up > Wage > Next > Overtime > Next > Type in a name > Next > Choose the Multiplier > Next

Reminders

Billing Rate Level

The billing rate level list is new with version 2005. With this list, it is possible to assign a billing rate to specific employees, vendors, and other names based on time to be invoiced from a time sheet.

QBRA-2005: Lists > Billing Rate Level > Billing Rate Level > New

The fixed hourly rate is straight forward. This is the billing rate to be used by any employee, vendor, or other name that has been assigned to this billing rate level.

The custom hourly rate provides the ability to change the standard rate to a specific billing rate by item for any employee, vendor, or other name that has been assigned to this billing rate level.

QBRA-2005: Lists > Billing Rate Level > Billing Rate Level > New > Custom Hourly Rate Per Service Item

To make the process more efficient, it is possible to select several items by placing a check mark in the column to the left and then adjust the selected rates by a percentage to be higher or lower than the standard rate or the current custom rate.

Once the billing rate has been created, the next step is to assign the billing rate to the appropriate employee, vendor, or other name entries. The billing rate level appears in a similar way on each of the lists. Here is an example from the employee list.

QBRA-2005: Lists > Employee List > Edit Employee > Personal Info > Additional Info

Note: The billing rates are applied to employees, vendors, and other name lists. It is not possible to assign a billing rate to a customer or a job.

To Do's

To Do Notes take the reminder list one step further. To Dos can be set up for specific customer notes or for notes in general. To use the feature, choose Company > To Do List.

QBRA-2003: Company > To Do List > To Do > New

Enterprise Solution Password Enhancement

New with QuickBooks Enterprise Solutions 5 is a complete change in the way that passwords are handled. The result is flexibility in the data users are able to access (more than 115+ areas) and they functionality they have when they do.

There are now two parts of setting up password access:

Establish a role – this can be a general role (such as AR Clerk) or it can be a specific role for a specific user. Included is the ability to create a view only role which has long been requested.
Set Up the user – the user name and password is set up and roles added to the user.

Retained Earnings Drill Down

Retained Earnings Drill Down

New with version 2005 is the ability to drill down on Retained Earnings from the chart of accounts list or from a Balance Sheet report. The result is a report that will show the Retained Earnings effect of the closing entries each year, as well as any other transactions coded directly to the account.

QBRA-2005: Lists > Chart of Accounts > Double click on Retained Earnings

From the report it is possible to double click on any transaction except the closing entry to drill down.

Editorial Comment: While this is helpful, it is the opinion of this author that it still does not go far enough. There is a closing date exception report that when used in conjunction with the closing date and this report will make research of any differences much easier. However, if historical transactions are changed for prior closed periods, the closing entry is simply updated to reflect those changes; I would like to see those changes included specifically on this report to make the research even easier still. If you agree, please go to Help > Help & Support and submit a suggestion for this change. It Intuit hears from enough of us, it will hopefully press the issue higher up on their priority list.

Expanded Item Pull Down

With version 2005 there were two data entry efficiency improvements: One was the QuickFill enhancement and the other is the expansion of the item pull down when entering an invoice.

QBRA-2005: Customers > Create Invoice

With version 2004 and prior, the pull down for the item list had the item name/number and the beginning of the item description. With version 2005, the item, item type and beginning of description (expanded by about 20 characters) is available.

Apply Credit when Entering

New with version 2005 is the ability to link an invoice to a credit memo at the time the invoice is created. Prior to 2005 required using the receive payment screen to link the credit and the invoice together.

QBRA-2005: Customers > Create Invoice

Once the invoice has been entered, click on the apply credits button.

QBRA-2005: Customers > Create Invoice > Fill in form > Apply Credits

Once the credit has been applied, the balance due will be updated to reflect the new amount due, if any.

QBRA-2005: Customers > Create Invoice > Fill in form > Apply Credits > Done

If the payments/credits information has been included on the invoice template the applied credit will appear when the invoice is printed

QBRA-2005: Customers > Create Invoice > Fill in form > Apply Credits > Done > Print pull down > Preview

Prepare an Invoice Letter

Since version 99, QuickBooks has had Microsoft Word integration for the purpose of preparing letters for collections and other miscellaneous purposes. This feature has been expanded with version 2005 to include preparing invoice letters.

QBRA-2005: Customers > Create Invoices

Enter the information onto the invoice as usual then click on the pull down arrow to the right of the letters icon on the form. The two choices are to prepare an invoice letter or to customize the letter templates.

QBRA-2005: Customers > Create Invoices > Enter Information > Letters > Prepare an Invoice Letter

After the template is highlighted, click on Next. This will provide a screen to enter the name and title to go onto the letter.

QBRA-2005: Customers > Create Invoices > Enter Information > Letters > Prepare an Invoice Letter > Choose a template > Next

The letter will be automatically created in Microsoft Word where it can be edited as needed. Note: This will not change the template for future use.

It is also possible to print the envelope from Microsoft Word also.

QBRA-2005: Customers > Create Invoices > Enter Information > Letters > Prepare an Invoice Letter > Choose a template > Next > Edit and/or print the letter from Microsoft Word > Close the letter

QBRA-2005: Customers > Create Invoices > Enter Information > Letters > Prepare an Invoice Letter > Choose a template > Next > Edit and/or print the letter from Microsoft Word > Close the letter > Next

Credit Memo: Create Refund

Create Refund

In previous versions, it was possible to issue a check for a credit memo by clicking on the refund button. With version 2005, this has changed only slightly. It is now possible to either apply the credit memo to an invoice to generate a refund check.

QBRA-2005: Customers > Create Credit Memos Refunds

The way the process has changed is that after the credit memo information has been entered, the choice is made to issue a refund check. At that point a pop up box appears with the check information. From this screen it is possible to issue the payment via online banking (if the customer has been set up with the required information), enter a manually written check number, or include the check in the next batch of check forms to be printed.

QBRA-2005: Customers > Create Credit Memos Refunds > Enter Credit Memo information > Use Credit to > Give Refund

2005 Payroll Tax Service Changes- Enhanced

Version 2005 Payroll Tax Service Changes – Enhanced

Effective October, 2004 with version 2005 release came the announcement that Intuit had again expanded their payroll service alternatives. According to the marketing information in their press release Intuit now enjoys more than 800,000 QuickBooks Payroll customers, more than any other US payroll service. To compare all their services including assisted, complete, and QuickPayroll for Quicken, visit http://www.payroll.com/comparisonchart.html.

This new service includes the standard service features of:

the latest payroll tax table updates,
direct deposit for an additional fee
federal payroll forms

Plus the following:

state payroll forms (some exceptions apply)
workers comp tracking
net-to-gross calculations

The price for this service as of 10-30-04 is $299 billed annually.

Enhanced Payroll Plus includes upgrades to the new versions of QuickBooks that are released during the subscription year. For Pro upgrades, pricing as of 10-30-04 is $399 and for Premier it is $499.

Apply to Invoice From Credit Memo

Apply to Invoice from Credit Memo

The process of entering the credit memo information is the same. The only change is to choose to apply the credit to invoices from the use credits pull down list. At that point a pop up box appears with the outstanding invoices. Place a check mark or enter the amount to be applied and choose done to save the changes.

QBRA-2005: Customers > Create Credit Memos Refunds > Enter Credit Memo information > Use Credit to > Apply to Invoice

Calculate Gross from Net

The ability to calculate the gross earnings from a net check is new with version 2005 Enhanced Payroll and Assisted Payroll services.

To use this feature, select the employee to pay from the pay employee list and confirm the "enter hours and preview check" radial button has been chosen.

QBRA-2005: Employees > Pay Employees > Confirm Check Date > Confirm Pay Period Ends > Confirm Enter hours and preview

Click on create and the preview paycheck window will appear. At the bottom right, there is a box to enter net/calculate gross. When this checkbox has been marked, the check amount becomes highlighted and it can be edited to the new net amount.

Trick: This will only work if a salary or bonus item is in the earnings section. You cannot calculate net to gross for hourly payroll items.

QBRA-2005: Employees > Pay Employees > Confirm Check Date > Confirm Pay Period Ends > Confirm Enter hours and preview > Create > Mark Enter net checkbox

To use the feature, at least one earnings item must be included in the earnings section of the preview paycheck. If the only item there, for example, is salary, the salary item will be updated to reflect the new gross amount required to arrive at the net paycheck.

Trick: In previous versions, if the bonus type item was set up as an addition, with version 2005 it needs to be a wage type item. To use the net to gross feature to calculate bonuses (which is typically the situation that gives rise to the problem in the first place), a new payroll item needs to be created for the bonus and the previous addition type bonus needs to be made inactive so it will no longer be used.

Trick: If the amount to be paid is a bonus, commission, or other type of additional pay, it is most efficient to change the earnings section to include that item and remove all the other items. For the net to gross feature to work, there can only be one earnings item. Consider how the reports should look when deciding if the regular payroll earnings item will be used or not.

Comparison Information

Comparison Information (PDF)

Costs to Complete by Job Detail

New with version 2005 are cost to complete reports. These reports use a specific percentage for each item. The percentages are saved automatically for future use and can be updated as appropriate.

Trick: to enter the percentages, do not click on the customer:job name, but the specific item detail lines.

For the detail version of this report, first choose the customer:job name

QBRA-2005: Reports > Industry Specific > Professional Services Reports > Costs to Complete by Job Detail

QBRA-2005: Reports > Industry Specific > Professional Services Reports > Costs to Complete by Job Detail > Choose customer:job

QBRA-2005: Reports > Industry Specific > Professional Services Reports > Costs to Complete by Job Detail > Choose customer:job > Enter percentages > OK

Costs to Complete by Job Summary

New with version 2005 are cost to complete reports. These reports use a specific percentage for each item. The percentages are saved automatically for future use and can be updated as appropriate.

Trick: to enter the percentages, do not click on the customer:job name, but the specific item detail lines.

QBRA-2005: Reports > Industry Specific > Professional Services Reports > Costs to Complete by Job Summary

QBRA-2005: Reports > Industry Specific > Professional Services Reports > Costs to Complete by Job Summary > Enter percentages > OK

Enhanced Payroll Plus for Accountants

The enhanced payroll plus for accountants includes all the features of the enhanced payroll service plus the ability to process payroll for up to 50 clients with a single subscription.

Note: The additional EINs must be processed from within the same licensed copy of the QuickBooks software. I.e. the Accountant must prepare the payroll processing in their office with their copy of the QuickBooks software.

The telephone number to call to receive the key code to add the client is:
800-624-2106
Monday - Friday
8 am - 5 pm
Pacific Time
When you call be sure to have the client's tax identification number ready. The key code number is entered by choosing Employees > Employer Services > Add/Change Service

TRICK: Client State Payroll Returns Only

If the client has their own payroll tax subscription (because they are preparing the payroll net checks in their own office) it is possible for the Accountant to call and get the key code and update the QuickBooks data file from the client to prepare the state returns.

We used this method recently with a client on an older version of QuickBooks so when we received the file we converted it to version 2005 and entered the key code to do our work. The downside is that we cannot send the file back to the client since they are on an older version, but we can automate the transfer of any additional work we did by using one of several transaction copier tools that are available.

Job Costs by Job and Vendor Detail

QBRA-2005: Reports > Industry Specific > Contractor Reports > Job Costs by Job and Vendor Detail

Job Costs by Job and Vendor Summary

QBRA-2005: Reports > Industry Specific > Contractor Reports > Job Costs by Job and Vendor Summary

Job Costs by Vendor and Job Detail

QBRA-2005: Reports > Industry Specific > Contractor Reports > Job Costs by Vendor and Job Detail

Job Costs by Vendor and Job Summary

QBRA-2005: Reports > Industry Specific > Contractor Reports > Job Costs by Vendor and Job Summary

Paid Time Off

Paid Time Off List

New with version 2005 is a new report: Paid Time Off List. This list was available in prior versions by customizing the employee list report and then memorizing it. In version 2005 it is now a standard report. With either alternative, it is possible to customize the report more by adding hire date, employee telephone number, or many other additional columns of information.

QBRA-2005: Reports > Employees & Payroll > Paid Time Off List

Payroll Returns: 940EZ

Form 940-EZ

In the past QuickBooks has included the Form 940 for those who process payroll through the software. Form 940-EZ was not supported so the form needed to be filled out manually, or many small businesses just submitted the Form 940 instead. All of that has changed with version 2005. An interview form has been included to determine which form is required, then the software will prepare the form as needed.

First, from the employee pull down menu, choose to process payroll forms then Federal, then the form 940/940-EZ.

QBRA-2005: Employees > Process Payroll Forms > Federal > Select a Form

A warning will appear that the form may not look like the one from the payroll agency. The form on the screen has been slightly altered to make it easier to review the information and make edits as required.

QBRA-2005: Employees > Process Payroll Forms > Federal > Select a Form > Annual Form 940/940-EZ . . . > Confirm Year is Correct > OK

The interview form contains a series of questions that are used to determine which form will be required. The interview form continues to permit marking that this is the final return, an amended return, and the ability to specify any exempt payments. At the bottom of the form is the reminder to click on the Next arrow to review the form for accuracy and completeness.

QBRA-2005: Employees > Process Payroll Forms > Federal > Select a Form > Annual Form 940/940-EZ . . . > Confirm Year is Correct > OK > OK

If these three questions are answered yes the form 940-EZ will be permitted. It is possible to check the form to make sure there are no errors, or click on Next to see the actual form on the screen. Next again will show the Filing and Printing Instructions on the screen (or choose from that option at the bottom of the form) and then print the form or save as PDF.

QBRA-2005: Employees > Process Payroll Forms > Federal > Select a Form > Annual Form 940/940-EZ . . . > Confirm Year is Correct > OK > OK > Answer questions and complete form > Print

To change the printer, choose Set Up, otherwise, if everything appears correct, click print.

Note: At the time of this writing Intuit was waiting for the approval of the form from the U.S. government so when printed the form has a "Do Not Print" watermark. The information can be transferred to the actual form provided by the governmental agency if the approval is not received by the time the filing is required.

After the form has been printed there is a pop up reminder to make any changes in QuickBooks directly that might have been made on the form itself.

Prepare Letters with Envelopes

The feature to prepare letters was first introduced in version 99. With version 2005 this feature has been enhanced.

From the Company pull down on the menu bar the choice is now "Prepare Letters with Envelopes" as compared to "Write Letters." There is also a secondary choice now available:

Collection Letters
Customer Letters
Vendor Letters
Employee Letters
Letters to Other Names
Customize Letter Templates

There are standard letters supplied by Intuit. If one of those will not be acceptable, it is often easiest to have the first step be to customize the template. It is possible to create or edit the templates while proceeding through the process to prepare the letters. After the template has been modified for any linked fields, formatting and wording issues, etc. it will now be available for use in preparing the letters.

Choose the general type of letter to be prepared and then choose those names that should receive the letter. Once a check mark has been placed next to each appropriate name, click on Next.

QBRA-2005: Company > Prepare Letters with Envelopes > Customer Letters

The available templates are listed, plus it is possible to choose to create or edit a letter template from this screen as well.

QBRA-2005: Company > Prepare Letters with Envelopes > Customer Letters > Choose appropriate names to receive the letter > Next

The name and title will be automatically added to the letter. If it is not completed, nothing will appear in that section of the letter.

QBRA-2005: Company > Prepare Letters with Envelopes > Customer Letters > Choose appropriate names to receive the letter > Next > Choose a template > Next

QBRA-2005: Company > Prepare Letters with Envelopes > Customer Letters > Choose appropriate names to receive the letter > Next > Choose the template > Next > enter Name and Title > Next

Letters are created in Microsoft Word as one document with a page break between each. It is possible to edit the letter in Word and not affect the document template. Once the letters have been printed, it is possible to save the file that contains the customized letters.

Up to this point, the feature is relatively similar as in previous versions. What is significantly different in version 2005 is the ability to print the envelopes from Microsoft Word too.

QBRA-2005: Company > Prepare Letters with Envelopes > Customer Letters > Choose appropriate names to receive the letter > Next > Choose the template > Next > enter Name and Title > Next > Edit and/or print the letters from Microsoft Word > save or close the file

QuickBooks will automatically launch Microsoft Office to prepare the envelope where you will have another chance to change the printing options if needed.

Rapid Time Entry

New with version 2005 was a new way to process employee paychecks: Rapid Time Entry.

In previous versions there were two options:

Enter hours and preview check before creating – This option was most often used since changes in hours, payroll items, etc. could be changed and the paycheck could be reviewed for accuracy prior to creating it.
Create check without preview using hours below and last quantities – this choice was appropriate for employers who have salaried employees that do not typically have any changes in the payroll.

The new Rapid Time Entry is available only to Enhanced Payroll Subscribers (link to 182.800). It permits entering hours in a spreadsheet type fashion similar to the forms provided by payroll services. It is more efficient to enter the hours in this way. The paychecks can then be previewed before creating or can be created without previewing.

QBRA-2005: Employees > Pay Employees

QBRA-2005: Employees > Pay Employees > choose employees to pay > confirm check date > confirm pay period end > mark enter hours using Rapid Time Entry > Enter Hours

The column headings are set up from a pull down list of the available wage type payroll items. Once they have been set, the same headings will appear when a subsequent Rapid Time Entry pay period is entered.

If hours are entered into a payroll item that has not been set up for that employee, a warning pop up box will appear. If this warning is ignored the paycheck will show the hours with no rate (i.e. the employee will not receive any compensation for those hours)

Depending on the choice made, the button to continue will change:

Preview check before creating – the button will read "Preview." When all the time has been entered, by clicking on that button the Preview Paycheck window will appear and any changes to other payroll items or withholdings can be made.
Create check without preview – the button will read "Create." When all the time has been entered, by clicking on that button the paychecks will be automatically created.

Receive Payments: Find Invoice

Receiving Multiple Payment Types

Q - I"ve a specific question: How to apply 2 different payments (say credit card and check) to one invoice or sales receipt.

A – The trick to receiving multiple payment types when creating an invoice or sales receipt is to use a payment type item.

So, in the question, if you want to include multiple payment methods, you would create multiple payment items (i.e. one for VISA, one for MasterCard, one for American Express, one for checks, one for cash, etc). Typically the item is coded to undeposited funds to permit making one deposit for the day for multiple payments that have been received.

When entering the invoice, enter the payment item for the amount received at the time and the remainder will remain as a balance due on the invoice.

TRICK: Keep in mind, however, by using this method a statement will show the net balance due unless you include the detail when the statement is prepared. This is in contrast to entering the invoice then a receive payment for the amount received.

When entering a sales receipt, the payment item can be used for the partial payment and the remaining balance can be applied to the correct payment type on the form itself. The alternative, which works equally well, is to enter a payment type item for each component of the money received so the net balance at the bottom of the sales receipt is zero.

TRICK: If an invoice has been generated and sent, then when the payment is received there are multiple payment methods, a separate receive payment will need to be entered for each one.

Reports: Workers Comp Detail

New with version 2005 is the ability to assign workers compensation codes to payroll at the time the employee is set up, and when the paychecks are created. There is also a preference to help control the feature so the balance due for workers compensation insurance is accurately calculated.

Based on the information contained in all of those areas, the result is a variety of standard workers compensation reports available.

Included on the Workers Comp by Job Summary report are Gross Wages, OT Premium (assuming the wages are reduced for the amount of excess included in overtime wages) and the resulting workers compensation wages. A column is available for the hours. The WC rate column is multiplied by the workers compensation wages to arrive at the calculated premium amount. That amount is then adjusted by the experience mod, if appropriate, to arrive at the adjusted worker comp premium. The report has the detail by individual paycheck subtotaled by workers comp code.

QBRA-2005: Reports > Employees & Payroll > Workers Comp Detail

Reports: Workers Comp Listing

New with version 2005 is the ability to assign workers compensation codes to payroll at New with version 2005 is the ability to assign workers compensation codes to payroll at the time the employee is set up, and when the paychecks are created. There is also a preference to help control the feature so the balance due for workers compensation insurance is accurately calculated.

Based on the information contained in all of those areas, the result is a variety of standard workers compensation reports available.

The workers comp listing report provides the rate and effective date for each workers comp code with additional columns for the next rate and related effective date.

QBRA-2005: Reports > Employees & Payroll > Workers Comp Listing

Reports: Workers Comp by Code & Employee

Workers Comp by Code & Employee

Based on the information contained in all of those areas, the result is a variety of standard workers compensation reports available.

Included on the Workers Comp by Code and Employee report are Gross Wages, OT Premium (assuming the wages are reduced for the amount of excess included in overtime wages) and the resulting workers compensation wages. A column is available for the hours. The WC rate column is multiplied by the workers compensation wages to arrive at the calculated premium amount. That amount is then adjusted by the experience mod, if appropriate, to arrive at the adjust premium due. The report is summarized by workers comp code with supplemental summary information by employee.

QBRA-2005: Reports > Employees & Payroll > Worker Comp by Code and Employee

Reports: Workers Comp by Job Summary

Based on the information contained in all of those areas, the result is a variety of standard workers compensation reports available.

Included on the Workers Comp by Job Summary report are Gross Wages, OT Premium (assuming the wages are reduced for the amount of excess included in overtime wages) and the resulting workers compensation wages. A column is available for the hours. The WC rate column is multiplied by the workers compensation wages to arrive at the calculated premium amount. That amount is then adjusted by the experience mod, if appropriate, to arrive at the adjusted worker comp premium. The report is summarized by job with supplemental summary information by workers comp code.

Trick: This particular report does not show the modification factor, although it is used to arrive at the adjusted premium.

QBRA-2005: Reports > Employees & Payroll > Workers Comp by Job Summary

Shipping: Include UPS

UPS Shipping

FedEx shipping integration was available since version 2003. New with version 2005 is the UPS integration. Simply enter an invoice or sales receipt and with a few clicks you can have the documents ready to ship the product.

First, enter the invoice or sales receipt information.

QBRA-2005: Customers > Create Invoice

Click on the down arrow next to the ship icon and choose Ship UPS Package. If this is the first time the service is used, the set up process (link to 168.710) will be required. Subsequently, the shipping manager will automatically launch.

QBRA-2005: Customers > Create Invoice > Ship pull down arrow > Ship UPS Package

The From (click on settings to change) and To information is automatically completed as well as the reference to the document number. The weight must be completed in full pounds.

It is possible to receive a courtesy estimate of the charges for the shipment by clicking on the rate quote button.

Click on the ship now button and a label automatically prints.

TRICK: Make sure if you are using the UPS label sheets, that it is already in the printer and ready to go before you click on ship now. As the label is printing, the confirmation appears on the screen, with the tracking number and courtesy estimate for the shipment.

To see the list of shipments, click on the shipping pull down and choose tracking and void. From this screen it is possible to reprint the label and print a shipment detail report.

State Payroll Tax Forms

New with version 2005 Enhanced Payroll is the ability to print many of the state forms. To see specifically which states and which forms are supported at the present time, visit http://www.quickbooks.com/taxforms/index.html select a state and view the list of the forms supported for that state. Scroll down to see the availability as it is as of 10-30-04 on this page.

To use the feature, sign up for the Enhanced Payroll, process the payroll as usual, then choose the state option from the payroll forms window.

QBRA-2005: Employees > Process Payroll Forms

The next screen is to select a state form and filing period

QBRA-2005: Employees > Process Payroll Forms > State form > OK

If there is missing information, a warning pop up box will appear:

The next screen provides an explanation as to why the form does not look like the one from the payroll agency.

The next step is to proceed to the form itself. Review for accuracy (right click to override any incorrect information, and be sure to go back to QuickBooks and correct the information for the future). It is possible to check the form to make sure there are no errors, or click on Next to see the actual form on the screen. Next again will show the Filing and Printing Instructions on the screen (or choose from that option at the bottom of the form) and then print the form or save as PDF.

To change the printer, choose Set Up, otherwise, if everything appears correct, click print.

Note: If Intuit was waiting for the approval of the form from the payroll agency when printing the form it will have a "Do Not Print" watermark. The information can be transferred to the actual form provided by the governmental agency if the approval is not received by the time the filing is required.

After the form has been printed there is a pop up reminder to make any changes in QuickBooks directly that might have been made on the form itself.

All Supported Forms as of 10-30-04:

State		Form	Name

AL		Form A-1	Employer"s Quarterly Return of Income Tax Withheld

AL		Form A-3	Annual Reconciliation of ALA Income Tax Withheld

AL		UC-CR4	Quarterly Contribution & Wage Report

AK		TQ01C	Quarterly Contribution Report

AZ		A1-QRT	Quarterly Withholding Tax Return

AZ		UC-018	Unemployment Tax and Wage Report

AR		AR3MAR	Employer"s Annual Reconciliation Of Income Tax Withheld

CA		DE6	Quarterly Wage and Withholding Report

CA		DE7	Annual Reconciliation Statement

CA		DE88	Payroll Tax Deposit

CT		CT-941 (DRS)	Quarterly Reconciliation of Withholding

CT		UC-2	Employer Contribution Return

CT		CT-W3 (DRS)	Annual Reconciliation of Withholding

DC		DOES-UC30H	Employer"s Annual Contribution and Wage Report

DC		DOES-UC30	Employer"s Quarterly Contribution and Wage Report

FL		UCT-6	Employer"s Quarterly Report

GA		DOL-4 Part I (Also known as DOL-4N)	Employer"s Quarterly Tax and Wage Report

GA		G-7/Sch B	Quarterly Return for Semi-Weekly Payer

GA		G-7	Quarterly Return for Monthly Payer

GA		G-7	Quarterly Return for Quarterly Payer

GA		GA-V	Withholding Payment Voucher

GA		G-1003	Income Statement Transmittal

ID		TAX020	Idaho Employer Quarterly UI Tax Report

IL		IL-501	Illinois Withholding Income Tax Payment

IL		IL-941	Illinois Quarterly Withholding Income Tax Return

IL		UI-3/40	Employer"s Contribution and Wage Report

IL		IL-W-3	Illinois Annual Withholding Income Tax Return

IN		WH-3	Annual Withholding Tax

IA		44-007	Annual Withholding Agent Verified Summary of Payments

IA		44-095a	Withholding Quarterly Return

IA		65-5300	Employer"s Contribution and Payroll Report

KS		K-CNS 1001	Quarterly Wage Report and Unemployment Tax Return

KY		UI-3	Employer"s Quarterly Unemployment Wage and Tax Report

KY		42A806	Transmitter Report for Filing Kentucky Wage Statements

KY		K-3	Employer"s Return of Income Tax Withheld

LA		LDOL-ES4	Quarterly Report of Wages Paid

LA		L-3	Annual Income Tax Withholding Reconciliation

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Timesheet Overview

Timesheets are a "Pro Only" and higher feature for tracking employee time by the day, job, task, etc. Timesheets are not required to process payroll. Time can be entered in total when the paycheck is created. To turn on the timesheet feature, choose: Edit > Preferences > Time Tracking > Company Preferences. The only two questions are: Do you track time, and what is the first day of the week?

The timesheet, like most of the forms in QuickBooks is very intuitive. The form looks like one that could be completed on paper. Time information can be entered for any employee, vendor, or other name. This information is then available to create a paycheck for the employee, create a check or bill for a sub-contractor, or issue an invoice to a customer.

Timesheets, like estimates or purchase orders, are non-posting. There is no effect on the general ledger until the time has actually been paid or invoiced. In addition, reports can be generated from the time that has been entered, but it will not have an extended dollar amount associated with it (i.e. for WIP, vacation accruals, etc.).

QBRA-2003: Employees > Time Tracking > Use Weekly Timesheet

TRICK: An add-on product is now available to combine any unbilled costs, items, and time (extended based on the selling price of the item) for a Work In Process report or for easy review and approval prior to invoicing.

If longer notes are needed, it may be more efficient to use the "Enter Single Activity" window for data entry and the weekly timesheet to double check the accuracy of the information that has been entered. In Version 2004 the notes fields will wrap so the entire text can be viewed on the screen.

To use the timesheets to calculate payroll, the time entered will be automatically "pulled" onto the create paycheck screen. If it does not appear, confirm that the box has been checked when the employee was set up to pay from time data. That option is in the middle of the employee payroll info tab.

TIP: If the class feature is not present on the time sheet, choose Edit > Preferences > Payroll & Employees > Company Preference > assign one class per earnings items.

TRICK: The timesheet data will convert to a bill or check for owners or subcontractors beginning with version 2002. For Versions 2001 and prior, however, only the option to create a check from a timesheet is available.

TIP: Just like timesheets for employees, the software does not create any job costing expenses in the general ledger until payment is actually made from the timesheet.

TRICK: When the time data is used to create customer invoices, the sales rate charged to the customer is based on the amount entered for the item. New with version 2001 and higher, there is a price list option to permit automatic calculations as a percentage increase or decrease to what is charged to the customer. This will handle the issue of different rates for the same type of work based on different customers. To charge different rates for the same type of work completed by different employees will still require different items.

TIP: Notice that only service items from the item list can be used on a time sheet (i.e. not other charge, non-inventory part, etc).

Unapplied Payment Refund

With version 2005 there were many feature enhancements to the receive payment section of the program. Everything from preference changes to being able to find an invoice directly from the receive payment screen to being able to write off an over/under payment immediately. Another enhancement is the ability to create a refund check for an overpayment.

In prior versions it was possible to create an automated refund check when entering a credit memo. The ability to do this from the receive payment screen is new with version 2005.

As soon as the customer is entered in the received from field and the amount is entered a new box appears in the lower left hand side. For example, if a customer has an outstanding invoice in the amount of $1,040.00 and a payment is received for $2,000.00 when the amount field is left, the box at the bottom provides two choices:

Overpayment $960.00. When you finish do you want to:

Leave the credit to be used later
Refund the amount to the customer

It is also possible to click on the button to view customer contact information (i.e. the edit customer screen) to be able to easily see the customer contact and phone number if a discussion with the client is needed, or access to the notes to see if there is some reason that has been documented on why they would have overpaid, etc)

QBRA-2005: Customers > Receive Payments > Enter customer as received from > enter the amount in excess of invoice amount

If the leave the credit option is chosen, when the form is saved another pop up box appears to either:

- Print the credit memo (the printer dialog box will automatically appear for confirming the printer to be used),
- Save the transaction, or
- Return to the transaction without saving it.

QBRA-2005: Customers > Receive Payments > Enter customer as received from > enter the amount in excess of invoice amount > Choose to leave the credit > Save & Close

If the credit memo is printed, it does not have a credit memo number assigned to it; in the description it will say "outstanding credit" with the amount of the overpayment.

The other choice is to refund the amount to the customer at the time the receive payment is entered. If that choice is used, a pop up box appears to issue a refund. The refund can be an online payment if the customer online banking information has been set up. Otherwise it is possible to enter the check number or check the box to print the check. If the later is chosen, the check will be included with the next batch of checks to be printed.

QBRA-2005: Customers > Receive Payments > Enter customer as received from > enter the amount in excess of invoice amount > Refund the amount to the customer > Save & Close

Version 2005 Payroll Tax Service Changes -Standard

Version 2005 Payroll Tax Service Changes –Standard

Effective October, 2004 with version 2005 release came the announcement that the name of the lowest level of payroll service alternatives available through QuickBooks has again changed its name. It was Basic, then it was Do It Yourself, and now it is Standard.

This service includes:

The most current tax table updates available as a download as they become available (internet access required) or on disk for an additional charge ($30 as of 10-30-04).
Federal tax form processing
For an additional fee, direct deposit is available for Pro and higher products.

To take advantage of the payroll features within QuickBooks requires a payroll service. The least costly of these alternatives is the Standard Payroll Service at $199/year.

As with all of the payroll service alternatives, only the current and two previous versions are supported (i.e. currently 2005, plus 2003-2004).

Versions 2005 Report Navigator

Report Navigator

New with version 2005 is a report navigator. Based on information supplied during Intuit's webinar on the Basic, Pro and Premier products, this is in the top 5 of users favorite changes.

In previous versions there was a report finder. The advantage of this feature over the new one is the ability to designate the date and/or modify the report from the report finder screen. The other advantage was the ability to display, print or export directly from within the report finder itself.

QBRA-2004: Reports > Report Finder

The new report navigator has the ability to see a hover sample of the report when the cursor is placed over the icon that looks like a piece of paper to the left of the report name. The other advantage is that each standard report has a brief description of what it is, along with a "More" link to more information in the help section of the software. By clicking on the hyper linked name of the report it is automatically displayed.

At the bottom of the list of specific reports are also suggestions for related reports and which section that report is in. By clicking on the category for the related reports, the category is automatically chosen from the left with all the specific reports for that category listed on the right.

All the major report categories are listed down the left so choosing another one is more efficient since they are all visible.

QBRA-2005: Reports > Report Navigator

Voided/Deleted Transactions

Internal Control Note: This report does show transactions that were voided or deleted in the same session.

When the report is opened for the first time, a warning pop up box appears:

"This version of QuickBooks tracks transactions that you void or delete and displays them in this report. It does not display transactions that you voided or deleted using any QuickBooks version prior to QuickBooks 2005. . . "

QBRA-2005: Reports > Voided/Deleted Transactions

Voided/Deleted Transactions History

New with version 2005 (Pro and higher) is the Voided/Transactions History Report. This is an easier way to see which transactions have been voided or deleted for a specific time period. This is a detail report so it is possible to double click on the specific entries to drill down to those that were voided. It is also possible to customize the report so additional columns of data are available if the voided/deleted transaction needs to be re-entered. Choose the Voided/Deleted Transactions report to see the summary (i.e. one line per transaction) information.

Internal Control Note: This report does show transactions that were voided or deleted in the same session.

When the report is opened for the first time, a warning pop up box appears:

QBRA-2005: Reports > Voided/Deleted Transactions History

Workers Comp Calculations

New with version 2005 it is possible to have the workers compensation premium payable automatically accrue as the paychecks are created. This process requires an upgraded tax table service from the standard (Do It Yourself) payroll to the Enhanced Payroll or Enhanced Payroll Plus for Accountants.

Once the workers comp code list has been set up, the preference has been confirmed, and the employee has been assigned, the next step is to actually calculate the paycheck.

QBRA-2005: Employees > Pay Employees

The pay employee screen has been modified slightly to include a column for the workers comp code and for the calculation of the premium in the company summary section of the screen.

Trick: Be very careful of the new preference that permits the copy of the last paycheck earnings.

QBRA-2005: Employees > Pay Employees > Mark employees to be paid > Confirm check date > confirm period end date > Create

Once the payroll has been processed there is a variety of standard workers compensation reports available.

Workers Compensation Summary

Workers Comp Summary

Based on the information contained in all of those areas, the result is a variety of standard workers compensation reports available.

Included on the Workers Comp Summary report are Gross Wages, OT Premium (assuming the wages are reduced for the amount of excess included in overtime wages) and the resulting workers compensation wages. A column is available for the hours. The WC rate column is multiplied by the workers compensation wages to arrive at the calculated premium amount. That amount is then adjusted by the experience mod, if appropriate, to arrive at the adjust premium due. The report is summarized by workers comp code.

QBRA-2005: Reports > Employees & Payroll > Workers Compensation Summary

Working Trial Balance

Version 2005: Working Trial Balance

The working trial balance takes the adjusting entries and the adjusted trial balance available in version 2004 one step further. This enhancement significantly improves the efficiency for accountants by providing a column to place notes or work paper references for each account.

This feature is only available in the QuickBooks 2005 Premier: Accountant Edition product and can be accessed from the Accountant pull down list from the menu bar.

QBRA-2005: Accountant > Working Trial Balance

When the report is opened the top line permits choosing the selected period from a list of: last month, last fiscal quarter, last fiscal year, this month, this fiscal quarter, this fiscal year or custom. On that top line is the ability to choose cash or accrual for the report basis.

The first column in the detail section of the report is the account. By double clicking on an account name, the drill down is to the edit account screen.

The second column is the beginning balance for the period. The drill down for the beginning balance is a detail report. For example, if the selected period is last fiscal year (i.e. 10-01-06 to 09-30-07) then the detail report by double clicking on the beginning balance will be for 10-01-05 to 09-30-06. If the selected period is the prior month (i.e. 01-01-07 to 01-31-07) then the drill down will be from the beginning of the fiscal year to the end of the month before last (i.e. 10-01-06 to 12-31-06).

The transactions column is the net change to the account during the specified time period. This will include bills, invoices, non-adjustment journal entries, checks, deposits, etc.

The adjustments include those journal entries that have been marked as adjusting entries.

The calculation of the previous columns will result in the ending balance as of the date specified.

The work paper reference column will hold approximately 32 characters of text.

At the bottom of the screen is the ability to mark the box to only show accounts with transaction activity. The make adjustments button opens the journal entry screen, and there is also a print button available.

Write off Over/Under Payment

Write off Over/Under Payment

With version 2005 there were many feature enhancements to the receive payment section of the program. Everything from preference changes to being able to find an invoice directly from the receive payment screen to being able to create a refund check for an overpayment immediately. Another enhancement is the ability write off an overpayment from the receive payment screen.

For prior versions, the discount feature could be used to write off small amounts but an invoice was required to write off the small overpayments. Version 2005 has simplified this process for small over payments. Under payments continue to use the discount feature.

As soon as the customer is entered in the received from field and the amount is entered a new box appears in the lower left hand side. When the amount is an overpayment, there are two choices: to leave the credit to be used later, or to refund the amount to the customer.

QBRA-2005: Customers > Receive Customer Payment > Enter Customer > Enter Amount less than amount due

For example, if a customer has an outstanding balance of $1,005.00 and a payment is received in the amount of $1,004.95 the box in the lower left hand side will be:

Underpayment of $0.05. When you finish do you want to:

Leave this as an underpayment
Write off the extra amount

If the first choice is correct, the underpayment will remain as an outstanding amount on that specific invoice. If the choice is to write off the extra amount, when the transaction is saved a pop up box will appear to choose the appropriate account from the chart of accounts. The most common accounts are either "Sales Returns and Allowances" or "Bad Debt." The help function within QuickBooks suggests an expense type account called bad debt or write offs. Once the account (and class if class tracking has been turned on) has been chosen the first time, it will be the default the next time.

QBRA-2005: Customers > Receive Customer Payment > Enter Customer > Enter Amount less than amount due > Write off the extra amount

What's New in Version 2006

Portable Company File in Version 2006

To begin the process, first create the file.

QBRA-2006: File > Portable Company File > Create File

QBRA-2006: File > Portable Company File > Create File > OK

(note the new extension of QBM)

QBRA-2006: File > Portable Company File > Create File > OK > Save

Based on our unscientific tests, the new QBM file is about 10% of the size of the QBW file (where as with the new version, the back up is about 67%). You can now e-mail or use other methods to transfer the file.

To begin using the portable company file, you must first "open it."

QBRA-2006: File > Portable Company File > Open File

Choose the appropriate file name to get the portable company file from as well as the name and location of the new company file. The extension of the file once it is opened will be the standard *.QBW.

Note: If you choose an existing file, you will receive a warning that the file will be overwritten (just like when restoring a back up). The portable company file does not merge changes into the existing file, it simply overwrites the file.

Once the file has been opened, a success message will appear on the screen. At this point the file size is the same as the original file. In the future to use the file you will open the file just like any other *.QBW file. In fact, it is impossible to tell at this point that the file was ever created from a portable company file. In any product except the QuickBooks Premier: Accountant Edition, will provide a prompt to make a back up after the portable file has been opened successfully. This will create/reset the TLG file in case it is needed for data recovery. Chances are Accountants won't see the back up prompt because most are using QuickBooks Premier: Accountant Edition. The theory is that Accountants are usually working with client data for a fairly short period of time with limited transactions before they return the company file to the client. It is nice that Accountant Edition users are not forced to making a backup at this point. However, when the client receives a portable company file back from the accountant, and opens it in a product other than QuickBooks Premier: Accountant Edition, they will see the backup dialog immediately after the success message. If they are using the Accountant Edition product, it is the recommendation of this author that you remind them to create a back up immediately to create the back up file and reset the transaction log in case it is needed for data recovery.

Summary – To the best of my knowledge, the portable company file is simply another way to transfer data with much more compression. In the event of damaged data the portable company file does not provide any capability for data recovery. The back up process, on the other hand, does create a transaction log file which, when used in conjunction with the back up, can allow technical support to recover the company file in the event of a system failure.

Version 2006 System Requirements

For the most up-to-date information visit QuickBooks.com (click on Recommended Links on the left then the Intuit link to receive a discount of up to 20% and free shipping). On the Intuit site click on the appropriate product in the left side navigation. This will provide more information about the product as well as FAQs and system requirements. Version 2006 changed to a Sybase SQL data base structure which has provided many improvements, but the system requirements and installation instructions are now critical. Be sure to double check both prior to installing the software.

Pro: Windows 2000/XP; 1 GHz Pentium III; 256 RAM minimum/512 RAM recommended for multi-user

Enterprise Solutions: Windows 2000/XP; 1 GHz Pentium III; 512 RAM minimum/1 GB RAM recommended for multi-user

New File Structure in 2006

The following example is for illustrative purposes only using the sample file included with QuickBooks version 2005. Results may vary significantly from one file to another.

