QuickBooks 2007/08 user guide
QuickBooks 2007/08 user guide
Copyright © 2007/2008 Reckon Ltd.
All rights reserved
First printing, March 2007
Quicken Australia
Locked bag 15
PO Broadway NSW 2007
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© 2007/2008 Intuit Inc.
© 2007/2008 Reckon Ltd.
Australian Development Team
Product Management: Sandy Mizyed, Dean Darke, Veronica Holmes, Omar Dabbagh, Kevin McDermott
Project Lead: Adrian Bruce
Software Development: Michael Davis, Wayne Qiu, Lincoln Maskey, Michael Thompson, Michael West,
Carlo Pangilinan, Jason Lam, Shi Yan, Alon Frenkel
Information Technology: Victor Ho, Ben Johnson, Andrew Leung, Supriya Ramesh, Matthew Spooner
Technical Documentation: David Halls, Samantha Stone
Quality Assurance: Adriana Marrone, Sebastian Babio, Bowen Chen, Khen Chu, Satish Gadde, Victor
Montalva, Phillip Osman, Helio Rocha, Simon Hutchison, Peng Wang, Nathan Selby, Andrew Appleby
Marketing: Paul Ibsen
Contents
Installing QuickBooks, 1
Learning about QuickBooks, 2
Using this manual, 2
Three steps to more QuickBooks help, 3
Quicken accredited professional partners, 4
Exploring QuickBooks with a sample company, 4
Installing and running QuickBooks, 4
Minimum requirements, 5
Installing QuickBooks, 5
Installing the QuickBooks Pro Timer from CD-ROM, 7
Upgrading from a previous version, 7
Activating QuickBooks, 7
Working with multiple users, 8
Setting up multi-user networking, 8
Client-server networks, 9
Going on from here, 10
Setting up a new company, 11
Setting up a company in QuickBooks, 12
Before you set up a company, 12
How many companies should I set up?, 13
What accounting method should I use?, 14
What accounting do I need to know?, 14
What’s the best way to track my type of detail?, 18
Should I use classes, jobs or types?, 22
Table of Contents
iii
Reports that measure profitability, 22
Determining a start date, 23
Information to collect outside of QuickBooks, 24
Using the EasyStep Interview, 26
More about customers, jobs and items, 28
Final steps to completing your setup, 28
Fine tuning your accounts, 28
Entering your company’s historical transactions, 30
Completing your customer, supplier and item information, 32
Adjusting opening balances for balance sheet accounts, 32
Setting up accounts to track equity details, 34
Setting your number, currency, time and date settings, 35
Things to consider after your company file is set up, 35
Creating reports to check your setup, 36
Maintaining your previous accounting system, 36
Connecting QuickBooks to the Internet, 36
Setting up an Internet connection, 37
Changing an Internet connection, 37
Updating QuickBooks to the latest release, 38
Getting updates from the Internet, 38
Updating from a CD-ROM, 39
Customers, jobs and items in detail, 41
Customers, jobs and items, 42
Should I track customers and jobs?, 42
What does QuickBooks mean by a customer?, 42
What does QuickBooks mean by a job?, 42
iv
QuickBooks 2007/08
Changing the opening balance for a customer or job, 43
Why you probably need to set up items, 43
Items for what you sell, 44
Items for services or products you purchase, 45
Deciding how items should affect accounts, 45
How many different items do you need?, 46
Setting up items, 47
Where to find information about your items, 47
Types of QuickBooks items, 48
Setting up different units of measure for your items, 51
Reporting in different units of measure, 53
Adding items to your Item or Fixed Asset Item list, 54
Items for reimbursable costs in QuickBooks Pro and Premier, 56
Working with items, 58
Using items to save time, 59
Using items to subtotal on sales forms, 59
Showing partial payments received at the time of sale, 61
Changing prices or rates, 63
Editing item information, 63
Importing and exporting, 65
Importing from / exporting to other software, 66
Importing from other software, 66
Transferring lists between QuickBooks companies, 66
Exporting to other software, 66
Transferring information to Microsoft Word, Excel, Outlook or Customer
Manager, 67
Exporting data for your accountant (Accountant’s Review), 68
Table of Contents
Converting data from CashBook, 70
MYOB® to QuickBooks Data Converter, 70
Export and convert your data, 72
