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QuickBooks 2014 The Guide, 2nd Edition

Book Description

Maximize the power of QuickBooks 2014

Create a comprehensive, streamlined small business financial management system with help from an expert! Written by an Advanced Certified QuickBooks ProAdvisor, QuickBooks 2014: The Guide shows you, step by step, how to customize the #1 bestselling financial software to suit your business.

Learn proven methods for managing your business finances, processing invoices, tracking inventory, monitoring sales, and administering payroll. Maximize the software’s capabilities and run your small business efficiently using the best practices and time-saving techniques packed inside this practical resource.

  • Configure and customize QuickBooks for your business
  • Enter transactions quickly and accurately
  • Manage accounts payable and receivable
  • Monitor and manage inventory
  • Integrate with online banking services
  • Track employee hours and manage payroll
  • Reconcile bank accounts
  • Manage budgets and project cash flow
  • Prepare for tax time
  • Secure your data
  • Run analytical business reports
  • Make key business decisions with confidence

Table of Contents

  1. Cover 
  2. About the Author
    1. About the Technical Reviewer
  3. Title Page
  4. Copyright Page
  5. Contents at a Glance
  6. Contents 
  7. Acknowledgments
  8. Introduction
    1. Use This Book to Get the Most from QuickBooks
      1. “Extras” Provided in This Book to Help You
      2. You and Your Accountant
  9. Part One: Getting Started Using QuickBooks
    1. Chapter 1: Using QuickBooks for the First Time
      1. What to Do Ahead of Time
      2. Decide on the Start Date
      3. More About the Information You’ll Need
        1. Cash Balances
        2. Customer Balances
        3. Vendor Balances
        4. Asset Balances
        5. Liability Balances
        6. Payroll Information
        7. Inventory Information
      4. Install and Launch the Software
      5. Create Your Company File
        1. Using Express Start
        2. Using Advanced Setup
        3. The QuickBooks Setup Wizard
      6. Navigate in QuickBooks
        1. Home Page
        2. QuickBooks Centers
      7. Customize the Icon Bar
        1. Changing the Order of Icons
        2. Changing the Icon Bar Display
        3. Removing an Icon
        4. Adding an Icon
      8. The Favorites Menu
      9. Closing QuickBooks
    2. Chapter 2: Using Accounts in QuickBooks
      1. The Accounts that QuickBooks Uses
        1. Assets
        2. Liabilities
        3. Equity
        4. Income
        5. Expenses
      2. Use Account Numbers
        1. Enabling Account Numbers
        2. Creating a Numbering System
        3. Creating Ranges of Numbers
      3. Name Accounts
      4. Create Accounts
        1. Select From Examples
        2. Optional Fields for Accounts
      5. Use Subaccounts
        1. Viewing Subaccounts
        2. Showing Lowest Subaccounts Only
      6. Edit Accounts
      7. Delete Accounts
      8. Make Accounts Inactive (Hiding Accounts)
      9. Merge Accounts
    3. Chapter 3: Your Customers
      1. Build Your Customers List
        1. Address Info
        2. Payment Settings
        3. Sales Tax Settings
        4. Additional Info
        5. Job Info Tab
        6. Adding Multiple Customer Records
      2. The Customer Center
        1. Customizing the Customers & Jobs List
        2. Working in the Customer Information Pane
        3. Editing an Individual Customer Record
      3. Use Jobs
        1. Creating Jobs
        2. Editing Jobs
      4. Delete Customers & Jobs
        1. Making Customers & Jobs Inactive (Hiding)
        2. Merging Customers or Jobs
      5. Use Custom Fields
        1. Adding a Custom Field
      6. Secure Customer Credit Card Information
        1. More About QuickBooks Customer Credit Card Protection
        2. About Complex Passwords
        3. User Permissions for Viewing Credit Card Information
        4. Viewing the Security Log
    4. Chapter 4: Your Vendors
      1. Create Your Vendors List
        1. Address Info
        2. Currency
        3. Payment Settings
        4. Tax Settings
