Quickbooks 2013 in Depth

Laura Madeira is the owner of ACS, Inc., a software sales and consulting firm located in the greater Dallas, Texas, area. She is one of the original members of the elite Intuit Trainer/Writer Network and a guest speaker for Intuit, sharing “What’s New for QuickBooks” each fall. She was also a founding member of the Intuit Customer Advisory Council and a recent member

of the Intuit Solution Provider Council. She is Advanced QuickBooks Certified ProAdvisor, Enterprise and Point of Sale Certified, and is also a Sage Certified Consultant representing Sage 100 Contractor (formerly Master Builder).

Laura is the author of QuickBooks 2012 In Depth , a 700+ page reference and training guide. She is also the author of QuickBooks Solutions Guide , QuickBooks Essentials: For All QuickBooks Users , a 6+ hours of self-paced video instruction, and co-author of QuickBooks on Demand –all offered by Que Publishing.

For more than 25 years, Laura has worked with companies of all sizes and from many varied industries. Her focus has been to help growing businesses become more successful by automating their internal accounting processes and improving their overall business financial reporting.

Additionally, Laura is a guest speaker for Intuit, providing training to thousands of consultants and accountants nationwide at numerous events. She is also a respected author for Intuit, writing technical training materials and presentations in addition to documenting and reviewing competing software.

Laura earned her accounting degree from Florida Atlantic University. She enjoys photography, art, and camping with her family. When Laura is not writing, she enjoys reading a good book or two!

More information can be found by visiting her website: www.quick-training.com or by email info@quick-training.com