Send your converted data to QuickBooks, 72
QuickBooks Basics, 73
Getting around in QuickBooks, 74
Understanding QuickBooks file types, 74
Using the Getting Started window, 74
Navigating in the working area, 75
Using lists, forms and registers, 76
Getting information about your company, 78
Finding information about your company file, 78
Working with navigators, 79
Creating reports, 80
Customising your forms, 83
Backing up your company data, 84
Recommended backup routine, 85
Backing up to a Zip disk, 86
Backing up to a tape, 87
Backing up to a 3.5 floppy disk, 87
Using Online Backup, 88
Searching for your backup file, 89
Restoring your backup file, 89
Condensing data, 90
Working with multiple users, 92
Sharing QuickBooks company files, 92
vi
QuickBooks 2007/08
Users and passwords, 93
Recording who changed what in the Audit Trail, 96
Auditing your company file, 97
Solving printing problems, 99
When should I reinstall my printer driver?, 99
Nothing happens when you try to print, 99
The form is clipped on the top, bottom, left, or right, 99
Dates and the bottoms of letters are clipped on forms, 101
Printing is slow, 101
Tracking and paying tax, 103
How QuickBooks tracks tax, 104
Setting up tax preferences, 104
Turning on tax tracking and other tax preferences, 104
Choosing a tax reporting period, 105
Setting up and using tax codes, 105
Applying tax codes to items, 108
Creating new tax codes, 109
Setting a company-wide, default tax code , 110
Making adjustments to your Tax Payable account, 110
Making a general journal entry in your Tax Payable account, 110
Creating tax reports, 111
Types of tax reports, 112
Getting ready to prepare an activity statement, 112
Creating a tax report, 112
Changing the tax accounting periods on tax reports, 113
Paying a tax liability, 113
Table of Contents
vii
Receiving a tax refund, 114
Keeping tax records, 114
Working with activity statements, 115
Activity statements in QuickBooks, 116
Getting ready to configure and generate an activity statement, 116
Are you ready for GST reporting?, 116
Why it’s important to set up properly - the big picture, 119
Check your results, 119
Configuring the activity statement, 120
Configuration window, 121
Configuration buttons, 123
Generating a BAS, 125
Generating an IAS, 126
Function buttons, 126
Lodging your activity statement with the ATO, 127
Working with multicurrency, 129
Multicurrency: an overview, 130
Setting up multicurrency, 130
Using the Currency List, 135
Using the currency calculator, 137
Exchange rates and how they affect your transactions, 137
Unrealised Gains and Losses, 138
Realised Gains and Losses, 139
Dealing with foreign customers, 140
viii
QuickBooks 2007/08
Creating invoices for foreign customers, 140
Receiving payments from foreign customers, 141
Dealing with foreign suppliers, 142
Creating a purchase order for a foreign supplier, 142
Paying bills from foreign suppliers, 143
Transferring foreign funds, 144
Setting up payroll, 145
Payroll: before you begin, 146
QuickBooks Payroll, 146
If you don’t use the payroll feature in QuickBooks, 146
Setting up payroll: an overview, 146
Collecting the information you need, 147
Payroll expense and liability accounts, 149
Customising payroll accounts, 149
Setting up your payroll items, 150
About the default payroll items, 150
Creating new payroll items, 151
Payroll items for expenses, 152
Payroll items associated with liabilities, 154
Setting up an employer-paid benefit or other expense, 155
Employees, 155
Entering standard employee defaults, 156
Setting up employees, 156
Summarising amounts for the year-to-date, 157
Entering year-to-date summaries for each employee, 158
Entering YTD summaries of liability payments, 160
Table of Contents
ix
Making sure your payroll data is complete, 160
Changing payroll and employee information, 161
Changing payroll item information, 161
Changing employee information, 162
Customising pay slips, 164
Working with payroll, 167
Using payroll, 168
Paying your employees, 168
Selecting employees to pay, 168
Previewing, adjusting, and creating payroll payments, 169
Printing payroll cheques and pay slips, 172
Paying PAYG tax and liabilities, 172
Adjusting a payroll liability, 173