QBRA-2005: Ctrl+1, note file size of 6098 KB

QBRA-2005: File > Back Up, note back up size of 1673 KB (qbb is 28% of the qbw file)

QBRA-2006: Convert file from 2005 only, note file size of 10652 KB (58% larger than the same file in version 2005)

QBRA-2006: File > Back Up, note back up size of 7064 KB (qbb is 67% of the 2006 qbw file and 4.23 times larger than the 2005 back up)

Installation Issues

TRICK: Be careful with external drives (such as x-drive or mango-drive) since these systems may not have QuickBooks installed as required to have the data function properly.

Always on Audit Trail

With the change in the data base structure for version 2006, the audit trail is no longer a preference that can be turned on and off. It is now always on. This is a big boost from an internal control perspective. There are two issues that should be addressed to provide the best benefit from this change:

Everyone who accesses QuickBooks should be set up with their own unique user name and password to make the audit trail reports meaningful. This can also be extended to include a unique login and password to be used by third party applications that access QuickBooks.
When someone is no longer going to access QuickBooks (an employee is terminated, for example) do not delete the user, simply change the password. The reason is that if the password is deleted, the audit trail transactions that the user worked on will show a blank user name.

Closing Date Access Fixed

In prior versions, all Company Preferences could only be changed by the Admin password, except one: the Closing Date. This could be changed by anyone with “sensitive accounting activities” access. This was a significant breech of internal control, especially since most QuickBooks users and consultants were not even aware of the problem. With version 2006, this preference has been updated so only a user logged in as Admin will be able to make a change to this date.

Toggle Feature

While there are many things we like about the new version, one of our favorites is the ability to toggle to any of the other Version 2006 products. With the Accountant Edition products, it is now possible to toggle to other editions without installing any other software.

This process has greatly enhanced the consultant’s ability to provide effective QuickBooks since they can now “see what the client sees” on their own computer. In addition, procedural manuals can now be created by the consultant for the client with screen shots that match their product specifically.

The process is very easy and straight forward. Simply click on File and then Toggle to Another Edition, for example from the QuickBooks Premier 2006: Accountant Edition, it is possible to choose the QuickBooks Simple Start product.

QBRA-2006: File > Toggle to Another Edition

QBRA-2006: File > Toggle to Another Edition > Simple Start

Now choose the edition and click on the toggle button. At this point QuickBooks will close the company file, reconfigure the software to the other product, and then re-open the data file.

QBRA-2006: File > Toggle to Another Edition > Simple Start > Toggle

When you are ready to switch back, follow the same procedures to choose the Accountant Edition again. Notice that in our example the Simple Start product is being simulated where as the Accountant Edition is noted as “Home” since that was the version that has actually been installed on the computer.

QBRA-2006: File > Toggle to Another Edition

Enterprise Example

This process works the same way with the Enterprise Edition for the various industry specific products.

QBEA-6: File > Toggle to Another Edition

QBEA-6: File > Toggle to Another Edition > Contractor Edition

At this point QuickBooks will close the company file, reconfigure the software to the other product, and then re-open the data file.

QBEA-6: File > Toggle to Another Edition > Contractor Edition > Toggle

When you are ready to switch back, follow the same procedures to choose the Accountant Edition again. Notice that in our example the Contractor Edition is being simulated where as the Accountant Edition is noted as “Home” since that was the version that has actually been installed on the computer.

QBEA-6: File > Toggle to Another Edition

Version 2006 Utility Changes

With the new data structure and the additional integration and transfer alternatives available, the menu pull down options that relate to file utility options have changed.

QBRA-2006: File > Utilities

The most significant changes are:

In addition to converting data from Quicken, there is now an option to convert data from Peachtree with a free download conversion tool.
To help to eliminate some of the confusion when transferring data to another product, there are now options to copy the company file to either QuickBooks Mac or QuickBooks Online Edition
The condense option has been renamed to “Clean Up Company Data.”

Simplified Easy Step Interview

Some of the feedback the end user community has provided to Intuit is that the “Easy Step” interview was still too hard. They did not know how to fill in all the information on all the various tabs. With the new version of QuickBooks they listened and simplified the process.

On the first screen, there are three choices:

Start Interview – asks the questions and offers guidance. The estimate is the process will take about 30 minutes.
Convert Data – this is the appropriate choice if the client is converting from Quicken or Peachtree
Skip Interview – geared towards the Accountant or QuickBooks expert so that only the company information and chart of account choice is required before naming the new file and getting right to work in the software itself.

QBRA-2006: File > New Company

QBRA-2006: File > New Company > Start Interview

As you proceed through creating a new file, the interview progress bar indicates what has been completed. The screens are now more user friendly with * for required field and guidance to explain what type of information should be entered and in what format with links to more information if needed.

After entering the company information, the user is walked through a series of screens including:

Set Up administrator password (optional)
Indicate where the file will be saved
Customize QuickBooks for your business:
- Select Industry (sets up chart of accounts)
- Do you sell services, products, or both
- Do you sell online
- Do you charge sales tax
- Do you want to create estimates
- Do you want to track sales orders before you invoice your customers
- Do you want to use sales receipts
- Do you want to use billing statements
- Do you want to use progress invoicing
- Do you want to track the bills you owe
- Do you want to track inventory
- Do you accept credit cards
- Do you want to track time
- Do you have employees (if yes, w-2 and 1099?)
Enter your start date (note that the help file suggests the start of the new year, rather than the ending of the previous year)
Add a bank account
Review expense accounts
Review income accounts

QODBC Driver in Enterprise Solution 6

Enterprise Solutions 6 now has the QODBC driver built in. According to their website (http://qodbc.com/qodbc.htm) QODBC acts as a “wrapper” around the Intuit SDK so that it is possible to get at their QuickBooks data using standard database tools; speeding development time.

A common example of why this is important is the increased flexibility that is available from Crystal Reports when using QODBC.

Super Navigator in Version 2006

In addition to the Super Navigator alternative to effectively work within QuickBooks, the menu bar across the top has remained pretty well intact to make use for those that converted from an older version easier.

The goal of the new Super Navigator is to have everything on one screen for ease of use. As preferences are turned on and off what appears will change. For example, if payroll and time tracking are turned off, the entire employee section will disappear from the navigator. If inventory and purchase orders are turned off, that section will disappear from the vendors section of the navigation.

It is also possible to customize what appears on the Super Navigator from the Desktop View preference with direct links to the other appropriate preferences.

QBRA-2006: Edit > Preferences > Desktop View > Company Preferences

Note: The shortcut list is no longer available with version 2006 products so open each and save as an icon prior to converting. The icon bar and open window list are both still available with the new version.

Icon Bar

Although much of the navigation has been enhanced, the icon bar has been retained. It is possible to turn on and off the Navigation Bar (i.e. Home, Customer Center, etc) and the icon bar. If the icon bar is turned on, from this same pull down is where it can be customized and the current open window can be added to the icon bar.

QBRA-2006: View > Icon Bar

The placement of the icon bar is determined by dragging the divider to the left of the icons down a row, or next to the navigation bar. The advantage to having two lines is that it is possible to display more icons. The disadvantage is that it reduces the amount of information that can be displayed below the bars.

Customer Center in Version 2006

The Customer Center, first available with Version 2006, replaces the customer list from prior versions. It is much more comprehensive; with the goal being that you can do whatever you need to do with only a couple of clicks. This center can be opened from the pull down menus across the top of the software, from the customer center icon, or by using the Customer:Job List keyboard shortcut of Ctrl+J.

From this one graphical view, it is possible to view:

the contact information for the customer:job
truncated notes
transactions
- all or only specific types of transactions
- depending on the type of transactions chosen it may be possible to filter for open, overdue, or paid invoices and charges
- for a designated date range
Reports are also available with a single click
- QuickReport
- Open Balance
- Estimates
On the Customer & Jobs tab, for the list itself there are several alternatives
- All customers
- Active customers
- Customers with Open Balances
- Custom filter (This feature was only available with Enterprise Solutions Version 5 but has been added to all QuickBooks products with version 2006. It is a find feature which will look at the detail for the customer:jobs to find appropriate matches such as contact name, city, state, phone number, etc.)
- The over arrow next to the view pull down list will expand the list (hide the specific details currently on the right) and add the functionality of customizing the columns. This view is very similar to the list from the prior versions.

QBRA-2006: Customers > Customer Center > Customers & Jobs Tab

Note: By double clicking the “heading” for any of the columns, there is sort functionality available. For example, the detail sorting for the transactions is by date, but by double clicking on Num or Amount the sort option will change.

The other tab in the Customer Center is for Transactions. This provides an efficient way to look at transactions across multiple customers.

Filters vary depending on the transaction type chosen. For example, there are not any choices with sales receipts, but with invoices it is possible to choose all invoices, open invoices, or past due invoices. For estimates and sales orders the choice is either all or only open transactions. Receive Payments provides for a filter for all payment methods, or choose a specific method.

Note: As with other areas of QuickBooks, it is possible to double click on any of the transactions to drill down to it.

QBRA-2006: Customers > Customer Center > Transactions Tab

The icons across the top of the list are designed to provide one click access to:

Create a New Customer
Enter a New Transaction
- Estimates
- Sales Orders
- Invoices
- Sales Receipts
- Statement Charges
- Receive Payments
- Credit Memos/Refunds
Print
Customer & Job Information (the same as the edit customer feature from previous versions)
Export
- CSV
- New Excel workbook
- Existing Excel workbook
  - New sheet
  - Existing sheet

Vendor Center in Version 2006

The Vendor Center features and functionality are very similar to that of the Customer Center.

On the Vendors tab is the list to the left and the contact information, transactions specific to that customer, etc. to the right.

QBRA-2006: Vendors > Vendor Center > Vendors Tab

On the transactions tabs are the following choices for a list of all vendors:

Purchase Orders
Item Receipts
Bills
Bill Payments
Checks
Credit Card Activities
Sales Tax Payments

Depending on the transaction type, the filter will vary to include all, open, overdue, etc. as appropriate.

The same functionality of double clicking on the column heading will control the order of the transactions.

QBRA-2006: Vendors > Vendor Center > Transactions Tab

List Limits Expanded

Employee Center in Version 2006

The employee center has three tabs: Employees, Transactions, and Payroll.

The Employee tab has similar functionality as the Customer tab in the Customer Center. It is possible to edit employee information, see transactions based on a specific date range, or create a QuickReport, Payroll Summary, Paid Time Off Report, or Payroll Transaction Detail.

The Transactions Tab provides a listing by transaction type (includes all employees) that can be filtered for a specific date range:

Paychecks
Liability Checks
Liability Adjustments
Year-to-Date Adjustments
Non-Payroll Transactions

The Payroll Tab is what is significantly different for the Employee Center than the features of the Customer Center and Vendor Center. It is often called the Payroll Dashboard or the Payroll Center.

QBRA-2006: Employees > Employee Center > Payroll Tab

There is a calendar to the left for reference. On the right are three sections:

Run Payroll
Pay Taxes and Other Liabilities
Payroll Tax Forms

Run Payroll

The first button is to “Show Last Pay Details.” It is basically a net check listing.

QBRA-2006: Employees > Employee Center > Payroll Tab > Show Last Pay Details

The second button is to Pay Employees. This takes you to the pay employee screen that is exactly the same as it was in the previous version

QBRA-2006: Employees > Employee Center > Payroll Tab > Pay Employees

Pay Taxes and Other Liabilities

This is a significant enhancement with Version 2006. In the past it was up to the QuickBooks user to remember to pay the payroll taxes and other liabilities and to control the date range of the transactions that should be paid. Now this Payroll Dashboard provides an organized method to communicate what needs to be done.

The first step is to set the deposit frequencies. It is recommended that small business clients enlist the help of their accountant or other knowledgeable professional to make sure that this is done properly. Without appropriate deposit frequencies, the due dates will be inaccurate. Depending on the type of tax, the choices may vary slightly.

QBRA-2006: Employees > Payroll Center > Set Deposit Frequencies > Set Frequency

Once the deposit frequency has been set for the appropriate payroll liability and payroll tax items, the list will appear in the middle of the Payroll Center. To see the detail that agrees to the amount due, click on the Show Details button. By clicking on a transactional line, it is possible to click on the Go To button to view the specific transaction.

QBRA-2006: Employees > Payroll Center > Show Details

The Pay Now button will generate a check to that payee in the amount shown.

Payroll Tax Forms

The Process Payroll Forms button on the Payroll Center is a shortcut to the same screen as in the previous version. If the enhanced payroll tax service has been chosen, the state form radial button will be available too.

QBRA-2006: Employees > Process Payroll Forms

1099/1096 Navigation in Version 2006

The 1099 and 1096 functionality has not changed from previous versions. It is still a multi-step process that has the end result of printing the information on blank pre-printed forms. What has changed with Version 2006 is that the 4 of our 6 recommended steps are now organized on a new wizard.

To process the forms from QuickBooks, complete the steps detailed below.

Step 1 – Confirm Payees are Vendors and set up properly

Step 2 – Confirm Vendor Tax ID #

Step 3 – Edit the 1099 Company Preference

Step 4 – Prepare Reports

Step 5 – Confirm Business Information

Step 6 – Print the forms

New with version 2006 is a navigator to aid in the process of steps 2, 3, 4, and 6. Step 1 and Step 5 will still need to be completed without the aid of the wizard.

QBRA-2006: Vendors > Print 1099s/1096

Step 1 - Confirm Payees are Vendors

Confirm that all payees that will require a Form 1099 are on the Vendor list (Lists > Vendors List).

If there are any names on the Other List (Lists > Other Names List), single click on the name, choose Other Names > Edit > Change Type > Vendor > OK. This activity will move the name and related transactions to the vendor list.

If a customer name has been used (Lists > Customer:Job List), a new vendor needs to be created with a slightly different name (Lists > Vendors List > Vendor > New) then all transactions using the customer name will need to be corrected to use the new vendor name. Then, go back to the customer list and delete the incorrect name to ensure that the wrong one will not be chosen in the future.

Step 2 - Confirm Tax ID#

Edit each vendor from the vendor list that will require a 1099 and confirm the following:

There is a check mark in the box before “Vendor Eligible for 1099.”
There is a number in the “Tax ID” field. If the number is ###-##-####, make sure the name in the address field is an individual name with a DBA if necessary. If the number is ##-#######, make sure the name in the address field is a company name.
A complete address has been entered including zip code.
It is often easiest to create a custom list report for reviewing the following issues. To do so, choose Reports > List > Vendor Phone List > Modify Report > Display Tab > add the columns for Tax ID and Eligible for 1099. While on the Modify Report screen, choose the Header/Footer Tab and change the Report Title to Form 1099 Vendors. Click on OK. Once you have made those changes, choose memorize, so that as you add or correct the information for the vendors, the report can be quickly re-created by choosing Reports > Memorized Reports to see which vendors still need to be updated.

QBRA-2002: Reports > List > Vendor Phone List > Modify Report > Display Tab > add the columns for Tax ID and Eligible for 1099

To complete the paper trail, it is advised that each vendor eligible for a 1099 complete a W-9. This form can be obtained from the local IRS office, by calling 1-800-829-3676, or from their website at http://www.irs.ustreas.gov/prod/forms_pubs/forms.html.

TIP: Start this process early and double-check it regularly throughout the year. It is much easier to obtain the information as new vendors are paid, than to go back and try to accumulate the information at the end of the year.

The change with version 2006 is that there is a report already created for this purpose. By clicking on the “Run Report” button a report is generated that already has added the columns as described above. Because it is a list report, the same drill down capability is available.

QBRA-2006: Vendors > Print 1099s/1096 > Run Report

Step 3 - Edit the 1099 company preference

Make sure the preference has been set properly:

Yes, you do file 1099-MISC forms.
Edit the account (from the chart of accountants) for each 1099 category as necessary. Most 1099s are issued as non-employee compensation or rent. The former includes accountants, repair people, outside services, etc. If the dollar amounts need to be changed or updated, do so by clicking in the Threshold column.

QBRA-2006: Edit > Preferences > Tax:1099 > Company Preferences

The change in version 2006 is that by clicking on the map accounts button, the preference automatically opens.

Step 4 – Prepare Reports

The 1099-MISC forms are based on a cash basis, i.e. the amount paid will be reported when the check is actually issued as opposed to when it was incurred or due. These forms are due annually, and are typically prepared in January of the subsequent year. For that reason, the default date is set for the last calendar year. As with all reports, the date can be changed. To create a report to show the individual payments included for review prior to printing the 1099-MISC forms, choose Reports > Vendors & Payables > 1099 detail. It is recommended that you retain this report for supporting purposes for the printed forms. To see the totals only, choose Reports > Vendors & Payables > 1099 Summary. To be sure no one has been missed change the choice at the top of the report to include all vendors.

QBRA-2002: Reports > Vendors & Payables > 1099 Summary

The change with version 2006, is that the report is created by clicking on the “Run Report” button on the 1099 and 1096 wizard.

Step 5 – Confirm Business Information

Confirm that the Address and the Legal Name, as well as the Federal ID number for the company issuing the Form 1099-Misc are accurate.

QBRA-2006: Company > Company Information

Step 6 - Printing the 1099-MISC forms

Printing the forms is done through File > Print Forms > Print 1099 > Assign the date range > OK > a box then appears with a listing of all of the 1099-MISC forms to print. Note the 1096 information at the bottom, left hand side of the screen. QuickBooks does not print the 1096 form in version 2003 and prior. It only provides the information to fill in on the form. Starting with version 2004 printing the Form 1096 has been included. The number of copies of form 1099-MISC required, up to 8 parts, varies by state. At a minimum, 3 parts of the pre-printed forms are needed: one for payee, one for payer, and one for the Internal Revenue Service. Designate the number of copies to be printed at the bottom of the print screen. The pre-printed forms and corresponding envelopes are available from local office supply stores, or from www.intuitmarket.com, or by calling Intuit at 1-800-433-8810. The forms are usually available annually August through February. As of version 2006 and prior, it is not possible to print the 1099 or 1096 on blank paper.

QBRA-2006: File > Print Forms > Print 1099 > Assign the date range > OK

The change in version 2006 is that the screen to assign the date range for the forms automatically appears from the “Print 1099s” button. Once the date range is acknowledged, it is possible to print the 1099s and 1096 forms.

Voiding a Check in Version 2006

One of the most publicized changes in QuickBooks version 2006 among accountants when it first came out was the change in voiding checks so the net effect is recorded in the current year. In fact, I have had a room full of Accountants actually cheer when they learned of this feature. While the theory is great, in practical application, there are some significant issues that need to be addressed.

Theory Overview

The voiding a check feature in QuickBooks, prior to version 2006, should only be used when the check is to be voided immediately. The reason is that the check is changed as of the original transaction date. If this date is in the past, historical results will be changed.

With version 2006, the original check is voided. A journal entry is created with the original transaction date to adjust the General Ledger to what it was then that entry is reversed with a current date to show the increase in the bank account in the appropriate period.

Reality of How It Works

The theory of this approach makes Accountants very happy because no longer will voiding a check change the historical reports, most importantly, Retained Earnings. Unfortunately, there are many limitations to how the process really works.

Issue: Closed Period. This new process is only used by the software for voiding checks in a closed period. If there is not an appropriate closing date entered any checks will be voided using the same procedures as version 2005 and prior. To Do: It is critical that a closing date be entered and that it is updated as each period is reconciled and should be locked from future changes.
Issue: Expense Only. This new process is only used by the software for checks that have been entered and coded to an expense account. Any transactions coded to a Balance Sheet account will be voided using the same procedures as version 2005 and prior.
Issue: Check versus Bill Payment. This process is only used by the software for checks, not for bill payments. Bill payments are still handled using the same procedures as version 2005 and prior: The bill payment is voided as of the original transaction date with the result being the bills are again available to be paid.

Specific Examples to Illustrate What Happens

Set Closing Date:

QBRA-2006: Edit > Preferences > Accounting > Company Preferences

For check coded to an expense prior to the closing date:

QBRA-2006: Lists > Chart of Accounts > Checking > Scroll to the top to view check 302

QBRA-2006: Lists > Chart of Accounts > Checking > Scroll to the top > Edit > Void Check > Record

QBRA-2006: Lists > Chart of Accounts > Checking > Scroll to the top > Edit > Void Check > Record > Yes

QBRA-2006: Lists > Chart of Accounts > Checking > Scroll to the top > Edit > Void Check > Record > Yes (to acknowledge closed period warning) > Scroll to current date for reversing entry

For Bill Payment in a Closed Period:

QBRA-2006: Lists > Chart of Accounts > Checking > Scroll to the top to view check 513

QBRA-2006: Lists > Chart of Accounts > Checking > Scroll to the top to view check 513 > Edit > Void

QBRA-2006: Lists > Chart of Accounts > Checking > Scroll to the top to view check 513 > Edit > Void > Yes (to acknowledge closed period warning) > Note that the check has been voided but the journal entry to correct the General Ledger is not created

Our Opinion

While there are features in the new version we love from an accounting perspective such as the change to the audit trail of always on and the ability to toggle to the other editions, our recommendation to clients is that they do not use this feature. There are just too many variables that result in inconsistent results when the client is not careful. We continue to recommend, as we have in the past, that if a check needs to be voided subsequent to the time when it is originally printed that a deposit is entered in the current period. The check and the deposit will appear on the next bank reconciliation screen, they can be marked as cleared (net effect of zero) to clear the transactions from the report for the future.

Reconciliation Discrepancies in Version 2006

Another significant change in version 2006 from an accounting perspective is that when completing bank reconciliation procedures with a difference not equal to zero, the adjustment amount is no longer recorded to opening balance equity. There is now a new account called Reconciliation Discrepancies in the expense section of the chart of accounts.

This change has met with mixed reviews: Some people are glad that it no longer appears in the equity section so the minor differences are just run through the Profit & Loss report and are eliminated going forward. Others feel that it is easy to overlook this account and the business owner may not be as careful as they should be because it will not be as obvious when the accountant reviews the financial statements.

Multiple Ship to Addresses

For any QuickBooks user who regularly ships to different addresses for the same customer, this Version 2006 enhancement is huge!

By storing multiple ship to addresses and providing control over how they will be named, the efficiency when creating invoices, purchase orders, sales orders, sales receipts, etc. increases exponentially.

QBRA-2006: Customers > Double click on the customer

List Limits Expanded

Multiple Sales Orders Per Invoice

Sales orders are a Premier and Enterprise Solution feature. The ability to include multiple sales orders on a single invoice is available with the Manufacturing and Wholesale Edition, Retail Edition, and Account Edition industry specific products.

As an invoice is created for a customer with estimates and sales orders, a pop up appears to permit choosing the estimate, the sales orders, or create an invoice without using either. In addition, if there are multiple sales orders, a pop up box will appear to display the sales orders that are available to invoice. Once the estimate or sales orders have been chosen, it is possible to create the invoice for the entire amount or selected items.

QBRA-2006: Customers > Create Invoices > Enter the customer name

Bill Form Includes Address with Version 2006

With Version 2006 there is no more guess work on the vendor address when entering bills. Now the address will automatically appear on the bill form for an easy double check. If the address is not correct, the functionality to make the change one time or update the vendor record is now also available.

QBRA-2006: Vendors > Enter Bills

Easier Payroll Set Up With Version 2006

Payroll Tax Service

With version 2006 as in previous versions, the first step is to choose the payroll tax table service option. There are three alternatives:

Standard (tax tables and ability to print federal forms) Cost is $199/annually
Enhanced (this service was new with version 2005 and includes tax tables, federal forms, workers comp calculations and state forms) Cost is $299/annually
- It is possible to bundle this service with the next version of QuickBooks Pro software as part of the annual subscription price. Cost increases by $100/annually for a total of $399/annually
- It is possible to bundle this service with the next version of QuickBooks Premier as part of the annual subscription price. Cost increases by $200/annually for a total of $499/annually
- There is also a service called Enhanced Plus for Accountants which permits adding 50 tax id numbers to one subscription for clients that the accountant processes in their office. There is no additional cost for this option so the $299/annually price will apply.
- Assisted (enter and print paychecks then payroll service accepts responsibility) Cost is from $59/month

QBRA-2006: Employees > Add Payroll Service > Learn About Payroll Options

New Payroll Set Up

The set up process has been re-designed with version 2006 to provide improved step by step instructions and guidance to QuickBooks users. Included is context-sensitive help, a new employee summary screen. The payroll check up as in previous versions is also utilized to help ensure everything has been completed and to reduce the likelihood that errors have been made.

The steps include:

Introduction
Company Setup
Employee Setup
Taxes
Payroll History
Payroll Check Up
Finishing Up

For experienced users, this is a big change from the way that we would typically sign up for the payroll service then dive right into setting up payroll items. Due to changes in the system, it is recommended that the Payroll Set Up wizard be reviewed at a minimum, and used for a new set up. Once the items have been set up through the wizard, it is then possible to edit the Payroll Items as in previous versions.

QBRA-2006: Employees > Payroll Set Up

Manufacturer's Part Number

New with version 2006, QuickBooks Pro and above products, is the ability to include the Manufacturer's Part Number as part of the item set up.

QBRA-2006: Lists > Items > Item > New > Inventory Part

In the past, the only effective way to include this information on the purchase order was to either manually re-type it each time or include the part number in the Purchase description information. This column can then be included on the Purchase Order template.

List Limits Expanded

Item Price Rounding and Price Lists

Price Levels are available for QuickBooks Pro and above based on a percentage increase or decrease. New with version 2006 is the ability to control the rounding of the sales price as that calculation is completed. Many choices are set up already, plus there is a user defined alternative so that the business can apply whatever rules they have found to be most effective when pricing their products. This feature is available for both the price level list and the items list.

QBRA-2006: Lists > Price Level Lists

Price Lists by Price Level

In addition to providing more control over how the sales price will be calculated, with version 2006 it is also possible to print price lists by price level.

List Limits Expanded

Update Item Prices

New with version 2006 for QuickBooks Pro and higher if a price is changed on a Purchase Order, Bill, Item Receipt, Checks, and Credit Card Transactions a pop up box will appear to permit updating the item with the new cost for future use.

QBRA-2006: Vendors > Enter Bills > enter information including price change > Save

List Limits Expanded

Current Availability

This preference and report are designed to make it easier to see what is currently available of a specific item without the need to calculate the quantity manually. The information is available from the item list as well as on estimate, sales order and invoice forms when entering those transactions as well.

Current Availability Preference

With the new current availability report is a preference which is used to control if the quantity reserved for pending builds and the quantity on sales orders should be deducted from the quantity available. By default both are checked which means they will be deducted.

QBRA-2006: Edit > Preferences > Purchases & Vendors > Company Preference

Current Availability Report

From the item list it is relatively easy to right click and then customize columns to show on hand, on sales orders, to be built, on pending builds, and on purchase orders. New with this version is an easier way to see all this information in one place without manually calculating or navigating through numerous screens to what is available.

From the current availability screen, it is also possible to show the details of the transactions that make up the quantity listed: Or to change the item from the top of the window. This screen also displays the quantity on purchase orders and the quantity on pending builds.

QBRA-2006: Lists > Item List > Right Click on Item > Current Availability > Show Details

In addition to viewing the current availability from the item list, the same information is available by clicking on the from an estimate, sales order or invoice form.

This feature is only in the Premier and Enterprise Solutions Manufacturing & Wholesale Edition, Accountant Edition or Retail Edition industry specific versions.

Sales Order Fulfillment Worksheet

his feature is only found in the Premier and Enterprise Solutions Manufacturing & Wholesale Edition, Accountant Edition or Retail Edition industry specific versions.

In the past it was possible to create an open sales order report by customer or item but it was challenging to determine which orders should be filled first. With version 2006 there is now a sales order fulfillment worksheet that aids in the process. On this form it is possible to view all the open sales orders, choose which will be filled, see what can be filled or not (as updated as sales orders are chosen), etc. By clicking on the sales order at the top of the form, the details show at the bottom. To make the process more efficient, it is also possible to sort the sales orders in various ways and to let the software choose based on specific criteria. From this sale screen, it is also possible to print pick lists and packing slips.

Note: Packing slips can also be printed from the invoice screen.

QBRA-2006: Customers > Sales Order Fulfillment Worksheet

The sort options are:

The process of using this worksheet is just that, a method for expediting the shipment of products as it arrives. It does not reduce inventory or change the sales order form in any way until the products are invoiced.

The Choose for Me options are:

Developing appropriate procedures to communicate from the people who choose what should be shipped, those in the warehouse, and the accounting department is critical to have the process of inventory management effective for all who need access to the data, including buyers, sales reps, and the accounting department.

QBRA-2006: Customers > Sales Order Fulfillment Worksheet > Close

Backorder Functionality

In the past, Sales Orders, Progress Invoices, and Purchase Orders had a column for the quantity ordered, and a column for the quantity invoiced or received respectively. New with version 2006 for Premier and Enterprise Solutions Manufacturing and Wholesale Edition, Retail Edition, and Accountant Edition industry specific versions is an additional column that displays and prints the amount that is back ordered if a partial amount has been processed.

QBRA-2006: Vendors > Create Purchase Orders

There is no need to customize the format of the forms. When the transaction is saved for part of the sale or purchase, the column will appear automatically.

QBRA-2006: Vendors > Create Purchase Orders > Fill out the information > Save > Enter a bill for part of the qty > Open the Purchase Order to see the qty that is back ordered

Inventory Assembly Enhancement

New with Premier Version 2003 was a new type of item called inventory assembly. The purpose of this type of item was to create a new inventory item from existing inventory items. It was appropriate for light manufacturing types of businesses. The advantage over groups was that there is an actual inventory count and cost associated with the assembly in total as compared with a group where the purchase, inventory count and cost if appropriate, and sales are all based on the individual items. The group is more for the purpose of increasing data entry efficiency.

New with Premier Version 2006, inventory assembly type items can now include service, non-inventory part, and other charge type items. In order to be included the advanced job costing feature needs to be used for these items to permit assigning the item to an expense account for purchases and an income account for sales. If an item is not marked in this way, an error message will appear when it is added to the inventory assembly along with an option to edit the item at that time.

QBRA-2006: Lists > Item List > Item > New > Inventory Assembly Type > Enter the rest of the information to set up the item

Invoice eMail History

From within QuickBooks it is possible to click on the History button and see when the invoice was last sent.

Note: If the invoice was sent and then re-sent, only the latest sent date will appear.

The best recommendation is to cc or bcc yourself so you will have a record of the e-mail in your own e-mail in box.

With version 2005 and prior entering a cc or bcc e-mail address is a manual process. New with version 2006 it is possible to set up one or multiple cc e-mail addresses per customer. The e-mail address should be separated by commas or semi-colons. So, as the first invoice is sent to a customer, manually enter your e-mail address then when the invoice is sent, you will be prompted for the system to remember this address in the future.

TRICK: If a customer says they never received the invoice, have them check their “spam” or “junk” folders. Since the invoice is sent via the QuickBooks Billing Solutions service, sometimes it does not get through. This when having a copy that was originally sent to yourself that you can simply forward to the customer is quite helpful.

What's New in Version 2007

2007 Installation

With version 2007, the installation process has changed slightly. The screen shots presented here are for the Enterprise Solutions product, although they are the same for Pro and Premier.

First choose the installations method:

Guided Install: which will help you understand the options
Expert Install: By passes the first screen

For the Guided Install, the following screen will be presented:

Both installation methods are the same from this point forward:

Note: We installed both the Enterprise Solutions and Premier Products on two machines:

With AVG Anti-Virus installed fine with the anti-virus protection turned on
With Norton Internet Security, it went through the installation process then said it was interrupted. For that machine we disabled the Norton Internet Security and then it installed fine.

List Limits Expanded

Opening A File

For whichever type of file is chosen, the appropriate dialog box appears to browse to the file location.

For restoring a back up, for example, the choice is if the back up is local or online as the following screen shot illustrates.

List Limits Expanded

Accountant's Copy

New with version 2007, the Accountant's Review Copy has been eliminated and the Accountant's Copy with dividing date is the replacement. This process can be used with live data files but is unavailable with the sample data files. Overall, this change expands functionality for the Accountant, but there are still some significant limitations.

Create Accountant's Copy

To begin the process the Client chooses File > Accountant's Copy > Client Activities > Create Accountant's Copy. At that point, the client is presented with a screen that explains how the Accountant's Copy works. As a side note, the amount of information and explanation contained in the product to really explain what is happening and what will happen has been significantly enhanced.

The ability to put in a dividing date is new. This enhancements permits more extensive access for the Accountant and blocks clients from making changes prior to the dividing date. Clients may need some help in determining the date, but most know which period the accountant will be working on, and there is a TIP provided on the screen that "A good choice is the last day of the previous fiscal year."

QuickBooks then provides a prompt that all windows will be closed, then a pop up box to designate where to save the *.QBX file. By default the software will choose the desktop.

Once the file has been created, the reminder is displayed as to where the file was saved and that the file should be sent to the Accountant. This file is then sent to the Accountant via e-mail, burn a CD, flash drive, etc.

Use Accountant's Copy

Once the Accountant receives the file, choose to convert Accountant's Copy Transfer File. Again, there is a screen that explains how the process should work between the Client and the Accountant. Then a screen appears that provides a general overview of what the Accountant can and cannot do in the Accountant's Copy.

By clicking on next, the box appears to navigate to the file (*.QBX) sent to the Accountant by the client. Then the Accountant is prompted to name and choose the location to save the Accountant's Copy (*.QBA) of the file. Once that process is complete, the Accountant is provided the information as to the dividing date entered by the client, and work in the file can begin.

Limitations of Accountant's Copy

With the Accountant's Copy it IS possible to:

Add, edit, and delete most types of transactions dated on or before the dividing date.
Add new transactions dated after the dividing date.
Add and edit the chart of accounts (except merge and delete).
Edit account and tax information for existing items. Tax line mapping cannot be sent back to the client. (Not "ITEMS" – Only Chart of Accounts entries)
Add new customers, vendors, employees, and items. Some exceptions apply and display as disabled fields in the Accountant's Copy. (For example, if the Accountant creates a new item, the account for the item cannot be changed once it is saved initially. It can, however, be deleted as long as it has not been used.)
Create, adjust, and print 941, 940, and W-2 forms. Adjustments CANNOT be sent back to the client.
Print 1099 and 1096 forms in the historical period.
Temporarily change preferences. Changes CANNOT be sent back to the client.
Create new memorized reports. To send the reports to the client will require that the template be EXPORTED and then sent back to the client to import. The same general limitation exists as in prior versions that the memorized report CANNOT BE EXPORTED if it contains filter settings unique to the company file.
Make adjusting entries.
Complete reconciliation functions. Adjustments CANNOT be sent back to the client.

With the Accountant's Copy it IS NOT possible to:

Send the results of reconciliation activities back to the client.
Add, edit or delete payroll transactions or payroll items.
Edit or delete payroll information of existing employees.
Edit or delete existing customers, vendors, employees, items, lists, or list entries.
Delete existing accounts.
Send changes to preferences back to the client.
Send changes to memorized reports back to the client.
Import data from Excel, IIF, Web Connect, and QuickBooks Timer files.
Enter vehicle mileages.
Use Planning & Budgeting tools. (NOTE: The Expert Analysis option has been removed with version 2007)
Add or use credit card processing.
Manage service keys (buy additional user licenses or sync license data online).
Send user or password changes back to the client, including CLOSING DATE
Use online banking services.
Transfer funds between accounts.
Memorized transactions are not available for automatic entry upon logging into the Accountant's Copy of the file

Exporting Changes for Client

Once the Accountant has completed the work, the next step is to view/export the changes for the Client. As part of this process, there is a notes section for the Accountant to provide information and/or instructions that will be viewed as the Client imports the changes from the Accountant. Detailed information as to the transaction and list additions, changes, and deletions made by the Accountant during the course of working on the data file are displayed, and can be expanded for additional detail by clicking on the plus to the left of each entry. This report can also be printed for future reference.

Once the changes have been review and any notes have been added, click the export button to create the file (*.QBY) to go back to the Client.

Import of Changes By Client

The import process for the client has five steps:

Choose to import the appropriate file
Review and import the notes and changes from the Accountant
Create a back up
Review the import screen for any errors
Enter the closing date

Summary

While the changes are in the right direction, in my opinion, it still does not go far enough.
The ability to include an Accountant note is quite helpful to include additional instructions or information to the client. It is also a wonderful improvement for the Accountant and Client to both be able to see what is going to be happening in the file for the lists as well as transactions prior to the export and import process. However, bank Reconciliation work, payroll adjustments, as well as control over the closing date are critical components of the work we do for clients. Editing the Account code for an item and being able to correct the history is also pretty significant.

The new Accountant's Copy will expand the situations where it will be appropriate significantly over the previous Accountant's Review Copy alternative, but for detail work (like bank recs and payroll returns) or significant file maintenance or clean up projects, coordinating with the client to work remotely, on site or with a back up file (while they do not continue working) is still going to be the better alternative.

List Limits Expanded

Networking Issues

Opening a Data File on the Network

Copying the file to the local computer is then recommended before the file is converted. At that point, the back up and conversion process appears to be the same as in previous versions.

List Limits Expanded

Save A File

With version 2007, the process of saving a file has changed slightly. There is now a wizard to guide the user through the process of determining the type of file to be saved.

If the folder is chosen on the same drive as the data file, a warning is displayed:

The next screen asks when to create the back up

To schedule future back ups, there is a screen to provide guidance for automatic and scheduled back ups

Summary

List Limits Expanded

Expert Analysis is Gone?

Expert Analysis Is Gone?

The answer is: Yes, and No.

Beginning with version 2003, there was a light version of Sageworks' add-on product for financial analysis included with the Premier: Accountant Edition and Enterprise Solutions QuickBooks products. In 2003 it was installed separately from the CD, it was included as part of the installation process for version 2004-2006.

New with version 2007, this light version is no longer available for free within QuickBooks. The full product is, however, still available for purchase to work with QuickBooks.

According to www.profitcents.com:
ProfitCents™ is a web-based financial reporting software program that enables accountants and financial professionals to provide a written explanation of financial statements to their business clients. The reports use ratio analysis, industry comparisons, and trend analysis to depict the financial health of the client's company in plain language.
This top financial analysis software is designed to be very quick and easy to use. In under 10 minutes, business advisors provide the client's industry and key Income Statement and Balance Sheet data; then ProfitCents automatically creates a plain-language, customizable report.

The report it self is customizable in Word and includes an industry scorecard with calculation and explanations for each indicator at the end of the report. The charts by section include the two periods for the company as well as the industry information. The analysis is in 6 key areas and displayed on a 5 star rating system:

Liquidity – Current Ratio, Quick Ratio, Inventory Days, Accounts Receivable Days, and Accounts Payable Days charts
Profits & Profit Margins – Gross Profit Margin, Net Profit Margin, Advertising to Sales, Rent to Sales and Payroll to Sales charts
Sales
Borrowing – Interest Coverage Ratio, Debt-to-Equity Ratio, Debt Leverage Ratio
Assets – Return on Equity, Return on Assets, Fixed Asset Turnover
Employees – Selected Resource Indicators chart

By using this tool, the Accountant is able to quickly and easily get a starting point for business management discussions with the client. By watching these indicators, the business owner moves from using QuickBooks strictly for compliance to really understanding how the numbers work, and more importantly, how to improve.

To view a sample report, visit http://profitcents.com/USEN/samples/extreme.aspx.

To view the sample report in a pdf format, visit here.

To try a report with your own or your client's data, contact Larry Long Jr for a free trial: larry.long@profitcents.com or 877-724-3967 ext 528.

List Limits Expanded

Audit Trail 2007 Enhancements

While we still wish the functionality to filter by "last modified by" the enhancements in the audit trail report does make the process of reviewing the report a little easier. There were two audit trail enhancements included with the version 2007 release:

Bold designation for the information that changed. This is extremely helpful when reviewing the report to quickly and easily see the ramifications of editing transactions. This makes focusing on the date and dollar amount changes easier while scanning over memo changes, for example.

The other significant change is the ability to modify the report to not show deleted transactions. Since the void/deleted transaction report was added with version 2005, the need to have the deleted transactions on the audit trail report has decreased. Deleted and voided transactions are still an important part of internal control and looking for fraud, but having pages of deleted transactions on the audit trail report is not the most effective way to deal with the issue.

In summary, the changes do help in the usability of the report.

List Limits Expanded

Billable Expenditures Enhancements

Billable Expenditures Enhancement

With version 2007 there has been a change to the user interface when entering billable transactions. This change makes the process of job costing these expenditures much clearer.

The first change is that the top of the column no longer shows a picture of an invoice, it now says "Billable?"

The next change is that there is no longer the picture of the invoice on the detail line. In the past, the while invoice graphic meant that the amount was billable but had not yet been invoiced, if the user were to click on the invoice graphic, a red "x" would be placed on it to designate the amount should be included on job costing reports for the customer:job but will not be invoiced, and finally, once the amount was invoiced, the invoice graphic would change to gray. Now it is much clear when doing the data entry. There is simply a check box. Place a check mark in the box if the amount will be invoiced. Remove the check mark if the amount should be charged to the customer:job for profitability reports but will not be invoiced.