        5. Account Settings
        6. Additional Info
        7. Adding and Editing Multiple Vendor Records
      2. The Vendor Center
        1. Customizing the Vendor Center
      3. Edit Vendor Information
      4. Delete a Vendor
      5. Make a Vendor Inactive
      6. Merge Vendors
      7. Use Custom Fields in Vendor Records
        1. Adding a Custom Field for Vendors
        2. Adding Data to Custom Fields
      8. Create 1099 Vendors
        1. Configuring 1099 Options
        2. Marking Vendors as 1099 Recipients
    5. Chapter 5: Creating Items for What You Sell
      1. Understand How Items Are Used
      2. Understand Item Types
      3. Build Your Item List
        1. How to Create a Service Item
      4. Create Custom Fields for Items
        1. Creating the Other Items in Your Item List
        2. Changing Item Prices
        3. Collect Sales Tax Using Sales Tax Items
        4. Sales Tax Items
        5. Sales Tax Codes
        6. Sales Tax Payment Basis
        7. Sales Tax Payment Dates
      5. Create and Use Tax Groups
        1. Assigning Sales Tax Codes and Items to Customers
    6. Chapter 6: Creating Other Lists You May Need
      1. Fixed Asset Item List
      2. Price Level List
        1. Creating a Price Level
        2. Assigning Price Levels to Customers
      3. Currency List
      4. Class List
      5. Create a Class
        1. Creating a Subclass
      6. Other Names List
      7. Customer & Vendor Profile Lists
        1. Sales Rep List
        2. Customer Type List
        3. Vendor Type List
        4. Job Type List
        5. Terms List
        6. Customer Message List
        7. Payment Method List
        8. Ship Via List
        9. Vehicle List
        10. Templates List
        11. Memorized Transaction List
    7. Chapter 7: Entering Your Beginning Balances
      1. What Is an Opening Trial Balance?
      2. Ten Steps to Creating an Accurate Opening Trial Balance
        1. 1. Gather All the Information You Need
        2. 2. Enter Beginning Balances for Simple Balance Sheet Accounts
        3. 3. Enter Bank Account Balances
        4. 4. Enter Outstanding Checks and Deposits
        5. 5. Enter Unpaid Accounts Receivable and Accounts Payable Transactions
        6. 6. Enter Nonposting Transactions
        7. 7. Enter Mid-year Income and Expenses (if Applicable)
        8. 8. Adjust Sales Tax Payable
        9. 9. Establish Inventory Balances
        10. 10. Zero-Out the Opening Balance Equity Account
      3. Run Your QuickBooks Trial Balance Report as of Your Start Date
    8. Chapter 8: Setting Up Users and Permissions
      1. Why User Logins Are Important
        1. A Word About Passwords
        2. Creating Complex Passwords
        3. The QuickBooks Admin
      2. Adding or Changing the Administrator Password
        1. Creating a Challenge Question for the Admin Account
        2. Resetting the Admin Password When You Forget It
      3. Add Users
        1. Deleting a User
        2. Editing User Information
        3. Setting User Permissions
        4. Special Permissions Needed for Customer Credit Card Data
        5. Configuring Special Areas of QuickBooks
        6. Configuring Rights for Existing Transactions
        7. Users Can Change Their Own Passwords
      4. QuickBooks Login Dialog
  10. Part Two: Daily Operations Using QuickBooks
    1. Chapter 9: Invoicing Your Customers
      1. Create Invoices
        1. Entering Basic Information in the Invoice Header
        2. Entering Line Items
        3. Applying Price Levels
        4. Using Discounts
        5. Using Subtotals
        6. Checking the Footer Section
        7. Saving an Invoice
      2. Edit an Invoice
      3. Mark an Invoice as Pending
      4. Void and Delete Invoices
      5. Print Packing Slips
        1. Printing the Default Packing Slip
      6. Batch Invoicing
      7. Use Memorized Invoices
        1. Creating Memorized Invoice Groups
        2. Adding Memorized Invoices to Groups
      8. Issue Credits and Refunds
        1. Creating a Credit Memo Against an Invoice
        2. Creating a Credit Memo Without a Previous Invoice
        3. Applying Credit Memos
        4. Creating Multiple Estimates for a Job