Paying payroll liabilities, 174
Preparing year-end payroll forms, 175
Creating and reviewing payment summaries, 175
Emailing pay slips and payment summaries, 176
Creating an electronic file (EMPDUPE), 177
Getting information about your payroll, 178
Using the Timer and Stopwatch, 181
Should I track time for subcontractors?, 182
How much detail should I track for time activities?, 183
Setting up QuickBooks Pro/Premier to track time, 185
Setting up to use time tracking with payroll, 186
Setting up and using the Timer, 186
QuickBooks 2007/08
How the Timer works with QuickBooks Pro and Premier, 186
Setting up the Timer, 187
Using the Timer, 188
Importing Timer data into QuickBooks Pro/Premier, 190
Using the Stopwatch to time an activity, 191
Paying for time worked, 193
Charging customers for time worked, 194
Installing the Timer, 196
The Timer and QuickBooks Pro or Premier, 197
Installing from the QuickBooks Pro or Premier CD-ROM, 197
QuickBooks Pro/Premier Timer Reference Sheet, 197
Installing from 3.5-inch disks, 197
Starting the Timer, 197
Setting up the Timer, 197
Online Banking, 199
Online banking in QuickBooks, 200
Setting up online banking, 200
Setting up online banking preferences, 200
Enable an account for online banking, 201
Navigating the Online Banking Centre, 202
Importing statements, 202
Reconciling bank accounts with physical statements, 204
Matching bank deposits and credit card deposits, 205
Paying employees and suppliers using online banking, 205
Setting up your employees and suppliers for online banking, 205
Processing online banking transactions, 207
Table of Contents
xi
Creating an online banking (ABA) file, 207
Recreating an online banking (ABA) file, 208
Further tools to help your business, 211
What are the Tools to help your business?, 212
Subscribe to Payment Services, 213
Setting up payment services preferences, 213
Processing a credit card payment or refund, 214
Recover outstanding debt using Debt Recovery, 215
Subscribe to Debt Recovery, 215
Setting up Debt Recovery preferences, 216
Email notice of outstanding debt, 216
Secure your data with Online Backup, 217
Subscribe to Online Backup, 217
Pay many superannuation funds at once using SuperLink, 218
Subscribe to SuperLink, 218
Remit SuperLink payments from QuickBooks, 218
Accept payments using Customer Payment, 220
Subscribe to Customer Payment Solution, 220
Customer Payment Preferences, 220
QuickBooks Premier industry-specific editions, 221
What are QuickBooks Premier industry-specific editions?, 222
What can you expect from an industry-specific edition?, 222
Industry-specific navigators, 223
Industry-specific menus, 223
More information, 224
xii
QuickBooks 2007/08
What’s New in QuickBooks 2007/08, 225
What’s new in QuickBooks, 226
QuickBooks user feedback, 227
Contacting Quicken, 229
Technical support options and Quicken services
, 230
Fee based services, 230
Quicken Advantage, 230
Quicken’s Web site, 230
Quicken accredited professional partners, 230
Talking to a technical support representative, 231
Be prepared when you call, 231
Solving problems on your own, 231
If the program “hangs” or locks up on you, 232
Contacting Quicken, 233
Australia, 233
New Zealand, 234
Philippines, 235
Singapore, 235
Glossary of Terms, 237
Licence Agreement, 243
Index, 249
Table of Contents
xiii
xiv
QuickBooks 2007/08
Installing QuickBooks
Learning about QuickBooks
1
2
Installing and running QuickBooks
4
Working with multiple users
8
Going on from here
10
Welcome to QuickBooks 2007/08. This chapter helps you install your new software
so you can start using it.
This user guide covers the Accounting, Plus, Pro and Premier levels of QuickBooks.
When you read QuickBooks in this manual, the reference is to the program in
general, not a specific level. When there is an important distinction between levels
(for example, where a feature is only available in higher levels), it’s noted in the text.
Learning about QuickBooks
Using this manual
The best place to start learning about QuickBooks is the user guide you are now reading. It
is designed to give you a solid overview of how QuickBooks works and how you can make it
work better for your business.