When the billable amount is actually invoiced, the check box is no longer available, but rather the column includes the invoice graphic.

If the amount needs to be invoiced again, by clicking on the invoice graphic, a pop up box will appear to confirm the desire to make it billable again. Say yes and the check box appears to permit marking the line as billable or not.

List Limits Expanded

Credit Card Form Enhancement

The changes on the credit card form are minor, but go a long way in making it clearer for the user when entering credit card activity.

The first change is that the radial buttons for charge and credit have been moved to the top of the screen like the bill and credit radial buttons. In addition the descriptions have been changed to purchase/charge and refund/credit. By improving the consistency between forms, new users especially will have a decreased learning curve and increased comfort level when using the product.

The second change is that the memo line for the transaction as a whole has been moved to the top header section rather than as a line in the middle. Again, this is improving the consistency between the checks, bills, and now the credit card function. It also makes it much more obvious that this top memo line is for the transaction as a whole, where as the bottom memos will appear on reports with the detail lines of the transaction.

And finally, there is now a link to the help documents in the middle of the form with the description of "Are you ready to pay a bill from this credit card company?" to help to point the user in the direction of what needs to be done next.

List Limits Expanded

Units of Measure

New with version 2007 is a feature that handles unit of measure conversion for items. This means that you can now purchase in one unit of measure and sell in one or several different units of measure.

Note that only parts of the unit of measure functionality may be available depending on the QuickBooks product used. The feature is not available at all in QuickBooks Pro; QuickBooks Premier Retail Edition; and QuickBooks Enterprise Solutions Retail Edition. Only the Single unit of measure is available for QuickBooks Premier; QuickBooks Premier Nonprofit Edition; and QuickBooks Premier Professional Services Edition. The remainder of the Premier and Enterprise Solutions offer both single and multiple units of measure per item.

Preference

To begin using this feature, confirm that the unit of measure preference has been enabled by choosing Edit > Preferences > Items & Inventory > Enable.

Then choose if the business will use a single unit of measure, or multiple unit of measures will be needed. For example, a tile setting business wants to use the unit of measure so the invoices that are created are clear. If the invoice shows labor for 1, is it one hour, one day, one project? If the unit of measure will vary by item, for example, tile that is sold (i.e. each or box) and labor hours (i.e. hour or day) the choice for multiple unit of measure would be appropriate. For the single unit of measure, only one choice per item will be available, although multiple unit of measure can be set up for different items. For example, if the tile setter always sells labor by the hour and tile by the piece, a single unit of measure would be appropriate.

TRICK: If the unit of measure preference has not been turned on, it is possible to enable the unit of measure functionality from the item itself. At that point it is also possible to check the box to begin defining the units of measure. The option to begin defining the units of measure is not available when the feature is enabled via the preference screen.

Once the unit of measure preference has been turned on either from the preference or directly on the edit item screen, it is possible to start entering unit of measure designations.

Set Up - Single Unit of Measure Per Item

From the edit item screen, it is possible to set up new units of measure. The first choice is a unit of measure type. Common choices include count, length, weight, time, etc. There is also an “other” if an appropriate choice does not exist.

The next screen will permit choosing the specific unit of measure. For example, if count is the choice; each, pair, dozen and other will be the choices.

TRICK: If a single unit of measure per item has been chosen, there is not a specific list to view all the unit of measure choices that have already been set up. To view the units of measure for a single unit of measure per item will require editing an item and clicking on the pull down list.

TRICK: For the single unit of measure, since there is not a list, there is no way to delete a unit of measure. From the edit item window, it is possible to edit the unit of measure item name, abbreviation, or make the unit of measure inactive. However, if the unit of measure is inactive, there is not a list to go to make it active again. If the unit of measure is typed exactly as it was, once the new one has been saved, click on the edit button and uncheck the inactive box. The only other alternative is to go to another item that has used the item, edit the unit of measure so that choice is not inactive, then it will be available for use again.

Set Up – Multiple Units of Measure Per Item

When setting up unit of measure and the preference has been set for multiple, the set up is a little more extensive. The first screen of selecting a unit of measure type is the same. But then the next screen is not simply the specific unit of measure, but rather the “base” unit of measure. This choice is critical and should be the smallest unit that will ever be used to buy or sell the item. If the choice is made for count, the next screen will show choices such as each, pair, or dozen for the base unit of measure.

Once the base unit of measure is chosen, the next screen permits the set up of related units. In our example where each is the base, the related units may be box, case, bag, etc. with an appropriate count (i.e. number of each) assigned to the various names.

TRICK: For Multiple Unit of Measure Per Item, the Unit of Measure (U/M) Set List is available from the List menu pull down at the top of the screen in QuickBooks. From there the unit of measure set up can be edited, made inactive, etc.

Use

Once the unit of measure list has been set up and assigned to the items as appropriate, the Unit of Measure (U/M) column will be available by default or can be included by editing the template for the various purchase and sales forms.

What's New in Version 2008

Accountant's Copy Enhancements

With the release of version 2007, the Accountant’s Review Copy was completely revised and is now called the Accountant’s Copy. With version 2008, the features of this tool for Accountants to work with the client’s data file while the client continues to enter current transactions has again been expanded.

Note: QuickBooks Pro, Premier, and Enterprise Solutions can create an Accountant’s Copy to send to their Accountant. This is not available with Simple Start or QuickBooks for the Mac. Only Premier: Accountant Edition or Enterprise Solutions: Accountant Edition can open the Accountant’s Copy file.

Overview of Enhancements

Create Accountant’s Copy

Dividing Date Enhancement

Send Copy to Accountant

Open & Convert Accountant’s Copy Transfer File

Working with Accountant’s Copy in 2008

Create Accountant's Copy

A significant change with version 2008 is the additional option of “Send to Accountant” when creating and/or using the Accountant’s Copy.

QBRA-2008: File > Accountant’s Copy > Client Activities

With QuickBooks 2008, it is now possible to transfer the Accountant’s Copy file over a secure Internet connection that uses Intuit servers. When creating the Accountant’s copy, there are now two options:

Save File – This will create a file and save it locally to be transferred to the Accountant via e-mail, flash drive, CD, etc. as was available in prior versions. Note: The only change is that the dividing date now has pull down options of end of last month, 2 weeks ago, 4 weeks ago, and custom.

Send to Accountant – This is the new online data transfer option. Creating the file is the same, but then the file is sent to the Accountant by following the on screen prompts. The file is then uploaded to the secure Intuit server and a confirmation e-mail is sent to both the client and the Accountant.

QBRA-2008: File > Accountant’s Copy > Client Activities > Send to Accountant

QBRA-2008: File > Accountant’s Copy > Client Activities > Send to Accountant > Next

Dividing Date Enhancement

The dividing date was first introduced with version 2007 for the purpose of designating the date range that the accountant can enter and change transactions as well as the date range that client can continue to work on. This feature has gone one step further with QuickBooks 2008 by offering several choices to aid the client in setting the dividing date.

The advantage to instructing the client to choose a more recent date is that it gives the accountant more flexibility when working with the Accountant’s Copy of the file. For example, if the client selects a dividing date of “2 weeks ago”, that would allow the accountant to edit transactions up to that date. At the same time, this does not limit the client’s ability to work with the file, assuming the client only needs to enter new transactions, dated after the dividing date. The disadvantage of using a date, such as end of last month, is that if the Accountant discovers an error after that date, it is not possible to change it. The only choices would be: 1) Ask the client to make the correction on their copy of the file; or 2) enter a new transaction to correct the error.

Send Copy to Accountant

By using the new send to Accountant feature, the process will use Intuit’s secure servers to make the transfer process much easier for both the client and the Accountant.

QBRA-2008: File > Accountant’s Copy > Client Activities > Send to Accountant > Next > Set Dividing Date > Next

As part of this process security is taken very seriously: the file is encrypted and an additional password is required. Note: the password can be the same as the Admin password assuming it is “strong” (i.e. at least seven characters; at least one number; and at least one upper case letter).

QBRA-2008: File > Accountant’s Copy > Client Activities > Send to Accountant > Next > Set Dividing Date > Next > Accountant email > Confirm Accountant email > Client Name > Client email

After the file is created, it is uploaded and both the client and the Accountant will receive an e-mail notification that the file is available.

The e-mail that the client receives will look like this:

The file the Accountant will receive looks like this:

Open & Convert Accountants Copy Transfer File

Once the client has created the Accountants Copy file and provided it to the Accountant the following are the steps necessary for the Accountant to begin working with the file. New with version 2008 is the ability to work with both 2007 and 2008 Accountants Copy Files. The example below is using a file created by a client using QuickBooks 2007 and the Accountant is using the new QuickBooks 2008 version of the program.

QBRA-2008: File > Accountant’s Copy > Open & Convert Accountants Copy Transfer File

QBRA-2008: File > Accountant’s Copy > Open & Convert Accountants Copy Transfer File > Next

QBRA-2008: File > Accountant’s Copy > Open & Convert Accountants Copy Transfer File > Next > Next

QBRA-2008: File > Accountant’s Copy > Open & Convert Accountants Copy Transfer File > Next > Next > Choose File > Open

QBRA-2008: File > Accountant’s Copy > Open & Convert Accountants Copy Transfer File > Next > Next > Choose File > Open > OK

QBRA-2008: File > Accountant’s Copy > Open & Convert Accountants Copy Transfer File > Next > Next > Choose File > Open > OK > OK

QBRA-2008: File > Accountant’s Copy > Open & Convert Accountants Copy Transfer File > Next > Next > Choose File > Open > OK > OK > Choose file name > Save

Working with Accountant's Copy in 2008

There are several enhancements that bear mention when working with the Accountant’s Copy as revised for version 2008.

2007 and 2008 Accountant Copy files are OK

When working with clients via the Accountant’s Copy in version 2007 (as well as the Accountant’s Review Copy in version 2006 and prior) one of the most important requirements was that the client and the Accountant both are using the same version (i.e. 2006 or 2007) even though the product (i.e. Pro or Premier) could be different.

New with version 2008, when the Accountant is using QuickBooks Premier: Accountant Edition it is possible to open, complete work, and send an appropriate file back if the client is using version 2007 OR 2008.

Bank Reconciliations by Accountant

In an Accountant’s Copy type file in 2008, the accountant can perform bank reconciliations and the cleared status will be sent back to the client for any transactions prior to the dividing date. Any new transactions (without the cleared status) subsequent to the dividing date will also be transferred back to the client. This is a significant change from prior versions which did not permit sending the cleared status back to the client.

There is, however, a significant issue which bears mention. While an Accountant’s Copy exists, the client can perform bank reconciliation work, but it will be undone when the Accountant’s Copy is imported to avoid any potential conflicts. This is true if the Accountant completes any bank reconciliation work or not. If the client attempts to complete bank reconciliation procedures, the following message will be displayed.

Note: If the client has continued to use QuickBooks version 2007 the reconciliation information will not be sent back: i.e. same functionality as in previous versions. The following is the warning that the Accountant will receive.

What Data Is Transferred?

Knowing exactly what information will be transferred back to the client from the Accountant is now very clear. QuickBooks now highlights the fields that will be transferred back: anything that is displayed with a white background when using the Accountant’s Copy will not be transferred.

Here is an example for a new customer. Note that only the Customer Name and Company Name will be exported, none of the other data will appear when imported by the client.

QBRA-2008: Customer Center > New Customer & Job > New Customer

Here is an example for an invoice. Note that most of the information will be exported except the addresses and additional header fields such as PO number, terms, etc.

QBRA-2008: Customers > Create Invoices

Intuit Accounting Products

Product Overview

Simple Start, released in 2004 is designed for new businesses and those that have been using a manual system (i.e. spreadsheets, one-write systems, paper and pencil, etc.)

QuickBooks Basic takes the ease of the registers and forms from Quicken and expands to include more sophisticated business functions such as inventory and a true general ledger. Prior to 2002 the name of this product was simply QuickBooks. With version 2006 this product is no longer available.

QuickBooks Pro adds many enhancements to the QuickBooks Basic software such as: estimates, time tracking, advanced job costing features, multiple price levels, integration with other programs such as Microsoft Word, Excel, Outlook or Symantec ACT!, online payroll services and multi-user access, to name a few.

QuickBooks Premier was new with version 2002. It includes all the features of QuickBooks Basic and Pro plus more journal entry options, easier reconciliation reporting, remote access, and Expert Analysis. There is a specific Premier version available for several industries with the main difference being a special navigator and a few additional reports.

QuickBooks Premier: Accountant Edition according to Intuit's web site is customized for accountants with multiple QuickBooks clients. It has all of the features included in the other three versions (including the contractor reports). The remote access feature will permit working with a client file as long as it is the same version (i.e. 2003) even if it is not the same product (i.e. Basic or Pro) plus the ability to "collapse" many detail reports.

QuickBooks Enterprise Solution has been described by Intuit personnel as "QuickBooks on steroids." Included in this product are all the features of the Premier software, plus just about all the limits are doubled. The file structure has been changed to permit effective use of larger data files. There are additional human resource features, the ability to combine reports from several files and an included technical support package. This product also has industry specific alternatives.

QuickBooks Online Edition is Intuit's ASP solution. This is the correct solution for businesses with simple accounting needs, but the desire to have remote access to the data (for different locations for example). A persistent Internet connection (such as DSL, T1 or cable access) is needed. This product was previously called QuickBooks for the Web. The functionality has been increasing but it is still not as robust as the desktop QuickBooks accounting packages.

QuickBooks for the Mac was not updated between 1997 and 2002. The version numbers have kept the old sequence (i.e. version 5 was released in 2003 and version 6 was released in 2004) rather than using the year like the Windows based products. New with version 2005, the Mac products now have adopted the year for the version number.

Single User Versus Multi-User

Single User versus Multi-User

Which is best? The short answer is that the single user license is the best choice for a stand alone machine. For multiple computers connected via a network, multiple licenses are required for simultaneous access. The software is the same no matter which way it is purchased. For example, if there are two computers networked and both users need access to the data file at the same time, the most cost effective alternative is to purchase two single user licenses and install one CD on each machine. If there will be three of more, the 5 user pack is most cost effective.

Best Price Note: There are many places that sell QuickBooks. Many of the club stores and discount office supply stores have the lowest price, but may not have the specific product you are looking for. By clicking on the Intuit link from our site, you receive up to 20% off plus free shipping direct from Intuit for any of the products.

TIP: According to the licensing agreement for QuickBooks, the only time the same single user license can be installed on more than one machine is when the purchaser continues to the only person who is starting and using the program on any of the computers.

Premier vs. Enterprise

Q - As a QB Pro Advisor I have both Premier Accountant's Edition and Enterprise Accountant's Edition. I am starting a new CPA accounting firm"s set of books (I will be the controller/CFO using QuickBooks.) Which QuickBooks Accountant"s Edition should I use for my new CPA firm and why?

A – From the question, I do not have enough information to offer an opinion, but I can share the questions (and possible answers) I would ask to determine which product is a better match.

Do any of the following apply?

ü The number of users needing simultaneous access is between 6-20 users
ü The file size is expected to grow rather large (i.e. extensive job costing for numerous employees via payroll in this example would make it grow more significantly)
ü The size of the lists is expected to exceed approximately 10,000 (i.e. in this example my guess is this will not be an issue)
ü Will the software be used with Microsoft Windows Terminal Services for remote access?

If the answer to any of these questions is yes, Enterprise is probably the required solution.

Now, assuming the answer to all of those questions is no. Then the next issue to consider is the long term use of the file. If it is anticipated that at some point the client may way to take the file and begin doing some of the work in house, my recommendation would be use your Premier: Accountant Edition. If the Premier features are not used, when the client needs to purchase the software, they can purchase the appropriate product (i.e. maybe they will only need Pro?) and a reasonable cost. If you begin using Enterprise, they would be required to purchase Enterprise since the files are not compatible with the other desktop products. If, however, the business grows and they need Enterprise in the future, you can upgrade from the other desktop products without any problems.

Quicken

Quicken is primarily designed to handle personal finances, including mortgage amortization and investment tracking. There are basic Accounts Receivable and Accounts Payable components plus a limited number of reports. Quicken does not have a true general ledger component. For this reason, it is typically not the best alternative for a business except if extensive investment tracking is needed.

Quicken interchange format (i.e. QIF) files are available from many financial institutions, although the QuickBooks integration is not as wide spread. There is an add-on product for QuickBooks that quickly and easily converts the QIF file to an IIF file via Microsoft Excel to get around this situation.

There are two situations where an Accountant may choose to have a client use Quicken rather than QuickBooks for the check register data entry:

1. Some business clients feel more comfortable with Quicken based on using it for their personal accounts.
2. Quicken is very inexpensive (there different versions-- http://www.quicken.com/quickensw/sidexside/ and it is easy to use (a check register looks like to would if prepared manually, a check looks like a check, etc).

If this is the case and the Accountant still wants to use QuickBooks, the QIF file can be exported for a specific date range and then the QIF to IIF add-on product will permit converting the data to a format that can be imported into the QuickBooks file. The Accountant “keeps the books” but the client can print checks, keep a running checkbook balance, and help with the data entry functions.

Simple Start

In September 2004 Intuit announced the newest product to the QuickBooks Accounting Software family in a press release.

Overview

The Simple Start product was new in 2004. It is designed for new businesses and those that have been using a manual system (i.e. spreadsheets, one-write systems, paper and pencil, etc.)

Getting Started

Once the software is installed, the following screen appears when the software is started.

There is only one sample company included but the software just proceeds to the interview to get the new user started.

Ease of Use

The find is consistent with the simple find in the other desktop products.

Below is an example of the invoice in Simple Start. Notice how it does not have many of the choices of the other desktop products.

As compared to QuickBooks 2005 Premier: Accountant Edition

That simplification is consistent throughout the product. Below are a few examples:

The data file either has a password or not, there is no need to deal with which areas of QuickBooks the user should have access to:

The preferences have also been significantly reduced in the interest of simplicity:

When setting up an account, the optional information is clearly noted as such:

When creating a new item, there is no choice of item type:

Pull Down Menus

File

New Company

- Open Company

- Company Information

- Add/Change Password

- Preferences

- Maintenance

- Back Up

- Restore

- Verify

- Rebuild

Print Forms

- Checks

- Credit Memos

- Invoices

- Sales Receipts

Email Forms

- Printer Set Up

- Register QuickBooks: Simple Start

- Exit

Edit

- Undo

- Revert

- Cut

- Copy

- Paste

Company

- Lists

- Customer List

- Vendor List

- Other Name List

- Chart of Accounts

- Items List

- Terms List

- Payment Method List

- Pay Sales Tax

- Business Services

- Business Services Navigator

- Manage QuickBooks Billing Solutions

- Synchronize Billing Solutions

- Manage Merchant Account Service

- Download Terminal Payments

- Manage Automatic Credit Card Billing

-For Your Accountant

- Reconcile

- Make Journal Entries

Reports

- Total sales by customer

- Total sales by item

- All activity by customer

- Customer balances

- Invoices that have not been paid

- Total expenses by payee

- All transactions by vendor

- Tax Reports

- Income tax summary

- Income tax detail

- Sales tax due

- Accountant Reports

- Profit & Loss Standard

- Balance Sheet Summary

- General Ledger

- Journal

QuickBooks Basic

The payroll features are fully integrated, but only the Do It Yourself tax table subscription option is available. Most add-on products require version Pro or higher.

QuickBooks Basic is only appropriate if a business only needs basic Accounts Receivable, Accounts Payable, etc. functionality. If the business does not need any of the advanced features such as multi-user capabilities, integration with Add-on products, etc. then QuickBooks Basic may be an acceptable choice. Most businesses, however, usually have at least one feature that will make it worth it to them to upgrade to at least the Pro version, even if it is only the Excel interface for reporting.

To compare different versions and products, review our comparison chart or to compare the current products only visit QuickBooks.com QuickBooks.com.

For the most up-to-date information visit a QuickBooks.com link and click on Basic in the left side navigation. This will provide more information about the product as well as FAQs and system requirements.

QuickBooks Pro

QuickBooks Pro adds many enhancements to the QuickBooks Basic software such as: estimates, time tracking, advanced job costing features, progress invoicing, multiple price levels, form template editing capabilities, printing packing lists from invoice forms, import Excel lists, loan manager, vehicle mileage tracker, fixed asset list, cash flow projector, e-mail forms and reports, integration with other programs such as Microsoft Word, Excel, Outlook or Symantec ACT!, online payroll services and multi-user access, to name a few. To investigate any of these features in more detail, please search this site.

This product is what the majority of clients use. It provides expanded functionality and integration alternatives not available with Basic, without the higher price of the Premier product.

To compare different versions and products, review our comparison chart or to compare the current products only visit QuickBooks.com.

For the most up-to-date information visit a QuickBooks.com link and click on Pro in the left side navigation. This will provide more information about the product as well as FAQs and system requirements.

QuickBooks Premier

QuickBooks Premier was new with version 2002. It includes all the features of QuickBooks Basic and QuickBooks Pro plus more reverse journal entries, import templates, integrated FedEx shipping, easier reconciliation reporting, business plan tool, budget/forecast options, per item price levels, sales orders, inventory assembly builds, remote access, and Expert Analysis to name a few. There is a specific Premier version available for Accountants and several other industries that include a special navigator and additional reports. To investigate any of these features in more detail, please search this site.

To compare different versions and products, review our comparison chart (http://www.4luvofbiz.com/kb/115.012_files/QBCompare_2005.pdf) or to compare the current products only visit QuickBooks.com (http://quickbooks.intuit.com/?priorityCode=3969702399&kbid=2519&img=Fast-&-easy...gold.gif&sub=).

For the most up-to-date information visit QuickBooks.com (link to http://service.bfast.com/bfast/click?bfmid=32157665&siteid=38849548&bfpage=homepage3) and click on Premier in the left side navigation. This will provide more information about the product as well as FAQs and system requirements.

QuickBooks Premier Industry Specific Versions

At the Intuit Developer Network (IDN) Conference in December 2003, Intuit announced that approximately 1.6 million customers want industry specific solutions. With the expanded industry specific solutions available with the 2004 version of the product, Intuit moved from 30% to 67% industry coverage for its customer base of 89% of the small business accounting software market. The current industry specific products that are available are:
• Accountant Edition
• Contractor Edition
• Healthcare Edition (discontinued)
• Manufacturing & Wholesale Edition
• Non-Profit Edition
• Professional Services Edition
• Retail Edition

With the exception of the Accountant Edition, the main difference between the industry specific editions and the "plain" Premier product is an additional navigator and a few additional reports. With version 2006, this has begun to change. For example, several of the inventory enhancements are only available in some of the industry specific versions.

Note: These same industry specific versions are available for the Enterprise Solutions products as well.

Not sure which to pick? If you are not sure, and the remote access feature is not an issue, the Accountant’s Edition is usually the best choice since everything is included. If the business will use Remote Access, it is better to choose an industry specific version since the remote access is limited to the one data file so the price is a little lower on a monthly basis.

Accountant Edition

QuickBooks Premier: Accountant Edition according to Intuit’s web site is customized for accountants with multiple QuickBooks clients. It has all of the features included in the Premier product plus all the reports available in all the industry specific versions except the Nonprofit Edition. The remote access feature will permit working with a client file as long as it is the same version (i.e. 2003) even if it is not the same product (i.e. Basic or Pro), multiple journal entry view, adjusting journal entries, an adjusted trial balance report, fixed asset manager, and the ability to “collapse” many detail reports, just to name a few.

QBRA-2004: Reports > Accountant & Taxes

Contractor Edition

According to Intuit’s web site, there are four key features and benefits available with the Contractor Edition. Three include features available in the other versions of the product as well: 1. Help stop losses with contractor-specific reports; 2. Keep your entire job details in one place; 3. Fast and easy for contractors to set up, learn, and use. The final enhancement deals with industry specific reports to see which jobs are making money, and which are not.

There are three reports included in this category according to Intuit’s web site:

Job Costs Detail Report – This report only includes the costs from the expense tab of expenditures and payroll costs that have been paid and assigned to the specific customer:job, not the items. Alternatives: 1) The same report for only the costs (not the payroll costs) can be created by using the unbilled costs by job report then filtering for the date range and changing the billing status to all (not just unbilled). 2) The same report that includes the items as well as the costs and payroll expenses can be created by using the Job Profitability Summary Report then double click on the total at the bottom of the report. Note: It is the opinion of the author this alternative is better than the new industry specific report because it includes items as well.
Expenses not Assigned to Jobs – This report is not available without the Contractor, Professional Services, or Accountant Edition. The report only shows information entered on the expense or item tabs for expenditures. It does not include the payroll related transactions that have not been assigned to a customer:job. In the other versions of the product, the best way to accomplish reconciling is to compare the Profit & Loss by Customer:Job with the Profit & Loss Standard for the same time frame. By double clicking on the Profit & Loss Standard subtotal, it is possible to scroll through the activity looking for entries in the name column that are not customer:jobs (or adding the source name column to see where expenditures have the same name in both columns).
Job Estimates vs. Actuals – this report is available for both summary and detail for Pro and higher products. It is not unique to the Contractor Edition.

QBRA-2004: Reports > Industry Specific > Contractor Reports <img src="/sites/default/files/1_0.jpg" data-cke-saved-src="/sites/default/files/1_0.jpg" style="width: 576px; height: 461px;" alt=""> In addition to the information supplied by Intuit, the following four reports are only available with the Accountant or Contractor Edition of the software. While some of these reports could be created by filtering, they would not provide the exact same look. <ol start="1" type="1"> <li>Open Purchase Order by Vendor Detail – An Open Purchase Order report is available in other versions, but it is only available as a summary report.</li> <li><a data-cke-saved-href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=245800" href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=245800">Unpaid Bills by Job</a> – The Unpaid Bills Report that is available as a standard report in other versions is a summary report that cannot be sorted by job.</li> <li><a data-cke-saved-href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=245850" href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=245850">Unpaid Job Bills by Vendor</a> – Although the name of this report is rather confusing, a report that shows the unpaid bills with the detail lines is not available without the Contrator or Accountant Edition. The Unpaid Bills in the other versions are a summary reports, not detail.</li> <li><a data-cke-saved-href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=245300" href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=245300">Job Costs by Vendor</a> – This report includes both costs and items. The purchases reports available in the other versions on include items, not costs. With Version 2005, the <a data-cke-saved-href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=1245" href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=1245">contractor specific lists</a> were expanded.</li> </ol> <h3> </h3> <h2>More information on this topic</h2> <a data-cke-saved-href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=1119" href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=1119">Intuit Accounting Products</a>

Healthcare Edition

As of last check of Intuit’s web site this industry specific version is no longer included. All of the reports can be obtained via modification of reports in the other products. This compounded with the fact that Steven Aldrich stated 12-10-03 that the loyalty and satisfaction of this product was low is consistent with the discontinuation of the product.

QBRA-2004: Reports > Industry Specific > Healthcare Reports

Professional Services Edition

According to Intuit’s web site, there are five key features and benefits available with the Professional Services Edition. All are available in the “plain” premier version except the specific navigator, forms that have been customized for professional services companies, and the following four reports. While some of these reports could be created by filtering, they would not provide the exact same look.

1. Expenses Not Assigned to Project – This report is not available without the Professional Services, Contractor, or Accountant Edition. The report only shows information entered on the expense or item tabs for expenditures. It does not include the payroll related transactions that have not been assigned to a customer:job. In the other versions of the product, the best way to accomplish reconciling is to compare the Profit & Loss by Customer:Job with the Profit & Loss Standard for the same time frame. By double clicking on the Profit & Loss Standard subtotal, it is possible to scroll through the activity looking for entries in the name column that are not customer:jobs (or adding the source name column to see where expenditures have the same name in both columns).
2. A/R Aging Detail by Class – The A/R Aging Detail report is available but is not able to be subtotaled by class without this industry specific version.
3. Billed/Unbilled by Person – It is possible to modify the standard time reports available in other versions to display the billed, unbilled, and not billable columns, but the summary report in this format is only available with the Professional Services, Contractor, or Accountant Edition.
4. Billed/Unbilled by Person by Activity – This summary report can be duplicated for one person by collapsing the detail and filtering for one name. It is not possible to have the subtotal by person available on one report in this format without the industry specific version.

QBRA-2004: Reports > Industry Specific > Professional Services Reports <img src="/sites/default/files/1_2.jpg" data-cke-saved-src="/sites/default/files/1_2.jpg" style="width: 576px; height: 461px;" alt=""> <h2>More information on this topic</h2> <a data-cke-saved-href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=1119" href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=1119">Intuit Accounting Products</a>

Retail Edition

According to Intuit’s web site, there are five key features and benefits available with the Retail Edition.

- Track daily sales results more easily – the daily sales summary form help you to track sales totals all in one place so you can get more insightful reports (this is a sales receipt customized with a new name)
- Gain greater day-to-day business insight with 10 retail-specific reports and Expert Analysis Tool (8 of the reports and the Expert Analysis are available in all Premier Editions, for the 2 specific reports, see below)
- Save time – faster and easier for retailers to set up and use. Retail-specific Menu and Navigator, industry tips for using QuickBooks, and more
- Create and track service work orders more efficiently with the work order form ( this is a sales order that has been customized with the new name)
- Works alone or with QuickBooks Point of Sale – to save time transferring sales data

All the features are available in the “plain” premier version except the specific navigator, forms that have been customized for retail businesses, and the following two reports. While some of these and other reports could be created by filtering, they would not provide the exact same look.

QBRA-2004: Reports > Industry Specific > Retail Reports

1. Customer Payment by Payment Item – This report shows the payments received on invoices in a summary format. (Note that it is not all payments received from customers, only those payments which have been received at the time the invoice was created.)

QBRA-2004: Reports > Industry Specific > Retail Reports > Customer Payment by Payment Item

2. Purchase Volume by Vendor – This report includes disbursements from the expense and items tabs. The purchase reports available in other products, in contrast, only include the items.

QBRA-2004: Reports > Industry Specific > Retail Reports > Purchase Volume by Vendor

Manufacturing and Wholesale Edition

According to Intuit’s web site, there are seven key features and benefits available with the Manufacturing & Wholesale Edition. All are available in the “plain” premier version except the specific navigator, forms that have been customized for manufacturers and wholesalers, and the following three reports. While some of these reports could be created by filtering, they would not provide the exact same look.

1. Open Purchase Order by Item – An Open Purchase Order Report is available in total or by job, but not sorted by the item.
2. Profitability by Product – For inventory items, the sales by item summary has the gross margin and percent columns included. This report, however, is available for all item types.
3. Sales by Class and Item Type – This summary report does not have anything similar except in this industry specific version.

QBRA-2004: Reports > Industry Specific > Manufacturing and Wholesale Reports

Non-Profit Edition

Nonprofit Edition

Nonprofit Edition includes the Unified Chart of Accounts (UCOA), customized reports, tracks donations, pledges, and grants, includes customized forms and letters, and includes a Statement of Functional Expenses (990) Report to aid in review of categories. These reports are not included with the Accountant Edition like with the other industry specific versions because they are just variations of reports already available.

With version 2004 the number of industry specific versions of QuickBooks Premier has been expanded. One is the non-profit edition. Intuit"s web site states that the software is "specifically designed for nonprofits" and by using it "gain greater insight from nonprofit-specific reports." In this article we share our interpretation of this product

Installing the non-profit edition is like installing any other QuickBooks software, place the CD in the drive and it will automatically launch. Follow the instructions on the screen to complete the installation. If a previous version of QuickBooks was used, the data file will automatically convert when opened for the first time. The non-profit edition contains all the features of Basic, Pro and Premier Products. What makes it unique is a non-profit navigator and the ability to import the Unified Chart of Accounts (UCOA). It also includes two templates, a standard pledge template (i.e. a customized invoice) and an Intuit Standard Donation template (i.e. a sales receipt). The navigator uses the non-profit terminology for these forms that are included in the other versions. For the industry specific reports: the "Statement of Functional Expenses - Form 990" the Intuit web site refers to is a Profit & Loss by Class with the change in the title; the "Donors and Grants" report is the sales by customer summary, and the "Biggest Donor list" is the sales by customer summary report with the modifications of adding the % of column and sorting by total and clicking on the arrow to reverse the order (i.e. largest total first); and the "Statement of Financial Position" is the Balance Sheet report. Like most of the industry specific version, the use of common terminology is helpful to non-profits when using the software, and the additional navigator and templates is nice. However, functionally, the changes are not significantly different than what can be accomplished with the "non-industry" specific versions of the product.

QuickBooks Enterprise Solution

The Enterprise Solution became available in 2002. The interface is exactly the same as the Pro and Premier products making the upgrade to the most comprehensive product Intuit offers easier. This is the “mid-market” solution for companies that need a more robust product.

It includes all the features of QuickBooks Premier plus most limits have been doubled. For example, the Enterprise Solution is set up for a maximum of 10 simultaneous users (as compare with 5 in Pro or Premier) and the list maximum values have been doubled to a maximum of 29,000. The Enterprise Solution also has a different data structure which improves performance, especially in larger data files. According to the information Intuit provides (as well as limited testing by us when installing upgrades to the Enterprise Solution) key reports are 50% faster. For reporting purposes, the Enterprise Solution also permits creating reports from multiple Enterprise Solution files by using Excel.

The Enterprise Solution also provides human resource management features, the ability to find customers based on many criteria such as phone number, company name, etc.

The Enterprise Solution supports Window Terminal Services for remote access to the QuickBooks data file.

This product is only available as a 10 user package (cost approximately $2,500) and includes any upgrades for the year and technical support (cost approximately $1,000) for a total price of approximately $3,500.

QuickBooks Enterprise Solution Industry Specific Versions

The industry specific solutions follow the same school of thought as the Premier Industry Specific Versions of adding an industry specific navigator and an additional section of reports. As with the Premier product, there is one notable exception:

QuickBooks Enterprise Solutions: Accountant Edition – this is available as a single license for Accountants to use when working with their Enterprise Solution clients. The cost of this product is approximately $849.00 retail. To compare this product with other QuickBooks products visit QuickBooks.com.

The other industry specific versions that are available are:

QuickBooks Enterprise Solutions: Contractor Edition

QuickBooks Enterprise Solutions: Manufacturing & Wholesale Edition

QuickBooks Enterprise Solutions: Nonprofit Edition

QuickBooks Enterprise Solutions: Professional Services Edition

QuickBooks Enterprise Solutions: Retail Edition

QuickBooks Online Edition

<h1>QuickBooks Online Edition</h1>
Intuit's ASP solution is called the Online Edition. This product is Internet based with the software and the data both being hosted online. This is the perfect solution for those businesses that do not require some of the more robust features available with the <a href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=1119">desktop solutions</a> that need access from remote locations. A high speed internet connection is recommended then access is available from anywhere with only a browser.
Some of the features currently included are the ability to convert data from a desktop product, time tracking, the ability to automatically create a budget, advanced journal entry options and closing date exception report, form template options, the ability to e-mail forms and reports, integration with Microsoft Word, Excel, and numerous other add-ons, payroll processing, just to name a few. The Online Edition does not have the ability to create purchase orders or manage inventory.
The features are constantly being enhanced so a visit to Intuit's website is the best way to discover what is currently available. For the most up-to-date information visit <a href="http://service.bfast.com/bfast/click?bfmid=32157665&siteid=38849548&bfpa...">QuickBooks.com</a> and click on Online Edition in the left side navigation. This will provide more information about the product as well as FAQs and system requirements. To compare the Online Edition with other desktop products visit QuickBooks.com (<a href="http://quickbooks.intuit.com/?priorityCode=3969702399&kbid=2519&img=Fast...">http://quickbooks.intuit.com/?priorityCode=3969702399&kbid=2519&...).
The pricing in approximately:
Up to 3 users $19.95/month
Up to 10 users $29.95/month
Up to 20 users $49.95/month
Plus Package $15.00/month
<div></div>
<h2>More information on this topic</h2>
<a href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=1641">Remote Access</a>
<a href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=1119">Intuit Accounting Products</a>

Macintosh Notes

Macintosh Version

With the release of QuickBooks Pro 6.0 for the Mac late in 2003, the annual upgrade for the software seems to be back in sync with the Windows versions. While much of the information contained in the site will be applicable to both platforms, there are some differences between the two. At this point we do not attempt to offer extensive documentation for the Mac version specifically. Until 2003, the Windows platform products have been enhanced via new versions; however, there had not been a new version for the Macintosh Platform for many years. Version 5.0 for the Macintosh Platform was released at MacWorld in January, 2003. The payroll processing is still provided by Aatrix as an add-on and the features are not as extensive as the Windows products but Intuit has stated that they will continue to support Mac users. For the press release information, visit http://www.intuit.com/about_intuit/press_releases/2003/1-7d.html

Version 4.0, as it was originally purchased, was designated as “not Y2K compliant” on Intuit’s website. That means “The product or service has been tested and does not meet Intuit’s Year 2000 Compliant Standard.” To correct the issue, a software release was available directly from Intuit to make the program Y2K compliant. It is recommended that this update be obtained and installed as soon as possible if version 4.0 is being used.

The version 4.0 data can be converted to the newer Windows versions either by purchasing and installing Virtual PC for the Macintosh computer, or by backing up the data onto PC floppy diskettes, then restoring the data onto a PC with Windows installed.

Late in 2004, the latest version of QuickBooks for the Mac was released. QuickBooks: Pro 2005 for Mac is now able to open QuickBooks for Windows back up files, as well as now uses the same menus as QuickBooks for Windows. Some additional enhancements include QuickZoom in Pay Bills and Receive Payments, several alerts, the ability to back up data to a .Mac account, use scroll-wheel mouse, ability to hide inactive list items, etc.

File Set Up

File Set Up Planning

Before You Start

Before You Start... Setting Up Your File

The time you spend thinking and talking with the client about what they would like from the system (and what would help them better manage their business) will save time and unnecessary aggravation later. Think especially about the information the bookkeeper, the accountant, and the client will want to create reports.

In addition, there are many alternatives as to how the various tasks can be accomplished. It is important to think about and discuss how the flow of information from the client to the bookkeeper, as well as from the bookkeeper to the client will occur. How, for example, is the client tracking day-to-day activity. How will that information be relayed to the bookkeeper (i.e. fax, scan and transfer the file, client to do some data entry into a shared file, transaction information will need to be imported and then manipulated)? To take the process one step further, who is going to need access to the information? In what form is the information needed?

If the client has already been using QuickBooks but is now going to turn over certain functions to a bookkeeper, how does that create an easier or more difficult situation? For help in determining the status of the file, learn more about our QuickBooks Diagnostic Tool at www.quickbookstools.com. This software walks you through 130+ questions to determine what exactly the state of the file is. It can be used as a client screen tool (charge a fee and they receive a custom report on their file that they can use with you or anyone else), a check up service regularly for client files, etc..

The QuickBooks Setup Checklist list was developed to provide a starting place for issues to consider. Although you may not understand all of the issues on the checklist at this point, most will be addressed as you proceed through this site. This checklist will serve as a tool to help ensure that the information necessary for reports will be captured, and the way in which the data will be entered is consistent with the needs of everyone who will be using it.

Designing the File

The time you spend thinking and talking about what you want from the system will save unnecessary aggravation later. Think especially about the information you will want to create reports. That includes both reports available currently and those that would be helpful in managing the business. Never make assumptions that a report will be easy or hard to create. Think about how the information is best presented and how it can be captured into the software most efficiently. That will help make decisions as to how to set up the file before the software is even installed.

The QuickBooks File Setup Checklist was developed to provide a starting place for issues to consider. Although you may not understand all of the issues on the checklist at this point, most will be addressed in this resource. If you need additional assistance, be sure to talk with a small business accountant or Certified QuickBooks Advisor or other QuickBooks Consultant. This checklist will serve as a tool to help ensure that the information necessary for reports will be captured, and the way in which the data will be entered is consistent with the needs of everyone who will be using it.

During this stage, don’t forget to investigate what is being done manually that could be automated as part of the conversion process. It is also possible to integrate many third party applications used for industry specific functions with QuickBooks, check with the developer of the product to learn for sure. If there are industry specific or other requirements that cannot be handled within QuickBooks alone, some time investigating third party add on products may be time well spent rather than simply accepting a work around.

Converting From an Older Version

To use a newer version of QuickBooks, QuickBooks Pro, or QuickBooks Premier with data from an earlier version, the conversion process is quite simple. The first time the data is opened using the new version, the software will state that the data is from an older version, would you like to convert it? Confirm that the data should be converted and the software will require that the data be backed up. Once that has been completed, the software will automatically update the file. It is important to realize that you can convert to a newer version, but the data will no longer be useable in the older version. There is no function to undo the conversion nor is there any way to “save as” to a different version.

TRICK: With versions 6 and 99 occasionally a version error would occur because of a difference in release. This has not been the case with any of the more recent versions.