        5. Copying Estimates
        6. Memorizing Estimates
      9. Create Progress Billing Invoices
        1. Choosing the Estimated Job
        2. Entering Progress Invoice Line Items
        3. Changing Line Items
      10. Invoice Customers for Reimbursable Expenses
        1. Configuring Reimbursement Settings
        2. Creating a Transaction for Reimbursable Expenses
        3. Adding Expenses to the Sales Transaction
        4. Adding Taxes to Reimbursable Expenses
    2. Chapter 10: Managing Your Accounts Receivable
      1. Your Options for Receiving Customer Payments
        1. Recording the Payment
        2. Calculating the Payment
        3. Applying Payments to Invoices
        4. Depositing Payments into Your Bank Account
        5. Handling Underpayments
        6. Applying Credits to Invoices
        7. Applying Discounts for On-Time Payments
        8. Applying Discounts for Untimely Payments
        9. Posting Discounts to a Sales Discount Account
        10. Printing a Receipt for an Invoice Payment
      2. Handling Cash Sales
        1. Entering Cash Sale Data
        2. Handling Batches of Cash Sales
      3. Tracking Your Cash Drawer in QuickBooks
        1. Handling the Over and Short Problem
      4. Recording Bank Deposits from the Undeposited Funds Account
        1. Choosing the Payments to Deposit
        2. Working in the Make Deposits Window
        3. Printing Deposit Slips
      5. Keeping Track of Accounts Receivable
        1. Getting the Most from the Customer Center
        2. The Income Tracker
        3. The Collections Center
        4. Reports You Can Run from the Customer Center
      6. Running A/R Aging Reports
        1. A/R Aging Summary Reports
        2. A/R Aging Detail Reports
        3. Customizing Aging Reports
        4. Memorizing Aging Reports
        5. Printing Reports
      7. Running Customer and Job Reports
        1. Assessing Finance Charges
      8. Sending Statements
        1. Entering Statement Charges
        2. Creating Statements
        3. Previewing the Statements
        4. Printing the Statements
        5. Customizing Statements
    3. Chapter 11: Tracking and Paying Your Bills
      1. Record Vendor Bills
        1. Filling in the Details
        2. Splitting Expenses Among Multiple Accounts
      2. Use Purchase Orders
      3. Create a Purchase Order
      4. Purchase Inventory Items
        1. Receiving Inventory Items Without a Bill
        2. Recording Bills for Items Already Received
        3. Receiving Items and Bills Simultaneously
        4. Recording Vendor Credits
      5. Enter Recurring Bills
        1. Creating a Memorized Bill
        2. Using a Memorized Bill
        3. Creating Memorized Bill Groups
        4. Adding Memorized Bills to Groups
      6. Reimbursable Expenses
        1. Options for Managing Reimbursable Expenses
        2. Configuring Reimbursement Tracking
        3. Recording Reimbursable Expenses
      7. Pay Your Bills
        1. Viewing Your Unpaid Bills
        2. Selecting the Bills to Pay
        3. Paying Bills in Full
        4. Making Partial Payments
        5. Using Discounts and Credits
        6. Applying Credits
        7. Printing and Sending Bill Payments
        8. Check Writing Without Entering a Bill
        9. Manual Checks
        10. Printing Checks in a Batch
      8. Track and Pay Sales Tax
        1. Managing Sales Tax
        2. Running Sales Tax Reports
      9. Pay the Sales Tax
        1. Adjusting Sales Tax Amounts
    4. Chapter 12: Working with Bank and Credit Card Accounts
      1. Deposit Money That Isn’t from Customers
        1. Using the Account Register for Deposits
        2. Using the Make Deposits Window
        3. Assigning a Payee to a Noncustomer Deposit
        4. Assigning Accounts to Noncustomer Deposits
      2. Transfer Funds Between Accounts
        1. Using the Transfer Funds Transaction Window
      3. Handle a Returned Check
        1. Recording a Returned Customer Invoice Payment
        2. Recording a Returned Cash Receipt Payment
        3. Recording Your Bank’s NSF Charge to You
      4. Void a Check
      5. Track Cash Disbursements
        1. Keeping a Petty Cash Box