Each chapter progresses from information covered in a previous chapter. If you’re new
to QuickBooks, reading from beginning to end will give you the best possible tour of
QuickBooks. If you’re already familiar with this product, you can use this manual as a
reference to find information in a hurry.
The content is designed to be conceptual, sometimes supported by step-by-step instructions
of how to use a feature in QuickBooks. In other words, you won’t find detailed information
about every window. That’s in the in-product Help. Instead, you can expect to find clear
descriptions of ideas or tasks in QuickBooks plus quick tutorials that help you make
practical sense of the concepts.
Conventions
This manual uses a number of conventions to communicate information to you, as shown in
the table below.
Chapter 1
To indicate...
We use...
A menu path
Choose Help menu > Help & Support.
A button that you click
The button name is in italics.
For example, “click Activate after entering...”
The name of a window
The window name is in italics.
For example, QuickBooks opens the Preferences
window.
The name of a drop-down menu
or list
The drop-down menu name in italics.
For example, Select Tasmania from the State dropdown menu.
Three steps to more QuickBooks help
If the answer you are after is not in this guide, take the three-step approach to getting help
with your QuickBooks software.
STEP 1—Check the QuickBooks in-product Help
Your QuickBooks software comes with comprehensive in-product Help.
In any QuickBooks window, simply press F1 or click Help for assistance with the feature you
are using. QuickBooks displays the in-product Help window.
If you don’t find your answer in the
index, click How Do I? at the top of the
current QuickBooks program window.
QuickBooks displays a list of featurerelated, frequently asked questions for
you to choose from.
To ask a specific question, type a search
word or plain english question in the
Ask field. (You can also access the inproduct Help by choosing Help menu >
Help and Support.)
STEP 2—Check the Quicken Knowledge
Browser
The Knowledge Browser in the Support area of the
Quicken Web site is an online technical support
database that is available to all Quicken customers 24 hours a day, 7 days a week. Search
for support articles which contain step-by-step instructions to get you through any known
Quicken product issues.
Alternatively, simply view our frequently asked questions on our support home page. In
most cases, you will find the solution to your problem there.
STEP 3—Call Quicken ExpressSupport
If you require technical support and prefer to speak to a Quicken representative, the
Quicken ExpressSupport team is just a phone call away. Quicken’s trained technical support
team is available to help you during business hours, Monday to Friday and 9am-4pm
Saturday and Sunday.
For more information about technical support, including hours of operation and charges for
your country, see Contacting Quicken on page 233.
Installing QuickBooks
Quicken accredited professional partners
Developing a strong, knowledgeable network of professionals is an important part of our
commitment to delivering exceptional support to our QuickBooks customers. Whatever your
individual needs, Quicken has an expert to help.
Quicken accredited consultants are there to help with software training and setup, to
ensure your software serves your business most efficiently. Accredited Consultants analyse
your business needs and requirements as well as provide ongoing support of your Quicken
software.
Quicken accredited bookkeepers give you more time to run your business by taking away
the pain of paperwork. Accredited bookkeepers help you save time and money by providing
services from basic bookkeeping through to BAS preparation and lodgement.
Quicken accredited accountants have QuickBooks expertise and can assist you in all of your
BAS lodgement and tax compliance needs. Accredited accountants must comply with strict
accreditation requirements every year, so you know that your business is in the hands of a
qualified professional.
Contact Quicken to find a Quicken accredited professional partner to help with your business
needs.
Exploring QuickBooks with a sample company
When you are learning to use QuickBooks, it is handy to be able to access meaningful data
with which to practice, but that doesn’t have any effect on your real business data.
Use the sample company that comes with QuickBooks to get familiar with the software. For
example, you can explore new features, enter test data and run reports to get a true feel for
how the software works.
1.
Choose File menu > Open Company.
2.
Select the sample file.
Installing and running QuickBooks
The following pages describe what you need for hardware and software to run QuickBooks
successfully. It then takes you through the installation and activation process.
Chapter 1
Fast track to...
Refer to page...