TIP: The same easy conversion process is available for the Enterprise Solution products.

TRICK: When a new version is installed it will automatically replace the software from the previous version leaving the data intact. If both versions of the software will be needed (as in the case of Accountants with clients on different versions) it is necessary to install the new version in a different directory.

Converting from Quicken

Converting from Quicken to QuickBooks

Although Quicken and QuickBooks are both developed by Intuit, they are different software packages and handle certain functions differently. Enter into the conversion process with a skeptical mindset. One way to address this issue is to convert the file from Quicken to QuickBooks using the steps detailed below.

1. Before you convert your Quicken data, create a cut-off file (i.e. year end copy, start new year option).

2. Spend the time eliminating any unnecessary accounts, categories and classes in Quicken prior to the conversion.

3. Open QuickBooks.

4. Select File > Utilities > Convert from Quicken. The software will lead you through the next several steps.

5. When you are ask to display the list, answer yes. If using QuickPay, for employees, leave employee names as other.

6. Change names to appropriate type (i.e. customer, vendor, or other).

7. Complete remainder of conversion.

8. Review information in the new QuickBooks file for reasonableness.

Once the conversion is complete, immediately review the file. If the results are unacceptable, follow the steps for creating a new data file. (The old Quicken file has remained intact) assuming no conversion. When creating reports going forward, up to a specific date will be in Quicken while the more current data will be in QuickBooks. Often the time it takes to correct account names, numbers, types, etc. does not make sense for the benefit of comparative and historical information in one place.

TIP: Although Quicken and QuickBooks are both Intuit products, they do handle data differently. However, if a client who uses Quicken and has an Accountant that prefers to use QuickBooks, there is an inexpensive add-on that will automate the process of transferring the data from Quicken to Quickbooks on a regular basis.

Set Up Checklist

QUICKBOOKS SET UP CHECKLIST (New file)	Date
Company Name	Company Phone/Fax/E-Mail/Website
Company Address/Country	Company Industry
Contact Name for Accountant	Contact Phone/Fax/E-Mail for Accountant
How will the new file be named (i.e. file name) and where will it be saved?
Should an industry be chosen when creating the file or is an existing chart of accounts to be used? (see C of A form)
What type of entity (sole-prop/corp/non-profit/etc)?
What is the report basis (cash or accrual) and year end (i.e. 9/30, 12/31, etc)
What are the user names, passwords, and access areas for each person who will use the software? (see form)
What start date will be used? (Note: Last day of the previous period is preferred)
Who will provide the beginning balances and support schedules as needed?
How should the company preferences be set? (I.e. account numbers, audit trail, report basis, etc.) (see form)
Who is responsible for backing up the data?
Will class tracking be used?
How will customers be named? Will the job function be used? Use of type or custom fields?
Who will provide samples of invoices, reports, etc. if they are to be customized?
What type of items will be setup? Use inventory?
Who is responsible for ordering checks and any other pre-printed forms?
Will the payroll features be used? If so, who is responsible for obtaining the appropriate tax table?
How will vendors be named? Are the tax id numbers to be captured for 1099s? Use of type or custom field?
Are there sales tax issues to be considered?
Will Accounts Receivable functions be used?
Will Accounts Payable functions be used?
Are there additional services or add-on products that need to be purchased or set up?

Building New Data Files

Creating A New Data File

Creating a New Data File

QuickBooks has the ability to handle several different companies, each as their own data file. Usually a small business will have just one company file, but the flexibility this feature provides is especially important for bookkeepers and accountants, as well as small business owners with more than one company. This section contains a discussion of the components necessary to setup each new company. The software has a self-explanatory easy step interview to perform this function.

QBRA-2003: File > New Company

TRICK: With one of the transaction copier tools available, it is possible to have multiple QuickBooks files and simply merge most of the transactions from one file to another. An example is the accountants keeps a QuickBooks file for processing the payroll for a closely held professional services corp but the on-site employees write checks and create invoices in another file. The accountant can then use the QuickBooks transaction copier to create an IIF file to import the employee transactions into the “main” file that contains the payroll information.

Quick Setup

QuickBooks has an EasyStep Interview process to make the setup of a new company file more organized. It is possible to go through all of the different tabs to completely setup the company. However, it is recommended to “skip out” of the interview and proceed to setting up the various lists and balances from within QuickBooks itself. The specific set up procedures will be detailed as appropriate throughout this course. The steps to accomplish this task are detailed as follows:

1. Open the QuickBooks software program.

2. Click on File > New company.

3. For version 2004, choose to create an industry specific or custom file and click on OK. If an industry specific type of business was chosen, the software will jump to the final step (number 14 below). Otherwise, the software will proceed to the easy interview process described below.

4. Click on Next again if using the accountant’s edition to by pass the professional advisor information.

5. At this point, click on “Skip Interview.” The reason is to become familiar with moving around in the software over the next few chapters rather than proceeding through the EasyStep Interview process. The advantage to making this decision is that the way that movements happen in the actual software are a little different than the Easy Step Interview. It is easier as the software is learned to be more consistent. The next few steps will be required to setup the file, and then the list information and transactional data can be entered.

6. Enter the Company Name. Press tab to move to the next field. It will make your data entry easier if you learn to make the tab key your primary means of moving from field to field. Enter will then be able to serve as the key used to save the transaction.

7. If the legal name is different, enter it here. An example would be a sole proprietor. The company name would be based on how the business is known (i.e., the fictitious business name that was filed with the county or state, would be the company name). The legal name would be the owner’s individual name (i.e. the name which is filed on tax returns). Another common example would be for franchises.

8. Enter the address. In the older versions, add the telephone number, contractor number, tax id number, etc. under the address if it will be important to have this information printed on the invoices. If this information needs to be revised or changed at a later point, you can get to it again by clicking on File > Company Info when the file is open. In the 2002 versions there are additional fields for that type of information on the templates.

9. The country will usually be U. S. (Canada or other are the alternatives.) Also enter the phone #, fax #, E-mail, and web site.

10. The first month in the fiscal year will usually be the same as the tax year. See the step below.

11. The first month in the tax year will be the normal tax year of the business. If the business is just beginning this year, it will not be when the business begins, but when the year will be starting next year. For example, a sole proprietorship began business on July 1, but will be required to file a schedule C annually as part of the 1040 form (a calendar year form) so the first month in both the fiscal and tax year would be January. There would simply be no activity the first 6 months of the first year.

12. The income tax form used is important if QuickBooks will interface with Turbo Tax or Lacerte to prepare the income tax forms at the end of the fiscal year. If the interface is not necessary, <Other/None> is an acceptable answer. The only other change this choice makes is in the equity section of the chart of accounts.

13. QuickBooks tries to help whenever possible. The pre-set chart of accounts is yet another example of that fact. There are many different industries listed to provide a starting point for the new company file. Choose the one that most closely resembles the business and then subsequently modify it to match the business needs. If a chart of account from another file is preferred choose “none.” After you have saved the file in the step below, you cannot ever change the chart of account industry in total. You would have to add, delete, and/or modify individual accounts to make chart of account changes.

14. The final step is assigning the name of the file. This is an important step. No where in the software will you find the “save as” option. Once you have chosen a name and folder, and clicked on OK, the only way you can move it or change the name of it is to do so in Windows. QuickBooks automatically saves as transactions are recorded so there is no need to save regularly. The only procedure to do as transactions are entered into the file is to make a backup and store it off-site.

Backing Up

Back Up

In this age of technology and software backing up computer data files often is imperative. Not only should the data be backed up, the back up copies should be taken off site regularly. Included with the newest versions of QuickBooks is the ability to do automatic, off-site back ups. Even with system and network wide back ups, keeping additional back ups created directly from within QuickBooks for this critical information is often worth the work.

A good rule of thumb is to back up your QuickBooks file as often as you would not want to re-enter what you have done. It only takes a couple of minutes to back up the file, but it may take hours or more to re-enter what was lost in the case of a problem. If working in a QuickBooks data file extensively, consider backing up every couple of hours and definitely before doing any major clean up work on the file. Back ups are essential to “get back” to where you were when making major changes in the file. QuickBooks does save each transaction as it is entered so in the case of a situation like loss of power, only the current transaction will be lost. If the file is damaged, stolen, or lost, however, a previous back up may be the only course of action.

The software makes this process very easy. Simply click on File then back up from the menu bar. Data can be backed up to the hard drive (only recommended if you will be using it as an e-mail attachment) or to any other drive (i.e. onto a floppy diskette, zip disk, USB drive, etc). For a writeable CD, be sure to view the CD after completing the back up procedures because some computers are set up so that the file is backed up to the hard drive then burned onto a CD as opposed to being backed up directly to a CD.

With the newer versions on QuickBooks there is also an on-line alternative that, for a small fee, your data can be backed up and transmitted via the internet for secure off site storage. The service that is used is from http://www.connected.com. They have several other packages available for backing up other data and program files depending on the number of computers and the size of the data files to be stored.

No matter what procedures are used for backing up the data, always be sure to test restoring the data. There is nothing more frustrating that believing good back up procedures are in place, only to find that the back ups did not work properly. Test the back up by restoring the file at least quarterly.

Note: To see how frequently back ups are being done, Press Ctrl+1 then Ctrl+2 and open file to view the QBBACKUP.LOG. The most recent back ups will be listed at the bottom.
New with version 2003 is the ability to check data integrity each time the file is backed up.

QBRA-2003: File > Utilities > Back Up

Also new with version 2003 is the ability to schedule a back up. It is recommended that the back up be scheduled to occur each time the file is closed. This is a good supplement to the regular off-site back up procedures. If the file size is too large or the file is opened and closed frequently enough to make this process cumbersome, consider using the scheduled back up. The scheduled backup requires that the computer be on and the company file be closed at the appropriate time. QuickBooks can be open and in another company file. QBRA-2003: File > Utilities > Back Up > Schedule a back up tab > New <img src="/sites/default/files/2_23.png" data-cke-saved-src="/sites/default/files/2_23.png" style="width: 576px; height: 432px;" alt=""> . <h2>More information on this topic</h2> <a data-cke-saved-href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=1122" href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=1122">Building New Data Files</a>

Back Up Frequency

Regular backups are the most efficient, cheapest insurance for safeguarding the data. As a rule of thumb, the data should be backed up as frequently as you would not want to re-enter what you have done. At a minimum the data should be backed up at the end of each day. It only takes loosing data once to make this a habit.

In this age of technology and software backing up computer data files often is imperative. Not only should the data be backed up, the back up copies should be taken off site regularly.

A common mistake is to make a back up on the hard drive (when your hard drive crashes you could loose both the data and the back up) or to make the back up and leave it with the computer (if there is a fire, both the computer and the back up are burned). Cycling back ups so that if one is damaged another (although older) still exists is also a smart procedure to have in place.

One procedure that seems to work well is to back up the data at the end of the day and put the back up into a purse or briefcase (i.e. to be taken off site) then cycle these back ups. Also, consider leaving the back up from the end of the week, month, quarter, etc. off site. Keep in mind that a damaged or corrupt data file can behave quite normally for a long period of time. Regular checks of the data integrity help to catch this problem sooner. But the situation still remains that if a file is damaged, an old (maybe even several weeks or months ago) back up may be needed as a good “starting point.” Even an old back up is better than creating a new file from scratch. There is always a warning from the software if the same file is simply overwritten with a new back up. The reason for this warning is the potential of overwriting a good back up with a back up of a damaged file.

Another procedure that may work well is to e-mail the file to an off site computer. For example, the home e-mail address of the owner, the accountant, etc. There are many services that can help automate this process. One of the more common is www.gotomypc.com. For clients who use an accountant signed up with Remote Accounting Solutions, the charge to the accountant is the same regardless of how often the client uses the service in a month, making it an easy way to keep a current back up off site.

Especially if using diskettes, attempt to restore the data periodically to be sure the back up and media are both functioning properly. When the data actually needs to be restored is not the time to find out the back up has not been functioning properly.

The newer versions of QuickBooks have an off-site back up option through the internet. The service that is used is connected. It is possible to sign up directly with connected for backing up the data from the hard drive in general, including the QuickBooks file. The cost varies based on how much data will be backed up. It can work in the background when connected to the internet, or it can be started when the shut down command is given.

Double-Check Set Up

Double Checking File Set Up

Setting up any accounting software package forces a return to the basics. Taking the time to make good decisions during the setup process will assure accurate useful financial information in the future.

TIP: Password protect the data using the closing date field.

QBRA-2003: Edit > Preferences > Accounting > Company Preferences > Enter the Closing Date > Set Password (in previous versions it is with the set up of users and passwords)

TIP: Confirm all accounts and items have been assigned to the correct type.

TIP: Confirm that the items have been setup properly and coded correctly.

TIP: Check lists to see if some of the contents need to be merged, hidden, or deleted.

TIP: Before you begin working on the file, confirm that the opening balances are entered properly, including year-end reconciling entries.

TIP: Make a back up and store it off-site.

2/18/04

Q - I have a client who uses QuickBooks and recently changed the name of his company.

Unfortunately he started another QB file with the new company name so we now have two files for the 2005 year. My first question is, is there any way for him to now merge the two files into one? Second, couldn"t he have just changed the name of the company on the original file? How? Submitted by Tina

A - The first assumption I am making before answering the question is that it is truly just a name change, not a change in entity. If it was, for example, a sole proprietor who incorporated, you would want to start a new data file to keep the records for each entity separate.

I am going to deal with the second question first. Yes, it is possible to edit the company information which controls the name and address that prints on forms, as well as the company name that appears at the top of the screen when working with the data file. This can be accessed by choosing Company > Company Information.

As far as merging the two files into one, the short answer is that QuickBooks alone does not have any functionality to accomplish this task, but there are several data transfer tools that can. The right decision on the tool will depend on the version of QuickBooks that is being used. Typically for Pro or higher, versions 2002 or higher, or Enterprise 2 or higher the best solution is the Data Transfer Utility due to the fact that it using XML technology which means that there are reports prior to the transfer and error logs subsequent to the transfer. The tool will transfer any supported transactions which includes most posting and non-posting transactions except for payroll.

Restoring a Data File

The restore process is quick and easy, but extreme caution and care is required. Once a data file has been backed up it can be restored. It is not possible to restore a *.qbw (live data files) file nor can you restore a *.qba or *.qbx file (Accountant Copy files).

With QuickBooks open, choose to restore the file. The screen changed with version 2001 to show both where the file will be restored from as well as where it will be restored to. It is possible to restore from an online back up, floppy disk, CD, zip drive, USB drive, etc.

QBRA-2005: File > Restore

Once the appropriate location and file names have been chosen, click on restore. If the file has never been installed in this location, the process will proceed. If there is another copy of the data file in that location, a warning message will appear.

QBRA-2005: File > Restore > Set back up and restore location and file name > Restore

TIP: If the previous version is overwritten in error, there is no way within QuickBooks to get to it again so be very, very careful.

Set Up Case Study

With this case study, you will see the process that was followed, along with how to do it better in the future. There are several add-ons available to aid in the process. These will be highlighted as well.

Background:

The file had become too large to manage in QuickBooks 2003. It was impossible to condense because the software would simply close when the rebuild feature was used. The client did not want to upgrade to version 2005, they prefer to wait until 2006 when Intuit will sunset version 2003. The client had spent some time on the telephone with technical support and with several consultants and had accepted the fact that a new file was needed. The 3,000+ customers, 2,000+ memorized transactions and 1,000+ customers with outstanding balance was the problem. The file also included transactions since the end of the fiscal year. To further complicate matters, they are a cash basis company so the ability to preserve the report integrity needed to be addressed.

Alternative: The file could not be condensed in version 2003 because the process stated that the file needed to be rebuilt, but each time towards the end of the rebuild process, the software would crash.

Alternative: Upon upgrading to version 2005 without a problem, the file size actually decreased by about 25%. The condense process was not tested since the client did not want to upgrade.

Alternative: Based on the existing file size and the large number of transactions, it is quite possible that the best solution for this client would be to upgrade to the Enterprise Solution product. This product is designed to handle larger file size (250 MB is OK where 100 MB is the recommended max for the other desktop products) so, in addition to reducing the file size upon conversion and possible further reduction upon condense, this product is designed to provide improved speed during daily use based on the large number of transactions that will be processed through the file each month.

Solution:

Create a new file in the most automated way possible due to the large number of transactions. While the solution was easy, making it happen was a little more challenging.

Step 1: Get the old data file

In order to extract the information from the old file, we needed to physically obtain it. The decision was made that the file would be transferred late Thursday and the new file would be returned Monday morning. At over 500 MB, the file was obviously way too large to send as an e-mail attachment. As an alternative, RASwhich can usually work magic in any situation) was tried but the client's computer kept timing out during the transfer. The last alternative was to burn a CD and coordinate delivery of that.

Just as an aside: The CD was received but without the password. Due to how late it was at night, the decision was made to crack the password. The first try was with the Advanced Intuit Password Recovery Tool which is usually a little easier since it will remove the long passwords on the newer versions (plus it is a one time purchase with future upgrades available at no charge) but it timed out trying to crack such a large file. The back up plan of the other password recovery product we use was tried. QuickBooks Key churned a little but then was able to replace the passwords. The Admin password was copied, the QuickBooks data file was opened by pasting the password, and then the password was removed to make working with the file easier.

Step 2: Create the data file

This is probably the easiest part of the entire project. The only trick to creating a new data file in this case is to choose <None> for the chart of accounts since this information will be imported from the old file.

Step 3: Transfer the lists

In this case, it was a two step process.

First all of the lists except for the customers could be exported from the old file. This *.iif file could then be simply imported into the new file. The result of the list transfer is that the vendors, chart of accounts, items, etc. are now in the new file.

The second part of this process was MUCH more difficult. In fact, this next step took 75% of the time to create the new file. The decision was made that since the memorized transactions cannot be transferred from one file to the other, and the task of re-entering such a huge volume was so daunting, an invoice duplicator add-on was a logical solution. The problem was that the customers were invoiced different amounts each month. A custom field or customer type field was needed to permit using the add-on to invoice the customers correctly.

The process started as above with exporting the customer list.
This list was then opened in Excel.
The list was sorted by hidden Y or N with a secondary sort by name. All of the Y (i.e. inactive customers) were then deleted so only the active customers remained.
The memorized transaction list was exported to Excel and sorted by name (luckily most of the memorized invoices actually had the customer name as the name on this list)
The memorized transactions were then copied into the blank columns to the right of the exported customer list information to make matching the names easier. (Note: at this point someone with more extensive Excel experience probably could have made the process more efficient by using pivotal tables).
The memorized transactions were lined up in the same row as the appropriate customer. (Note: there were several transactions that were associated with inactive customers so these were transferred to a new Excel sheet to be provided to the client for further investigation)
Once all the memorized transactions were lined up with the appropriate customer, the column with the dollar amount was copied into the column for the CUSTFLD1 (i.e. custom field 1) and the column heading was replaced where it need to be to make the import work correctly.
This file was then re-saved as an *.iif file.
The new file was imported into the new QuickBooks data file. The result was the customer contact information, the new custom field, and any notes from the old file were all transferred at once.

Step 4: Transfer of Beginning Balances

The original plan was to use the Beginning Balance Transfer Tool but the problem came on Saturday afternoon when it was discovered that version 4 of the tool only works with versions 2004 and 2005. For version 2003, version 3 of the tool was required. The correct software was purchased, but unfortunately, the key code was not available until the developer's office opened again on Monday (yes, the same time the file needed to be to the client).

As an alternative, the List Importer was purchased and upon checking out a 7 day temporary key code was available (and actually the permanent one arrived within a couple of hours). This tool is an Excel AddIn so it works with versions 99-2005 QuickBooks Pro and higher products.

The AR Aging Summary report was used as the basis for the beginning balances. (Note: if the detail report is used each line for the same customer will be imported as a new customer (i.e. ABC Co, ABC Co {1}, etc)
The report was then exported to Excel.
The report was sorted by the balance column to permit removing any zero balance amounts and the total line to make the report more manageable.
The customer heading of name was added and the total heading was changed to balance. Customer was added to each line (although the instructions say it is optional, it did not work for me without it).
The tool was used to create the *.iif file
TRICK: The *.iif was opened in Excel and "Opening Bal Equity" was replaced with an income account to solve the cash basis issue going forward. The file was then saved again. That change is not available with the qbXML tools.
In QuickBooks, the file was imported. The notes remained, but all the other customer information was replaced with blank information. I.e. the customer contact information and the infamous custom fields were all removed.
The file that was created above was re-imported to replace the missing information and all was well with the world again.
The same process was followed for the chart of accounts.
1. Create a trial balance report in QuickBooks
2. Export the report to Excel
3. Add the account type column
4. Save the file
5. Import into QuickBooks
6. Double check all beginning balances and then make two entries: 1. Reclassify the beginning AR coded to the income account rather than opening bal equity and 2. Close opening bal equity into retained earnings.
This client did not use the Accounts Payable feature so there were not any vendor balances to transfer.

Note: had the decision been made at the beginning to use this tool instead, all of the necessary information would have been included on the report (with only changes potentially to the column headings) for each type of balance to create one step instead of two.

Note: In this case the bank accounts were not reconciled through QuickBooks so the bank account was transferred as the balance at the conversion date. Typically, however, once the beginning balances are transferred, the beginning balance for the bank and credit card accounts should be changed to the balance per the last statement and the outstanding transactions need to arrive at the ending balance per the old data file should be entered.

Step 5: Transfer of new transactional activity

There are several different tools available to transfer transactional data since version 2003 or higher is being used (i.e. the developers have an SDK from Intuit to permit transfer via qbXML technology).

The QuickBooks Transaction Copier alternative from Big Red Consulting is our choice if an older version of QuickBooks is used, or if both files are not located on the same computer. It is easy to use and relatively trouble free. The drawback is that since it uses an iif file rather than XML there is no error checking and the individual transactions are imported individually (i.e. they do not retain the links between transactions).

Due to the linking issue (and the desire to have error checking with such a large number of transactions) the decision was made to use the Data Transfer Utility instead. Due to the size of the file and the quality control issue for each type of transaction, the transfer was accomplished in 4 "stages:"

Transfer of checks, credit card charges and credit card credits
Transfer of invoices and credit memos (Note: make sure the sales tax preference has been turned on if the previous file was turned on, otherwise all the transactions will be rejected and the process has to start again for this type of transaction)
Transfer of payments received from customers (Note: Any payments received against the beginning balance was not transferred, but was indicated as an error. The reason is that the computer could not match the date and invoice number for those transactions. Within the tool, open the transfer report then choose Reports > Receive Payment Detail. To print to a file, this report can be printed using the snapshot viewer that can be downloaded for free from q2q.us, or if a PDF creation software is available, change the default printer then print the report. These errors will need to be addressed prior to processing the deposits)
Transfer of deposits (Note: There are two issues, the first is that all receive payments need to be in the file prior to processing the deposits. If a single receive payment is missing, the entire deposit will not transfer. The second issue requires an entry between a new account the tool creates on the chart of account "undeposited transfers" and undeposited funds." The SDK does not permit deposits to be coded to undeposited funds via the add-on. There are clearly written instructions included in the tool).

If the previous file has other transaction types such as bills, bill payments, estimates, etc that need to be transferred the process would need to be repeated for additional stages.

Once the transactions have been transferred, confirm that the list information remains intact. For example, the customer address and/or custom field were not replaced with blank information as part of the process. If they were, simply import the list files created previously again. The list information will not affect the transactional information.

Step 6: Export Memorized Reports

In this case there was no need to transfer memorized reports. If there were, the individual reports need to be exported from the old file and imported into the new file.

Step 8: Set Up of Online Banking and Merchant Services in new file

This process has two components that need to be addressed.

The first is actually setting up the merchant services and online banking to work from within the new file. This can be achieved through working with the free support from the merchant services. The only problem experienced in this area was with a Windows XP machine. When a Windows 2000 machine was used, the process went smoothly.

The second deals with importing the credit card information. Within QuickBooks there is not a report with the credit card numbers on it. However, the QTableGrabber will permit extracting the information into an Excel spreadsheet. (Note: To eliminate the process of setting up the query, after the tool has been installed and the old file in QuickBooks is open, download and open cc query.xls then choose QTableGrabber > Refresh Data. Select the query to refresh and the credit card information should populate the spreadsheet.) The spreadsheet can then be converted to an import file by Flexquarters Solutions for about $150. This automates the process of getting the information in to the file. Unfortunately, in this situation, this was not possible since the technology is only supported for version 2004 and higher. Instead, the old file was converted to version 2005, the QTableGrabber was used to extract the credit card information which was then provided to the client to cut and paste the information into the new file.

Simplified Easy Step Interview

On the first screen, there are three choices:

Start Interview – asks the questions and offers guidance. The estimate is the process will take about 30 minutes.
Convert Data – this is the appropriate choice if the client is converting from Quicken or Peachtree
Skip Interview – geared towards the Accountant or QuickBooks expert so that only the company information and chart of account choice is required before naming the new file and getting right to work in the software itself.

QBRA-2006: File > New Company

QBRA-2006: File > New Company > Start Interview

After entering the company information, the user is walked through a series of screens including:

Set Up administrator password (optional)
Indicate where the file will be saved
Customize QuickBooks for your business:
- Select Industry (sets up chart of accounts)
- Do you sell services, products, or both
- Do you sell online
- Do you charge sales tax
- Do you want to create estimates
- Do you want to track sales orders before you invoice your customers
- Do you want to use sales receipts
- Do you want to use billing statements
- Do you want to use progress invoicing
- Do you want to track the bills you owe
- Do you want to track inventory
- Do you accept credit cards
- Do you want to track time
- Do you have employees (if yes, w-2 and 1099?)
Enter your start date (note that the help file suggests the start of the new year, rather than the ending of the previous year)
Add a bank account
Review expense accounts
Review income accounts

Easier Payroll Set Up With Version 2006

Payroll Tax Service

With version 2006 as in previous versions, the first step is to choose the payroll tax table service option. There are three alternatives:

Standard (tax tables and ability to print federal forms) Cost is $199/annually
Enhanced (this service was new with version 2005 and includes tax tables, federal forms, workers comp calculations and state forms) Cost is $299/annually
- It is possible to bundle this service with the next version of QuickBooks Pro software as part of the annual subscription price. Cost increases by $100/annually for a total of $399/annually
- It is possible to bundle this service with the next version of QuickBooks Premier as part of the annual subscription price. Cost increases by $200/annually for a total of $499/annually
- There is also a service called Enhanced Plus for Accountants which permits adding 50 tax id numbers to one subscription for clients that the accountant processes in their office. There is no additional cost for this option so the $299/annually price will apply.
- Assisted (enter and print paychecks then payroll service accepts responsibility) Cost is from $59/month

QBRA-2006: Employees > Add Payroll Service > Learn About Payroll Options

New Payroll Set Up

The steps include:

Introduction
Company Setup
Employee Setup
Taxes
Payroll History
Payroll Check Up
Finishing Up

QBRA-2006: Employees > Payroll Set Up

Opening A File

Open A File

For whichever type of file is chosen, the appropriate dialog box appears to browse to the file location.

For restoring a back up, for example, the choice is if the back up is local or online as the following screen shot illustrates.

List Limits Expanded

Save A File

With version 2007, the process of saving a file has changed slightly. There is now a wizard to guide the user through the process of determining the type of file to be saved.

If the folder is chosen on the same drive as the data file, a warning is displayed:

The next screen asks when to create the back up

To schedule future back ups, there is a screen to provide guidance for automatic and scheduled back ups

Summary

List Limits Expanded

When to Create a New File

If investigation of the data yields circumstances that are not easily corrected (typically with payroll or inventory) the determination may be made to start a new file. If that is the case, the lists (i.e. customers, vendors, etc.) can be transferred to the new file. The advantage to this approach is that the transactions can be left behind in the old file, while the lists can be transferred to eliminate entering them again. With version 2002 this process is further simplified with the addition of a choice to remove all transactions (File > Archive and Condense Data > Remove ALL transactions) while retaining the list, preference, and subscription information.

It is not necessary to start with a new file each year. In fact, it is the opinion of this author that this process should not be done. If internal controls are in place for protecting the prior data, the task of re-entering all the beginning balances can be avoided. The additional benefit is the ability to research activity and create comparative reports with the prior data.

TRICK: You know how it goes during tax time. Small businesses had thought they could do everything themselves, and now they walk into your office saying "I know I am kind of late, but can you do my taxes so I don"t have to file an extension?" You don"t make any promises, but say you will see what you can do. You open the file and . . . To learn about our approach for handling problem files visit http://www.4luvofbiz.com/quic_news_64.html for the 4 step process.

Removing Transactional History

Removing Transactional History

For the newer versions of QuickBooks (2002 and higher), there is an option under File > Archive & Condense Data. This will permit removing all transactions in the file while preserving the lists and service subscriptions. This alternative will leave the basic framework and since all transactions are gone, it is possible to delete entries on the various lists. If using payroll in the current year or extensive changes need to be made to the lists (i.e. that is what was not set up properly) the second alternative may be better.

QBRA-2004: File > Archive & Condense

For the older versions of QuickBooks (2001 and prior), the only alternative is to start a new file. The lists can be exported from the old file and then imported into the new file.

Note: If the reason for the new set up is because of errors on the list (for example, inventory parts that should have been non-inventory) these errors can be corrected in Excel prior to importing the lists into the new file. There is some information that may not transfer (such as some payroll information, customer credit card numbers, etc.) so check the lists carefully before you begin entering transactional information.

With either alternative, the beginning balances will need to be re-entered. There are several add on products available to make this process easier. The assumption here is that this is that the business is a calendar year end, so this is the perfect time for starting again.

If the business is not a calendar year end and/or there have been transactions entered for the new period into the old file, the QuickBooks Transaction Copier Excel Add On may aid in automating the process of moving that information.

Importing a Chart Accounts

Chart of Accounts Import/Export Feature

If the same chart of accounts will be used from a previous data file, choose "none" for the chart of accounts when creating the new data file.

To transfer the chart of accounts, choose File > Utilities > Export > choose Chart of Accounts > OK > choose the file name for the saved information paying particular attention to the name and location so it can be found again.

QBRA-2004: File > Export > Lists to IIF File

In the new file choose File > Utilities > Import > choose the appropriate folder and file to transfer the chart of accounts into the new file.

QBRA-2004: File > Import > IIF Files > Choose the appropriate file > Open

Note: For Accountants that want to use a standard Chart of Accounts as a starting point for all of the new QuickBooks file set ups, this process works quite well. Each data file can then be customized based on the specific client needs.

The same procedures can be used for any of the lists including customer:jobs, vendors, budgets, etc. When choosing the chart of accounts to export, simply mark the additional lists that should be transferred. All will be transferred at the same time without any additional steps needed.

Transactional information is more complicated to import and will typically require an add-on, a bridge program, or programming knowledge to make it work properly.

2/18/04

QuickBooks List Import from Excel

QuickBooks List Import from Excel

New with version 2004 is a new import alternative: The ability to import from an Excel spreadsheet or a CSV file. The file does not have to have any specific header row. It is possible to do the mapping from the first line of data; however, a header row may make the process easier.

To use the feature, first select the file, and the sheet in the workbook. If the file has header rows, confirm the box is checked.

QBRA-2004: File > Import > Excel Files

Next, add a mapping to match the columns in the spreadsheet with the appropriate fields in QuickBooks. Currently Customer, Vendor, Item, and Account lists are supported. QBRA-2004: File > Import > Excel Files > File > Sheet > Add Mapping <img src="/sites/default/files/2_30.png" data-cke-saved-src="/sites/default/files/2_30.png" style="width: 576px; height: 461px;" alt=""> Once the mapping has been saved, it is possible to preview the import. Any lines with errors will be noted. The process of correcting errors can be challenging because the help instructions are not complete. Keep in mind eliminating the errors is not always straight forward since the codes from the previous IIF format can be different with this interface. For example, in the previous IIF format, the code for an inventory item was “Inventory,” but with this new interface, it is “inventory part” and without that type column containing the correct information, the item will not import. 2/18/04 <h2>More information on this topic</h2> <a data-cke-saved-href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=1123" href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=1123">When to Create a new File</a>

Case Study - QuickBooks Enterprise Solution to QuickBooks for Mac

Through a wide range of events, a client's data file was converted to QuickBooks Enterprise Solutions. They have now decided to bring the bookkeeping function back in house to be done on QuickBooks Pro for the Mac. Since there is not any feature within QuickBooks Enterprise to convert the data directly we had to think outside the box.

Within QuickBooks Pro and Premier for Windows there is functionality to convert the data back and forth with the Mac platform. However, there is not an easy way to do that with Enterprise Solutions, or even from Enterprise Solutions to Pro or Premier for Windows. To further complicate the situation, this specific client used QuickBooks Enhanced Payroll and had transactional data back to 1993, which they really wanted to keep if possible. So, we decided the process would be as follows:

Step 1 – Create a new file in QuickBooks Pro or Premier for Windows

Step 2 – Use the Data Transfer Utility to transfer those transactions that are permitted through the SDK and manually clear undeposited funds.

Step 3 – Use the Transaction and List Copier to transfer sales tax and payroll related transactions not accessible through the SDK. Note this is our approach since we will not need the functional details and reports in the new file. QuickBooks for Mac does not handle payroll in the same way as the Windows version so that data would not convert even if it was in the destination file.

Step 4 – Reconcile Account Balances, Accounts Receivable and Accounts Payable detail and do one bank reconciliation for the prior periods.

Step 5 – Back Up the data file (you probably want to do that often during the prior three steps too)

Step 6 – Create the file to be transferred to QuickBooks for the Mac

Now for the details on how to complete each step.

Step 1 – Create a new file in QuickBooks Pro or Premier for Windows. In addition, during this step we transferred the lists. The lists can be transferred as part of the next step, but we wanted to make sure we had a good clean starting point prior to dealing with the transactional data. The instructions may need to be modified slightly depending on the version of QuickBooks being used since the newer versions actually have an IIF choice on the import menu.

TRICK: Be sure any critical preferences are set the same as in the previous file, especially the sales tax preference to eliminate errors on import.

Step 2 – Use the Data Transfer Utility for the transactions supported by the SDK. The specific details of how we transferred all this data was as follows:
A. Set up access to the destination and source data files as explained in the DTU instructions above. TRICK: Don’t forget to allow access even when the file is not open.
B. Select transaction types for source transactions (the first time through I did bill, charge, check, credit card charge, credit card credit, credit memo, estimate, inventory adjustment, invoice, item receipt, journal entry, purchase order, sales order, sales receipt, time tracking, and vendor credit; the second time through I did billpymt check, receive payment, and transfer; the third time through I did deposits)
C. Set date range (since there was so much data to be transferred, I actually did a year at a time)
D. Open Source Company, export data, and review report, if desired.
E. Close Source Company
F. Open Destination Company, import data, and review report. In this case review of the report is CRITICAL. Be sure to note and/or correct any errors.
G. Close Destination Company
H. Repeat B-G until all transaction types for all date ranges have been imported.
I. Open the QuickBooks Destination Company and clear undeposited funds with uncleared transfers

Step 3 – Use the Transaction and List Copier for the transactions not supported by the SDK. This tool uses the IIF format which means that there is no error checking and the transactions cannot be linked using this tool. It does, however, provide a wonderful alternative for transactions such as paychecks and payroll liability checks since it will convert them into regular checks so they can be imported. The process is to open the Source QuickBooks file and open Excel (open it prior to exporting from QuickBooks). Create a journal report for the appropriate transaction type (in our case we chose payroll checks, liability checks, sales tax payments, YTD adjustments and liability adjustments) and add all columns to ensure that all the transactional detail you will need is available. For the newer versions of QuickBooks, don’t forget to click on expand for the report. Export the report to Excel, use the tool to create the iif (you will need access to the iif list file created in step 1 above). Import the iif into the destination company.

Step 4 – Reconcile Account Balances, Accounts Receivable and Accounts Payable detail and do one bank reconciliation for the prior periods. You may have been reviewing the data as you went along, if not, now is the time to make sure that all the balances match. The easiest way I have found to do this is to create a Balance Sheet in each company file with the date range set to all and the columns set as year.

Step 5 – Back Up the data file (you probably want to do that often during the prior three steps too)

Step 6 – Create the file to be transferred to QuickBooks for the Mac. For QuickBooks 2005 and Prior, the safest alternative is to send a *.qbw file back to the client. This process has become easier with version 2006 if the client has the newest version for Mac (which in our case they do). There is now a utility option to create a file for the Mac.

Practice Management Tips and Tricks

TIP: As part of the process, I created a PDF copy of the General Ledger, Check Detail, Deposit Detail, Customer Detail and Vendor Detail which I provided to the client on the same CD with the *.MAC.QBB copy of the data file. That way they will always have a complete copy of the data from the source file.

TIP: One of the questions that often come up from QuickBooks professionals is how to bid this type of work. I am a firm believer in under promise and over deliver so I would rather estimate high and come in lower. Each person needs to determine what it will take to do the job, but here is a general rule of thumb that worked for this project:

1-2 hours per year to transfer the data
1-2 hours per year to reconcile the two files
Based on the number of years to be converted, the lower end of the estimate was close to actual.

This assumes no unexpected issues and that the source data file is not extremely large (extensive job costing or detailed invoices for example will create a slower transfer rate as well as additional reconciliation challenges). If the payroll and/or sales tax transactions were entered into the new QuickBooks file rather than just transferred in as checks additional time would be required. That time could get extensive depending on the number of employees and level of detail to be preserved.

Preferences

Miscellaneous Preferences

Desktop View

There are not any Company Preferences for the Desktop View. The individual user has complete control over how their desktop will look and be saved.

QBRA-2004: Edit > Preferences > Desktop View

View:

This preference controls how the information is seen on the screen. There are two options that can also be controlled from the View Pull Down Menu.

One Window – the window is maximized to fill the entire screen. There is no minimize or maximize option, only the option to close the window. If this choice is preferred, consider also turning on the open window list by clicking on View from the menu bar to increase navigation efficiency.

Multiple Windows – the window is not maximized (although that is an option) but the size of the window can be controlled so that the open windows can be tiled, cascaded, etc. resulting in the ability to see information from different windows at the same time.

Navigators:

Navigators use a flow chart format to enhance the usability of QuickBooks. Depending on the specific product used, the navigator that can open by default may vary. For example, since this is QuickBooks 2004 Premier: Account Edition , the accountant navigator is the default choice.

Desktop:

This preference will determine which windows open automatically the data file is opened.

Save when closing company – The next time the data file is opened, the desktop will be exactly as it was when the file was closed. This can include forms, reports, etc. Everything will remain where it was for use the next time.

Save current desktop – This option will save the desktop as it is at the time the choice is made.

Don"t save the desktop – This choice will result in having nothing open when the data file is opened subsequent times.

Keep previously saved desktop – To return to a previously saved desktop, use this option.

Windows Settings:

This is simply another way to access the Display and Sound settings in the Windows operating system without going through the Control Panel in Windows.

Intergrated Applications

Integrated Applications

Integrated applications are also often called Add Ons or third party software. The purpose of these additional products is to enhance QuickBooks for features or reports not available with QuickBooks alone.

There are not any My Preferences for the Integrated Applications. The Administrator of the data file has complete control over what integrated applications will have access to the file.

QBRA-2004: Edit > Preferences > Integrated Applications > Company Preference

Don’t Allow Access – The Administrator has the option to mark the check box to not allow any application access to the QuickBooks data. If this box is checked, no one will be able to allow any SDK (QuickBooks Software Development Kit) application to access the data file.

Expired Certificate – If this box is checked and an application"s certificate expires when the application attempts to access the data file, the user will be able to accept or deny access to the data file. The application can still function properly with an expired certificate.

Previously Requested Access – This section contains a list of all applications that have been given access to the current data file. The checkmark in the left column indicates that the application is currently allowed to access this company file. To deny access to the data file in the future, remove the checkmark by clicking in that column, or remove the application by selecting it and clicking Remove.

Application Properties – There are two tabs that control how the Integrated Application will work with QuickBooks.

Access Rights – If the decision is made to allow this application access to the QuickBooks data file, there are two more options. When the application accesses the data file, a warning can be requested or the application can be logged in as a specific user. There is also a check box that will control if the application has access to Social Security numbers and other personal information.

QBRA-2004: Edit > Preferences > Company Preference > Click on an Application > Properties

TRICK: Requiring the application to log in as a specific user will show the user designation with the transactions on the audit trail report.

Details – This tab contains all the specifics on the application such as application name, developer, access information, etc.

QuickBooks Solution Marketplace – At the bottom of each of the screens in the Integrated Applications Preference is a link to learn about numerous third party developer products available for sale.

2/18/04

Reminders

Reminders Preferences

· It is a company preference, as dictated by the administrator, which reminders will show and in what level of detail?