        2. Tracking Other Cash Withdrawals
      6. Manage Credit Card Transactions
        1. Create a Credit Card Account
        2. Treat the Credit Card as a Bill
    5. Chapter 13: Balancing Your Bank Accounts
      1. Reconcile in QuickBooks
        1. The Begin Reconciliation Window
        2. Entering Interest Income and Service Charges
        3. Working in the Reconcile Window
        4. Clearing Transactions
        5. Adding Transactions During Reconciliation
        6. Adding Undeposited Funds During Reconciliation
        7. Voiding or Deleting Transactions During Reconciliation
        8. Editing Transactions During Reconciliation
        9. Resolving Missing Check Numbers
        10. Finishing the Reconciliation
        11. Printing the Reconciliation Report
        12. Viewing the Last Reconciliation Report
      2. If You Don’t Balance
        1. Finding and Correcting Problems
        2. Making an Adjusting Entry
        3. Troubleshooting Differences in the Beginning Balance
        4. Correcting Opening Balance Differences
        5. Undoing the Last Reconciliation
    6. Chapter 14: Printing, E-mailing, and Managing Documents in QuickBooks
      1. QuickBooks Printer Setup
        1. Choosing Form Printing Settings
        2. Using QuickBooks to Print Checks
        3. Printer Settings vs. Printer Options
      2. Print Checks
        1. Printing Each Check As You Create It
        2. Printing Checks in Batches
        3. Reprinting Checks After a Problem
      3. Ways to Print Transaction Forms
        1. Printing Transactions As You Create Them
        2. Previewing Form Printouts
        3. Printing Transaction Forms in Batches
      4. E-mail Forms and Reports
        1. Setting Up E-mail
        2. Sending E-mail
      5. Document Management: Using the Attach File Feature
  11. Part Three: Other Tasks You May Need to Complete in QuickBooks
    1. Chapter 15: Using QuickBooks to Manage Your Inventory
      1. What Is an Inventory Item?
      2. Set Up QuickBooks for Inventory Tracking
        1. Accounts Required for Inventory Are Automatically Created
        2. Create Inventory Items
      3. Use Subitems
        1. Creating the Parent Item for a Subitem
        2. Creating Subitems
        3. Count Inventory
        4. Printing the Physical Inventory Worksheet
        5. Planning the Physical Count
        6. Making Inventory Adjustments
        7. Understanding the Effects of an Adjustment
        8. About the Inventory Adjustment Account
        9. Making Other Adjustments to Inventory
        10. Running Inventory Reports
    2. Chapter 16: Using Bank Feeds
      1. Set Up Bank Feeds
        1. Finding Your Bank Online
        2. Enabling Bank Feeds Using Direct Connect
        3. Enabling Bank Feeds Using Web Connect (Manual Import)
      2. Work with Transactions in the Bank Feeds Center
        1. Viewing the Downloaded Transactions
        2. Adding Transactions to the Account Register in QuickBooks
        3. Adding a Downloaded Payment to the Register
        4. Adding a Downloaded Deposit to the Register
        5. Ignoring (Deleting) Unmatched Transactions
        6. Using QuickBooks to Pay Your Bills Online
        7. Using the QuickBooks Bill Pay Service
      3. Transfer Money Between Accounts Online
        1. Using the Transfer Funds Function
    3. Chapter 17: Entering Special Transactions Using General Journal Entries
      1. The QuickBooks Journal Entries Window
      2. Create Journal Entries for Depreciation
        1. Creating Accounts for Tracking Depreciation
      3. Use Journal Entries to Post to Outside Payroll Services
        1. Transferring Money to the Payroll Account
        2. Recording the Payroll
        3. Recording Liabilities
        4. Creating Your Own Payroll Entry Template
        5. Reconciling the Payroll Account
    4. Chapter 18: Year-End Procedures
      1. The Year-End To Do List
        1. Reconciling All Bank, Cash, and Credit Card Accounts
        2. Inventory Stock Status
        3. Fixed Assets
        4. Payroll
      2. Run Year-End Financial Reports
        1. Profit & Loss Reports
        2. Year-End Balance Sheet
      3. Issue 1099 Forms
        1. Checking the 1099 Setup