Minimum requirements
5
Installing QuickBooks
5
Installing the QuickBooks Timer from CD-ROM
7
Upgrading from a previous version
7
Activating QuickBooks
7
Minimum requirements
The following minimum system requirements apply to all levels of QuickBooks (with
additional requirements for additional functionality as noted).
Recommended
System
Configuration
• 1.0 GHz Intel Pentium IV (or equivalent) with 256 MB of RAM
Minimum System
Requirements
• 350 MHz Intel Pentium (or equivalent) with 128 MB of RAM
• Windows 2000/XP/Vista™
• At least Internet Explorer 6.0
• 1024 X 768 resolution with small fonts
• High speed Internet access for online features/services
• Windows 2000/XP/Vista™
• 425 MB of disk space for QuickBooks installation
• Internet Explorer 6.0 (provided with Desktop; requires 70 MB)
• At least 256 colour SVGA video
• 800 x 600 resolution with small fonts
• Works with any printer supported by Windows 2000/XP/Vista™ •
24x CD-ROM
• At least a 56 Kbps modem for online features/services that require
Internet access
Integration
Requirements
(QuickBooks Pro/
Premier)
Microsoft® Word and Excel integration requires Microsoft Word and
Excel 2000, 2002 or 2003.
Microsoft® Outlook synchronisation requires Microsoft Outlook 2000 or
2003.
Multi-user
(QuickBooks Pro/
Premier)
Multi-user mode is optimised for Microsoft® Windows 2000 Server or
Microsoft Windows Server 2003 client-server networks, and Microsoft
Windows 2000/XP peer-to-peer networks. Novell® NetWare is
supported but not recommended.
Note:
Make sure all your hardware is compatible with Microsoft Windows Vista™
before upgrading to a Vista™ environment.
Installing QuickBooks
It’s easy to install QuickBooks.
1.
Insert the QuickBooks CD into your computer’s CD-ROM drive.
If the CD doesn’t start automatically, choose Start menu > Run from the Windows
desktop. Type d:\autorun.exe, where d is your CD-ROM drive.
2.
Follow the onscreen instructions.
Installing QuickBooks
What’s happening when installing QuickBooks?
Your QuickBooks installation is facilitated by an Installer that prompts you to enter
information so it knows how to best install your product. Following is a table that identifies
the type of information you will need to enter during the installation process and why it’s
important to include this.
Chapter 1
Installer window
What the Installer requires
you to do
Why it needs this
Welcome to
QuickBooks Setup
Provide the Installation Key
Code (IKC).
This identifies to the installer that
you are a legitimate owner of this
software.
(If QuickBooks
detects a previous
version)
Select Options
Choose the version of
QuickBooks company file that
you are upgrading.
Company files from different
versions have different data
structures. This tells QuickBooks
how to upgrade your company file
to the latest version.
End User Licence
Acknowledge the terms of the
licence.
The Installer cannot install the
program unless you agree to the
terms and conditions in the licence
agreement.
QuickBooks Install
Options
Specify where to install your
QuickBooks version.
So you can decide whether to
install over a previous installation,
to a new location suggested by
the Installer, or to a folder of your
choice.
Transfer Existing
Settings
Choose whether to transfer
settings from a previous
installation.
You can choose to carry over
user and printing preferences,
plus QuickBooks letters, from a
previous version if it is installed on
your computer.
Select Program
Folder
Verify the folder name from
which the Installer will store
QuickBooks icons.
QuickBooks icons for starting an
application are usually stored in a
folder within the Program directory.
But sometimes users like to store
this information in an alternate
location.
Start Copying Files
Start the file copying process,
which is the major part of the
installation process.
You need to verify that you’re
happy with the way you’ve set up
QuickBooks to install.
Installing the QuickBooks Pro Timer from CD-ROM
The QuickBooks Timer is designed to track and record time data that you then import in to
QuickBooks Pro and QuickBooks Premier. Use it when you want to gather time data from
people who don’t have access to QuickBooks. The timer can run on any computer with a
Windows operating system. You can install the timer from the QuickBooks Installation CD.
1.
Insert the QuickBooks CD in your CD-ROM drive.
If you are asked if you want to install QuickBooks, click No.
2.
Open the Timer Installer.