    Introduction 1

    How This Book Is Organized 1

    Conventions Used in This Book 3

        Menu Commands 3

        Web Pages and Manufacturer Information 4

        Special Elements 4

    What’s New in QuickBooks 2013 5

    Easy to Learn and Use 5

        What’s New Tips Overlay Help 6

        New Modern Design 6

        New Transaction Ribbon Toolbar 7

        Icon Bar Selection 7

    Assign a Company Flag Color 10

    New and Improved Features 10

        Time and Expenses Preference 11

        Improved Customer, Vendor, and Employee Centers 11

        Assign Default Method of Payment for Customers 13

        Print Vendor Bill 13

        Reporting Preference for Item-Based Reports 14

        Hide Zero Quantity Items on Inventory Reports 15

        Use Available Quantity on Inventory Reorder Reports 15

        Collapse Summary Report Line Details 16

        Item Group Limit Increased 17

        Improved Upgrade Experience for Plus Subscribers 17

    For the Accounting Professional 18

        Send General Journal Entries 18

        Batch Enter Transactions 20

        Improved: Find and Fix Client Errors Faster 21

        Easier Access to Creating New Data File from Template 22

    For QuickBooks Enterprise Users 23

        Default Class Assignment 23

        Create Auto Purchase Orders 24

        Increased List Limits 25

    QuickBooks Enterprise with Advanced Inventory Subscription 25

        Row, Shelf or Bin Location Tracking 26

        Barcode Scanning 27

        FIFO Cost Lot History Report 29

1    Getting Started with QuickBooks 31

    Understanding QuickBooks 31

    Using QuickBooks Sample Data 33

    Creating a New QuickBooks File 34

        Express Start 35

        Advanced Setup or Detailed Start–Formerly the EasyStep Interview 41

        Creating a New File from an Existing Company File 45

    Converting from Other Accounting Software 46

        Converting from Quicken to QuickBooks 46

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

    Setting Up Users and Permissions 50

        External Accountant 50

        Other QuickBooks Users 51

    User Security in QuickBooks Enterprise 52

        Overview 53

        Set Up and Modify User Roles 53

        Set Up Users 57

    Reporting on User Activity 59

2    Getting Around QuickBooks 61

    Home Page and Navigation 61

        Title Bar 62

        Menu Bar 63

        Top Icon Bar 63

        Left Icon Bar 66

        Home Page 68

        Open Windows List 71

    Tutorials 72

    Preferences 72

        Accounting–Company Preferences 73

        Desktop View–My Preferences 73

        General–My Preferences 75

        Spelling–My Preferences 76

    Help Options 76

    Selecting a Company File to Open 77

        Opening Your Data for the First Time 77

        Choosing from a List of Multiple Data Files 78

3    Accounting 101 81

    Basic Principles of Accounting 81

        The Matching Principle 81

        Accrual Versus Cash Basis Reporting 83

    Basic Financial Reports 84

        Balance Sheet 85

        Income Statement 85

        Statement of Cash Flows 86

        Other Accounting Reports 86

    Accounting Checklist to Help You Manage Your Financials 87

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

        Cash or Accrual Basis Startup Transactions: Accounts Receivable 89

        Cash or Accrual Basis Startup Transactions: Accounts Payable 94

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

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

4    Understanding QuickBooks Lists 101

    Chart of Accounts 102

        Account Types 102

        Adding a New Account 104

    Items 106

        Adding an Item 106

        Understanding Items 108

        Item Types 109

    Class 111

    Customer Type 113

    Managing Lists 114

        Chart of Account Preferences 114

        Add/Edit Multiple List Entries 115

        Add Your Excel Data to QuickBooks Utility 118

        Importing an Intuit Interchange Format File (IIF) 123

    Reporting on Lists 125

    Finding and Fixing Chart of Account Errors 126

        QuickBooks Required Accounts 126

        Making an Account Inactive 127

        Merging Duplicated Accounts 127

        Modifying an Account in the Chart of Accounts 129

        Assigning or Removing a Subaccount Relationship 130

    Finding and Fixing Item List Errors 132

        Reviewing the Item List on the Computer Screen 132

        Item Listing Report 134

        Profit & Loss Standard Report 135

        Correcting One-Sided Items 137

        Making an Item Inactive 140

        Merging Items 141

        Creating Items as Subitems 142

5    Setting Up Inventory 145

    Inventory Features by QuickBooks Edition 146

        QuickBooks Pro 2013 146

        QuickBooks Premier 2013 147

        QuickBooks Enterprise Solutions 13.0 147

    Enabling Inventory Preferences 149

    Inventory Item Type Descriptions 152

        Inventory Part 152

        Non-inventory Part 153

        Group Items and Inventory Assemblies 153

    Adding or Editing Inventory Items 154