        2. Using the 1099 Wizard
        3. Printing 1099s
      4. Make Year-End Journal Entries
        1. Getting Ready for Taxes
        2. Checking Tax Line Information
        3. Calculating Other Important Tax Information
        4. Using TurboTax
      5. Close Your Books
        1. Closing the Year by Setting a Closing Date
      6. Create a Year-End Backup
  12. Part Four: Tracking Time and Paying Your Employees
    1. Chapter 19: Tracking Employee Hours with QuickBooks
      1. Setting Up Time Tracking
        1. Adding Timekeepers
        2. Adding the Tasks
      2. Working with Timesheets
        1. Setting the Format for Displaying Time
        2. Tracking a Single Activity
        3. Using Weekly Timesheets
        4. Copying Previous Timesheets
      3. Reporting Timesheet Information
        1. Running Timesheet Reports
        2. Editing Entries in a Report
        3. Editing the Original Timesheets
        4. Printing Weekly Timesheets
        5. Invoicing Customers for Time
      4. Tracking Mileage
        1. Entering Mileage Rates
        2. Creating a Mileage Item
        3. Entering Mileage
        4. Creating Mileage Reports
    2. Chapter 20: Paying Your Employees with QuickBooks Payroll
      1. QuickBooks Payroll Services
        1. Enabling a QuickBooks Payroll Service
        2. Processing Your Payroll Manually in QuickBooks
        3. Setting Up Your Payroll
        4. Adding Payroll Accounts to the Chart of Accounts
        5. Adding Vendors
        6. Adding Payroll Items
      2. Set Up Employees
        1. Creating an Employee Template
        2. Creating Employees
        3. Handling Year-To-Date Payroll Data
        4. Entering Year-To-Date Totals
        5. Manually Entering Payroll History in Batches
      3. Use the QuickBooks Payroll Setup Wizard
        1. Company Setup Section
        2. Setting Up Employees in the Wizard
        3. Setting Up Payroll Taxes in the Wizard
        4. Entering Payroll History in the Wizard
        5. Running Data Review
        6. Finishing Up
      4. Payroll Schedules
        1. Creating a Payroll Schedule
        2. Assigning Payroll Schedules to Employees
      5. Run Payroll
        1. Changing Paycheck Data
        2. Reviewing the Payroll Run
      6. The Employee Center
        1. Employees Tab
        2. Transactions Tab
        3. Payroll Tab
        4. Customizing the Employee Center
    3. Chapter 21: Tracking and Remitting Payroll Liabilities
      1. Confirm Payroll Payment Schedules
      2. Report and Remit Payroll Liabilities
      3. Federal Tax Liabilities
        1. 941/943 Payments
        2. 940 Payments
      4. State and Local Income Taxes
        1. Other State Liabilities
      5. Other Non-Tax Payroll Liabilities
        1. Workers Comp
      6. Prepare W-2 Forms
      7. Tax Form Worksheets in Excel
  13. Part Five: Sharing, Securing, and Customizing Your Data
    1. Chapter 22: Using the Accountant’s Copy
      1. Understanding the Accountant’s Copy
        1. Creating an Accountant’s Copy
        2. Saving the Accountant’s Copy
        3. Sending an Accountant’s Copy to the QuickBooks Server
        4. Choosing the Dividing Date
        5. Merge the Accountant’s Changes into Your File
        6. Cancel the Accountant’s Copy
    2. Chapter 23: Keeping Your QuickBooks Data Secure and Healthy
      1. Delete Company Files
        1. How QuickBooks Loads Company Files
        2. Deleting the File
      2. Eliminating Deleted Files from the Company File List in QuickBooks
      3. Back Up and Restore Files
        1. Backing Up
        2. Scheduling Backups
        3. Restoring a Backup
      4. The Portable Company File
        1. Creating a Portable Company File
      5. Verify and Rebuild a Company File
      6. Condense Your Data
        1. Understanding the Condense Data Process
        2. Choosing a Date
        3. Run the Condense Data Utility
        4. Removing All Transactions
      7. Update QuickBooks
        1. Configuring QuickBooks Update Service
    3. Chapter 24: Customizing QuickBooks for Your Business
      1. Customize Settings and Options
        1. Accounting Preferences
        2. Bills Preferences
        3. Calendar Preferences