From the Windows Start menu, select Run. Type the drive letter associated with your
CD-ROM drive, then type:\qbtimer\install.exe and click OK (for example, d:\qbtimer\
install.exe).
3.
Follow the onscreen instructions.
For more information about the QuickBooks Pro Timer, see Setting up and using the Timer
on page 186.
Upgrading from a previous version
If you’ve been using QuickBooks before and have a company file from a previous version,
you won’t want to lose all that valuable data. So it’s a good idea to upgrade your existing
company file so that it works in QuickBooks 2007/08. This saves you the hassle of entering
all that company information from scratch.
Refer to the special documentation that came with your software, entitled Important
Information For Installers, which provides detailed information on how to upgrade your
company file to work with QuickBooks 2007/08.
Activating QuickBooks
The first time you open a company file, you’ll be prompted to activate QuickBooks.
Quicken will activate QuickBooks through one of three methods:
•
Internet
•
Interactive Voice Response (IVR)
•
Quicken Customer Service
The first time you open a company file, QuickBooks will take you to a Quicken Activation
page. You need to follow the instructions, which include entering details in a Quicken
Activation Web page from the Quicken Web site. QuickBooks will be activated automatically
at the end of this process.
Alternatively, QuickBooks might take you to another activation window that gives you a
phone number to call Quicken. An IVR process will take you through the steps to get your
licence key, which you need to enter in the Quicken Activation page that QuickBooks
displays.
If you don’t have access to the Internet, QuickBooks will provide onscreen instructions for
contacting Quicken and getting your licence key, which needs to be entered in the Quicken
Activation page.
You can use QuickBooks six times before you have to activate it. You might be reminded to
activate during this time, but can delay the activation by clicking Cancel.
Installing QuickBooks
Remember that you will only be able to print or view information in your company file, not
to change it, if you have not activated after the sixth use.
We recommend that you activate QuickBooks as soon as you’ve installed it. Follow the
onscreen instructions that QuickBooks provides.
Activate your software without the automatic prompt
1.
Open a sample file or your company file.
2.
Choose File menu > Activate.
3.
Follow the onscreen instructions.
Write down your licence key and keep it in a safe place. You will need it
if you ring technical support.
If you should lose your licence key, you can view it any time by choosing Help
menu > My Licence Information.
If you’re using QuickBooks Pro or Premier on a network, you must activate the software
separately on each computer where the software has been installed. Activation does not
flow through from one computer to other computers on your network.
Working with multiple users
In QuickBooks Pro and Premier, several people can work with your company file at the
same time over a computer network. You can also set up your company file so that different
users have different access to features (see Users and passwords on page 93).
What’s the difference between QuickBooks Premier and QuickBooks Pro?
QuickBooks Premier is multi-user software. When you buy your copy of QuickBooks Premier
you are purchasing the right to install the software on up to three different computers. You
can purchase up to two extra licences to make a total of five machines. Five users can then
work in multi-user mode on the same company file.
Note:
In New Zealand, Singapore and Philippines your initial QuickBooks Premier
licence entitles you to install the software on up to five different computers.
QuickBooks Pro is multi-user enabled software. When you buy your copy of QuickBooks
Pro, you are purchasing the right to install the software on ONE computer only. To create a
multi-user environment, you need to purchase multiple copies (or subscription licences) of
QuickBooks Pro and then network them together, up to a maximum of five users. Users can
then work in multi-user mode on the same company file.
Setting up multi-user networking
Each computer on your network that will have QuickBooks installed on it must have a
unique licence key, which is generated when you activate your software. You must activate
QuickBooks on every computer where the software has been installed.
•
The IKC that comes with QuickBooks Premier allows you to activate the software on up
to three machines (for international versions, see Note above).
•
The IKC that comes with QuickBooks Pro allows you to activate on only one machine.
Chapter 1
Once you have activated up to five copies of QuickBooks Pro on different machines,
you can network them together.
Note:
If you are administering a peer-to-peer network and installing QuickBooks for
other users in your company, be sure that Windows XP users have at least
Standard user rights and that Windows 2000 users have Power Users Group
rights. Users who are granted Restricted user (Users Group) access do not
have the operating system rights to write to the registry keys and will not be
able to use QuickBooks.