        Adding or Editing Individual Items 155

        Using Add/Edit Multiple List Entries 159

        Importing an Intuit Interchange Format File (IIF) 161

        Changing Item Prices 162

        Creating Inventory Assemblies 164

        Creating Group Items 166

        Setting Up Multiple Unit of Measurement 168

    Proper Inventory Processes 171

        Purchasing, Receiving, and Entering the Vendor Bill 173

        Paying for Inventory 181

        Selling Inventory 183

        Working with Group Items 184

        Working with Assemblies 185

        Handling Inventory Backorders 187

        Handling Customer Inventory Returns 191

        Handling Vendor Inventory Returns 194

6    Managing Inventory 195

    Adjusting Inventory 195

        Performing a Physical Inventory Count 196

        Quantity Adjustments 197

        Value Adjustments 198

    Inventory Reporting 201

        Inventory Center 201

        Report Center 202

        Inventory Valuation and Your Financials 203

        Reviewing the Recorded Average Cost Valuation 206

        Reviewing Aged Item Receipts 208

        Reviewing Aged Accounts Payable 212

    How QuickBooks Handles Negative Inventory 212

        When Inventory Has an Average Cost from Prior Purchase Transactions 213

        When Inventory Does Not Have a Prior Average Cost 215

7    Setting Up Vendors 219

    Customizing Your Home Page for Vendor Activities 219

    Preferences That Affect Accounts Payable 220

        Accounting 220

        Bills 221

        Calendar 222

        Checking 222

        General 223

        Reminders 224

        Reports and Graphs 225

        Tax:1099 226

        Time & Expenses 227

    Working with the Vendor Center 228

        Adding or Modifying Vendors 230

        Finding Vendor Transactions 233

    The Accounts Payable Process 235

        Accounts Payable Transactions 236

        Accounts Payable Workflow 238

        Entering a Purchase Order 240

        Recording Vendor Bills 240

        Recording Vendor Credits 243

        Paying Vendor Bills 245

        Applying Vendor Credits 248

        Taking Discounts on Vendor Bills 250

8    Managing Vendors 253

    Accounts Payable Reporting 253

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

        Reviewing the Unpaid Bills Detail Report 255

        Reviewing Aged Open Item Receipts 256

        Reviewing Item Setup 258

        Accounts Payable Balance on Cash Basis Balance Sheet 260

        Tracking and Reporting Vendor 1099-MISC Payments 263

    Correcting Accounts Payable Errors 273

        Open Vendor Bills Paid with a Write Checks Transaction 273

        Misapplied Vendor Credit 276

        Removing Aged Open Item Receipts or Vendor Bills 277

        Making General Journal Adjustments to Accounts Payable 279

    Handling Unique Accounts Payable Transactions 282

        Bartering Services with Your Vendors 282

        Recording Vendor Prepayments 283

        Entering Midyear 1099 Balances 286

        Memorizing Recurring Transactions 287

        Depositing a Vendor Refund 288

        Paying and Recording a Credit Card Bill 289

9    Setting Up Customers 291

    Customizing Home Page Customer Activities 292

    Preferences That Affect Accounts Receivable 292

        Payments 293

        Sales & Customers 295

        Checking 296

        Finance Charge 296

        Jobs & Estimates 297

        Reminders 298

        Reports & Graphs 299

        Sales Tax 301

        Send Forms 302

        Spelling 303

        Time & Expenses 304

    Working with the Customer Center 305

        Adding or Modifying Customers and Jobs 307

        Finding Customer Transactions 311

    Working with Prospects in the Lead Center 312

    Setting Up Sales Tax 314

        Creating Sales Tax Items 315

        Creating Sales Tax Group Items 316

        Creating Sales Tax Codes 317

        Assigning Sales Tax Codes to Products or Services 318

        Assigning Sales Tax Codes and Sales Tax Items to Customers 319

    Creating Price Level Lists 320

    Creating Payment Terms 321

    Customizing QuickBooks Forms 322

        Using the Customize My Forms Wizard 323

        Using the Customize Data Layout Tool 325

    Accounts Receivable Processes 329

        Using QuickBooks Estimates 331

        Using QuickBooks Sales Orders 332

        Creating Customer Invoices 333

        Recording a Sales Receipt 350

        Recording a Statement Charge 351

        Recording the Customer Payment 352

        Making the Bank Deposit 355

        Recording and Applying a Customer Credit Memo 359

        Refunding a Customer’s Overpayment 360

10    Managing Customers 363

    Accounts Receivable Reporting 363

        Reviewing A/R Aging Summary and Detail Reports 364

        Reviewing the Open Invoices Report 365

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

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

        Using the Collections Center 370

        Generating the Missing Customer Invoices Report 372

    Sales Tax Payable Reports 374

        Reviewing Customer Lists for Tax Code and Tax Item Assigned 374