· The only personal preference is if you want to see the list or not when first opening the QuickBooks data file

QBRA-2003: File > Preferences > Reminders > Company Preferences

Service Connection

Intuit offers many services that integrated seamlessly with QuickBooks. To see what is currently available, choose Business Services Navigator from the menu bar Company pull down. Some services include Merchant Account Services (accepting credit card payments from customers) and various payroll options, just to name a few. Most have an additional fee associated with using the service.

QBRA-2004: Company > Business Services Navigator

The preference related to these Business Services dictates how the login process is managed.

For the Company Preferences, the Administrator for the data file has the following options:

Automatically connect without asking for a password – If this choice is made, when using a business service, the software will automatically log in without having to provide a Login name or password. Keep in mind that if numerous people have access to the data file, anyone can access the business services which may present an internal control issue.

Always ask for a password before connecting – As it says, to access the business services a user name and password will be required. While improving internal control, the trade off is reduced efficiency.

Allow background downloading of service messages – By placing a check mark in this box, anytime the computer accesses the internet, any new service messages will be automatically downloaded.

QBRA-2004: Edit > Preferences > Service Connection > Company Preferences

Each user has the ability to change the “My Preferences” that dictate how downloading web transactions interacts with QuickBooks. Per the information supplied by help from within the software:

Give me the option of saving a file whenever I download Web Connect data. Whenever you download Web Connect data from your Financial Institution or double-click on a file containing previously downloaded Web Connect data you will be asked if you want to process the transactions immediately or save them to a file for later processing.

If QuickBooks is run by my browser, don"t close it after Web Connect is done. If QuickBooks is launched by downloading Web Connect data from your Financial Institution or by double-clicking on a file containing previously downloaded Web Connect data then it will remain open after the downloaded transactions are processed.

QBRA-2004: Edit > Preferences > Service Connection > My Preferences

Send Forms Preferences

There are several preferences available to control the e-mailing of forms and reports.

The first is set by each user. If the check box is marked, then the software will automatically check the “to be e-mailed” option when the customer’s preferred send method is e-mail. This choice is new with R4 for version 2005. For earlier versions, there were not any “My Preferences” for “Send Forms.”

QBEA-2005: Edit > Preferences > Send Forms > My Preferences

The second is a company preference (which means only the “Admin” user can make a change) that controls the text message that appears by default when the form or report is sent.

QBEA-2005: Edit > Preferences > Send Forms > Company Preferences

Units of Measure

Preference

To begin using this feature, confirm that the unit of measure preference has been enabled by choosing Edit > Preferences > Items & Inventory > Enable.

Once the unit of measure preference has been turned on either from the preference or directly on the edit item screen, it is possible to start entering unit of measure designations.

Set Up - Single Unit of Measure Per Item

The next screen will permit choosing the specific unit of measure. For example, if count is the choice; each, pair, dozen and other will be the choices.

Set Up – Multiple Units of Measure Per Item

Use

Accounting

Accounting Numbers

Account Numbers

This preference is on the "Company Preference" tab which means that the user needs to be logged in with the "Admin" password in order to make any changes.

Account numbers are turned off by default. The advantage of turning them on is two fold:

For the account numbers that have been committed to memory, the data entry will be faster. For those accounts that the number is not known, the account name can be typed (the same as if the account numbers were turned off) or chosen from a chart of accounts list..
A logical order for account numbers, such as 1000's for assets, 2000's for liabilities, etc. makes it easy to confirm that the correct account has been chosen. For example, is Automobile the asset or the expense? Without the number to provide a clue, the pull down menu would need to be shown in order to confirm one or the other.

The chart of accounts in QuickBooks can be modified to include account numbers by changing the preference as detailed below. QuickBooks assigns a 4-digit account number to each account it has created during the set up process or as a feature is turned on. Editing the individual account permits changes to the account numbers. Any user-created accounts will not have an account number until one is individually assigned to it. The account number can be up to seven alphanumeric digits.

Account numbers make data entry more accurate and efficient. Once account numbers have been assigned, either the number or the name can be used for data entry purposes.

By default this preference is turned off. If account numbers are going to be used it is most efficient to turn the preference on before anything else is done to the chart of accounts. Otherwise, the accounts may need to be subsequently edited for the account number. The secondary preference of show lowest sub account only is available if every account has been assigned an account number. The advantage to this preference is that when completing the data entry functions with this feature turned on only the sub-account will appear, rather than the account being displayed in a main account:sub account format.

TIP: If the accountant prefers to use account numbers and the data entry person or business owner does not, changes are not lost by turning on and off the preference. An added benefit is that when the account numbers are turned back on it is readily apparent which accounts have been moved to a different type of account (i.e. numbers will be out of sequence) and which accounts have been added (i.e. they will not have a number assigned to them).

TIP: To issue financial statements from QuickBooks directly without account numbers, turn off the preference, and then turn it on after the statement is printed. This step is usually not required if an add-on product is used for issuing the financial statements.

QBRA-2003: Edit > Preferences > Accounting > Company Preferences

Audit Trail Preference

Audit Trail

Although QuickBooks does not have the same enter, print, and post routine as many other software packages, it does have an audit trail report. There are two ways to use the feature:

1. Turn the feature on – This feature keeps track of the changes as of the date entered/last modified. With the feature turned on, the benefit is that you can see deleted transactions as well as the history of those that have been changed. The potential drawback is that all of those changed and deleted transactions have a tendency to increase the size of the data file, and may, therefore, slow the performance of the software.

2. Turn the feature off – Even with the feature turned off; the software will save the most recent date entered/last modified information. The benefit is that the performance of the software is not adversely affected. The potential drawback is that the deleted transactions will not appear on the report, nor is there any way to know if the transaction was new or changed.

QBRA-2004: Edit > Preferences > Accounting > Company Preference

Should the decision be made to use the feature, below are a few additional issues to be aware of:

1. Establish a user name and password unique to each person who will be using the software. In addition to the date and time, the user is also tracked.

2. The history and deleted transactions are only available for the time that the audit trail was turned on. During the time it was turned off, the history will not be saved.

3. Simply turning off and then back on the feature will not clear the history. The only time the history will be cleared is if the file in condensed.

TIP: The audit trail function works well for supervising data entry by others since it is possible to do a report of all the transactions entered/modified for a specific date range. When this feature is used in conjunction with passwords for each user this can provide useful management and training information.

QBRA-2004: Reports > Accountant & Taxes > Audit Trail

Enter Closing Date

Closing Date

It is recommended that the closing date be changed regularly, usually after the bank reconciliation and financial statements have been prepared for the previous month. New with version 2002 the date through which the books are closed has been relocated to the Company tab for Accounting from the user password set up screen. This new format includes the ability to set a password that is unique for the closing date. Because this information is on the company preference, only the Admin password can change it.

QBRA-2004: Edit > Preferences > Accounting > Company Preference

Note: Since this change is a preference, if an Accountant makes the change when using an Accountant's Review Copy of the file, the changes will not transfer back to the client.

As QuickBooks becomes more widely used as a bookkeeping tool by small business owners a common concern relates to the audit trail; the ability to change entries after they have been recorded. This issue is compounded for the accountant because there are no formal month (or year-end) closing procedures that must be followed. This is a double edged sword because it means that the data can be quickly and easily corrected when mistakes happen, but it can also be easily changed after the books have been reconciled, financial statements issued, and/or the tax returns have been filed. The password protection feature and related closing date helps to reduce the likelihood of such problems when used consistently. In addition, the 2002 version of QuickBooks Premier also has several new reports to assist in finding such changes.

The date through which the books are closed should be updated regularly. In a perfect world, transactions would be entered, accounts would be reconciled, and financial statements would be issued at which time the closing date would be updated. In reality, most small businesses do not use the reports available as often as they should and therefore do not institute the procedure of closing the period. Instead, they take the approach that corrections and reclassifications can be made throughout the year until the time when the accounting records are sent off to the accountant. It is the opinion of this author that that type of business management may be acceptable when there is only the owner, who is also the bookkeeper, who is also the sole decision maker. Once that situation changes, it is important to review reports timely and to revise the closing date so that reports that have been reviewed in prior months do not change.

Closing Date Access Fixed

Require Accounts

By default this Accounting Company Preference is turned on. If a transaction is entered without being assigned to an account from the Chart of Accounts a warning message will appear. If this preference is “unchecked” or turned off, any transactions that are entered without a General Ledger account will be assigned to “Uncategorized Income” or “Uncategorized Expense” as appropriate.

QBRA-2004: Edit > Preferences > Accounting > Company Preference

Journal Entry Numbers

Automatically Assign Journal Entry Number

This preference was new with version 2002. When entering a journal entry, the software will automatically assign the next sequential number (similar to the automatic numbering that is available when creating a new invoice). It is still possible to override the number.

QBRA-2004: Edit > Preferences > Accounting > Company Preference

New with version 2003 is the only "My preference" available for the Accounting Preferences. It is the option to "Autofill memo in general journal entry."

QBRA-2004: Edit > Preferences > Accounting > My Preferences

2/27/04

Warming when Posting to Retained Earnings

Warning when Posting to Retained Earnings

New with version 2005 is the ability to turn on and off a warning when a transaction is posted to Retained Earnings. This preference is turned on by default when a file is upgraded to version 2005.

QBRA-2005: Edit > Preferences > Accounting > Company Preferences

Subsequent to the preference being marked to turn on the warning, if an entry is made directly to Retained Earnings, the following pop up box will appear.

Classes Overview

Classes are one of the most under-utilized and most powerful features QuickBooks has to offer.

Classes are the way QuickBooks tracks information to permit a detailed Profit and Loss based on various criteria. Basically it permits the Profit and Loss report to have a column for each class and then a total.

Common uses of the class feature are for departments, divisions, lines of business, different locations, profit centers, etc. A specific example would be a graphic designer who also offers print brokering services. The class feature will permit the owner to assess the profitability of each type of service resulting in information to make educated decisions on how to market, spend limited time, money, and other resources.

Some examples by industry might include:

Equipment Reseller Sales, Service, Overhead

Graphic Design Firm Desktop Publishing, Web Site Design, Print Broker, G & A

Accounting Firm Accounting, Tax, Resale, G & A

Retail Store Location #1, Location #2, Corporate

If the class field does not appear at the top of an invoice next to the customer name, or at the far right hand side of the expense or item tab of a check or bill, the preference has not been turned on.

QBRA-2003: Edit > Preferences > Accounting > Company Preferences

QBRA-2003: Reports > Company & Financial > Profit & Loss by Class (assign several invoices to a class)

With version 2003 the class tracking alternatives have been expanded. A field is now present to assign the class for bank reconciliation activity and discounts plus there is a preference that can be used for prompting for a class on each transaction.

3/0/04

Always on Audit Trail

Everyone who accesses QuickBooks should be set up with their own unique user name and password to make the audit trail reports meaningful. This can also be extended to include a unique login and password to be used by third party applications that access QuickBooks.
When someone is no longer going to access QuickBooks (an employee is terminated, for example) do not delete the user, simply change the password. The reason is that if the password is deleted, the audit trail transactions that the user worked on will show a blank user name.

Closing Date Warning

Closing Date Warning/Password Protection

Items

Chart of Accounts

Checking

My Preferences

Checking: My Preferences

New with version 2001 was the ability to choose a default account. The “My Preference” tab for checking has eliminated many instances of writing checks, paying bills, paying sales tax, or making deposits using the wrong account. With the preference, the account chosen will be the default. Like other default settings, it is also possible to change the account when entering the transactional data. Because this is a “My Preference” setting, each individual user (based on user name and password) can set the accounts based on their specific needs.

Note: The preference for creating paychecks and paying payroll liabilities is controlled by the Company Preference settings.

QBRA-2004: Edit > Preferences > Checking > My Preferences

Add to Register for Online Banking

Always use add to register for online banking

There was a new personal preference added to the checking preference list with version 2005. This preference deals with how the online banking transactions will be added into QuickBooks.

QBRA-2005: Edit > Preferences > Checking > My Preferences

With the box "unchecked" the pop up box will appear to choose how the information should be entered. This is the default.

QBRA-2005: Banking > Online Banking Center > View > Click on unmatched transaction > Add one to register

Default Accounts Preference

Checking: Company Preferences

The "Company Preference" tab for checking controls many defaults for the data file. Because the preferences are for the "company" they can only be changed by the Administrator of the file (typically "Admin" user and password).

QBRA-2004: Edit > Preferences > Checking > Company Preferences

Print account names on voucher – if this check box is marked and a check has been entered and will be printed on the voucher type checks, this preference will include the general ledger account name on the voucher as well. By default this choice is not marked (i.e. the general ledger account name will not print on the check, the left column will be blank). Checking the box makes review of the check prior to signing more efficient.

Change check date when check is printed – by default this check box is not marked. When this check box is marked, the transaction date of the check will be changed to the current date rather than printing the check date that was originally entered. Using this feature eliminates any pre or post dated checks.

Start with payee field on check – This is a data entry preference. Without the box checked (as is the case with the default setting) the data entry will begin with the account from which the check will be deducted, then proceed to the check number and so on. With this preference checked, the data entry will begin with the payee field. Assuming the checking account, check number, and date are typically correct, taking advantage of this preference may increase efficiency when performing data entry tasks. It is still possible to navigate to those previous fields to make changes.

Warn about duplicate check numbers – As a general rule it is best to leave on the warnings to help eliminate duplicate transactions.

Autofill payee account number in check memo – By default this option is not turned on (i.e. it is not checked). When it is turned on, the account number is from the vendor additional information tab.

Elect default accounts to use – The checking Company Preference tab has eliminated many instances of using the wrong account when creating paychecks or paying payroll liabilities. With the preference, the account chosen will be the default. Like other default settings, it is also possible to change the account when entering the transactional data. Because this is a "Company Preference" setting, each individual user (based on user name and password) can set the accounts based on their specific needs. Note: The preference for writing checks, paying bills, paying sales tax, or making deposits is controlled by the My Preference settings.

2/20/04

Online Banking Aliases

QBRA-2005: Edit > Preferences > Checking > Company Preferences

The pop up that appears when adding the downloaded transaction to the register looks like this:

If the Create Alias button is chosen it is then possible to choose from a pull down list of all names in QuickBooks (i.e customers, vendors, employees, etc.)

Ask the Expert - Changing Bank Accounts

Q - I changed banks and closed the original account. Even though I made the old account inactive in the Chart Of Accounts, it still shows up as the default in the Pay Bills screen and in the Deposit To field in Sales Receipts.

A – There are a couple of issues that need to be addressed when you change bank accounts in QuickBooks: Checking the preferences and confirming memorized transactions.

Checking Preferences

Your question deals specifically with the first. Since the release of version 2001, there have been two preferences that deal with this issue. I believe you need to review and change the Checking:My Preference based on your explanation of the situation.

Checking: My Preference – permits setting the default bank account for write check, pay bills, pay sales tax, and make deposits. Although it does not state it specifically, the make deposit choice also controls the deposit to line on the sales receipt and receive payment screens. This means each user has control of this preference for the transactions they enter.

Checking: Company Preference – permits setting the default bank account used to create paychecks or pay payroll liabilities.

With version 2005 – there is another preference that addresses an issue with the “deposit to” field in sales receipts and receive payments. It is 0">Sales & Customers: Company Preference and controls if “undeposited funds” is used as the default deposit account. Typically this is the preferred to group receipts from several customers together as one deposit into the bank account.

Memorized Transactions

Although it does not deal with your question specifically, I think it also bears mentioning that if a transaction has been memorized using an account that has since been “closed” or marked as inactive, that transaction will continue to use that account. For this reason, it is important to confirm within QuickBooks that any appropriate memorized transactions have been changed and re-memorized, all recurring charges out of the old bank account have been set up properly to be paid from the new account, and that you periodically check the closed account in QuickBooks to confirm that the balance is still zero.

General

"General, My Preferences"

My Preferences

Preferences are the way that each user can customize how the software functions for them, specifically. There are also "company preferences" which dictate how the software functions for a specific data file, regardless of which user is logged on.

QBRA-2003: Edit > Preferences > General > My Preferences

Pressing enter versus tab

If you can become "trained" to use the tab key (typically to the left of Q) to move between fields and then use the enter key (typically to the left of L) to save the transactions, the speed of data entry will increase. If that is not possible, checking the box next to "Pressing enter moves between fields" will permit using enter to move from field to field, and Ctrl + Enter will be used to save the transaction.

Beeps when recording a transaction

QuickBooks does not have the traditional accounting software procedure of enter, print and post. As each transaction is saved the general ledger is updated. There is not a way to update the general ledger as a "batch." For this reason, hearing the beep as a transaction is recorded is often helpful as confirmation that the transaction has, in fact, been recorded.

Automatically place decimal point

This is a personal preference. When entering 123 are you anticipating that the amount is $123.00, or $1.23. The later would assume that the decimal point is automatically placed for you. Usually a quick check of the adding machine on someone's desk will reveal which way they prefer.

Warnings

The display of a warning when a transaction is being edited as well as a warning when deleting a transaction or unused list item is just a safeguard to confirm that the change or removal should be done.

Bring back all one time messages

QuickBooks includes lots of tips and tricks that are displayed while using the software. Some are strictly one time occurrences, others have the option to not display in the future. If a new user is logging into the data file using an existing user name and password (or if that feature is not used at all) it is possible to check the box to bring back all one time messages so they will appear on the screen again.

Automatic recall

This preference, by default, is turned off. It is the recommendation of this author that the automatic recall feature be turned on. The reason is, the data entry will go much more quickly if the amount and general ledger account code (or items) automatically are filled in. Changes can be made as the cursor moves from field to field. Keep in mind, however, that since the transaction is automatically filled in for you, pressing enter will save the transaction (unless you changed that preference too), even if you were not done changing it.

Show ToolTips for clipped text

When this preference is checked, as is the default, when the cursor passes over text that is too long to be displayed, a pop out box will appear with the entire contents of the text.

Default Date

This is a new preference with version 2003. In the prior versions, the default was that the date is the same as the last transaction that was entered. For accountants, this is usually the most efficient since they are working on issuing statements for a specific date. For bookkeepers or other daily users of the program, having the date set to use today's date may be better since many of the transactions will be the current date (such as purchase orders, invoices, receiving payments, etc). Because this preference is on the "My Preferences" tab each specific user can set the preference as they sit fit.

4/15/04

Automatically Open Drop Down Lists Enhancement

QBEA-2005: Edit > Preferences > General

Company Preferences

QBRA-2003: Edit > Preferences > General Preferences > Company Preferences

· The time format is a personal preference, depending on which way you prefer, to have the time displayed.

· If the 4-digit year box is not clicked, the 2-digit year will be displayed.

· Updating the name (by not having this option checked) will eliminate the additional step of updating names and addresses through the appropriate list.

Payroll and Employees

Default Accounts Preference

Checking: Company Preferences

QBRA-2004: Edit > Preferences > Checking > Company Preferences

Warn about duplicate check numbers – As a general rule it is best to leave on the warnings to help eliminate duplicate transactions.

2/20/04

Payroll Company Preferences

QBRA-2003: Edit > Preferences > Payroll & Employees > Company Preferences

QuickBooks Payroll Features: To use the features for payroll, the preference needs to be set to Full Features. Complete Payroll Customers are those businesses who use Intuit’s payroll service and wish to import the information into QuickBooks.

Display Employee List by: This is a personal preference to determine if the list should be sorted in first name or last name order.

Mark new employees as sales reps: In version 99 and prior the employee initials (up to three) were used as the sales rep code. This was a problem for two reasons: First, multiple employees with the same initials created complications;

And second, small businesses often use independent contractors so the name would be on the employee list (for sales rep code purposes creating a potential problem with payroll tax audits) and the vendor list (for 1099 purposes which could be inaccurate if the correct name was not used as payments were issued). In versions 2000 and higher the sales rep code was changed to be a three digit code that was part of a new list and the code can be linked to a name on many of the other lists. A checkmark in this box will create each employee as a sales rep.

Employee Defaults: The template dictates the defaults for each new employee that is set up. Individual employees can be modified and changed; the purpose here is to increase the speed with which employees can be created. If many employees with similar characteristics need to be entered, or if most employees have a similar set up. The employee default screen and set up is also available from the employee list. It is most efficient to set up the payroll items first then modify the template.

Printing: It is recommended that the employee address and the company address be printed on the check stub. Printing the sick and vacation info is recommended only if QuickBooks is being used to track these paid time-off amounts. If the amount of sick and vacation time is being tracked in some other way and QuickBooks is not updated to reflect the correct amounts, printing this information may not be accurate, resulting in issues with the employees. The pay period in the check memo field is usually useful to the employee receiving the check.

Hide pay rate on Select Employees to Pay window: This is a feature that is unusual, it is possible to hide the pay rate but it appears when you go to process the check any way. It is difficult to understand the use of this choice.

Recall quantity field on paychecks: By default this box is checked. It improved efficiency if most of the employees are paid the same number of hours each paycheck. If it varies greatly, un-checking the box will turn off the feature so when creating paychecks the quantity is zero until a value is entered.

Print Employee List one per page: Depending on how reports will be used, filing done, etc. this preference can be turned on or off.

Report all payroll taxes by customer:job, service item, and class: This option will automatically allocate the employer portion of the payroll taxes as the employee’s net check is calculated. For job costing purposes this can be extremely important to create “loaded” or “burdened” amounts for the payroll tax amounts (there is not a function within the payroll feature for creating payroll burden entries automatically for overhead or any other amounts except the employer portion of payroll taxes). This option takes the process one step further, offering the choice of coding the entire paycheck to one customer:job, service item, and class, or to code the individual earnings items as the paycheck is created.

2/18/04

Workers Comp Preferences

New with version 2005 Enhanced Payroll option is the ability to set up and automatically calculate workers compensation payable.

QBRA-2005: Edit Preferences > Payroll & Employees > Company Preferences

QBRA-2005: Edit Preferences > Payroll & Employees > Company Preferences > Workers Compensation - Set Preferences

Track Workers Comp turns the preference on or off.

Display message to assign codes provides a reminder as paychecks or time is entered to assign a workers' compensation code

To exclude overtime premium from the workers' compensation calculation this box should be checked.

Copy Last Paycheck Earnings

Copy last paycheck earnings

QBRA-2005: Edit > Preferences > Payroll & Employees > Company Preferences

TIP: With either alternative if there are limits that have been entered for the employee the amounts will stop affecting the paycheck when appropriate.

QBRA-2005: Employees > Pay Employees

Job Costing and Item Tracking for Payroll Expneses

Job Costing and Item Tracking for Payroll Expenses

The wording of this preference has changed slightly in version 2005. This preference wording will also change depending on how the class tracking and time tracking preferences have been set.

QBRA-2004: Edit > Preferences > Payroll & Employees > Company Preferences

With version 2005 for Pro and higher products, this has been re-worded to say job costing, class and item tracking for paycheck expenses.

QBRA-2005: Edit > Preferences > Payroll & Employees > Company Preferences

Time Tracking

Time Tracking

Time tracking is a non-posting activity designed for tracking time spent on a specific customer:job performing a specific activity. The time sheets can then be used to generate payments to vendors, invoices to customers, or payroll for employees. The preference itself is very straight forward. Assuming time tracking will be used, what is the first day in the work week? The first day of the week is for the purpose of showing an appropriate weekly timesheet form.

QBRA-2004: Edit > Preferences > Time Tracking > Company Preferences

Purchases and Vendors

Overview

Preferences

The first step in setting up the inventory tracking system in QuickBooks is to confirm that the preference to permit the use of inventory and purchase orders has been turned on. If the preference has not been turned on, the inventory type option will not be visible when a new item is created. Another way to tell if the preference has been turned on is to look at the pull down menu under Vendor and see if there are choices of inventory activities and purchase orders.

There is a Purchases & Vendor preference that is important when setting up Accounts Payable if inventory, purchase orders, and sales orders will be used.

QBRA-2003: Edit > Preferences > Purchases & Vendors > Company Preferences

Inventory and purchase orders are active

If this option is not turned on, the inventory type item will not be available for creating a new item. The purchase order option will not be available from the vendor pull down either.

Warnings

It is the opinion of this author that the warnings should be left on to alter the user to a possible problem with the data entry. These three warnings are no any different. The warning about "not enough inventory" to sell is very important because QuickBooks uses average cost. Typically if the warning appears that means that there is a problem with using proper procedures. Proper procedures will be addressed in the inventory section of these materials.

Bill Due Date

The default for the "bills due in" date is 10 days. This is the number of days that a bill will be due in if specific terms have not been entered. For example, if a bill is entered with a transaction date of August 1, 2003, it would be due on August 11, 2003. Typically, in lieu of specific payment terms, the assumption is that the bills will be due in 30 days. Changing the number of days here will update the default for all new transactions entered. The specific terms can be set up as each vendor is entered. The other alternative is that the terms can be entered on the bill and the software will ask as the bill is saved if the vendor should be updated to reflect the new terms.

Automatically Use Discounts and Credits

New with Version 2001, when this preference is checked (by default it is not checked) any discounts or credits will be automatically applied, as opposed to the user manually applying any applicable discounts or credits. In some industries there are standard terms that have discounts so the feature is a great time saver. For other businesses, the choice is to retain control of what discounts are taken and how credits are applied by leaving the preference unchecked.

TIP: While in the preference section, it is useful to confirm that the Company Preferences for Customers & Sales and Sales Tax preferences have been set properly.

There is a Purchases & Vendor preference that is important when setting up Accounts Payable if inventory, purchase orders, and sales orders will be used.

QBRA-2003: Edit > Preferences > Purchases & Vendors > Company Preferences

Inventory and purchase orders are active

If this option is not turned on, the inventory type item will not be available for creating a new item. The purchase order option will not be available from the vendor pull down either.

Warnings

Bill Due Date

Automatically Use Discounts and Credits

TIP: While in the preference section, it is useful to confirm that the Company Preferences for Customers & Sales and Sales Tax preferences have been set properly.

QBRA-2003: Edit > Preferences > Purchases & Vendors > Company Preferences

Inventory and purchase orders are active

If this option is not turned on, the inventory type item will not be available for creating a new item. The purchase order option will not be available from the vendor pull down either.

Warnings

Bill Due Date

Automatically Use Discounts and Credits

TIP: While in the preference section, it is useful to confirm that the Company Preferences for Customers & Sales and Sales Tax preferences have been set properly.

List Limits Expanded

Edit 1099 Preference

Editing the 1099 Company Preference

Make sure the preference has been set properly:Yes, you do file 1099-MISC forms.Edit the account (from the chart of accountants) for each 1099 category as necessary. Most 1099s are issued as non-employee compensation or rent. The former includes accountants, repair people, outside services, etc. If the dollar amounts need to be changed or updated, do so by clicking in the Threshold column.

QBRA-2002: Edit > Preferences > Tax:1099 > Company Preferences

Current Availability

Current Availability Preference

QBRA-2006: Edit > Preferences > Purchases & Vendors > Company Preference

Current Availability Report

QBRA-2006: Lists > Item List > Right Click on Item > Current Availability > Show Details

In addition to viewing the current availability from the item list, the same information is available by clicking on the from an estimate, sales order or invoice form.

This feature is only in the Premier and Enterprise Solutions Manufacturing & Wholesale Edition, Accountant Edition or Retail Edition industry specific versions.

Reports and Graphs

My Preferences

QBRA-2003: File > Preferences > Reports & Graphs > My Preferences

· Display Modify Report window automatically: This preference is especially helpful if you have certain changes for each report, for example, debit and credit columns rather than amount and balance, or, if the dates or reporting basis frequently need to be changed. By choosing the preference, the report will not need to calculate twice to achieve the desired customization.

· Graphs are always created based on the report basis chosen in the Company Preferences, the individual user does, however, have the option of 2D (which will be created more quickly) or 3D. There is also an option for patterns rather than colors if the graphs will not be printed on a color printer.

· Reports and Graphs are adequately described on the Preference Screen.

Company Preferences

Reports and Graphs, Company Preferences

QBRA-2003: File > Preferences > Reports & Graphs > Company Preferences

· Summary Report Basis – this preference dictates what the default setting will be on the reports. It is possible to change the basis on individual reports as they are created, or to memorize reports using a different basis. This question just deals with the default when choosing a standard report. Cash versus accrual deals with the accounting basis used as a default for the reports.

· The aging preference is self explanatory.

· Typically most company files leave the preference as it is for how accounts will show on reports. The default is name only. Description only may be used if needed. The name and description together will usually create too much text resulting in a report that is difficult to read.

· Classify cash permits assigning accounts to operating, investing, or financing for the Statement of Cash Flow report.

· Format – this deals with the default font style, size, etc that will be used when creating reports. As each report is created, the format can be changed and the report can be memorized. The memorized report would then be used in the future.

QBRA-2004: File > Preferences > Reports & Graphs > Company Preferences > Format > Header/Footer

QBRA-2004: File > Preferences > Reports & Graphs > Company Preferences > Format > Fonts & Numbers > Change Fonts

Sales and Customers

The sales & customers preference has only "Company Preference" choices. There are not any preferences related to this topic that are "My Preferences." To change the preference, the user must be logged in using the administrative user name and password. Any changes will affect the data file for all users.

QBRA-2004: Edit > Preferences > Sales & Customers > Company Preferences

Usual Shipping Method

By default this is the shipping method that will be used. When necessary, it can be overridden on individual transactional forms.

Default Markup Percentage

This is the amount that will be used to calculate the selling price when the cost is entered on a new item. By default the amount is set at 0%.

Usual FOB

By default this field is left blank. If standard free on board terms apply, the entry in this box will appear when invoices are created.

Track reimbursed expenses as income

By default, this option is unchecked. That means that any entry on the expense tab of a bill, credit card charge, or check will be deducted from the same account when invoiced using the time/cost button. By checking this box, the income will be coded to a Reimbursed Expense income account on the Profit & Loss report.

Warn about duplicate invoice numbers

It is usually recommended to leave on all warnings. If an invoice number is used multiple times, by default, the software will provide a warning message. It is possible to acknowledge, yet ignore the warning.

Use Price Levels

Price Levels were new with version 2001 and then expanded with 2004. By placing a check mark before this option, the feature is turned on. As a secondary preference it is also possible to have the software round up the price level to the next whole dollar.

Choose Template for Packing List

This preference was new with version 2004. There are several templates available to choose from. In the older versions, it was possible to design a template without the dollar amounts to use as a packing list. This addition provides a standard template with the changes already made.

Automatically Apply Payments

This check box is marked by default. This preference controls how payments will be applied when received from customers. With the preference turned on, if the dollar amount matches an outstanding invoice amount exactly, the payment will be applied to it. If the dollar amount does not match any outstanding invoice amount exactly, the payment will be applied to the oldest invoice first. If the preference is not turned on, the payment will not be applied to any of the outstanding invoices, the payment will need to be applied manually by clicking on the invoice line or typing in the appropriate amount to the right of the invoice number.

Sales Orders

This is a premier only feature that was new with version 2003. If the preference is turned on, there are two additional preferences. One to turn on the warning for duplicates and the other to control the printing of the zero amount lines.

Receive Payments: Preferences

Receive Payment Preferences (Version 2005)

QBRA-2005: Edit > Preferences > Sales & Customers > Company Preferences

The sales & customer preference contains all the same choices such as a default shipping method, default markup percentage, and the ability to automatically apply payments. What is different is:

Automatically Calculate Payments – with this change, it is possible to choose the invoices and the payment amount will be calculated. This change is helpful if a check is received and it is necessary to play"what if" scenarios to discover how the payment should be applied.
Use Undeposited Funds as a default deposit to account – this is significant because when this check box is marked, the ability to choose "group with undeposited funds" or "Deposit to" are no longer present on the receive payment screen. If the preference is not checked, the pull down next to "deposit to" includes the bank and other current asset type accounts. If the check box is marked and subsequently a receive payment should be deposited directly to a bank account, for example, it would be necessary to uncheck this preference, record the entry, and then turn it back on, if appropriate.

QBRA-2005: Customers > Receive Payments (with use undeposited funds preference chosen)

QBRA-2005: Customers > Receive Payments (with use undeposited funds preference not chosen)

Finance Change

Finance Charge Preference

There are not any "My Preferences" to set for finance charge features. All the finance charge preferences are Company Preferences which means to change them requires the administrative user name and password.

QBRA-2004: Edit > Preferences > Finance Charge > Company Preference

Annual interest rate will be used to calculate the finance charge amount on the outstanding invoices.

Minimum finance charge is the amount that will be used when the calculated amount is below this threshold.

Grace period is the number of days from the due date that will be allowed before the finance charge is calculated.

Finance Charge Account is the general ledger account (from the Chart of Accounts) that will be used for recording the finance charge income. Typically the account type is income or other income.

“Assess finance charges on finance charges” is something that varies from state to state. In some states, this type of calculation is forbidden, in others, it is only permitted if stated expressly at the time of purchase. If unsure, check with legal counsel before using this option.

Calculate charges from the due date or invoice/billed date. Typically finance charges are incurred only if not paid by the due date. Confirm due dates are being entered or are calculated based on the terms list. Depending on the type of business and legal contract documentation, it is possible to calculate the finance charge from the invoice date if not paid by the due date. If unsure how this applies to a particular business or industry and to comply with state law, please consult with an attorney.

Mark finance charge invoice to be printed is an option if the finance charge invoice will be printed and forwarded to the customer, sent with a statement, or printed for the business books and records. This is a choice. When a finance charge is incurred, an invoice that includes FC in the number will be automatically generated.

Note: If the finance charge should be assigned to a rep, there are two steps that are critical:

1. The customer must be assigned to the sales rep (Lists > Customer:Job List > Single click on customer > Edit > Edict Customer > Additional Info tab)
2. The finance charge template must be edited to include the rep on the screen (Lists > Templates > Single click on template > Edit > Edit Template > Fields Tab)

5/2/05

Jobs & Estimates

QBRA-2003: Edit > Preferences > Jobs & Estimates > Company Preferences

Job Status Descriptions

The job status descriptions appear on the customer:job list. The status can be changed manually on the job tab by editing the customer:job from the customer:job list when the status of a job changed.

Estimates

If this feature will be used, then it should be marked as yes.

Progress invoicing

If this feature will be used, then it should be marked as yes. The advantage of progress invoicing is that it is possible to create an invoice for the entire estimate, a percentage of the estimate in total or different percentages or aamounts of each line on the invoice.

3/17/04

Send Forms

Send Forms

The send forms preference controls the default message text when various forms and reports will be sent via e-mail. When sending information it is possible to edit the message, however, making the message as complete as possible when editing the preferences will increase efficiency. There are not any My Preferences for this feature.

QBRA-2004: Edit > Preferences > Send Forms > Company Preferences

Sales Tax

Sales Tax

Sales Tax is a challenging area for most businesses. The “rules” change from industry to industry and from state to state. For compliance, an accounting professional should be contacted for a complete understanding of all the rules that must be followed. In an effort to help manage the requirements, there are Company Preferences that can be set in QuickBooks. There are not any My Preferences for this feature.

QBRA-2004: Edit > Preferences > Sales Tax > Company Preference

Do You Charge Sales Tax?

Typically most products sold at retail will require sales tax to be charged to the customer and then remitted to the state. Depending on the industry, some services may also be subject to sales tax. For the most up to date information, contact the state agency that is responsible for collecting sales tax. In California, for example, this is the State Board of Equalization (http://www.boe.ca.gov/) and a pamphlet is available for most types of goods and services sold within the state.

Default Sales Tax Codes

Version 2002 greatly enhanced the sales tax options with QuickBooks. The addition of sales tax codes to designate why an item was subject to sales tax or not as well as the ability to drill down on all the sales tax report columns were included in that and future versions.

Set Up Sales Tax Items

The most common sales tax item will be used when creating a new customer:job. As the default, it can be changed as appropriate.

Marking the taxable items with a “T” makes review of the invoices easier and the taxable status of individual invoice lines clearer for the customer.

Owe Sales Tax

As of invoice date is most common. When an item is sold, the sales tax charged is immediately due and payable at that time. Although most businesses would prefer to wait until they actually receive the payment, most tax authorities disagree, even if for income tax purposes the business is cash basis. If unsure, consult with an accounting professional or the sales tax agency for the state. If not done correctly, in the case of an audit the unpaid sales tax could be subject to penalties and interest for late payment. In California, for example, the sales tax is due as of invoice date unless a written waiver has been obtained from the State Board of Equalization.

Pay Sales Tax

By setting the preference that controls the frequency for the sales tax payment, the “Pay Sales Tax” window will have an appropriate date range by default.

Spelling

Spelling

There are only My Preference alternatives for this option. Therefore, each individual user will have control over the spelling preferences when they are logged into the data file. There are not any preferences that affect the entire data file. The options below are very straight forward. Based on the type of descriptions used on the various forms, what types of words are ignored can be controlled. Below is the way the preference is set by default.

QBRA-2004: Edit > Preferences > Spelling > My Preferences

Common Preference Checklist

Lists

Managing Lists

Edit List Entry

For the chart of accounts, this option permits a change of account name or a change of an account type (except changing to or from Accounts Receivable or Accounts Payable). This option, when used carefully, can correct data entry errors in total, rather than transaction-by-transaction. Because this option does change the account in total, prior periods may be affected. Depending on the timing of the change, and the magnitude, it may be better to edit the individual transactions or do a journal entry to correctly reclassify the balance to a new account, and then use the option to make the old account inactive.

For the item list, when editing the general ledger account used for purchases, expenses, sales, or the inventory asset account, an Account Change dialog box will appear. If yes is chosen, historical transactions (even prior period entries) will be changed to reflect the new account. If no is chosen, only future transactions will use the new account, historical transactions will not be effected.

QBRA-2004: Lists > Item List > Edit > Change Account > OK

For all other lists, this option permits editing any of the information related to the individual entries on the list.

For all lists, any changes made take effect immediately. The change will affect both present and future transactions, with it item exception noted above.

Merge List Entry

A variation on the edit procedure is to edit the name to match another name on the same list. When the OK button is clicked, the software states: “This name is already being used. Would you like to merge them?” If you choose yes, all of the transactions using the name being edited will be merged into the changed name. Use this option carefully, since there is no easy way to undo a merge, except transaction-by-transaction.

If accounts have been set up incorrectly, it is possible to edit or merge the information. To edit an account, permits a change of account name or a change of an account type (except changing to or from Accounts Receivable or Accounts Payable). This option, when used carefully, can correct data entry errors in total, rather than transaction-by-transaction. Because this option does change the account in total, prior periods may be affected. Depending on the timing of the change, and the magnitude, it may be better to edit the individual transactions or do a journal entry to correctly reclassify the balance, and then use the option to make the account inactive. A variation on the edit procedure is to edit the name to match another account of the same type. When the OK button is clicked, the software states: “This name is already being used. Would you like to merge them?” If you choose yes, all of the transactions in the account being edited will be merged into the account with the same name. Use this option carefully, since there is no easy way to undo a merge, except transaction-by-transaction.

TRICK: If the two accounts on the chart of accounts list to be merged are different account types, changing the name and the type cannot be done in one step. First change the account type and then change the name to merge the accounts together.

TRICK: Be very careful when merging. The information will remain for the account that the name is being changed to, not the name that is being changed. For example, if an account has been created that is called B of A Checking and the account number from the bank has been entered on the edit account screen, then a new account just called Checking has been created without the account number. If B of A Checking is merged into Checking, the remaining account will not have the account number. If Checking is merged into B of A Checking, the account number will remain. The same is true for the other lists. For example, a customer with the address is merged into a customer without the address, the previous information will be lost!

TRICK: When the accounting preference for account numbers has been turned on, it is possible to merge accounts simply by having the same account number. The name will not matter. Again, just like in the previous example, the account name will remain for the account number that the changed account will be merged into.

TRICK: When Balance Sheet accounts are merged, any cleared transactions are merged as uncleared.

Delete List Entry

This option is only available if the entry on the list has not been used!

If an entry on the list has any transactions associated with it, or any items assigned to it, etc. the software will not permit it to be deleted. The next best alternative for an entry on the list that should not be used is to make it inactive to keep it from appearing on pull down lists and being used in the future.

Inactive List Entry

Make List Entry Inactive

For accounts that are no longer needed...

This option removes the list entry from the pull down list when doing data entry. However it will still be used if needed for reporting purposes. For example, the account will not show on the Chart of Account list unless you choose the Show All option at the bottom right-hand side of the list. This option was new with QuickBooks Version 5.0.

Show All vs. Include Inactive

QBRA-2005: Lists > Chart of Accounts > Include Inactive

QBRA-2004: Lists > Chart of Accounts > Show All

Sorting a List

Accounts can be rearranged within their account type groupings on the chart of accounts or item list. It is also possible to reorganize the customer:job list. To rearrange the list, follow these steps:

1. Place the cursor on the diamond to the left of the account name;
2. Hold down the right mouse button;
3. Drag the account to where it is to be moved to (where the dotted line is); and
4. Release the mouse button.

This procedure can also be used to make accounts sub-accounts of other accounts. Instead of dragging the account to where it is to be moved to, move it below the main account, and then drag it in underneath it. The same theory applies to make sub-accounts into main accounts. Click and drag them to the bottom of the sub-accounts for a main account then click and drag the account to the left to make it a main account. Similar procedures can be used on the other lists as well.