If your QuickBooks CD is mounted on a shared CD-ROM drive.
You can install from the mounted CD, but you cannot install across the
network to a remote computer. That is, you must be sitting at the computer
you’re installing to. (You must still store the company file on the shared
resource, or server.)
Peer-to-peer networks
Peer-to-peer networks are ones that do not use a dedicated file server. This means that all
the computers on it have the option to share their resources and there is no single machine
that is used only to allow other computers to share files.
Note:
Some peer-to-peer networking systems meant for home users may be too
slow for QuickBooks to operate properly. If QuickBooks “times out” often on
your network, consider moving to a faster networking system.
For example, if there are three computers on a peer-to-peer network. Each computer
has one user (Jack, Amy and Sarah). Each of the users has a unique copy of QuickBooks
installed with a unique licence key. The QuickBooks company file is only located on Sarah’s
computer.
It is important to choose one location for your company file. The location should be
accessible to all of the computers that need to use QuickBooks. You may want to put the
company file on the computer of the person who uses QuickBooks the most, which allows
that person to have the fastest access to it.
Client-server networks
Client-server networks are ones in which there is at least one computer dedicated to
sharing files, printers, and other resources. This computer is usually not used by individuals
to do their daily work.
In a client-server network, there are several computers plus the file server. You will
most likely want to put the company file on the server, where it’s accessible to all of the
computers that need to use it.
Installing QuickBooks
Each user that needs to use QuickBooks, will have their own copy of QuickBooks installed
with a unique licence key. The file server however, does not need to have QuickBooks
installed.
Setting up multi-user networking
Ensure QuickBooks is installed on each computer that’s going to use your company file
(see Installing QuickBooks on page 4). Each copy must be activated and have a unique
licence key.
Note:
Your networked computers must all use the same version of QuickBooks
Pro or Premier 07/08. That means that if you install an upgrade (or a
service pack) to QuickBooks on one computer, you must install it on all your
computers.
Setting up the Administrator and other users
Once you have installed QuickBooks, the Administrator should set up all the users—to a
maximum of five—who will share the company file (see Users and passwords on page 93).
Going on from here
Once you’ve successfully installed and activated QuickBooks, you’re ready to start using
QuickBooks.
10
•
If you need to upgrade a company file from a previous QuickBooks version, refer to the
Important Notes for Installers that came with your upgrade software.
•
If you’re new to QuickBooks, you’ll need to consider how you want to use QuickBooks
for your specific business and set up a company file. This is shown in Setting up a
company in QuickBooks on page 12.
Chapter 1
Setting up a new company
Setting up a company in QuickBooks
2
12
Before you set up a company
12
More about customers, jobs and items
28
Final steps to completing your setup
28
Things to consider after your company file is set up
35
Connecting QuickBooks to the Internet
36
Updating QuickBooks to the latest release
38
This chapter tells you what information you need to gather to complete the QuickBooks EasyStep Interview. It
also helps you make good choices as you set up your company in QuickBooks and suggests things you can do
after you complete your setup.
Setting up a company in QuickBooks
QuickBooks uses a company file to store necessary data so that you can run your business.
It then records in the company file relevant data to reflect your daily business transactions
and make the right calculations in accordance with the way your business is set up.
For example, the company file will define your chart of accounts, whether you are an
accrual or cash based business, whether you track stock items or services, run payroll and
so on. Once it knows this, based on how you have set it up, the company file can record
relevant day-to-day business tasks such as creating invoices or paying bills. This data is then
available for QuickBooks calculations such as tax liabilities.
You need to set up a company file before using QuickBooks. This is made easy with the
QuickBooks EasyStep Interview, a wizard that asks you a series of questions about your
business. Based on your answers, QuickBooks will then create a company file structure
to support your style of business. Be sure to answer the questions carefully. Most of the
information you provide can be changed later in QuickBooks, but some decisions you make
cannot be reversed.
We’ve organised information in this chapter into sections around setting up a company in
QuickBooks, as shown in the following table.
Fast track to...
Refer to page...