        Reviewing the Item List for Tax Code Assigned 375

        Reconciling Total Sales to Total Income 375

        Reconciling Sales Tax Liability to Balance Sheet Sales Tax Payable 376

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

    Paying Sales Tax 378

        Paying Sales Tax Without an Adjustment 378

        Paying Sales Tax with an Adjustment 379

    Correcting Accounts Receivable Errors 381

        Removing an Open Balance from a Customer Invoice 382

        Correcting Customer Payments 385

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

        When Deposits Were Made Incorrectly 391

        Eliminating the Print Queue for Customer Invoices Marked to Print 396

    Correcting Sales Tax Errors 397

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

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

        When Total Sales Does Not Equal Total Income 400

    Correcting Undeposited Funds Account Errors 404

        Reviewing the Balance in the Undeposited Funds Account 404

        Removing Old Dated Payments in the Undeposited Funds Account 407

    Unique Customer Transactions 409

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

        When a Customer Is Also a Vendor 409

        Recording a Customer’s Bounced Check 411

        Tracking Customer Deposits in QuickBooks 413

    Unique Sales Tax Transactions 414

        When Your State Imposes a Maximum Sales Tax 415

        Multiple Sales Tax Rates on One Invoice 416

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

11    Setting Up Payroll 419

    Getting Started 419

        Payroll Process Overview 419

        Selecting and Activating a Payroll Service Subscription 421

        Updating Payroll Tax Tables 423

        Employer Resources 424

        Creating Payroll Accounts in the Chart of Accounts 426

        Setting Up Payroll Tax Vendors 427

        Payroll Preferences 429

        Using the Payroll Setup Interview 432

        Using the Run Payroll Checkup Diagnostic Tool 439

    Setting Up Employees 442

        Using the Employee Center 442

        Adding or Editing Employee Information 443

        Finding Payroll Transactions 446

    Setting Up Payroll Items 447

        Adding or Editing Payroll Items 448

        Reporting About Payroll Items 450

    Paying Employees 452

        Payroll Home Page Workflow 452

        Entering Employee Time 453

        Preparing Employee Paychecks 455

        Printing Paychecks or Paystubs 457

        ViewMyPaycheck 458

    Preparing Payroll Liability Payments 459

        Paying Scheduled Liabilities 459

        Adjusting Payroll Liabilities 460

12    Managing Payroll 463

    Report Center Payroll Reports 463

    Excel Reports 465

    Tax Forms and Filings 466

        Preparing and Printing Tax Forms 466

        E-Filing Tax Payments and Forms 469

    Troubleshooting Payroll 469

        Comparing Payroll Liability Balances to the Balance Sheet 469

        Comparing Payroll Summary to Filed Payroll Returns 472

        Reconciling Payroll Reports to Business Financials 472

    Recording Unique Payroll Transactions 473

        Employee Loan Payment and Repayment 473

        Reprinting a Lost Paycheck 477

        Paying a Taxable Bonus 478

        Adjusting an Employee Paycheck 480

        Allocating Indirect Costs to Jobs Through Payroll 481

        Depositing a Refund of Payroll Liabilities 485

        Recording Payroll When Using an Outside Payroll Service 486

13    Working with Bank and Credit Card Accounts 489

    Preferences That Affect Banking and Credit Card Management 489

    Working with Write Check Transactions 490

        Using the Expenses Tab and Items Tab 490

        Writing a Check 493

        Printing Checks 496

    Entering a Bank Debit Charge 498

    Entering Credit Card Charges 499

    Paying the Credit Card Bill 500

    Transferring Funds Between Bank Accounts 501

    Online Banking Center 502

        Choosing an Online Banking Mode Preference 502

        Activating Online Services with Your Financial Institution 502

        Retrieving Online Transactions 504

        Adding Downloaded Transactions to QuickBooks 505

        Renaming Rules in Online Banking 507

        Other Online Banking Features 508

    Reconciling the Bank or Credit Card Account 512

    Troubleshooting Reconciliations 514

        Determining Whether the Account Has Been Reconciled 515

        Verifying That All Account Transactions Have Been Entered 516

        Identifying All Uncleared Transactions 518

        Completing the Multiyear or Multimonth Bank Reconciliation 518

        Reviewing Uncleared Transactions 519

        Reviewing Previous Bank Reconciliation Reports 521

        Locating Bank Account Reconciliation Discrepancies 522

        Reviewing the Voided/Deleted Transactions Reports 523

        Restarting a Previously Completed Bank Reconciliation 524

        Undoing a Previous Bank Reconciliation 524

        Reconciling with an Adjustment 525

14    Reporting in QuickBooks 527

    Using the Company Snapshot 527