If the account is to be sorted back to its original order (numeric if account numbers are turned on, or alphabetic if they are not) choose Account > Re-sort list. Or Customer:Job> Resort list for the customer:job list.

To sort all accounts alphabetically (without account numbers turned on) click on the Name heading at the top of the account name column. When the account list is sorted in this way, a diamond will appear to the left of the name heading. To return the list to being sorted by account type, click on the diamond. Similar procedures are available for the other lists.

Account Numbers not in Order

Ask the Expert - Account Numbers Not In Order

Q - I set up a new current liability account, a loan, I numbered it 2906. My intention was for the account to show above account 2907, it does in the chart of accounts but not when you print the balance sheet. It shows as the first account under current liabilities, what am I doing wrong?

A - Without the file to look at, all I can do is offer several suggestions of things to try.

Re-sort List - First of all, the Balance Sheet will print in the same order as the chart of accounts by account type. Try resorting the list by choosing accounts at the bottom of the chart of accounts list then re-sort. A question will appear that asks if you want to return the list to the original order. Original order is alphabetical by account type if account numbers are turned off, or numeric based on the account numbers for each account type if account numbers are turned on.

Confirm Account Type - The Balance Sheet will print by type so confirm that the new account you created is indeed another current liability type and that the prevoius account is the same type.

Check Data Integrity - Assuming neither of the first two suggestions solved the problem, try checking the data integrity. To do this, choose file > utilities > verify data.

Printing a List

To print the list shown on the screen, choose File > Print List. Other reports can be chosen from the reports button at the bottom of the list.

TIP: All Balance Sheet accounts have registers for viewing activity, while all Profit and Loss accounts require transaction reports for a certain period. That is why the Balance Sheet accounts have a balance listed on the chart of accounts (the balance of the account for all transactions coded to it, even if some are in the future) and the Profit and Loss accounts do not.

Importing/Exporting

Importing and Exporting Lists

Importing and exporting lists is a way of entering information from an external source. The importing and exporting of lists from one QuickBooks data file to another works quite easily. To import lists from Excel is more complicated but can be accomplished by most people. Importing for items, customers, vendors, and accounts has been improved for QuickBooks Pro and higher, Version 2004.

To import transactions, however, requires programming experience, and is, therefore, not recommended for the average user. There are several add on products that can assist with the process. Transactions cannot be exported from QuickBooks. They can, however, be shown in reports that are then printed to a file which can be opened in other software packages.

Sample Using QuickBooks Lists

Importing and exporting lists is a way of entering information from an external source. The importing and exporting of lists from one QuickBooks data file to another works quite easily. To import transactions, however, requires programming experience, and is, therefore, not recommended for the average user. Transactions cannot be exported from QuickBooks. They can, however, be shown in reports that are then printed to a file which can be opened in other software packages. The easiest use of the import and export function is to export a list from an existing QuickBooks file, then import it into a new QuickBooks file. This procedure works quite well for setting up a company again on versions prior to 2002 or on files version 2002 or higher that are using QuickBooks to calculate payroll (with 2002 and higher there is a feature that permits removing all the transactions while keeping the preferences and business service information intact). Using this method it is possible to import the lists that have been exported from the old company but leave the problem transactions behind. However, the preferences, passwords, and beginning balances will need to be created in the new company.

1. Open the QuickBooks file (old) that contains the list to be transferred.
2. Choose Utilities > Export > Choose the lists you wish to export > OK > Choose the folder and name for the file containing the information > Save.
3. Open the QuickBooks file (new) that needs to be updated with the list information. Note: When creating the new file, be sure to choose none for the chart of accounts.
4. Choose Utilities > Import > Choose the folder and name for the file containing the information > Open.
5. Choose Lists > then the appropriate list to confirm that the information has been imported successfully.

TRICK: This also works well for accountants and bookkeepers that want to set up each client with the same (or similar) chart of accounts.

TRICK: If the import file contains a duplicate, an error message will be generated with the appropriate line. Open the import file in Excel and change the appropriate line to eliminate the problem then attempt the import again.

TIP: This process will work with any list, including budgets.

TIP: New with version 2004 is the ability to import some lists directly from Excel.

Sample Using Microsoft Excel and Budgets

Overview

Annual budgeting in QuickBooks can be an easy way to compare actual results with the plan. The budget can be entered by account, customer:job, or class. You can enter an amount for two of the three, but you cannot enter a budget for all three at the same time. Once you enter the budget for the first month, the amounts can be calculated and filled in by the software for the remaining months by either 0% change (flat budget for the year), a percentage increase/decease, or a dollar amount increase/decrease.

Prior to setting up the budgets, consider which reports will be most important to ensure that the data is entered correctly when creating the budget figures in the software. For example, if the report to be created is the Profit and Loss Budget Versus Actual report by time period, you must set up the budget figures without a customer:job or class.

Since the budget is technically a list, it is possible to export or import the list. The advantage to this approach is the ability to use Excel to calculate the budget (permits formulas between accounts where as the data entry function described above only calculates as compared to the month before).

For Premier, version 2003 there is a new feature that permits creating a budget automatically within the software based on the historical data.

Creating a Budget in Excel from QuickBooks Data

To actually calculate the budget for the year, using the Excel interface available in QuickBooks Pro and higher is very helpful. Below are the steps to use the actual results for the year as a base line for the new budget.

1. Reports > Company & Financial > Profit & Loss Standard
2. Set the date range at the top of the report
3. Change the columns at the top of the report to month
4. Click on the Excel button to send the report to Excel for additional calculations. From within Excel, it is now possible to insert formulas to calculate the budget for the next period.

This is the most efficient way to create the amounts to be entered into the new budgets since there is not a way to calculate one account balance based on another from within QuickBooks itself: The only calculation is the fill down feature. For example, if the payroll figure for the next period has been estimated, it is not possible in the budget figure itself to calculate a percentage of that amount for payroll taxes, workers compensation insurance, etc. Within Excel, however, simple formulas can be used to efficiently accomplish the calculations.

Importing the Budget into QuickBooks

The process of importing the budgets includes several steps, but it is still more efficient than completing the data entry of all accounts into QuickBooks.

1. Complete the data entry for one account.
2. Choose File then Export for the budget list from QuickBooks.
3. In Excel, open the exported budget list (the file name will be *.iif) so it is necessary to change the file type to all in order to find the file.
4. Copy and paste the header information to the appropriate columns in the Excel spreadsheet created for the budget that will be imported into QuickBooks.
5. Save the file as *.iif. The extension of “iif” is critical to be able to find the file to import into QuickBooks.
6. Open QuickBooks and import the file.
7. Create a report, or view the budget to double check that everything was imported properly. If it was not, the header information is typically the problem, so return to the exported file and confirm that everything was entered correctly.

TIP: Results can be analyzed as either reports or graphs in QuickBooks or Excel.

TIP: If you choose to do the budgets by class, begin with one of the standard reports, then change the columns option to class.

TIP: To provide an opportunity to assist your client while increasing billable hours consider approaching the idea of budgets without mentioning that word specifically. The conversation could go something like . . . What do you anticipate the business doing in sales this year (increase, decrease, flat)? How about in expenses, do you anticipate any significant changes? I would like to take the information we have discussed to see how that will affect your business in the upcoming year. The result will be your ability to track how you are doing throughout the year and we can do more effective tax planning. It has been the experience of this author that the change in the profitability and cash flow of the business subsequent to developing a written plan or budget is unbelievable. The simple function of thinking and talking about it in financial terms as well as paying attention to reports (and therefore details) that were previously ignored result in exponential improvements.

TIP: If the budget from year to the next is going to be the same, simply export the budget list, open it in Excel, change the date column, close and save the file, and import it back into QuickBooks.

Sample Using Excel Import Feature

In QuickBooks, choose to import from Excel.

QBRA-2004: File > Import > Excel Files

The file is the Excel file that contains the information to be imported. If the exact drive, folder, and name is unknown, click on the Browse button to navigate to the file.

Check the box if the spreadsheet has header rows, uncheck the box if it does not.

QBRA-2004: File > Import > Excel Files > Mapping pull down > Add New

Type in a name for this mapping then choose the import type. Note that the only choices are customer, vendor, item, or account.

QBRA-2004: File > Import > Excel Files > Mapping pull down > Add New > Customer

Once the mapping is set up, click on save to preserve the mapping for use.

Here are a few examples of situations that will cause errors:

If the contact name is mapped for the Salutation field, an error will occur, because this field is designated as a limited number of characters for titles such as Mr. Mrs. Etc.
It is possible to import jobs or customers, but not with the name containing the colon like was required in the previous iif import procedures.
The types for items may not be consistent with those used in previous versions. For example, an "inventory" item now requires that the type be designated as "inventory part."

QBRA-2004: File > Import > Excel Files > Fill in Set Up Screen > Preview

Beginning Balance Alternatives

Entering opening balances is not necessary if the QuickBooks file is created when the business starts. Obviously this is the exception rather than the rule.

The process available through the chart of accounts set up in QuickBooks with the exceptions for the bank accounts, Accounts Receivable, Inventory, Accounts Payable, and the income and expense accounts works well if the information is being transferred from another system and the detail (i.e. outstanding invoices and bills) is desired.

If the balances for the chart of accounts, items, Accounts Receivable and Accounts Payable are only needed in total it is possible to import the beginning balances when the lists are imported from Excel. This process is equivalent to entering the balance and as of date at the bottom of the new list entry form.

There are also several tools to make starting a new QuickBooks file from an existing QuickBooks file more efficient. They fall primarily into two categories:

Beginning Balance Transfer – tools that make the transfer easy to transfer the balance information. There is one tool that uses IIF technology, which means that the information can be edited prior to import (i.e. if the business is cash basis, for example, the account used for recording the transactions can be changed to an income or expense type account rather than Opening Balance Equity). The other uses XML which has the benefit of pre-import report and error checking upon import.

Transaction Copiers – If the conversion to a new file does not occur right at the end of the period, it may be nice to actually enter beginning balances as of the beginning of the period and then transfer in the transactions. Again, the tools available either use IIF technology which means the transactions are simply imported without any bells and whistles, or the other which uses XML with the benefit of the links between transactions are preserved plus error checking is available. Both tools only transfer supported transaction types (i.e. those transactions which Intuit has included access to in the SDK) so other methods will need to be used for paycheck, payroll liability checks, payroll liability adjustments, etc.

Version 2004 Cut and Paste Address Enhancement

Cut and Paste Address Enhancement

Lists: Customize Columns View

Version 2005 – Customize Column View

New with version 2005 is the ability to change which columns are displayed when viewing the list. Also with version 2005 is the ability to change the column widths.

QBRA-2005: Lists > Item List

QBRA-2005: Lists > Item List > Right click on an item > Customize Columns

Once the changes have been made, click on OK to show the list with the new columns.

QBRA-2005: Lists > Item List > Right click on an item > Customize View > Add COGS account and cost, remove description and reorder columns > OK

Version 2005 - Customize Column Widths

Version 2005 – Customize Column Widths

New with version 2005 is the ability to change the column widths when the list is open. Also in version 2005 is the ability to change which columns are displayed.

QBRA-2005: Lists> Item List

QBRA-2005: Lists > Item List > Make Name column wider and Description column narrower

Charts of Accounts

Importing a Chart Accounts

Chart of Accounts Import/Export Feature

If the same chart of accounts will be used from a previous data file, choose "none" for the chart of accounts when creating the new data file.

QBRA-2004: File > Export > Lists to IIF File

In the new file choose File > Utilities > Import > choose the appropriate folder and file to transfer the chart of accounts into the new file.

QBRA-2004: File > Import > IIF Files > Choose the appropriate file > Open

Transactional information is more complicated to import and will typically require an add-on, a bridge program, or programming knowledge to make it work properly.

2/18/04

Accounting Numbers

Account Numbers

This preference is on the "Company Preference" tab which means that the user needs to be logged in with the "Admin" password in order to make any changes.

Account numbers are turned off by default. The advantage of turning them on is two fold:

For the account numbers that have been committed to memory, the data entry will be faster. For those accounts that the number is not known, the account name can be typed (the same as if the account numbers were turned off) or chosen from a chart of accounts list..
A logical order for account numbers, such as 1000's for assets, 2000's for liabilities, etc. makes it easy to confirm that the correct account has been chosen. For example, is Automobile the asset or the expense? Without the number to provide a clue, the pull down menu would need to be shown in order to confirm one or the other.

Account numbers make data entry more accurate and efficient. Once account numbers have been assigned, either the number or the name can be used for data entry purposes.

QBRA-2003: Edit > Preferences > Accounting > Company Preferences

Chart of Accounts Overview

Establish the chart of accounts list

If the type of industry for the business was chosen, there may be only minor modifications needed to the pre-defined chart of accounts list established during the creation of a new file for the Profit and Loss accounts. Balance Sheet accounts must always be set up due to the unique accounts needed by each business.

By clicking on the Account button at the bottom of the Chart of Accounts list, you have several options to manage the list. Similar options are available for any of the other lists. When looking at the options from the pull down list, the information on the right is the key strokes to complete the same function.

QBRA-2002: Lists > Chart of Accounts

Setting Up New Account

Setup a New Account

Assign an Account Type

To set up a new account, start by assigning the appropriate account type to the account. The chart of accounts is divided into various types of accounts that then create the highest level of subtotals for the financial reports based on the account type the account will automatically be "mapped" to the Balance Sheet or Profit and Loss. The standard choices on the list cannot be modified. Below is a list of the account type choices:

· Bank – used for checking, savings, or other liquid investments

· Accounts Receivable – at least one account of this type is required to use the Accounts Receivable features. Most small businesses only have one account of this type. An exception would be if various locations or different types of receivables (i.e. trade, installments, etc.)

· Other Current Asset – typical accounts in this section are inventory, prepaid expenses, other receivables, etc.

· Fixed Asset – property owned by the business such as equipment, machinery, computers, furniture, vehicles, etc. and purchases made by the business with a useful life in excess of one year, such as leasehold improvements. There is usually an Accumulated Depreciation and/or Accumulated Amortization account in this section as well.

· Other Asset – long-term assets such as long term investments, organizational costs, goodwill, cash surrender value of life insurance, etc.

· Accounts Payable – at least one account of this type is required to use the Accounts Payable features. Most small businesses only have one account of this type. An exception would be if various locations or different types of payables.

· Credit Card – this type account permits the reconciliation of running credit card balances as well as use of the credit card charge and credit features.

· Other Current Liability – the accounts in this section will be paid within a year. Some examples include current portion of long-term debt, customer deposits, profit sharing payable, garnishment payables, etc.

· Long Term Liability – these accounts will be paid in more than a year. Long-term portion of loans are usually the main component of this section.

· Equity – depending on the legal structure of the business, this may include accounts such as owner’s equity and draws; common stock and retained earnings; partner capital accounts; etc.

· Income – revenue generated from the main purpose of the business (usually the sale of the product or service)

· Cost of Goods Sold – expenses directly related to the generation of income (usually the purchase of the product sold)

· Expense – other expenses in the normal course of business (including insurance, taxes, overhead, advertising, office supplies, telephone, etc.)

· Other Income – revenue generated from a source other than the typical type of business (i.e. sale of a fixed asset, interest income, etc.)

· Other Expense – expenses not part of the normal course of business (theft, sale of fixed assets, etc.)

TRICK: Any transaction coded to an Accounts Receivable type accountwill require a customer. Any transaction coded to an Accounts Payable type account will require a vendor. Any transaction can only have one A/R or A/P type account, including journal entries. If QuickBooks is being used as a write-up program, A/R and A/P type accounts will be entered in total, choose the other current asset and other current liability types instead.

Assign a name, sub-account and description for the account

The name can be anything that adequately describes the activity to be included in the account. Typically the name is general enough to to make sense even if the vendor is providing the goods or services changes. For example, telephone expense is a common name whereas AT&T is not.

Check the box if this new account will be a sub-account of an already existing account. A sub-account is the method of creating detailed accounts that can be collapsed into a main account for reporting in summary, or expanded to show detail. An example would be telephone. It is acceptable to have one telephone account, or, if this is a large expenditure, the business owner may prefer to see more detail. This detail could be categorized into sub-accounts for cellular, long distance, local, and the like. If sub accounts have been established and a transaction is inadvertently coded to the main account, it will show on the reports as account name-other (i.e., in our example Telephone-Other).

For most QuickBooks users the description field can be left blank. The only time it becomes important is if the description and or name and description option is chosen in the reports preference.

Assign a bank account number

This option is available for bank type account sonly. Entering the bank account number provides an easy reference when the number is needed but is not necessary.

QBRA-2003: Lists > Chart of Accounts > Account > New

Assign the Tax Line

If QuickBooks will interface with another program (Turbo Tax for example) for tax return preparation, this information will be important. For most users, this field is optional.

TRICK: If the tax line is missing, it is because there was no tax form chosen when the QuickBooks file was set up. To change this set up option, choose Company > Company Information.

Opening Balance Equity

Opening Balance Equity - Special Considerations

Opening Balance Equity is the account that is used for the other side of the entry when beginning balances are entered when setting up new accounts. Once transactions have been entered into an account, it is no longer possible to use this method. The advantage to entering the balances in this way is that it is easier to reconcile Opening Balance Equity through the register. If a journal entry method is used, there are challenges with entering the Bank, Accounts Receivable, and Accounts Payable type accounts. This situation is further complicated if there is a data entry error and Retained Earnings was used as the “off-set” to the entry. Retained Earnings does not have a register nor an easy way to create a report to show activity. Once the Opening Balance Equity account has been reconciled (i.e. equal to Retained Earnings on the source documents) an entry onto the register can be created to transfer the balance into Retained Earnings.

Following the entry and reconciliation of the beginning balances, this account should always be zero. If an amount is entered into this account, it usually the result of one of the following situations:

1. The difference in the bank reconciliation was not zero, and the option was then chosen to let the software create an entry to correct the bank account.
2. A new account was created, and the transactional data was not entered, but rather the beginning balance was entered when creating the new account.
3. A transaction was coded directly to this account, rather than the proper general ledger account.

This account should be analyzed and appropriate entries made to reconcile the balance to zero. It is also quite possible that changes need to be made in the procedures used by the business to eliminate the problem in the future.

Exceptions

Opening Balance Exceptions

If the opening balance option is used when creating the accounts, the other side of the entry when this method is used is Opening Balance Equity.

The only accounts that do not work well using the opening balance method are detailed below:

· Bank Accounts - To make the bank reconciliation process easier, it is recommended that the beginning balance entered be the ending bank statement balance from the previous period. Then enter the outstanding checks and deposits in transit individually into the register (coded to Opening Balance Equity) to arrive at the adjusted balance from the previous period. It is possible to enter the transactions without a “check number” or “payee name” to save time. To save time in researching the checks if they do not clear, however, the additional information may prove helpful.

· Accounts Receivable - To permit proper aging and customer assignment, each outstanding invoice should be entered individually using the appropriate date (i.e. date from the previous period) and invoice number. To streamline the process, consider creating one “begin bal” item coded to opening balance equity. Sales tax, inventory, etc will be set up based on the appropriate beginning balance for those accounts so using the specific items is not the preferred way. The only exception is if the business is cash basis and the sales are strictly income (no sales tax, customer deposits, inventory, etc). Using the income item will preserve cash versus accrual statements for the beginning balances. Cash versus Accrual statements are beyond the scope of material presented here.

· Inventory – amounts held as inventory as of the start date for the QuickBooks file should be entered by the item not by the account in total. Otherwise, the entries to relieve inventory by item may be incorrect and the detail reports will not match the general ledger. The individual item count and related value can be entered as the items are created, or as one entry through the adjust quantity/value on hand screen. If the later option is chosen, be sure to check the box at the bottom so the value of each item appears on the screen (this is the total for all the items; i.e. 10 items at $10 each would show a value of $100). When entering the inventory adjustment, an error message will appear when the account for opening balance equity is chosen because it is not an income or expense account. Once the warning is acknowledged the software will permit using the opening balance equity account. Inventory specific issues are beyond the scope of these materials.

· Accounts Payable - To permit proper aging and vendor assignment, each outstanding bill should be entered individually using the appropriate date and coded to opening balance equity (or use the begin bal item suggested with Accounts Receivable above).

· Income and Expense Accounts - If the QuickBooks file is established mid-year, a journal entry will be necessary to enter the beginning income and expense account balances. This net income or loss amount will be entered using Opening Balance Equity. If the QuickBooks file is established at year-end, include the profit and loss in the Retained Earnings adjustment.

Chart of Accounts Set Up Form

Special Considerations

Specific Asset and Liability Considerations

QuickBooks handles certain accounts it has created in a unique way. In the process of issuing financial statements, these unusual situations deserve some additional consideration. When doing bookkeeping using QuickBooks these specific accounts may not even need to be used unless they are needed. Here is a list of these accounts:

Accounts Receivable
Accounts Payable
Opening Balance Equity
Retained Earnings
Undeposited Funds

Accounts Receiveable

Accounts Receivable - Special Considerations

Because Accounts Receivable is a specific type of account, it will be segregated into a subtotal on the financial statements. From a presentation standpoint, if invoices, credit memos, A/R aging reports, etc. will not be needed, it is preferred to have the Accounts Receivable account created as an other current asset type of account. By doing so, it will be subtotaled on the financial statements with accounts such as prepaid expenses, inventory, other receivables, and the like. If an account has already been set up as an Accounts Receivable type, it is not possible to change it to another type. The best alternative is to create a new account, and mark the old one inactive to keep it from being used in the future. Keep in mind, however, that if an invoice is created, the software will automatically make a new Accounts Receivable type account to handle the entry. If invoices and credit memos are needed, there is not a way to get around having this type of account. This type of account also important for the change from Cash to Accrual statements.

New Inventory Parts

Accounts Payable - Special Considerations

Accounts Payable type accounts are treated much the same way as Accounts Receivable type accounts. Because Accounts Payable is a specific type of account, it will be segregated into a subtotal on the financial statements. From a presentation standpoint, if bills, credit, A/P aging reports, etc. will not be needed, it is preferred to have the Accounts Payable account created as another current liability. By doing so, it will be subtotaled on the financial statements with accounts such as accrued expenses, current portion of long term debt, other payables, and the like. If an account has already been set up as an Accounts Payable type, it is not possible to change it to another type. The best alternative is to create a new account, and mark the old one inactive to keep it from being used in the future. Keep in mind, however, that if a bill is created, the software will automatically make a new Accounts Payable type account to handle the entry. If bills and credits will be needed, there is not a way to get around having this type of account. It is also important for the change from Cash to Accrual statements.

Opening Balances

Entering the opening balance and “as of” date

One way of entering the opening balance is on the new account set up screen. The other side of the entry when this method is used is Opening Balance Equity. The advantage to entering the balances for Balance Sheet accounts in this way is that it is easier to reconcile Opening Balance Equity through the register. If a journal entry is entered using Retained Earnings, that account does not have a register or an easy way to create a report to show activity. In addition, the accounts listed below require additional information not easily handled through a journal entry. Once the Opening Balance Equity account has been reconciled (i.e. equal to Retained Earnings on the source documents) an entry onto the register can be created to transfer the balance into Retained Earnings.

The “as of” date should be the same date of the source documents. This should be the last date of the prior period. For example, if QuickBooks is to be used starting the beginning of 2002, the as of date should be 12/31/01.

The documentation from QuickBooks often suggests using the start date (i.e. 1/1/03 in our example) but it is the opinion of this author that then end of the previous period is preferred over the beginning of the current period to preserve a clean Balance Sheet for future reference. Some businesses, for example, may have activity as of 1/1 or that date may be used for previous year transactions that are received subsequent to the reconciliation of the previous year balances. Using the end of the previous year’s date eliminated the potential problem.

The exceptions to this method are:

Bank Accounts

Accounts Receivable

Inventory

Accounts Payable

Income and Expense Accounts

Retained Earnings

Retained Earnings - Special Considerations

This is a special QuickBooks created account. Although it is possible to make entries to this account, it is not possible to view a register of the activity. It is a calculated balance when a Balance Sheet report is created. The software adds or subtracts all of the profit and loss account activity through the end of the previous year, as well as any transactions that have been coded to the account directly to determine the amount that appears on the Balance Sheet. If the amount is incorrect, most often it is the result of a change to a profit and loss transaction from previous year. Although it is not possible to eliminate this account (i.e. even if it is deleted, QuickBooks will create it again as needed) the name of the account can be changed if the legal form of the business dictates that another name, such as Owner’s Equity, should be used.

Undeposited Funds

This is a special QuickBooks created account. Its sole purpose is as a clearing account for payments that have been received from customers using the receive payment or cash sales receipt options until they are combined in one deposit to the bank account. In the older versions, it is not possible to make journal entries to this account (although you can, in newer versions, it is not recommneded, nor can you reconcile it).

Some practitioners prefer to change the name to Cash on Hand, since it is money that has been received, but not yet taken to the bank. The problem in the author's opinion with this approach is that, although it more accurately describes what the account is, it is not possible to change the type. For that reason, it is presented on the financial statements with other current assets such as inventory or prepaid expenses. A more correct place for this balance is with the bank accounts and other liquid assets.

Usually the amount left in this account at the time that the financial statements are issued is a timing issue. The receive payment and the make deposit are two different dates. To eliminate the problem, make sure that the receive payment and the deposit date match. If the money has been received and has not yet posted by the bank, using the deposit date the same as the receive payment will serve to show the amount as a deposit into the bank account as a deposit in transit.

Ask the Expert - Chart of Accounts Balances

Q - When I look at the Chart of Accounts window, some accounts display the account balance to the right of the account title and some do not. Is there a way to have all the balances shown to avoid opening the account to get the balances? Submitted by Sheldon

A – There are two different issues that could come into play here. One is if the balances are not showing for a Balance Sheet account it is typically a password set up issue. This probably not the issue since if appears the account can be "opened."

If it were, some Balance Sheet accounts will show the ending register balance, while others will not. Notice how the bank accounts and other current assets do not display a balance, yet the Accounts Receivable account does. The reason is that this user has only been given Sales and Receivable access.

QBRA-2006: Login as a user with only Sales and Receivable permissions > Lists > Chart of Accounts (fig. 1)

The second, and more common issue, is that in QuickBooks only Balance Sheet accounts display the ending register balance (with the exception of Retained Earnings); where as Profit & Loss accounts do not display a balance at all.

QBRA-2006: Login as a user with full access > Lists > Chart of Accounts

Notice there are balances for the Long Term Liability accounts, but no balance is visible for the Income accounts.

The theory is that Balance Sheet accounts roll from period to period and year to year. These accounts never "close" they have a register that includes all the transactions coded to the account, no matter what the date. Because of this, if there are post dated transactions, the balance shown on the chart of accounts list screen will be the ending register balance, not the balance as of the end of last year, or as of today, for example. Profit & Loss accounts, however, are based on a specific time period. A date range is required to display the balance. For this reason, when a Profit & Loss account is chosen, the Use Register option when clicking on the Activities button at the bottom of the list has been turned gray.

Classes

Classes Overview

Classes are one of the most under-utilized and most powerful features QuickBooks has to offer.

Some examples by industry might include:

Equipment Reseller Sales, Service, Overhead

Graphic Design Firm Desktop Publishing, Web Site Design, Print Broker, G & A

Accounting Firm Accounting, Tax, Resale, G & A

Retail Store Location #1, Location #2, Corporate

QBRA-2003: Edit > Preferences > Accounting > Company Preferences

QBRA-2003: Reports > Company & Financial > Profit & Loss by Class (assign several invoices to a class)

3/0/04

Class Tips & Tricks

QuickBooks Tips & Tricks - Classes

Once the class feature, an accounting preference has been turned "on" each check, invoice, bill, etc will have a place to record the appropriate class. If a class is not entered on a transaction for an income or expense amount, the balance will show in the unclassified column on the Profit & Loss.

It is recommended that a class be set up for overhead, General & Administrative Expense, corporate, or what ever makes sense for those entries that do not apply to a specific class. This will make it obvious that there has been a coding error if any amount appears in the unclassified column. If a transaction does not have a place for the class (for example discounts in version 2002 and prior) a journal entry with the debit and credit for the same amount and the same account with one line showing the correct class and the other being left blank.

With version 2003 in addition to adding the class field for bank reconciliation amounts and discounts, there is an added preference "to assign classes."

3/4/04

Items

Overview

Preferences

There is a Purchases & Vendor preference that is important when setting up Accounts Payable if inventory, purchase orders, and sales orders will be used.

QBRA-2003: Edit > Preferences > Purchases & Vendors > Company Preferences

Inventory and purchase orders are active

If this option is not turned on, the inventory type item will not be available for creating a new item. The purchase order option will not be available from the vendor pull down either.

Warnings

Bill Due Date

Automatically Use Discounts and Credits

TIP: While in the preference section, it is useful to confirm that the Company Preferences for Customers & Sales and Sales Tax preferences have been set properly.

There is a Purchases & Vendor preference that is important when setting up Accounts Payable if inventory, purchase orders, and sales orders will be used.

QBRA-2003: Edit > Preferences > Purchases & Vendors > Company Preferences

Inventory and purchase orders are active

If this option is not turned on, the inventory type item will not be available for creating a new item. The purchase order option will not be available from the vendor pull down either.

Warnings

Bill Due Date

should be updated to reflect the new terms.

Automatically Use Discounts and Credits

TIP: While in the preference section, it is useful to confirm that the Company Preferences for Customers & Sales and Sales Tax preferences have been set properly.

QBRA-2003: Edit > Preferences > Purchases & Vendors > Company Preferences

Inventory and purchase orders are active

If this option is not turned on, the inventory type item will not be available for creating a new item. The purchase order option will not be available from the vendor pull down either.

Warnings

Bill Due Date

Automatically Use Discounts and Credits

TIP: While in the preference section, it is useful to confirm that the Company Preferences for Customers & Sales and Sales Tax preferences have been set properly.

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Items Overview

An item is anything that a business will sell. The easiest way to think about an item is to understand that it is the link between the information entered into a form and the transaction that is recorded to the various accounts in the general ledger. Any line that will have a corresponding dollar amount with it will require an item. The list can be as simple or as complicated as you choose. For example, if the business sells pizzas, one item is all that is required. As each invoice is created, the description and price could be revised as needed. The other alternative would be to create items for each of the different kinds of pizzas sold. This approach would eliminate the need for revisions as the invoice is created since the description and price would come up automatically. More sophisticated sales reports would also be possible in the latter example.

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Item Types

When creating an item list, there are several choices of item type to choose from. New with version 2002 was a brief description of the right of the choice on the screen as an item is created. New with QuickBooks Premier version 2003 is the inventory assembly type of item. The type is important for subtotals on reports and for some function options.

Below is a list of the types and the typical use for each:

· Service - most commonly used for items such as labor, consulting, hourly fees, etc. This type of item is required for use on timesheets.

· Inventory part - items that are normally carried in stock until sold. This item type will keep a running balance of quantity on hand and moving average cost. This item type will record purchases into an Other Current Asset account when purchased and reclassify the appropriate amount to cost of goods sold when an invoice or cash sale receipt is created. Detailed discussion of this type of item is beyond the scope of these materials.

· Inventory assembly – items that are created from other inventory items then carried in stock until sold. This is a new item type with version 2003, Premier only. This item type will keep a running balance of quantity on hand and moving average cost. This item type will record purchases into an Other Current Asset account when purchased and reclassify the appropriate amount to cost of goods sold when an invoice or cash sale receipt is created. Detailed discussion of this type of item is beyond the scope of these materials.

· Non-inventory part - items that are not kept in stock. This could include items such as custom or special orders. This item type is also used if the average cost method of valuing inventory is unacceptable or perpetual inventory counts are not necessary. As items are purchased, they are simply expensed.

· Other charge - freight, gift-wrapping services, expenses that are passed through to the customer are all examples of other charge type items. If an “opening bal” item is to be created for entering the beginning balances for a new set up for Accounts Receivable and Accounts Payable, this is usually the type that is used.

· Subtotal - a special item type that permits a subtotal line on an invoice to accumulate the amount due of all lines entered previously.

· Group - this item type is used when several items are sold at the same time. There is the flexibility of printing all of the individual components on the customer’s copy of the invoice, or showing the detail only on the screen with one line on the printed copy of the invoice that merges the detail together. The primary drawback to this item is, although inventory and any other items are correctly reflected as a group is sold, there is not a way to run reports on the group itself. For example, if an installed door set is sold that includes a door, the hardware, and labor, a sales report will show the appropriate amount of revenue for each component but will not show how much revenue was generated from the sale of the door set group, only how many doors were sold, installed or not.

· Discount - this is a reduction on the invoice that can be either a flat dollar amount or a percentage of the line immediately preceding it. If a discount is to be given off of each item, the discount will be entered either after each item, or once after a subtotal of all items.

· Payment - if a payment is received at the time of the invoice, this is item type to be used. Keep in mind, however, that a statement shows only the totals from transactions, i.e. the invoice on the statement will show the net amount due on the statement after the sale and payment have both been entered. If it is important to show the payment on the statement, entering an invoice then creating a receive payment transaction may be preferred.

· Sales Tax - based on the customer being taxable, and the item being taxable, this item will calculate the tax liability due based on the tax percentage entered.

· Sales Tax Group - in California, it is the recommendation of this author that the sales tax for each county be entered in total as a unique sales tax item, rather than entering the individual jurisdictions and grouping them together. The resulting sales tax liability report will be easier to reconcile using this suggestion.

QBRA-2003: List > Item List > Item > New

TIP: Create additional sales tax items to track other non-taxable entries such as resale, out of state, government, etc. It will make completing the sales tax return much easier.

Payment Type Items

In most instances, the payment type item is not needed. When an invoice or sales receipt is paid, the payment is typically one payment method for one amount. A typical exception to this logic, however, is when a down payment is received at the time of invoicing or when multiple payment methods are used to pay an amount due.

The process of creating a payment type item is very similar to other items with one significant exception: the deposit to account. When creating a typical item, the account chosen is available from a pull down list, and any account on the chart of accounts can be used. With the payment type item, the only two choices are undeposited funds or a bank or other current asset type account.

QBRA-2004: Lists > Item List > Item > New > Payment Type

By using a payment type item, the payment method and the default account are both specific by the item. So, if multiple methods will be entered on the detail of an invoice or sales receipt, it would be necessary to create multiple payment items (i.e. one for VISA, one for MasterCard, one for American Express, one for checks, one for cash, etc). Typically the item is coded to undeposited funds to permit making one deposit for the day for multiple payments that have been received.

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Creating a New Item

Creating New Items

Item Name/Number

This field can be alphanumeric, and is limited to 13 characters. An appropriate, unique abbreviation will make the data entry process more efficient.

Sub-item of

Just as sub-accounts are a way of grouping similar accounts together, the same is true for sub-items.

Description, Rate and Tax Code

The following three fields streamline data entry, but can be overridden when used, if necessary:

Description - The purpose of the description field is to make data entry more efficient. The description can be as detailed or general as desired.

TRICK: If you use the item and blank lines appear on the invoice, the common cause is blank lines in the description. To correct the problem, edit the item and delete the blank lines by going to the end of the typed description and press the down arrow to the end of the field, then press the backspace key to remove the extra blank lines.

TIP: It is helpful to add the quantity in the description field if this could vary. For example, if you sell your product by the case, you may make the description ABC bottles (15 per case) to eliminate any confusion.

Rate - This pricing field is the usual selling price for this item. It can be zero on the item and then entered as needed if pricing varies.

Tax Code – In prior versions, this field was labeled as taxable. If this box had a checkmark in it, the item is usually taxable. Now with version 2002 the field has changed to tax code to permit additional descriptive information as to why the item is typically taxable or not. In all versions it is possible to change the code at the time the invoice is created for exceptions.

Account

Choose the appropriate account from the chart of accounts or create a new one.

TIP: If an item that is not an inventory part is being used for purchases and sales, it is important to have QuickBooks Pro or QuickBooks Premier to permit the purchase to be coded to an expense and the sales to be coded to income. Without the advanced job-costing feature included in QuickBooks Pro or QuickBooks Premier, both the purchase and sale will be coded to the same account when the item is used. The latter case would result in the net amount on the Profit and Loss report. To enter an account for purchases versus sales, check the box next to:

· For a service type item - performed by sub contractor, owner or partner

· For a non-inventory part - purchased for and sold to a specific customer job

· For an other charge - this is a reimbursable charge

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Advanced Job Costing

Advanced Job Costing Tip

· For a service type item - performed by sub contractor, owner or partner

· For a non-inventory part - purchased for and sold to a specific customer job

· For an other charge - this is a reimbursable charge

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Price Levels

New with QuickBooks Pro version 2001 was the feature for price levels.

QBRA-2004: Lists > Price Level List > Price Level > New

QBRA-2004: Lists > Customer:Job List > Customer:Job New > Additional Info Tab

TIP: To use price levels, confirm that the sales & customer preference has been correctly marked.

TRICK: If you want to show the discount on the invoice, this may not be the best solution. Entering the retail amount then a separate discount line may be preferred as a price level alternative.

TRICK: To show the price level used on an invoice, use a custom field to match the price level chosen, and then add the field to be printed on the invoice to the invoice template.

Prior Version Note: For versions 2001-2003, Pro and higher the price level is applied to all items purchased by the customer. The ability to designate the price by item was new with version 2004.

QBRA-2003: Lists > Price Level List > Price Level > New

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Price Level Alternative

The Price Level feature permits increasing or decreasing the sales price of an item by a flat percentage, flat dollar amount (version 2001-2003) or setting specific prices for the price level by item (version 2004). This field, however, does not appear on the invoice so it is not obvious to the customer how much they are saving based on the special pricing they have been given.

One alternative is to create a custom field for the discount or price level name in addition to the one already on the customer record. This method will permit adding the custom field to the invoice template so it will be readily apparent to the customer.

Another alternative is to use discount item rather than a price level. A discount item will calculate an amount as a percentage of the line immediately above it on an invoice. This method requires an additional line of detail on the invoice that the data entry person must remember to enter, but the savings are obvious to the customer. This was the only alternative for versions 2001-2003 if different percentages were used for different items. With versions 2004, the ability to assign the custom price by item (and thereby automating the invoicing process) will serve to reduce data entry errors over this method in the future.

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Inventory Overview

Inventory

According to GAAP, inventory (i.e. personal tangible property) can be defined in one of three ways:

1. Held for sale in the ordinary course of business;
2. In the process of production for sale; or
3. Consumed in the production of goods or services to be available for sale.

For the later two options, QuickBooks is not an appropriate solution. For manufacturing, work in process, and/or consumables, another software package should be explored. QuickBooks does work well when inventory is purchased and then sold without changes to it. The only exception may be light manufacturing that simply groups items together for sale without the need to add labor or other burden amounts into inventory. New with Premier Version 2003 is the added type of inventory assembly.

After determining that the type of inventory matches the limitations for using QuickBooks, the next factor to be addressed is the basis that the inventory will have on the Balance Sheet. Inventory is a Current Asset type of account, which is set up as part of the chart of accounts in QuickBooks. The inventory, according to GAAP should be recorded at cost, which includes all direct and indirect costs incurred to prepare it for sale. Since the inventory is being purchased as it is being sold, this is usually not an issue. Assuming that as the inventory is purchased all costs are included (i.e. any packaging, freight, etc.) in the amount recorded in QuickBooks for each item. There are several exceptions to this general rule, such as including indirect costs, the lower of cost or market, certain conditions that may make an amount in excess of cost acceptable, etc. Those alternatives are beyond the scope of these materials, and for the most part, QuickBooks. Assuming that the cost will be basis for valuing the inventory, the next decision is which method will be used. For a complete discussion of what and how items should be recorded for a specific business, please consult with an accounting professional.

Average Cost

The method of inventory valuation to be used for GAAP, should be the one that most accurately matches the cost of goods sold with the related sales. QuickBooks uses a perpetual inventory system with a moving average cost. After each purchase or sale, a new average cost is computed, as opposed to the calculation at the end of the period (periodic inventory system). As an item is sold, the average cost at that point is used for the amount to be charged to cost of goods sold. According to GAAP, this is an approved method; however, it is not the best method for all business entities. If average cost is an appropriate method, and the inventory procedures are applied consistently (i.e. a purchase of the item is recorded prior to sale, and subsequent purchases and sales are recorded in the order they occurred), no additional adjustments may be needed prior to issuing the financial statements. There are several reports that will aid in the preparation of work papers and in performing analytical procedures. If another method is to be used, such as first-in, first-out or last-in, first-out, there is not an automated solution from QuickBooks but a manual valuation adjustment can be entered. The same is true if the business is required to capitaize warehousing costs.