        4. Checking Preferences
        5. Desktop View Preferences
        6. Finance Charge Preferences
        7. General Preferences
        8. Integrated Applications Preferences
        9. Items & Inventory Preferences
        10. Jobs & Estimates Preferences
        11. Multiple Currencies Preferences
        12. Payments Preferences
        13. Payroll & Employees Preferences
        14. Reminders Preferences
        15. Reports & Graphs Preferences
        16. Sales & Customers Preferences
        17. Sales Tax Preferences
        18. Search Preferences
        19. Send Forms Preferences
        20. Service Connection Preferences
        21. Spelling Preferences
        22. Tax:1099 Preferences
        23. Time & Expenses Preferences
      2. Customize Transaction Templates
        1. Basic Customization of Templates
        2. Additional Customization of Templates
  14. Part Six: Using QuickBooks Reports, Budgets, and Planning Tools
    1. Chapter 25: Useful QuickBooks Reports and Analysis Tools
      1. Start with the Report Center
      2. Drill Down for Details
      3. Standard Financial Reports
        1. Profit & Loss Report
        2. Balance Sheet
        3. Trial Balance
        4. Cash Flow Reports
      4. Other Useful Reports
        1. Sales Reports
        2. Vendor Reports
        3. Inventory and Purchasing Reports
        4. Employees & Payroll Reports
        5. Banking Reports
        6. Reporting by Class
        7. Accountant & Taxes Reports
      5. Company Snapshot
      6. External Accountant
        1. Creating an External Accountant
        2. Converting an Existing User to an External Accountant
      7. Client Data Review
    2. Chapter 26: Modifying and Creating Reports
      1. Customization Starts with a Standard Report
        1. The Display Tab
        2. Selecting the Report Basis
        3. Selecting Columns
        4. Advanced Options
        5. The Filters Tab
      2. Customize Report Headers and Footers
      3. Customize Report Fonts and Numbers
      4. Memorize Customized Reports
        1. Using a Memorized Report
        2. Using Memorized Report Groups
        3. Adding Standard Reports to Memorized Reports Groups
      5. Sharing Reports You’ve Customized
    3. Chapter 27: Using the QuickBooks Budget and Planning Tools
      1. How QuickBooks Handles Budgets
        1. Types of Budgets
        2. Budget Data Is Saved Automatically
        3. Creating Multiple Budgets
        4. Deleting a Budget
        5. Understanding the Budget Window
        6. Tasks to Perform Before You Start Your Budget
      2. Profit & Loss Budgets
        1. Enter Budget Amounts
        2. Using Budget Entry Shortcuts
        3. Creating a Budget from Last Year’s Data
        4. Customer:Job Budgets
        5. Class Budgets
      3. Budget Reports
        1. Budget Overview
        2. Budget vs. Actual
        3. Profit & Loss Budget Performance
        4. Budget vs. Actual Graph
      4. Work with Budget Data Outside of QuickBooks
        1. Exporting a Budget Report to Excel
        2. Exporting Budgets to Delimited Text Files
        3. Importing Budgets Back into QuickBooks
      5. Project Cash Flow
  15. Part Seven: Appendixes
    1. Appendix A: Installing QuickBooks on a Network
      1. License Requirements for a Multi-user Installation
      2. Multi-user Installation Options
        1. Installing QuickBooks on a Peer-to-Peer Network
        2. Installing QuickBooks on a Client-Server Network
    2. Appendix B: Multiple Currencies
      1. Set Up and Configure Multiple Currencies
        1. Creating a Special Backup
        2. Enabling Multiple Currencies
        3. Selecting Currencies
        4. Tracking Exchange Rates
      2. Manage Customers and Vendors with Foreign Currencies
        1. Creating Customers and Vendors with Currency Assignments
        2. Changing Currency for Existing Customers and Vendors
        3. Creating New Customers and Vendors for Multiple Currencies
        4. Managing Existing Open Transactions
        5. Viewing Currency Data in Customer and Vendor Centers
      3. Create Transactions in Other Currencies
      4. Create Reports on Multiple Currency Transactions
    3. Index