        Customizing the Company Snapshot 527

        Defaulting the Company Snapshot as Home Page 530

    Report Center 530

    Reports & Graphs Preferences 533

        My Preferences 533

        Company Preferences 533

    Modifying Reports 536

        Modifying Options Available on the Report Window 536

        Customizing Reports 537

    Report Groups 538

        Creating Report Groups 538

        Using Report Groups 539

        Managing Report Groups 541

    Memorized Reports 542

    Exporting and Importing Report Templates 543

        Exporting a Report or Report Group Template 543

        Importing a Report or Report Group Template 544

    Exporting Reports to a .CSV File or to Excel 544

    Emailing Reports 546

15    Reviewing Your Data 549

    Reviewing the Balance Sheet 549

        Account Types 551

        Prior Year Balances 551

        Bank Account Balance(s) 552

        Accounts Receivable 553

        Undeposited Funds 554

        Inventory 555

        Other Current Assets 555

        Fixed Assets 557

        Accounts Payable 557

        Credit Cards 558

        Payroll Liabilities 558

        Sales Tax Payable 559

        Other Current Liabilities and Long-Term Liabilities 560

        Equity 560

    Reviewing the Profit & Loss Report 560

    Other Reviews 561

        Tracking Changes to Closed Accounting Periods 561

        Using the Audit Trail Report 562

        Using the Credit Card Audit Trail Report 563

        Reporting on Voided/Deleted Transactions 565

        Viewing the Transactions List by Date Report 566

        Troubleshooting Open Balance Equity Account 568

16    Sharing QuickBooks Data with Your Accountant 571

    Overview 571

        Benefits for the Business Owner 571

        Benefits for the Accountant 572

    QuickBooks File Types 572

        Choosing a Method to Share Data 573

    Data Sharing for the Business Owner 577

        Reviewing Your QuickBooks Data 578

        Creating an Accountant’s Copy of Your Data 578

        What the Business Owner Can and Cannot Do 583

        Importing Your Accountant’s Changes 584

        Canceling an Accountant’s Copy 589

    Data Sharing for the Accountant 590

        File Manager 2013 590

        Creating an External Accountant User Type 591

        Preparing Your Client for Data Exchange 592

        Receiving an Accountant’s Copy File 592

        What the Accountant Can Do 596

        What the Accountant Cannot Do 599

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

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

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

    Other Methods of Sharing Data 603

        Send General Journal Entries 603

        Batch Enter Transactions 606

17    Managing Your QuickBooks Database 609

    The QuickBooks Database 609

        System Requirements 610

        Express Installation of QuickBooks 612

        Installing QuickBooks for Multiuser Mode 612

        The QuickBooks Database Server Manager 613

        Windows Permissions Required for QuickBooks 615

        Using the QuickBooks Connection Diagnostic Tool 616

    Keeping Your Software Current 617

        Upgrading Your QuickBooks Version 617

        Installing a QuickBooks Maintenance Release 618

    Protecting Your QuickBooks Database 619

        Creating a QuickBooks Backup 619

        Protecting the QuickBooks Operating Environment 622

        Using Intuit Data Protect Online Backup Service 625

    Monitoring Your QuickBooks Database 626

        The Product Information Dialog Box 626

        Using the Verify Data Utility 628

        Monitoring QuickBooks Performance Using Windows Task Manager 629

    QuickBooks Database Corruption 630

        Common Causes of Corruption 630

        Signs of Data Corruption 630

        The QBWin.log File 631

        Repairing List Corruptions 634

        Reducing Database File Fragments 634

        Rebuilding Your Company File 636

        Using the QuickBooks File Doctor 636

        Resolving QuickBooks Program File Corruption Issues 638

18    Using Other Planning and Management Tools 639

    Planning and Budgeting 639

        Create a Budget 639

        Edit a Budget 641

        Print Budget Reports 643

        Delete a Budget 644

    QuickBooks Loan Manager 645

        Information to Collect 645

        Getting QuickBooks Ready 646

        Setting Up a New Loan 646

        Setting Up a Loan Payment 647

    Using the Year-End Guide 649

    Synchronizing QuickBooks Lists with Microsoft Outlook 650

    Using the QuickBooks Timer 654

        Installing the QuickBooks Timer 654

        Preparing the Timer for Activities 655

        Tracking Time with the Timer 655

        Exporting Timer Activities 656

        Importing Timer Activities into QuickBooks 657

A    Client Data Review 659

B    QuickBooks Statement Writer 717

C    QuickBooks Enterprise Solutions Inventory Features 747

D    QuickBooks Shortcuts 785

TOC, 1/31/2031, 9780789750396

The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

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