QuickBooks has an inventory feature that will track the quantity on hand for inventory parts in the item list. Once the items have been set up, QuickBooks will do the following:

· Assist in completing ordering information on purchase orders for vendors
· For Premier Version 2003 and higher permit building assembly units
· Assist in completing sales information on sales receipts and invoices for customers
· Record sales and cost of goods sold in the general ledger as items are sold
· Compute the value of the inventory balance as items are received and sold
· Show the average cost by item
· Warn when a sale is being created for a higher quantity that what is calculated to be on hand

This is a powerful tool and, when used correctly, can provide valuable financial and management information to the business owner and Accountant. Some examples include: trends in items sold to better manage inventory levels, sales detail to analyze items needed for seasonal fluctuations, gross profit results to determine which items should be expanded, decreased, or require price changes, inventory valuation to determine if the levels of inventory on hand are reasonable, not to mention more accurate financial results for management and planning purposes.

QuickBooks uses the average cost method of valuing inventory as items as purchased and sold. Because of the way in which QuickBooks calculates the value of the inventory, it is extremely important to record the purchase of items prior to the sale. Although the software will permit you to sell items you do not have, it is not recommended.

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3/4/04

Transfer of Inventory Beginning Balances to a New File

Q - We are restructuring and need to create a new company. All accounts will change, however inventory will remain the same. What is the easiest way to create a new company file that will achieve this?

A - Just let me say before I provide the solution, that I picked this question for two reasons. It was submitted in a slightly different format two times by the QuickBooks user, and it sparked my interest. In addition, quite frankly, I thought I had a couple of ideas on how to solve it. After three hours of frustration, I was determined I was going to win. What follows is my thought process on what "should work" with a final explanation of what "did work."

I started with the thought that I could import the lists for the majority of the item information. I could then use the inventory valuation summary report because it includes the average cost and extended value not included on the list import. I took that report and added the item type and as of date in Excel. I then proceeded to try to use the Excel import new with version 2004. However, because the account columns were missing from that report, it would not let me import, even though the inventory item was already there. I tried going at it several different ways, and short of merging the two reports together (which if I was more of an Excel wiz) I could not achieve an automated solution for a large inventory list with inventory balances to be transferred.

My next attempt was using an Excel Add-In from FLEXquarter Solutions. It is called the QTable grabber, and I must admit I have known about this tool for some time, but had not found a situation where I understood its power, until now. Basically when this tool is used for the ItemInventory table all the information needed to import into the new QuickBooks file is there, including the average cost.

The next tab has the fields. To move them all onto the resulting report, press the arrow until everything is on the left and nothing is left on the right. I ended up with extra columns I did not use, but better too much than not enough in my opinion at that point. There is another filter tab, but in this case I had already filtered for the inventory only based on the table chosen so all I did was press insert data. The columns and related information appeared in the Excel spreadsheet.

Although there is a total value column, in my example, it was not filled in, but I was quickly able to add the formula, add the column for item type (i.e. inventory part) and "as of date" for the value. Once it was saved as an Excel file, I used the new Excel import available with version 2004. Keep in mind the Excel import does not support Group or Inventory Assembly type items. In this case everything was an inventory type item. It worked like a charm.

TRICK: For all dollar amounts, make sure the entry is only 2 digits (i.e. dollars and cents). If the value is extended further than that an error will be noted during the import.

THANK YOU!! Thanks to K. Barrett for the challenge. And thanks to Chuck at FLEXquarter Solutions for helping me find an answer. For a more automated solution, read about Karl Irvin"s Beginning Balance Transfer Utility.

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Transfer of Inventory Beginning Balances to a New File (Beginning Balance Transfer Utility

Transfer of Inventory Beginning Balances to a New File (Beginning Balance Transfer Utility)

Based on an Ask the Expert question we have been investigating the easiest way to transfer beginning balances for inventory from one file to another. We tried QuickBooks alone, with no success, and then we found another add-on which would permit extracting the data from the QuickBooks file, but still required some manipulation to import it. We have now found a more automated solution: the Balance Transfer Utility from Karl Irvin.

This tool is appropriate for version 2002 – current and uses the XML technology to extract the information from the old file and place it in the new file. The most challenging part of using the tool was the initial set up of the files, but after that, a few clicks and instant success.

After the source and destination files have been set up within the tool and the preferences have been modified to permit access, the next step is to select the balances to be transferred. The choices are: Trial Balance, Inventory, Accounts Receivable, and Accounts Payable. All the choices work the same way: it is possible to choose one or all. It is also possible to choose whatever transfer date is desire.

To transfer the information, follow the six steps by clicking each button respectively:

Open Source Company, Export New Data, and View Export Report. This third step is option, but it will highlight if there are any potential problem areas.

Then, Open Destination Company (it will automatically close the source company prior to opening the destination company), Import New Data, and View Import Report. The import report details exactly what was imported into the file.

At this point, if there were any errors, it is possible to either correct the situation or to manually enter the few remaining transactions. In our inventory test, the inventory valuation detail report from the source company and destination company matched exactly with no errors.

Summary – Aside from the initial time to set up the QuickBooks data files to permit access by the utility, this is by far the easiest and most automated solution we have seen for transferring the beginning balances into a new file.

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QuickBooks Tips & Tricks - Inventory versus Non-inventory Items

QuickBooks Tips & Tricks - Inventory versus Non-inventory Items

Inventory in QuickBooks is based on average cost. If this is an acceptable method for the business, QuickBooks can work well when set up correctly and proper procedures are followed consistently for buying, selling and adjusting the inventory item balances. With that being said, when are inventory type items appropriate and when are non-inventory type items a better alternative?

Let us start with the definition of inventory parts versus non-inventory parts. With inventory, the item is coded to an asset, a cost of goods sold, and an income type account. As the items are purchased (on the items tab of a bill, check, credit card charge, etc) the inventory balance is increased for the quantity and cost of the item on the balance sheet. Non-inventory parts, however, only have one account and both the purchases and sales are recorded to the one account. To correct this coding error, it is possible to edit the item and check the box in the middle of the item (Pro and higher only) to use the advanced job costing features. What the box says on the item is not important, what is important is that by checking the box the item now has "two sides." One account for purchases and one for sales. With non-inventory type parts, the purchase is expensed and the sale is recorded as income. There is no matching of the timing between the two.

Items can be changed for coding corrections, or to change a non-inventory part to inventory. There is not any way to change the items from inventory to non-inventory (short of starting a new file or making the inventory items inactive). Make the corrections carefully, because it is possible that depending on what you do, all the history could change as well.

The most important aspect of using inventory is always buy it before you sell it. And never ignore warning messages if it states that you do not have enough inventory to sell.

Here"s more information on inventory versus non-inventory issues when holding goods on consignment.

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Inventory Part Items

The next step is to create the appropriate items or the inventory parts. As the information is entered for the inventory item, the QuickBooks suggested sales price is calculated by taking the purchase price times the default mark up percentage as entered in the Sales & Customer preference. The purchase price and selling price are simply the defaults that will be used when the items are entered onto a form. They can be changed here at the item or at the time when items are purchased or sold. Their purpose is to make data entry more efficient. The amounts entered here do not affect the general ledger until the item is used and the transaction has been recorded.

TRICK: The only exception to this general rule is if the inventory item is sold prior to ever being entered through the inventory adjustment procedures or being purchased (therefore it does not have an average cost) the cost amount will be used as the cost when the invoice or sales receipt is recorded. Any subsequent purchases at a different rate will have the difference recorded to the cost of goods sold account at that time.

TRICK: For versions prior to 2003, if beginning balances are entered using the inventory adjust qty/value feature, be sure to check the "value adjustment" box at the bottom of the screen, even if the cost has been entered on the item. Although the entry does not change if you do not see the actual extended item balance, for some reason, the program will change the dollar amount of this original entry if the cost on the item is changed I.e. all the historical Balance Sheets. The "value adjustment" box locks the dollar amounts from changing.

TIP: Remember that QuickBooks uses average cost, it is important to create a new item for each inventory part with a significantly different cost.

QBRA-2002: Lists > Item List > Item > New > Type: Inventory Part

Once the first inventory part is created, you will see the software has automatically created the following accounts, if they did not already exist:

· Inventory, type should be Other Current Asset

· Sales, type should be Income

· Cost of Goods Sold, type should be Cost of Goods Sold

· Sales Tax Payable, type should be Other Current Liability

With all of these accounts, you also have the option of creating additional accounts or sub-accounts to track various categories of items in more detail on the general ledger. It is important to consider how the information can best be used. For example, creating items and sub-items for detail and summary reporting may be more useful than a complicated chart of accounts.

TIP: When creating a new sub-account, be sure that it matches the same type as the main account or the software will not let it be saved.

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Consignment Inventory

Consignment Inventory Case Study

Consignment Inventory is merchandise owned by the business but is physically located at another location. The challenge in this type of situation is to keep clean records of what is where while developing a system that will also result in accurate financial statements. This situation comes into play in many different forms, assembly work that is subcontracted, distributors who re-sell product but do not ever actually own it, outside sales reps who carry "inventory" in their vehicle, etc. Consistently applied procedures are the key to tracking this type of activity.

Inventory tracking in QuickBooks can become complicated, even when a business simply buys and re-sells the same items. When additional requirements are necessary the process can become cumbersome very quickly. As with any major accounting issue individual situations may change the appropriate treatment of transactions, the following suggestions should be confirmed with the business accountant prior to implementation.

1. Create an "Inventory" type item for product that is sold. Depending on how the information is needed, sub-items often aid in managing the list, i.e. either there is a main item for the location with a sub-item for each specific product (typically with a designation letter at the beginning) or the product is the main item with the sub-items being the amount of inventory held at each location. With the former solution, reports will contain a subtotal by location which may eliminate the need to establish multiple inventory asset accounts on the chart of accounts. This process can be expedited by using the process of exporting the item list, opening it in Excel, copy the items, use find/replace to create the new items, and then import the list back into QuickBooks

2. If this process starts when there is not any inventory in the other locations, this step is not necessary. For businesses that do already have inventory in other locations, the most efficient way to move the inventory from one item to another when this process starts is through an inventory adjustment. Be sure to check the box that says value adjustment and confirm the extended value matches between the item the quantity is transferred from and the item the quantity is transferred to. This is a one time process to establish the correct inventory balances for each item.

3. For on-going activity, there are three alternatives depending on the personnel who will be involved (i.e. their QuickBooks knowledge, their accounting knowledge, and the level of detail they are permitted to see, etc) and the paperwork flow of the organization.

The first alternative is to enter an inventory adjustment as inventory is transferred from one location to another (like in step 2 above). To create a paper trail, consider using the Journal report filtered for inventory adjustment type transactions and adding the columns for the item and quantity.

The second alternative is to enter a zero balance invoice with the positive quantity for the item the product is being transferred from, and a negative for where the product is being transferred to. This is an easy way to create a paper trail to accompany the shipment, the zero balance invoices will not effect sales tax calculation, and the data entry person does not need to see or understand the accounting implications of the transfer. However, all of the cost transfer happens "behind the scenes" so it is possible the cost of the transfer may not balance between the two items. The transaction detail should be reviewed by knowledgeable accounting personnel regularly to ensure the general ledger detail is being accurately recorded.

The third alternative is to enter a zero balance bill with the positive quantity for the item the product is being transferred to and the negative for the item the product is being transferred from. This method permits control of the cost being transferred, however, the cost that appears automatically on the bill is the cost that was entered on the item itself, not the average cost that has been calculated as the item has been purchased and sold. To permit accurate costing of the item from one to the other, create an inventory valuation summary report and use the average cost column to value the inventory for the transfer. This method does require that the data entry personnel have access to the cost information and does understand how to implement the procedures.

4. As with any inventory system, inventory counts (both partial on a regular basis and a full count at least annually) are recommended, reports should be reviewed to confirm the procedures are being followed and no modifications are necessary. Inventory can be very useful in the management of the business, cash flow, etc. but it does require a commitment of all parties to check and double check that it is working properly.

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Adjusting Inventory

QuickBooks Tips & Tricks - Adjusting Inventory

At this time of year the subject of inventory adjustments frequently comes up. The client has done the actual count and adjusted QuickBooks to reflect the results, the discussion between the client and tax accountant has determined that the general ledger balance needs to be adjusted, and/or the client uses a method other than average cost for valuing the inventory.

The problems begin when the accountant records a journal entry to adjust the inventory balance on the balance sheet because now the detail support schedule (inventory valuation summary) does not match the general ledger balance. The reason this will occur is because there is not any way to assign the transaction to a specific item on the journal entry. For this reason, for clients who are using the inventory features within QuickBooks, the accountant should not create journal entries for the adjustments. The only exception is for journal entries that will be reversed in the subsequent period (which will put the detail reports and general ledger "back in balance").

How should the inventory balance be adjusted? The best alternative is to enter an inventory adjustment (Vendors > Inventory Activities > Adjust Qty/Value on Hand). If a specific item needs to be adjusted, for example an item is obsolete or the market is lower than cost, then the specific item should be adjusted. The ending quantity or ending value can be used, or both. If the adjustment is the result of a more broad issue, such as the change in valuation methods, or a discussion that results in the determination that the balance "in total" needs to be adjusted then a new item can be created for tracking the net effect of these changes.

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QuickBooks Tips & Tricks - Automatic Inventory Adjustments

QuickBooks Tips & Tricks - Automatic Inventory Adjustments

Inventory tracking using QuickBooks works very well, assuming that the unit of measure and cost of the item remains consistent and proper procedures are followed. When either is no longer true, adjustments may occur automatically.

Obviously without looking at the file it is difficult to guess what is happening in any specific situation, but here are a few issues to consider if strange amounts appear in the cost of goods sold and/or inventory asset accounts. Aside from the adjust/quantity value feature that can obviously make these types of changes, I have seen two other situations:

1. A new item is created and a quantity and value is entered at the bottom of the screen (this is relatively easy to trace since the "offset" of the entry shows in Opening Balance Equity). The proper procedure (except when setting up the file in the beginning) is to create the item, but enter the appropriate transaction (i.e. bill, check, credit card charge) for the initial purchase of the inventory.

2. Items are sold before they are purchased and/or the cost is changing significantly resulting in a situation where the software tries to make the average cost for the quantity on hand correct with the difference being coded to the cost account designated in the item. These issues are more difficult to track. To look for this specific issue, the journal report filtered for the transaction type of bill (or check or credit card charge, if that is how they purchase inventory) and an extra column for the item makes it a little easier since it is possible to scroll through the list looking for any purchase that includes the cost account as well as the inventory asset account.

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Negative Inventory Balances

QuickBooks uses average cost so proper procedures, purchase an item before it sold through the software, are critical. Negative inventory balances for specific items can have significant ramifications to the integrity of the financial reports.

The most common occurrence of this situation is for businesses who "drop ship" products. As soon as the order is placed with the vendor using the Purchase Order feature, the invoice is created for the customer. The problem is that a purchase order is non-posting. Inventory is not updated until the product is received via an item receipt or a bill. The inventory, however, is reduced at the time the invoice is created. In the case of fluctuating prices, this can be a problem for two reasons:

The software will use the last average cost when the invoice is created, which may be distorted based on the subsequent purchase price. When the item receipt or bill is entered, an entry may occur to the cost of goods sold account to correct the error, resulting in future financial reports being distorted as well.
The inventory balance is now negative because an item has been sold that has not yet been purchased.

To eliminate this problem in the future, if an invoice is to be created before the documentation from the vendor arrives, first enter an item receipt (which will increase inventory and Accounts Payable, but the amount will not be available in the pay bills window until the bill received box is checked).

The second most common occurrence of situation is an incorrect unit of measure. This has the most dramatic effect on the financial reports. An example is that a product is purchased by the case, but sold as individual pieces. A decision must be made on what the standard unit of measure will be. Is it the purchase is for 12 pieces (i.e. 1 case) so the sale is of individual units? Or, does the business purchase the item by the case and as each piece is sold 1/12 of a case will be removed from inventory. Either method is fine, consistency is key.

Another reason may be simple clerical error. The wrong item was entered, a data entry error occurred for the quantity, etc.

No matter what the reason, the inventory balance should not be negative. Investigate the specific situation that has occurred in the data file and institute procedural changes immediately to eliminate the problem in the future.

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QuickBooks Update - Inventory and non-inventory item types

QuickBooks Update - Inventory Issue Fixed in Version 2003

For those of you who have taken my live seminars, you are aware of a problem with QuickBooks version 2002 and before as it relates to inventory beginning balances changing without warning. I am happy to announce that the issue has been corrected with the 2003 version.

The situation that creates the problem is this: The beginning balances for inventory items were entered using the adjust qty/value feature. The extended cost for the item was calculated based on the cost entered on the item set up screen (since there was not historical information). The box was not checked to view the value adjustment (i.e. the extended cost was available from the total at the bottom, but the individual items do not show the extended cost on the screen). Assuming all these variables are true, when the cost is changed at some future date (usually due to a price increase several years later) the beginning balance for that item is changed as well.

This type of change does not appear on any reports; because it is a global change (i.e. does result from a specific transaction being edited by the QuickBooks user).

I am happy to relay the information that the same situation does not exist with 2003. If you choose to upgrade, that will solve the problem. If not, edit the beginning balance adjust qty/value on hand entries to show the value adjustment (i.e. check the box at the bottom of the screen) to "lock" the balances from changing.

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Changing between inventory and non-inventory item types

In QuickBooks it is possible to change from non-inventory to inventory part types for items. It is not possible to change the items from the inventory type to non-inventory type.

Just because you can change the type, doesn't mean you should. When the item type is changed, all the historical transactions are changed as well. That means that previous period financial statements will change based on inventory on hand throughout the period.

Making the items inactive and setting up a new item may be a better way to correct the situation (and is the only alternative for inventory items that should be non-inventory). If there are many items, consider using the export feature then open the iif file in Excel to change the name slightly and the type. Save the file as an iif file and then import it into the QuickBooks file. Don't forget to back up the data file before you try this in case it does not import as expected.

For data files that originally were set up using inventory type items, and later it was discovered that this was probably not the best decision, it is often easier to start a new file. As noted above, the lists can be exported, corrected and then imported into the new file. This process may be best at the end of a quarter or end of a year to make the conversion process easier. Depending on the features and version used, it may be possible to use the remove transactional history option to permit saving the preferences and subscription information of the file.

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Group vs. Inventory

Inventory Assembly Parts

With Premier Version 2003 there was a new type of item called inventory assembly. The concept of this item is similar to a group (a way in current and previous versions of quickly entering several items at once, but reporting remains on the individual items); however, it is "built" from only inventory type items and tracked as a new inventory item (i.e. the average cost of all the individual components is transferred to the new inventory item).

The help topic chart (shown below) is useful in comparing the inventory assembly and group type items.

Group item	Inventory assembly item
Can include combinations of different item types, such as inventory and service items	Can contain only inventory parts or other inventory assembly items Note: To combine a service item with an assembly item, create a group and include both the assembly item and the service item in the group.
Allows you to print individual items contained in the group on sales forms	Prints only the assembly name, not component part names, on sales forms
No reports available specifically for groups	Will appear after inventory part items on standard inventory reports; pending build report will list builds in the pending state
Quantity on hand of each item included in the group is adjusted in inventory at the time of sale	Quantity on hand of component items is adjusted in inventory when the assembly is built
Sales tax is calculated by individual items included in the group item	One sales tax code applies to the entire assembly, even if component item tax codes differ
Can"t be included in another group (nested) or in an inventory assembly	Can be included (nested) in other inventory assembly items and included in group items
For groups of inventory parts, QuickBooks tracks inventory of items in the group, not the group itself	QuickBooks tracks assembly items in inventory
Price of a group item is the sum of the items in the group (although you can include an item in the group for a discount or additional charge to adjust the simple sum calculation)	Price of an assembly item can be anything you specify
Can be modified after being used in transactions	Can"t be modified after being used in transactions
Can include taxable and nontaxable items	Must be designated as taxable or nontaxable

TIP: If the items are usually custom-ordered, rather than stocked, or if the items are typically drop shipped (i.e. they are sold and invoiced prior to being purchased), it may be more appropriate to use non-inventory parts rather than inventory parts. This means that the items are recorded as an expense as purchased and as income when sold rather than being recorded through inventory for matching purposes. QuickBooks Pro or higher will be required to have the income and expense accounts coded appropriately for sales and purchases.

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Reimbursement Group Printing on Invoice

Ask the Expert – Reimb Group Printing on Invoice

Q - In QuickBooks we have an invoice with a ton of items that are all grouped as Reimb Group. However, this is a mistake and we want to have it all print on the invoice. Can you help? Submitted by Carmine

A – When a group type item is originally created, there are two choices: By default the "print items in group" check box is not marked. The result is that all the items that are included in the group will be printed as one line item on the invoice. If the decision is made that all the individual components of the group should appear on the printed copy of the invoice for the customer, a check mark should be placed in the box.

QBRA-2005: Lists > Item List > Item > New

Unfortunately in the situation you described, simply going back to the item and placing a check mark in the box will not solve the problem. With the check box marked, all the invoices in the future will print the group detail lines. For the historical detail your only choice would be to re-enter the detail lines onto the invoice to permit printing, or to click on the "journal" button and the item detail will be displayed as part of the journal entry.

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Inventory Assembly Item Set up

Inventory Assembly Item Set Up

New with Premier Version 2003 was a new type of item called inventory assembly. The purpose of this type of item is to create a new inventory item from existing inventory items. It is appropriate for light manufacturing types of businesses. The advantage over groups is that there is an actual inventory count and cost associated with the assembly in total as compared with a group where the purchase, inventory count and cost if appropriate, and sales are all based on the individual items. The group is more for the purpose of increasing data entry efficiency.

To create a new inventory assembly item requires the specific components be set up first as inventory items. Unlike a group that contains many different item types, inventory assembly type items require the components be inventory type items.

QBRA-2004: Lists > Items > Items > New > Inventory Assembly

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Ask the Expert - Manufacturing and QuickBooks

<h1>Ask the Expert – Manufacturing and QuickBooks</h1>
Q - I have purchased the QuickBooks Premier - Manufacturing and Wholesale Edition. We are looking for information on how to track the various WIP of our product. Can you help?
A – The feature you will want to use is <a href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=144510">inventory assembly</a>, which requires QuickBooks Premier or Enterprise Solutions, version 2003 and higher. This functionality is included in the Manufacturing and Wholesale Edition, as well as the other industry specific versions. This feature is more effective than the <a href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=144500">"group" feature</a> available in the other products due to the quantity and cost tracking.
Inventory assembly will permit "building" new items from existing inventory items. The associated cost of the previous item is "rolled" into the cost of the new item. The advantage of this process in your case is that you can create various "sub-assembly items." Inventory can be purchased as raw material inventory. The raw materials can be "converted" by using the build assembly feature in QuickBooks to create the WIP inventory items. As the work in process is completed, the WIP inventory items can then be used to "build" the final product. At any given time, this will preserve the quantity and cost of the products in each "phase" of your manufacturing process.
TIP: This feature requires that all components of the inventory assembly item are either inventory parts or inventory assembly parts. No other type can be included.
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<h1>List Limits Expanded</h1>
For most QuickBooks users, the list limit for the QuickBooks Pro and Premier products of 14,500 is sufficient. For some, however, that is not the case. We have been seeing increased list size for a variety of reasons. One of the most common is the increased number of customers as the result of web site sales. For version 6 and prior, the list limit was doubled for the Enterprise Solutions Product. New with version 7, the Enterprise Solutions limit has been removed.
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<h2>More information on this topic</h2>
<a href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=1144">Items</a>

Sales Tax Code List

The sales tax code list was new with version 2002 as part of the major changes to the sales tax feature in general.

It is required that the sales tax tracking preference be turned on to use this feature. QuickBooks assigns a default code when you mark a customer taxable or non-taxable when entering a new customer. It is possible to add codes to accommodate the different reasons for charging sales tax. Sales tax codes can be up to three characters and you can set up to 10,000 codes on your sales tax code list (number of codes may be limited based on the number of entries on other lists).

QBRA-2004: Lists > Sales Tax Code List > Sales Tax Code > New

Codes can be used to designate why a customer is taxable or not; for example, government, out of state, resale, etc.

The codes are used on sales transactions and make the Sales Tax Revenue Summary Report effective for completing sales tax returns. For example, in California, a sales tax code can be set up for each line on the non-taxable transaction detail page of the return. This would include: resale (i.e. sales to other retailers for the purposes of resale); nontaxable sales of food products, nontaxable labor (repair and installation); sales to the United States Government; Sales in interstate or foreign commerce, etc.

QBRA-2005: Customers > Create Invoices

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Ask the Expert - Consignment Inventory

Ask the Expert – Manufacturing and QuickBooks

Q - I have purchased the QuickBooks Premier - Manufacturing and Wholesale Edition. We are looking for information on how to track the various WIP of our product. Can you help?

A – The feature you will want to use is inventory assembly, which requires QuickBooks Premier or Enterprise Solutions, version 2003 and higher. This functionality is included in the Manufacturing and Wholesale Edition, as well as the other industry specific versions. This feature is more effective than the "group" feature available in the other products due to the quantity and cost tracking.

Inventory assembly will permit "building" new items from existing inventory items. The associated cost of the previous item is "rolled" into the cost of the new item. The advantage of this process in your case is that you can create various "sub-assembly items." Inventory can be purchased as raw material inventory. The raw materials can be "converted" by using the build assembly feature in QuickBooks to create the WIP inventory items. As the work in process is completed, the WIP inventory items can then be used to "build" the final product. At any given time, this will preserve the quantity and cost of the products in each "phase" of your manufacturing process.

TIP: This feature requires that all components of the inventory assembly item are either inventory parts or inventory assembly parts. No other type can be included.

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QuickBooks Tips & Tricks - Enterprise Solution List Search Enhancement

New with Enterprise Solutions version 5.0 is the ability to perform a more detailed search when the customer, vendor, or item list is open.

The choices for the vendor list and the customer:job list are basically the same. It is possible to search all fields or limit the search to the name, address or phone fields based on the information entered in the look for box. In addition, it is possible to look in the name, company name, city, state, zip, e-mail, or account number fields. The last two choices are to search in the custom fields or notes entries.

Lists > Customer:Job List > Pull down arrow next to seach button.

For the item list, the choices to search in all fields, item name/number, sales description, purchase description, preferred vendor or custom fields.

Lists > Item List > Pull down arrow next to seach box

In addition to performing the search, it is possible to reset the list to start again, or to check the box to search within the results. The later choice provides the ability to provide results that contain a variety of search criteria. Keep in mind, however, that the search option only returns a list of those choices that match exactly. It is also often helpful to customize the columns that are viewed to include the search in information for easier review and sorting.

Editorial Note: While I love this feature for quickly finding information on the list (especially if you are unsure of what the "name" is but you have other information), if the results need to be used outside of QuickBooks, a list report filtered for similar criteria may be more efficient due to the export capabilities available for reports.

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Manufacturer's Part Number

New with version 2006, QuickBooks Pro and above products, is the ability to include the Manufacturer's Part Number as part of the item set up.

QBRA-2006: Lists > Items > Item > New > Inventory Part

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Item Price Rounding and Price Lists

QBRA-2006: Lists > Price Level Lists

Price Lists by Price Level

In addition to providing more control over how the sales price will be calculated, with version 2006 it is also possible to print price lists by price level.

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Update Item Prices

QBRA-2006: Vendors > Enter Bills > enter information including price change > Save

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Customers and Jobs

Price Levels

New with QuickBooks Pro version 2001 was the feature for price levels.

QBRA-2004: Lists > Price Level List > Price Level > New

QBRA-2004: Lists > Customer:Job List > Customer:Job New > Additional Info Tab

TIP: To use price levels, confirm that the sales & customer preference has been correctly marked.

TRICK: If you want to show the discount on the invoice, this may not be the best solution. Entering the retail amount then a separate discount line may be preferred as a price level alternative.

TRICK: To show the price level used on an invoice, use a custom field to match the price level chosen, and then add the field to be printed on the invoice to the invoice template.

Prior Version Note: For versions 2001-2003, Pro and higher the price level is applied to all items purchased by the customer. The ability to designate the price by item was new with version 2004.

QBRA-2003: Lists > Price Level List > Price Level > New

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Customers and Job Overview

Customers and Jobs

Before entering any information, decide on the answers to the following questions:

1. Is all information available: Company names, contact name, address, phone, fax, alt. a/c #, terms, rep, credit limit, taxable status (resale number, if applicable)?
2. Decide how customers will be entered/named: Initials; Last name first; # sequence; etc.
3. Will the type function be used for different types of customers?
4. Are there any custom fields that need to be setup for the customers?
5. Are there multiple jobs that need to be entered for each customer?

Customers

The easiest way to think about a customer is anyone who gives the business money. These customers may be called different names depending on the business. For example, a public relations firm would have clients, a doctor would have patients, a non-profit organization may have donors, a pre-school would have students, or a contractor may have homeowners. Regardless of the terminology used, those who pay for the goods and services of the business are considered customers. To create an invoice or cash receipt, a customer is required. A customer is also required to make any entry that will affect Accounts Receivable.

To view the current customer:job list, click on Lists from the menu bar across the top of the QuickBooks screen and then choose Customers. Those listed to the left are the customers, those indented slightly are the jobs. If notes for a particular customer or job have been added, a small notebook shows in the notes column. If the job status and/or estimate have been entered, that will also show on the list.

QBRA-2003: Lists > Customer:Job List

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Opening Balance and Related Date

This information is included on the first screen for version 2002 and higher. For other versions it is included on the additional information tab.

It is recommended that this field not be used for entering beginning balances for individual customers. The rationale is that the balance will age from the date entered here, which may or may not be accurate. The other reason to not enter the opening balance in this fashion is that multiple invoices will now be included as one amount, making the past due collection and/or receipt of payments in the future more difficult.

It is recommended that the individual outstanding invoices be entered instead using the actual original transaction date and invoice number. A "begin bal" item can be created (typically an "other charge" type item) with the account code as Opening Balance Equity. This item is used on any outstanding invoices to record the receivable balance and corresponding equity amount.

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Address Info Tab

The address info tab of the customer:job list setup is verily self-explanatory. Fill the fields as they appear.

QBRA-2004: Lists > Customer:Job List > Customer > New

Check Credit

New with version 2002 and higher is a credit check button. QuickBooks has teamed up with Dun & Bradstreet to integrate credit history and updated credit information on customers directly into QuickBooks. Verification of address for business clients is free. Credit reports and other services are available. For the current pricing of this service, visit http://www.quickbooks.com/services/creditcheck/more.html#Pricing Services are available for other versions of QuickBooks, although the information will not be fully integrated. For accountants who have the QuickBooks Premier: Accountant Edition it is possible to receive a code to offer clients additional free reports for signing up with the service.

Ship To

The ship to field can appear on the invoice. For service or construction companies that do not need to have a separate ship to address, this field can be re-named in the invoice template then used for other information that the customer wants on the invoice such as contract information.

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Customer Type

By choosing a way to assign customers to a type, sales reports can be created with subtotals by type. This field is also helpful to print mailing labels for only specific types of customers. Following are a few examples to provide suggested uses for this option:

Type of business Use of the Type Field

Beauty salon Services used (i.e., hair, nails, tanning, etc.)

Computer service Operating platform or software version used

Construction Residential or Commercial

Dating service Referral source (i.e., word of mouth, television, radio, etc.)

Doctor Insurance Company

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Sales Rep List

The rep field is important for creating sales reports by rep. The rep can be entered by the customer (as is appropriate when setting up or editing the customer from the Customer:Job list) or if multiple sales reps will service a particular customer, it can be entered or changed at the time the invoice is created.

Prior to version 2000, the rep was based on the employee list. New with version 2000 and higher, there is a separate sales rep list that can be linked to an employee on the employee list (as was done previously) or can be linked to a name on the vendor or other name lists as well. The advantages are: independent sales reps are no longer on the employee list (often a problem for 1099 contractors when the checks were issued and the name was chosen from the wrong list); and multiple employees with the same initials are no longer a problem.

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Ask the Expert - Sales Rep in QuickBooks for Mac

Q – I need a QuickBooks report for paying referral fees monthly. Something similar to the sales report by rep in the PC version, but I am using QuickBooks for the Mac. Do you have any suggestions? Submitted by Lucinda

A – First, some quick background information. A separate sales rep list was first available for the Windows versions of QuickBooks with version 2000. Prior to that the only alternative was to use the initials on the employee list.

We posed this to Margo, our strategic partner, and below is her response.

Note: QuickBooks for the Mac only allows a rep to be set up as an employee. If there is no objection to doing this, then go ahead and set up the rep as an employee by adding their name to the employee list, altering the name slightly so that it isn"t the same name as in the customer list. You can then add the rep"s name to the appropriate place in the customer info section for each customer. Reports can then be run by going to Reports -> Sales -> Sales by rep. The report can be exported to excel if desired.

If you do NOT want to set up the rep as an employee, then instead you can use the following instructions:

1. Go to Customers -> Customers:Job List

2. Double click on any random customer to edit

3. Click on "Additional Info"

4. Click on "Define Fields" (creating a field for any random customer automatically creates that field for all customers)

5. Where it says "Contract #" overwrite it to say "Referred by" (note, if you really need a field that is for Contract Number, then choose another field to overwrite, just realize that the other fields are used for multiple purposes. For example, birthday and spouse"s name are used for employee data which may be a bad idea to overwrite)

6. You can now type in the name of who referred this customer (note - the name can be the exact same spelling as on the customer list, as shown in the example for Chris Baker spelled the same both as a rep and as a customer in the picture below)

7. If you desire to see the rep on an invoice, go to Company -> Company Settings and choose "Invoice Formats" for Custom invoice

8. Where it says "Contract #" overwrite the Title field to say "Referred By" and make sure that the check box is checked under "Screen" but not under "Print"

9. Save the format. Now the rep as saved in the customer profile will automatically show on invoices.

10. To run a report of sales by rep, go to Reports -> Sales -> Sales by rep and modify the date range and modify the display to show "Referred By." It will be necessary to export to excel and sort by "Referred By" to get the totals for each rep.

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Vendor Custom Fields

Custom Fields

This feature is one of the most powerful, yet underutilized, features of QuickBooks. A total of 15 fields are available and can be used for customers, vendors, or employees as needed. Up to seven custom fields are available for any one list. To create a custom field, click on the Define Fields button. This will bring you to a list. The label column will determine what will be shown to the left of the free form box. The customer, vendor and employee boxes will determine on which list the label and related free form box will appear. Once setup, this information can be used on invoices, reports, etc. Some examples of possible uses for custom fields are: pager number, birthday, city (for city license purposes), contract renewal month, price level, and cellular telephone number. This information can then be included on invoices, reports, etc.

QBRA-2003: Lists > Customer:Job List > Customer:Job > New > Additional Info Tab > Define Fields

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Preferred Send Method

New with version 2002 and higher is the ability to mark each customer's preferred send method. The choices are fax, e-mail (free), or none. This will be the default method when sending estimates, invoices and statements. As like with most other defaults, the choice can be changed when the form is actually created.

QBRA-2004: Lists > Customer:Job List > Customer > New > Additional Info Tab

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Sales Tax Information

Just like for the items, version 2002 and higher uses the sales tax code list for determining the normal tax status for a customer. On previous versions, a box on the additional info screen served as a way to capture information about the customer's taxable status. If the customer is taxable box was checked, then sales tax will be charged on taxable items, if it was not checked, no sales tax will be charged to this customer. The sales tax item serves as the default as sales are made to this particular customer. The resale number field serves as a way to capture resale numbers as provided from the customer. It is simply a tracking tool. It is not, however, a substitute for obtaining a signed resale card in the case of a sales tax audit.

QBRA-2004: Lists > Customer:Job List > Customer > New > Additional Info Tab

TIP: If the box is not visible on the screen, it is because the sales tax preference has not been turned on.

TRICK: Use the customer phone list report and modify it to include these fields for an easier way to confirm any missing resale numbers.

List Limits Expanded

Banking Aliases

Online Banking Alias Management

QBRA-2005: Lists > Vendor List > Click on a name > Vendor > Edit > Additional Information Tab

If online banking transactions have been linked to the name on the list using aliases, it is possible to manage the aliases by clicking on the button

QBRA-2005: Lists > Vendor List > Click on Vendor > Vendor > Edit > Additional Info Tab > Manage Aliases

If there have not been any aliases associated with the name, a warning pop up will appear if the manage aliases button is chosen.

Once a name has been chosen, an alias confirmation pop up box will appear.

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Payment Info Tab

This tab was new with version 2001. The account and credit limit fields were previously on the additional info tab. The preferred payment method and place to capture credit card information is what was new. Beginning with version 2000, for an additional fee, it was possible to process the credit card transactions directly through QuickBooks. For more information, visit http://www.quickbooks.com/services/mas/

QBRA-2004: Lists > Customer:Job List > Customer > New > Payment Info Tab

Account

This field is for an account number that is assigned to this specific customer. It can be added to customer reports as an additional identifying field. This field is required if you are going to setup the customer as an on-line payee. New in QuickBooks 2000 is the ability to add the account number to the customer statement.

Credit Limit

If a customer has been assigned a credit limit, and it has been entered in this field, a warning will appear on the screen if a sale is made which exceeds the predetermined limit. QuickBooks will still permit the sale once the warning has been acknowledged.

Preferred Payment Method

From the drop down list, choose the preferred method of payment for this customer. It is also possible to add additional methods as necessary. If the customer chooses to pay by credit card, enter the credit card number, as well as the billing name and address for the card in the appropriate fields. This information is used to streamline the data entry when a payment is received from a customer.

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Jobs

Jobs are the projects, purchase orders, locations, etc. that correspond to a particular customer. QuickBooks permits setting up multiple jobs for each customer. The colon serves as the divider between a customer and a job. Just like accounts and sub-accounts or items and sub items use the colon to designate various levels, jobs are like "sub-customers." Tracking the individual jobs can be customized based on components that are important for your particular business. Use the job function if:

· Separate estimates need to be created for each project. For versions 2002 (Pro and higher) and earlier, there can only be one estimate for each customer:job so you will need to setup each job to keep multiple estimates available. With version 2003and higher it is possible to have multiple estimates for each customer:job.

· Profitability by each project will be necessary. By assigning all invoices and expenditures to a particular customer:job you can create a profit and loss by job.

· To create statements and/or reports with subtotals that group various jobs together. Some examples of jobs and the related customer are: renters of a particular apartment building, sub-contracting agreements with a general contractor, or individual customer locations with a centralized accounting department.

If you choose to use jobs, in addition to creating invoices by the job, you will need to receive payments by the job for versions 2001 and earlier.

TIP: If tracking individual customers and/or jobs for reporting or mailing label purposes is not important, the list can be simplified. For a retail store, it may be more efficient to use generic customers for the cash sales receipts such as A Cash Customer, A VISA Customer, A Discover Customer, and the like. By using the letter A with a space, this should put these customers at the top of the list alphabetically making them easier to locate. This method will also make the daily deposit reconciliation of each type of payment more efficient based on the fact that you will know the payment method based on the customer name.

TRICK: Job 1 is created by QuickBooks if you have entered information on the job tab on the main customer and subsequently a job is added for that customer. Once the first job is added for a customer, the job tab is no longer available for the main customer. If the information was entered for a first job and then a second job was actually added, the name can be changed by editing Job 1 so that it will be named something more meaningful.

To create a job for a customer, single click on the customer so it is highlighted then choose add job from the customer:job pull down menu. All the contact information will be copied from the customer to the job. Simply assign the job name and update any information as necessary.

QBRA-2003: Lists > Customer:job List > Customer:job > Add Job

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Ask the Expert - Scheduling Jobs

Ask the Expert - Scheduling Jobs

Q - I have been capturing the start date for each job as it is set up, but I cannot figure out how to generate a report based on that information for scheduling purposes.

A - The best way I have found to create this type of report is to start with the Customer Phone List and then customize the report to include the column for start date. To make the report more useful, you can also filter by start date (i.e. what jobs will be starting next week) and/or sort by start date (i.e. what jobs are coming up and how "busy" will we be).

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Notes

QuickBooks has very basic contact management features. These include the ability to add notes about a customer and create to dos that appear on the reminder list. This free form option can be used for any type of notes such as collection issues, job history and progress etc.

QBRA-2003: Lists > Customer:job List > Customer:job > Notepad

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Job Info Tab

The purpose of this tab is to track basic information about the project. If multiple jobs are established for a customer, this tab is no longer available on the main customer, but will still be available on each job.

QBRA-2004: Lists > Customer:Job List > Customer > New > Job Info Tab

The job status choices are controlled by the names assigned in the preference.

TRICK: If you are going to want to run a Profit and Loss report by customer:job, it is extremely helpful to setup a customer for the transactions which will be for the overall business (i.e., general & administrative, overhead, corporate expenses, or the like). The Profit & Loss by Job report is created from only transactions which have been specifically assigned a customer:job so any transactions not assigned will not appear on that particular report (i.e. if all transactions are not coded to a customer:job the Profit and Loss by Job report will not agree to the Profit and Loss Standard report for the same time frame. By having a customer for the overall business (a place to code transactions not specifically related to a customer:job), the profit and loss by job should agree to the profit and loss in total. As an additional note on this topic, there are some transactions, specifically discounts and payroll which may not be coded to a customer:job. To balance the two reports a journal entry, with the debit and credit to the same General Ledger account but one line will have no name and the other will have an appropriate customer:job, must be created.

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Terms List

QuickBooks will automatically calculate when invoices are due based on the terms that are entered for the customer or vendor directly, or on the invoice or bill.

QBRA-2003: Lists > Customer & Vendor Profile Lists > Terms List > Terms > New

To setup the terms properly, choose which format is appropriate: Standard - based on the number of days from the transaction date; or Date Drive - based on a specific date each month. For either format, a discount percentage can also be added. When receiving a payment or paying a bill subject to a discount, it will be calculated and applied at that time.

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Using Billing Rates and Price Levels

Using Billing Rates and Price Levels

Whenever a service item is added to an invoice via the Time/Costs window, the rate for that service item is determined as follows:

§ If the invoice is for a customer or job with a "fixed percentage" price level (for example, always give this customer a 10% discount), the price level adjustment is applied to the worker"s billing rate, if one exists. If there is no billing rate level, the price level adjustment is applied to the service item"s standard rate.
§ If the invoice is for a customer or job with a "per item" price level (for example, always charge this customer $50 an hour for a particular service and $60 an hour for another service), the customer"s price is always used. A "per item" price level overrides both billing rate levels and standard rates.
§ If the invoice is for a customer without a price level, but there is a billing rate level associated with the employee or vendor who did the work, the billing rate level is used.
§ If there is no price level or billing rate level, the service item"s standard rate is used.

In any case, you can modify the rate directly on the invoice to be whatever you want.

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Print or eMail Invoices Overview

In previous versions, it was possible to choose to print the invoices individually or as a batch. New with version 2001 was the ability to fax or e-mail estimates and invoices directly from within QuickBooks. New with version 2002 was the ability to fax or e-mail statements as well. The fax alternative used eFax and required an additional fee. With version 2003 and higher the fax option has been eliminated. In older versions, the e-mail option placed the information in the body of the e-mail. With version 2003 and higher, the information is attached to the e-mail as a PDF file along with a link to download Adobe Reader if the customer does not already have it. In previous versions, it was possible to use Paypal for receiving payments on an invoice; with 2003 this option has been eliminated. It is possible; however, if a QuickBooks merchant account service has been established the customer can pay the invoice from the e-mail with a credit card. E-mailing invoices from directly within the QuickBooks software is free.

List Limits Expanded

QuickBooks Tips & Tricks - Enterprise Solution List Search Enhancement

New with Enterprise Solutions version 5.0 is the ability to perform a more detailed search when the customer, vendor, or item list is open.

Lists > Customer:Job List > Pull down arrow next to seach button.

For the item list, the choices to search in all fields, item name/number, sales description, purchase description, preferred vendor or custom fields.

Lists > Item List > Pull down arrow next to seach box

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Multiple Ship to Addresses

For any QuickBooks user who regularly ships to different addresses for the same customer, this Version 2006 enhancement is huge!

QBRA-2006: Customers > Double click on the customer

List Limits Expanded

Customer Preferred Send Method

Since version 2002, there has been a pull down list to control the preferred send method. This option can be found on the Additional Info tab when editing a customer.

The three choices for how to send invoices, statements, and estimates are: None, Mail or E-Mail. To use the e-mail option to automatically mark invoices "to be e-mailed" requires a free subscription to QuickBooks Billing Solutions.

Note: when entering an invoice, the "to be printed" check box is based on if the box was checked or not for the previous entry. It is only the e-mail check box (assuming a subscription to QuickBooks Billing Solutions) that turns on and off based on the customer preference.

TIP: This is also used to permit filtering statements by preferred send method.

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Vendors

Vendor Custom Fields

Custom Fields

QBRA-2003: Lists > Customer:Job List > Customer:Job > New > Additional Info Tab > Define Fields

List Limits Expanded

Banking Aliases

Online Banking Alias Management

QBRA-2005: Lists > Vendor List > Click on a name > Vendor > Edit > Additional Information Tab

If online banking transactions have been linked to the name on the list using aliases, it is possible to manage the aliases by clicking on the button

QBRA-2005: Lists > Vendor List > Click on Vendor > Vendor > Edit > Additional Info Tab > Manage Aliases

If there have not been any aliases associated with the name, a warning pop up will appear if the manage aliases button is chosen.

Once a name has been chosen, an alias confirmation pop up box will appear.

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Vendors Overview

Vendors are anyone who is paid for goods and services. A vendor is required to enter bills or credits. A vendor is required for journal entries to any Accounts Payable type account. A vendor is also required to issue 1099 forms at the end of the year.

QBRA-2003: Lists > Vendor List

List Limits Expanded

Multiple Vendors

One of the advantages of using the Accounts Payable feature in QuickBooks is that multiple bills are combined onto one bill payment-check for each vendor. This feature can be a disadvantage if numerous accounts exist for the business. For example, multiple telephone lines that billed separately. The way to get around this is to set up the vendor for each account. Each name will need to be unique, such as the vendor name and last four digits of the account number.

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Opening Balances

Opening Balance and Related Date

This information is included on the first screen for version 2002 and higher. For other versions it is included on the additional information tab.

It is recommended that this field not be used for entering beginning balances for individual vendors. The rationale is that the balance will age from the date entered here, which may or may not be accurate. The other reason to not enter the opening balance in this fashion is that multiple bills will now be included as one amount, making the past due research, remittance advice with the check, and timely payment of bills in the future more difficult.

It is recommended that the individual outstanding bills be entered instead using the actual original transaction date and bill reference number. These bills should all be coded to Opening Balance Equity on the expense tab, or using a "begining balance" item coded to Opening Balance Equity on the items tab.

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Vendor Type

By choosing a way to assign vendors to a type, it is possible to filter reports using this field. Typical examples include 1099 contractors, suppliers, etc. The use of this field is not as prevalent as the customer type but for certain businesses or specific industries it may prove useful.

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Address Info Tab

As was discussed on the address info tab for the customer:job list, the address info tab for vendors is also self-explanatory. Simply fill in the fields for the name, address, telephone numbers, email address, etc.

The only field that can be confusing is the address field. The software will automatically fill in the vendor name on the first line. It is important to include the vendor name along with the address if checks are to be printed through the software. The reason is that this field is what prints in the address section of the check and will subsequently show through the window envelope.

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Additional Info Tab

The additional info tab is a way of tracking additional vendor information as needed.

QBRA-2003: Lists > Vendor List > Vendor > New > Additional Info

Account

The information contained in this field will print on the memo line on the check. Usually the account number as assigned by the vendor will be entered here. For example, the telephone number and additional alpha numerical identifying numbers for the telephone company, credit card numbers for charge account vendors, and the like. This field is also important if using the on-line bill payment features.

Type

This is a way of grouping various vendors together for search and reporting features. For example, independent contractors, suppliers, etc.

Terms

When the terms option is entered when setting up a vendor it will calculate the due date as the bill is entered.

Credit Limit

This is the credit limit that the vendor has assigned. When entering a bill that exceeds the credit limit, a warning will appear on the screen. QuickBooks will still permit the purchase once the warning has been acknowledged.

Tax ID

This is the tax identification number that will print for the payee on the 1099 form at the end of the year for those vendors who require one.

Vendor eligible for 1099

This is also related to the preparation of 1099 forms at the end of the year. This box must be marked to have the software print the 1099 forms for this vendor.

Custom Fields

This feature is used to create free form fields for capturing additional vendor specific information.

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Terms List

QuickBooks will automatically calculate when invoices are due based on the terms that are entered for the customer or vendor directly, or on the invoice or bill.

QBRA-2003: Lists > Customer & Vendor Profile Lists > Terms List > Terms > New

List Limits Expanded

QuickBooks Tips & Tricks - Enterprise Solution List Search Enhancement

New with Enterprise Solutions version 5.0 is the ability to perform a more detailed search when the customer, vendor, or item list is open.

Lists > Customer:Job List > Pull down arrow next to seach button.

For the item list, the choices to search in all fields, item name/number, sales description, purchase description, preferred vendor or custom fields.

Lists > Item List > Pull down arrow next to seach box

List Limits Expanded

Vendor Center in Version 2006

The Vendor Center features and functionality are very similar to that of the Customer Center.

On the Vendors tab is the list to the left and the contact information, transactions specific to that customer, etc. to the right.

QBRA-2006: Vendors > Vendor Center > Vendors Tab

On the transactions tabs are the following choices for a list of all vendors:

Purchase Orders
Item Receipts
Bills
Bill Payments
Checks
Credit Card Activities
Sales Tax Payments

Depending on the transaction type, the filter will vary to include all, open, overdue, etc. as appropriate.

The same functionality of double clicking on the column heading will control the order of the transactions.

QBRA-2006: Vendors > Vendor Center > Transactions Tab

List Limits Expanded

Employees

Banking Aliases

Online Banking Alias Management

QBRA-2005: Lists > Vendor List > Click on a name > Vendor > Edit > Additional Information Tab

If online banking transactions have been linked to the name on the list using aliases, it is possible to manage the aliases by clicking on the button

QBRA-2005: Lists > Vendor List > Click on Vendor > Vendor > Edit > Additional Info Tab > Manage Aliases

If there have not been any aliases associated with the name, a warning pop up will appear if the manage aliases button is chosen.

Once a name has been chosen, an alias confirmation pop up box will appear.

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Employee Set Up

Each employee who will be issued a paycheck must be entered on the employee list. When setting up the payroll features mid-year, all employees who have worked at all during the year must be created for accurate payroll returns and W-2 processing.

Personal Info

The first screen after choosing Lists > Employees > Employee > New is the Personal Info tab. The layout of this process changed with version 2003. The data entered on the three (3) sub-tabs is the basic employee information such as name, address, social security number, telephone numbers, custom fields, etc.

QBRA-2003: Lists > Employee List > Employee > New

QuickBooks follows the federal standards for social security numbers. If entering the social security number causes QuickBooks to display an error message, double check the number again with the employee's social security card or contact the local Social Security Administration to check the validity of the number.

Custom fields are available for other information that is needed for an employee. The custom fields can be defined for a wide variety of purposes including date of last raise, date of last review, amount of last raise, spouse name, etc. To set up the label for the free form boxes, click the define fields box.

Payroll and Compensation Info

Payroll Info

The Payroll and Compensation Info tab is the link between the payroll items and the employees. This information is used to calculate the net checks for the employee.

QBRA-2003: Lists > Employee List > Employee > New > Payroll Info

Earnings: All hourly or salary gross wage items for this employee would be entered into this section. If certain items are not needed on a specific paycheck, they can be deleted at that time or entered with a zero amount.

TRICK: Note that the heading is hourly (for hourly type gross wage items) or annual (for salary type items). For salary type items, the annual amount entered here is divided by the number of pay periods based on the pay period to arrive at a per paycheck salary amount. Don't make the mistake of entering $1,500 on this screen next to a salary type item if that is a per pay period amount for a semi-monthly employee or their gross check will be $62.50.

Pay Period: Choosing the correct pay period is important for two reasons: First, it will calculate the pay period based on the period ending date entered when the payroll checks are created; and second, the appropriate tax table is chosen by the software to calculate the payroll tax withholding amounts based on the pay period, marital status and exemptions. Different employees can each have different pay frequency. Any combination is possible. For example, hourly employees may be paid weekly, salary employees may be paid semi-monthly, and officers may be paid monthly. Who is paid is dictated manually by placing a check mark next to the employee name when using the pay employee screen.

Class: If class tracking has been turned on, you may choose a class for this employee. If the class designation changes based on the activities or location of the employee at different times during the pay period, leave the field blank. This is, like the other information entered on this tab, able to be changed as the paychecks are actually created.

Use time data to create paychecks: This is a "Pro Only" and higher feature that permits entering timesheets for the employee and the time data is then automatically entered into the paycheck calculation screen based on the pay date for more sophisticated job costing and class tracking.

Additions, Deductions, and Company Contributions: These other payroll items can include such things as health insurance deductions, 401k contributions, commissions, bonus payments, etc. It is important to note that the order these items are entered may affect the amount QuickBooks calculates for each item and for taxes.

Sick/Vacation: If QuickBooks will be used to track the sick and/or vacation time due an employee, set up the calculation criteria using this section of the employee record. With version 2000 and higher is the ability to accrue sick and vacation time based on each hour worked. Prior to version 2000, only the "beginning of the year" or "every pay period" options were available.

TRICK: To reduce the amount of vacation and/or sick that an employee has, a vacation or sick hourly item must be used to pay the employee. For example, if an employee is salary but is taking 8 hours of vacation during the pay period, the paycheck would be changed to show the amount of salary for the rest of the period, then 8 hours of vacation to reduce the balance. For employees paid as salary but vacation and sick are accrued hourly, create the sick and vacation items and adjust the salary for the pay periods when the sick or vacation time is paid.

Direct Deposit: If an employee wants to have their paycheck put in their bank account via direct deposit, this is the section where their checking or savings account information would be entered. Each employee may have their net check distributed into one or two accounts.

Taxes: Each state has various required forms that must be completed by a new employee. Contact the State Labor Board to learn more about paperwork and posting requirements. In addition to any other paperwork such as emergency contact information, immigration paperwork (http://www.uscis.gov/graphics/formsfee/forms/files/i-9.pdf), employment agreements or the like, a W-4 form will contain the information necessary to enter a new employee into QuickBooks. This information is the employee's address, social security number, marital status, exemptions, and any additional amounts to be withheld. Forms can be obtained from the local IRS office, from their web site at http://www.irs.ustreas.gov/pub/irs-pdf/fw4_03.pdf, or by calling 1-800-829-3676.

TIP: With version 2000 and higher, the sales rep list became independent of the employee list, and can now be linked to vendors, employees, other names, etc. The reason the Rep field may be important if payment is made based on sales. The Rep field on an invoice will then permit a Sales Report by Rep.

TRICK: In the older versions, the employee initials are used for the Rep field in Customer set up and when creating an invoice. For this reason, the initials of any independent sales representatives will also appear on this list.

TRICK: In versions prior to 2000, if a sales rep is considered an independent contractor, rather than an employee, it is extremely important to establish a slightly different vendor name for use when payments are made. This will permit the software to automatically generate an appropriate Form 1099 at the end of the year.

Employment Info

The Employment Info tab is for capturing employee type, hire date and release date. The released date should not be entered until after the final paycheck has been issued or the employee will not appear on the pay employee screen.

QBRA-2004: Lists > Employee List > Employee >Edit > Employment Info

Workers Comp Set Up

QBRA-2005: Lists > Employee List > highlight Employee > Employee > Edit > Workers Compensation Tab

Employee Defaults

If the payroll info tab is relatively consistent among most employees, the employee defaults can be used to expedite the data entry process. To modify the defaults, choose Lists > Employee List > Employee > Employee Default. If there are exceptions, the default information that is different for a particular employee can be changed as the employee is created. Any changes to the default information will be effective for any new employees that are created, but will not affect any employees already on the employee list. The state tax information, at a minimum, should usually be entered to show the state in which the employees typically live and work.

QuickBooks Tips and Tricks - Sick and Vacation Accruals

QuickBooks Tips and Tricks - Sick and Vacation Accruals
QuickBooks payroll processing can be set up to accrue vacation and sick time by the pay period, by the hour, or at the beginning of the year. When paying the vacation or sick time, confirm that the hourly payroll item has been set up as vacation hourly or sick hour. If this is not done, the accrual will not be adjusted as the hours are paid.
For employees paid as salary but vacation and sick are accrued hourly, create the sick and vacation items and adjust the salary for the pay periods when the sick or vacation time is paid.
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<h2>More information on this topic</h2>
<a href="http://www.4luvofbiz.com/kb/premium.php?cat=25&id=52">Employees</a>

Sick & Vacation Calculation Enhancements

Sick & Vacation Calculation Enhancements

New with version 2005 is additional control over the timing of the sick and vacation accrual amounts.

The flexibility of the calculation process has been enhanced again by two additional dates for the sick and vacation accruals.

QBRA-2005: Lists > Employee List > Edit Employee > Payroll and Compensation Info > Sick/Vacation

The begin accruing time on date is extremely helpful for those businesses that have an employee handbook or policy that states that no sick or vacation time will accrue during a probationary period.

Employee Center in Version 2006

The employee center has three tabs: Employees, Transactions, and Payroll.

The Transactions Tab provides a listing by transaction type (includes all employees) that can be filtered for a specific date range:

Paychecks
Liability Checks
Liability Adjustments
Year-to-Date Adjustments
Non-Payroll Transactions

The Payroll Tab is what is significantly different for the Employee Center than the features of the Customer Center and Vendor Center. It is often called the Payroll Dashboard or the Payroll Center.

QBRA-2006: Employees > Employee Center > Payroll Tab

There is a calendar to the left for reference. On the right are three sections:

Run Payroll
Pay Taxes and Other Liabilities
Payroll Tax Forms

Run Payroll

The first button is to “Show Last Pay Details.” It is basically a net check listing.

QBRA-2006: Employees > Employee Center > Payroll Tab > Show Last Pay Details

The second button is to Pay Employees. This takes you to the pay employee screen that is exactly the same as it was in the previous version

QBRA-2006: Employees > Employee Center > Payroll Tab > Pay Employees

Pay Taxes and Other Liabilities

QBRA-2006: Employees > Payroll Center > Set Deposit Frequencies > Set Frequency

QBRA-2006: Employees > Payroll Center > Show Details

The Pay Now button will generate a check to that payee in the amount shown.

Payroll Tax Forms

QBRA-2006: Employees > Process Payroll Forms

Payroll Items

Payroll Items Overview

Payroll Item Overview

To use the QuickBooks payroll feature accumulate the information needed to efficiently and accurately enter the information into QuickBooks. This includes:

· Company information
- o Tax identification numbers
- o Tax rates
- o Prior payroll tax returns
· General information:
- o Pay rate types
- o Additions
- o Deductions
- o Any special issues
- o General ledger account for each payroll item plus “standard” amounts
· Employee information
- o Name and personal information (address, social security number, etc)
- o Hire date
- o Any custom field information to be entered
- o Withholdings
- o Rate of pay
- o Sick/vacation accrual and accrued amounts
- o Year to date totals by quarter if a mid-year set up

Any line on a paycheck or related employer amount requires a payroll item. The payroll item list will contain an item for anything affecting the amount of a paycheck: wages, taxes, expense reimbursement, benefit withholding amounts, etc., as well as any company expense related to payroll. The set up wizard was changed with version 2001. First choose an easy set up for common items or custom set up for additional items by clicking on Lists > Payroll Item List > Payroll Item > New.

Easy Set Up

If easy set up is chosen, there are four pages with possible items:

q Types of wages, tips, and taxable fringe benefits
q Insurance benefits
q Retirement benefits
q Other payments and deductions

For each group, a list of possible items will be shown. Place a check mark in the box for those to be set up.

QBRA-2003: Lists > Payroll Items List > Payroll Item > New > Easy Set Up > Next > Continue

Once all of the appropriate items have been checked, the wizard will permit changing the name of the item. The software will create the payroll items using the typical information based on what were chosen. The screen will then show that the set up process is complete.

TRICK: When using the wizards, generic account names are used. For example, all wage and employer taxes are automatically coded to an account called “Payroll Expenses,” employee loans are coded to “Payroll Asset,” and all items to be remitted to a third party (such as taxes, garnishments, or 401K contributions) are all coded, by default, to “Payroll Liabilities.” To change the account code, edit the individual items. Keep in mind that changing the account code changes all of the history associated with that item, regardless of passwords and/or closing dates. There is no way to tell the software only to change the account code from this point forward so setting up the items originally and editing items once they have been used is very important in protecting the integrity of the historical results.

Custom Set Up

Custom Set up

If the payroll items needed are not included on the easy set up list, it is possible to create the items using the custom set up feature. This method more closely resembles the item set up from the older versions.

QBRA-2003: Lists > Payroll Items List > Payroll Item > New > Custom Set Up

First choose what type of item is needed. Once Next is chosen, a name for this item is required. There is limited space, so choose a name or abbreviation to make data entry efficient when the name is used in the future. Click on Next. From this point, depending on what type of item is chosen, the software will prompt you for additional information. For example, a deduction type item will then require the name of Vendor to whom this liability amount will be paid, the number that the Vendor uses to identify where the check is coming from, and the liability account that will be used to track the deduction. If the item is to be tracked on the tax forms, the next screen will prompt choosing which tax classification is appropriate from a pull down list. If the item should be deducted prior to calculating the payroll taxes, place a check mark before each tax item on the chart, as appropriate. If the deduction will be based on a quantity, click the box as appropriate. The next screen permits the decision of gross pay versus net pay if the quantity for this deduction item is a percentage. Remember that this is the set up for the item in general and the dollar amounts can be changed based on the individual employees. If, however, the quantity and the annual limits are the same for most of the employees, the data entry will go more quickly if the default amounts are entered here, as the payroll item is set up. Each of the different types of payroll items has a similar method for processing a new item.

MIscellaneous Payroll Item Tips & Tricks

Miscellaneous Payroll Item Tips & Tricks

TIP: The software has safeguards to permit only creating the federal and state tax items once so the resulting payroll information for tax return preparation will be accurate.

TRICK: The payroll tax amounts can only be coded to one expense account. If the desired result is to code part of the employer portion of the payroll taxes to a cost of goods sold account and the remainder to an expense account, two alternatives exist. One alternative would be to create a payroll report for those employees who should be coded differently and make a journal entry to reclassify the balance to the preferred account. The second alternative would be to set up the company name as a customer and job cost the payroll wages and related payroll taxes to that particular job (double check to make sure the preference is set properly to job cost the payroll tax portion). Then create a profit and loss by job to see the total amount that needs to be reclassified to the preferred account.

Payroll Earning Items

Payroll Earnings Items

With Version 2004 and prior, the payroll earnings items include hourly, salary, bonus or commission type items. Typically these types of items are set up using the custom set up option.

QBRA-2004: Lists > Payroll Item List > Payroll Item > Edit > New > Custom Set Up > Next > Wage

QBRA-2004: Lists > Payroll Item List > Payroll Item > Edit > New > Custom Set Up > Next > Wage > Next > Hourly Wages > Next

Making the choice of regular, sick or vacation is critical if QuickBooks is going to be used for tracking sick and vacation time accrued, used, and available. Once the item is set up there is not anyway to change the choice. In addition, there is not any way, short of using the item when calculating a paycheck to confirm that if affects the sick or vacation item has been set up properly.

The next screen is for assigning the name for the item. The final screen is for assigning the general ledger account for the item.

TRICK: If the general ledger account is changed, all historical transactions that have used that item will be updated for the new account.

TIP: QuickBooks does not automatically calculate overtime, double time, etc. There is the need to set up the items for these additional wage rates. The regular hourly item choice should be used.

For overtime earnings, there were changes to these general procedures with Version 2005.

Addition Items

QBRA-2004: Lists > Payroll Item List > Payroll Item > New > Custom Set Up > Next > Addition

Additions to the paycheck will require an item that provides the link from the paycheck through the item to the general ledger. It is possible to track the expense by job by marking the check box.

QBRA-2004: Lists > Payroll Item List > Payroll Item > New > Custom Set Up > Next > Addition > Next

The next screen requires the item be assigned to a general ledger account.

QBRA-2004: Lists > Payroll Item List > Payroll Item > New > Custom Set Up > Next > Addition > Next > Name > Next > Account > Next > Type pull down

The tax tracking type dictates, how, if at all the item will affect the payroll tax reports and returns.

QBRA-2004: Lists > Payroll Item List > Payroll Item > New > Custom Set Up > Next > Addition > Next > Name > Next > Account > Next > Type pull down > Next > Taxes > Next

Calculate based on quantity; calculate based on hours; or neither depending on what type of addition the item will be used for.

The final screen is for setting the default amount per paycheck and the default limit.

Deductions

Deductions are payroll items that will be deducted from an employee to arrive at the net pay. Common examples include pension/profit sharing contributions or the employees’ portion of health insurance premiums.

QBRA-2004: Lists > Payroll Item List > Payroll Item > New > Custom Set Up > Next > Deduction > Next

The name should be something that makes sense for easy recognition on reports. It is also possible to track this expense by job when the check box is marked.

On the next screen, the name of the vendor to whom the check should be issued is chosen. It is also helpful to enter the number that the vendor has assigned to the business for printing in the memo field on the check so the payment is applied correctly by the vendor. By default, the liability account is payroll liabilities. It is still possible to generate reports on the item itself, but if seeing the balance due for this deduction is desired on the financial statement reports consider setting up a sub-account for tracking purposes.

QBRA-2004: Lists > Payroll Item List > Payroll Item > New > Custom Set Up > Next > Deduction > Next > Name > Next

If the deduction will be reflected on tax forms, the next screen will provide the opportunity to designate how the contribution should be classified.

QBRA-2004: Lists > Payroll Item List > Payroll Item > New > Custom Set Up > Next > Deduction > Next > Name > Next > Next

If the deduction should be deducted to gross wages prior to calculating any taxes, the next screen provides the ability to designate which ones.

QBRA-2004: Lists > Payroll Item List > Payroll Item > New > Custom Set Up > Next > Deduction > Next > Name > Next > Next > Next

If the deduction is based on a quantity or hours, it is possible to designate it as such.

QBRA-2004: Lists > Payroll Item List > Payroll Item > New > Custom Set Up > Next > Deduction > Next > Name > Next > Next > Next > Next

The next screen provides the ability to designate if the deduction should be calculated on the net pay or gross pay. While this may seem to have no great consequence since the previous screens already designated how the deduction will effect the calculation of the taxes, this is important from a reporting standpoint. The payroll summary report will place the deduction as appropriate based on the answer to this question, and the report may effect other calculation (for example if an add-on product is used for state payroll reports, this may effect the wage number used).

QBRA-2004: Lists > Payroll Item List > Payroll Item > New > Custom Set Up > Next > Deduction > Next > Name > Next > Next > Next > Next > Next

If the deduction has a default amount or annual limit, this can be set up with the item. It is possible to enter it, or override the amount when adding the item to a specific employee. The purpose of this option is to improve data entry efficiency if the majority of employees will have the same amounts.

QBRA-2004: Lists > Payroll Item List > Payroll Item > New > Custom Set Up > Next > Deduction > Next > Name > Next > Next > Next > Next > Next > Next

Company Contributions

Company Contributions are payroll items that will be accrued for the company to pay. Common examples include pension/profit sharing matching or health insurance contributions.

QBRA-2004: Lists > Payroll Item List > Payroll Item > New > Custom Set Up > Next > Company Contribution > Next

The name should be something that makes sense for easy recognition on reports. It is also possible to track this expense by job when the check box is marked.

On the next screen, the name of the vendor to whom the check should be issued is chosen. It is also helpful to enter the number that the vendor has assigned to the business for printing in the memo field on the check so the payment is applied correctly by the vendor. By default, the liability account is payroll liabilities and the expense account is payroll expenses. Especially for company contributions, it is often helpful to set up a sub-account for the specific liability and expense for ease in analysis in the future. It is still possible to generate reports on the item itself, but seeing the balance due or expense incurred on the financial statement reports often eliminates questions.

QBRA-2004: Lists > Payroll Item List > Payroll Item > New > Custom Set Up > Next > Company Contribution > Next > Enter the name for the company contribution > Next

If the company contribution will be reflected on tax forms, the next screen will provide the opportunity to designate how the contribution should be classified.

QBRA-2004: Lists > Payroll Item List > Payroll Item > New > Custom Set Up > Next > Company Contribution > Next > Name > Next > Next

If the company contribution should be added to gross wages prior to calculating any taxes, the next screen provides the ability to designate which ones.

QBRA-2004: Lists > Payroll Item List > Payroll Item > New > Custom Set Up > Next > Company Contribution > Next > Name > Next > Next > Next

If the company contribution is based on a quantity or hours, it is possible to designate it as such.

QBRA-2004: Lists > Payroll Item List > Payroll Item > New > Custom Set Up > Next > Company Contribution > Next > Name > Next > Next > Next > Next

If the company contribution has a default amount or annual limit, this can be set up with the item. It is possible to enter it, or override the amount when adding the item to a specific employee. The purpose of this option is to improve data entry efficiency if the majority of employees will have the same amounts.

QBRA-2004: Lists > Payroll Item List > Payroll Item > New > Custom Set Up > Next > Company Contribution > Next > Name > Next > Next > Next > Next > Next

Other Lists

Sales Tax Code List

The sales tax code list was new with version 2002 as part of the major changes to the sales tax feature in general.

QBRA-2004: Lists > Sales Tax Code List > Sales Tax Code > New

Codes can be used to designate why a customer is taxable or not; for example, government, out of state, resale, etc.

QBRA-2005: Customers > Create Invoices

List Limits Expanded

Banking Aliases

Online Banking Alias Management

QBRA-2005: Lists > Vendor List > Click on a name > Vendor > Edit > Additional Information Tab

If online banking transactions have been linked to the name on the list using aliases, it is possible to manage the aliases by clicking on the button

QBRA-2005: Lists > Vendor List > Click on Vendor > Vendor > Edit > Additional Info Tab > Manage Aliases

If there have not been any aliases associated with the name, a warning pop up will appear if the manage aliases button is chosen.

Once a name has been chosen, an alias confirmation pop up box will appear.

List Limits Expanded

Templates

Customizing Forms with Templates

Versions 2003 and 2004 expanded the number of templates for forms and reports available from Intuit. A gallery is now available with the ability to download templates. The information can be filtered by industry and form or report type. There were several features added to Version 5.0 that permit significant changes to the standard forms. Some of these features include word wrap in the description section, long text available for the bottom of invoices, customization through templates, and a layout designer. In the earlier versions, you had to choose one invoice type from the following choices: professional, service, or product. Now the option exists to have many different forms based on what is being sold, who is buying it, etc. New with Version 2001, spell check was added. New with Premier Version 2003 is the ability to import invoice templates and set print requirements (printer and number of copies) for the template.

QBRA-2003: Lists > Templates > Template > Edit > Fields

The header, fields, columns, etc. can now be customized to fit the specific needs of the business. The “screen” column means that field will appear on the screen. This is important if you wish to use custom fields or other information for reports in the future. A checkmark in the Print column dictates what fields will print on the file copy and customer’s copy of the form. The titles can also be modified as necessary. For example, the rate and amount fields can be unmarked so they do not print, and the form title can be changed to Packing List. The options tab controls the font size and style as well as other printing characteristics.

To create a new customized form that does not look like a typical QuickBooks form, choose Lists > Templates > New. After choosing the appropriate type of form, click on OK. The new form description should be entered in the field labeled Template Name. The form can then be modified as needed.

The layout designer permits customization of the form in a desktop publishing way. It is also possible to see where the windows will be for double window envelopes by clicking the box to the right.

QBRA-2003: Lists > Templates > Template > Edit > Layout Designer

Adding Class Column to Templates

Once the Accounting preference on the Company tab has been turned on for the class feature, an additional column will automatically appear on checks and bills.

QBRA-2005: Vendors > Enter Bills

For the create paychecks and timesheets forms, to have the class column appear, it is required that the Payroll & Employee preference on the Company tab be marked to assign one class per earnings item.

QBRA-2005: Employees > Time Tracking > Weekly Timesheet

The invoice and sales receipt forms, however, will only have the class visible at the top of the form when the Accounting preference for the class feature is turned on. The result is the entire transaction is coded to one class.

QBRA-2005: Customers > Enter Invoice

To permit assigning specific lines to different classes, the template must be modified. On the Columns tab the class can appear on the screen, on the printed invoice or both.

QBRA-2005: Lists > Templates > Custom Invoice > Edit > Columns

Save the template once the check mark has been placed in the appropriate columns next to class. It is now possible to assign the class by line when that template is used to record a transaction.

QBRA-2005: Customers > Create Invoices

The same changes will be necessary for the other forms.

TRICK: If a class is assigned in the field at the top of the form (next to the customer:job) it will only appear for the Accounts Receivable portion of the entry. If the class field next to the detail lines for income and expense transactions does not have a class assigned, that portion of the transaction will appear in the unclassified column of the Profit & Loss Report.

Other Names List

QuickBooks Tips & Tricks - Other Name List

Have you ever wondered how the "Other Name" list is used? Typically it is basically empty except for maybe some bank fee type names. What is a creative way to use it?

A creative way to use the other name list is for mailing list management of those potential customers that have not yet purchased from the business. The advantage is that targeted mailing list and/or letters can be created from within QuickBooks specifically for those potential customers while excluding those whom have already purchased the goods and services sold by the business. At the time a sale is made, the other name can be changed to a customer. If no sale is ever made, it does not make the customer:job list so long and cumbersome.

Terms List

QuickBooks will automatically calculate when invoices are due based on the terms that are entered for the customer or vendor directly, or on the invoice or bill.

QBRA-2003: Lists > Customer & Vendor Profile Lists > Terms List > Terms > New

List Limits Expanded

Memorized Transactions List

Memorized Transaction List

Memorizing transactions is the way that QuickBooks handles recurring activity. Any type of transaction can be memorized including invoices, bills, checks, etc.

The Memorized Transaction List will show the transaction name used when memorizing the transaction originally. By default this name would be the customer or vendor, respectively, or blank for the user to enter a name.

The type is the transaction type.

The source account is Accounts Payable for bills, Accounts Receivable for invoices, the bank account for checks, etc.

The amount is the total for the transaction.

The frequency is based on how often the transaction will be recorded based on information entered at the time the transaction was memorized.

If there is a check mark in the Auto column that means that the transaction will automatically be entered on the next date as adjusted for the days in advance.

Next date is the next time this transaction is due to be entered.

TRICK: If there is a check mark in the auto column and the next date is in the past, either the choice was made to enter the memorized transaction later when the reminder appeared when opening the QuickBooks data file or the number remaining is zero. This transaction can be deleted if it is no longer needed (this will not effect the transactions recorded from this memorized entry) or it can be edited to show an appropriate number of remaining times this transaction should be recorded.

QBRA-2004: Lists > Memorized Transaction List

Memorized Transactions

Memorized Transactions

Memorizing transactions is a great way to improve efficiency, improve data entry accuracy, and eliminate omissions. Any type of transaction can be memorized. For amounts entered onto any forms that occur regularly, the processing can be streamlined by using the memorizing function. Some typical examples include loan payments, monthly depreciation entries, bank finance charges, flat fee invoices, and rent payments.

Think about what check number or memo you want to appear on the transaction. For example, if the check is to be printed each month make sure the “to print” box is checked prior to memorizing it, or if the amount is automatically withdrawn from the bank account, enter a check number such as “auto” to eliminate the possibility of QuickBooks automatically assigning an incorrect check number. The bank reconciliation screen lists disbursements in check number order so blank check numbers will appear before alpha ones (lower case then upper case) with numeric check numbers being last.

First enter the information onto the appropriate form. Then to memorize the transaction, choose edit from the menu bar and then memorize. This example uses an invoice.

QBRA-2004: Customer > Create Invoices > Enter Information > Edit > Memorize Invoice

It is possible to choose one of three options:

Don’t remind me – this is used for transactions that are to be memorized for future use but want to specifically choose the transaction and when it will be recorded.
Remind me – On the reminder list these memorized transactions will appear. It is a manual process to choose when they should be entered.
Automatically enter – this is where the power of the feature is. When QuickBooks is opened on the day that the memorized transaction should be entered (or subsequently if the transaction has not been recorded yet) a pop up box will appear asking if the transaction(s) should be entered now, or later. If later, the reminder will appear the next time QuickBooks is opened.

“How often” is where the frequency will be set. Some of the possible alternatives are: daily, weekly, monthly, twice a year, etc.

Next date is the next date that this memorized transaction will need to be handled. Using a monthly invoice as an example, if the invoice that is being memorized will be saved and therefore recorded in QuickBooks today, the next date would be a month from now.

Number remaining is the number of times this memorized transaction will be recorded before it stops. For example, a bill that is entered and memorized today for rent on a new five year lease would have 59 remaining months.

Days in advance to enter controls when the transaction will be entered into QuickBooks where as the “next date” explained above is the transaction date that will be used. For example, the monthly rent is due on the first of each month and that is the transaction date that will be used so each month has one rent payment. However, the business owner would like the check to be printed and mailed 5 days in advance so the rent is never late.

Group Name is available if a group for the memorized transactions has been set up prior to memorizing the individual transaction. The set up options are the same as for a specific transaction. If the transaction will be entered manually or if there are many memorized transactions for different types of transactions memorizing individual transactions as part of a group may make managing the list more efficient.

QBRA-2004: Lists > Memorized Transactions > Memorized Transaction > New Group

Memorized Transactions - Sales Orders versus Estimates

Many QuickBooks users and consultants are aware of the power of the memorized transaction feature. However, do you know the difference when memorizing sales orders and estimates?

Just about any type of transaction can be memorized including bills, invoices, journal entries, etc. Estimates and sales orders are unique because they are non-posting type transactions. To memorize a transaction, have the form on the screen and then choose Edit > Memorize.

Sales orders are only available with QuickBooks Premier Version 2003 and higher. Sales orders can be memorized in the same way as a check, bill, or invoice. There is nothing unique about the process.

However, when an estimate (QuickBooks Pro and higher) is memorized, a pop up box appears that states that when you memorize the estimate it can be recalled for any customer.

When the message has been acknowledged, the typical pop up box appears to choose to remind, not remind, or automatically record the transaction.

If automatically record is chosen, when QuickBooks is opened on the appropriate date, a pop up stating that there are memorized transactions to record appears. If now is chosen, another pop up box appears that states memorized estimates cannot be automatically entered upon starting QuickBooks since they do not have a customer.

Ask the Expert - Changing Memorized Transactions

Ask the Expert – Fixed Asset Manager and Accountants" Review Copy

Q - I have received an Accountants" Review Copy of the QuickBooks data from my client. I have now entered the assets into the Fixed Asset Manager. How do I now transfer that information into the data file to return to my client? Submitted by Len

A – The quick answer is that the Fixed Asset Manager (FAM) does not synchronize with the Fixed Asset List in an Accountant’s Review copy of the file. The journal entry feature, however, does work with the Accountant’s Review copy to automatically create the journal entries as needed into the QuickBooks data file.

FAM to QuickBooks:

The Fixed Asset Manager data is retained by the accountant, so there is typically not a need for the client to need access to this list information in their QuickBooks file. If the information is desired in the client’s file, it would be necessary to have access to the live data. There are many ways to get the data file: the most important issues will be that it is a regular copy of the file (i.e. copy or back up) and that the client does not make any changes until the copy is returned or the back up restored on their system. The client can burn a cd, attach the back up file to an e-mail, etc. One of the ways we have found the process to work most effectively is to obtain a working copy of the data using Remote Accounting Solutions (RAS). To learn more about this alternative, visit their data transfer made easy web site. With the live data file, the synchronize feature will work and the data can be easily transferred into the Fixed Asset List.

QuickBooks to FAM:

Although it was not technically ask in the question, the reverse situation may come up: That the client entered the fixed asset items into the fixed asset list, and with the Accountant’s Review Copy that information does not synchronize either. If the asset detail has been entered into the Fixed Asset List in QuickBooks, it is possible to export the item list (File > Export > Lists to IIF) and then edit the file in Microsoft Excel to create the *.csv type file that can be imported into the Fixed Asset Manager.

Tip: The exported item list includes all sales items as well as all fixed asset items. It may be most efficient to highlight the entire spreadsheet (by clicking on the cell between A and 1) then choose to sort the data (Data > Sort) by the purchase date. This will put all the sales items together (i.e. no purchase date) and organized the fixed asset item portion of the list so you can exclude those items which have been previously synchronized or imported.

Trick: This method requires that the following columns are included in the spreadsheet prior to trying to import the data into the FAM:

Federal Cost,

Federal Date Acquired,

Federal Life (will be interpreted as the number of years for the recovery time),

Federal Method, and

Asset Description 1.

Note: there are many more columns that could be included but the five above are required.

Once the spreadsheet has been created and saved as a CSV type file, the next step is to import into the FAM. This is achieved through choosing File > Import > Comma Separated (CSV). The software presents a Welcome screen and then a box for choosing the file to be imported.

Then there is a wizard for creating a template to “map” the data from the spreadsheet into the FAM.

If only the minimum information will be imported, the default bases of Federal will be OK. If AMT, Ace, State, Books and/or Other is going to be imported, check the boxes as appropriate.

Be sure to note if there is a heading row(s) and on which line the data actually begins.

The next screen permits mapping the spreadsheet data to the FAM fields.

Then it is required to map the method from the spreadsheet to the method in the FAM.

Assign the template name, click on Finish. A pop up screen will then appear stating that the import was successful.

TRICK: Be very careful because this screen can be very misleading. It simply means the routine ran successfully, not that the data was imported successfully. Click on the check box to show the import results log to see if the data was truly imported or not.

If the import of the data was truly successful, the results log will state how many assets were imported.

Fixed Asset List

QBRA-2004: Lists > Fixed Asset Item List > Item > New