Before you set up a company
on this page
Using the EasyStep Interview
26
Final steps to completing your setup
28
Things to consider after your company file is set up
35
Connecting QuickBooks to the Internet
36
Updating QuickBooks to the latest release
38
Before you set up a company
Before you use the EasyStep Interview to set up your company, it’s important to make
some decisions outside of QuickBooks. This will ensure that you make the best decisions in
setting up your company file.
You need to consider:
12
•
How many companies to set up
•
What accounting method to use
•
What accounting knowledge you need to set up QuickBooks
•
The best way to track your type of detail
•
Whether to use classes, jobs or types
Chapter 2
•
Reports that measure profitability
•
Determining a start date
•
Information to collect outside of QuickBooks
How many companies should I set up?
If you operate a business, your tax office expects you to show clearly all sources of income
and to document any business expenses you claim as deductions.
For tax purposes, it’s usually best to set up a separate QuickBooks company for each
business that files its own activity statement—for example, if you have two shops and
file one activity statement for each, you need to set up two company files in QuickBooks.
However, if you have a farm that grows wheat and raises pigs and you file only one activity
statement for the entire operation, you need only one company file in QuickBooks.
In cases like these, in which you have one business but need to track different segments
of it, set up one company file in QuickBooks and use classes. Classes are another way of
categorising income or expenses in addition to income or expense accounts.
You can use classes to track the following
Industry examples
Account executives
Advertising, consulting
Partners
Law firms, consultants
Construction industry standard categories—for example,
general, site work, concrete or masonry
Construction contractors
Departments
Businesses that budget by
department, retailers
Monies—for example, general or building
You could start with two main classes for restricted and
unrestricted funds, and then make each fund a subclass of a
main class.
Nonprofit organisations,
religious groups
Locations (if the business has more than one)
Restaurants, retailers,
service businesses
Manufacturers or product lines
Distributors, manufacturing
reps, sales agents
You can set up subclasses of existing classes if you need to subtotal information about
classes on reports.
To learn about...
Search the Help index for...
Turning on the preference for using classes
classes, turning on in QuickBooks
Adding classes and subclasses
classes, adding
Setting up a new company
13
What accounting method should I use?
Cash versus accrual bookkeeping
There are two common methods of bookkeeping: cash and accrual. Your method
determines how you report income and expenses on your tax forms. When you begin your
business, you need to decide which bookkeeping method to use.
It’s best not to switch to a different accounting system after you choose one. However, you
can switch between cash and accrual reports in QuickBooks at any time, without affecting
your accounting.
Cash basis accounting
Some small businesses record income when they receive the money and expenses when
they pay the bills. This method is known as bookkeeping on a cash basis. If you’ve been
recording deposits of your customers’ payments but haven’t been including the money
customers owe you as part of your income, you’ve been using cash basis accounting.
Similarly, if you’ve been tracking expenses at the time you pay them, rather than at the
time you first receive the bills, you’ve been using cash basis accounting.
Accrual basis accounting
In accrual-basis bookkeeping, you record income at the time you make the sale, not at the
time you receive the payment from the customer. Similarly, you enter expenses when you
receive the bill, not when you pay it. Most accountants feel that the accrual method gives
you a truer picture of your business’s finances.
How your bookkeeping method affects QuickBooks
QuickBooks enables you to enter your transactions the same way no matter which
bookkeeping method you use. When you first install QuickBooks, it uses accrual basis
accounting by default—for example, it shows income on a profit and loss statement for
invoices as soon as you record them, even if you haven’t yet received payment. It shows
expenses as soon as you record bills, even if they are unpaid.
What accounting do I need to know?
Using QuickBooks requires very little accounting knowledge. All you need to understand is
what a chart of accounts is and the different types of accounts on it.
Your company’s chart of accounts
When you keep books for a business or enterprise, you want to track where your income
comes from, where you put it, what your expenses are for and how you pay them. You track
this flow of money through a list of accounts called the chart of accounts. Your QuickBooks
chart of accounts can have:
14
•
Balance sheet accounts
•
Income accounts
•
Expense accounts
•
Cost of goods sold accounts
•
Non-posting accounts, including purchase orders and estimates which do not appear
on your balance sheet
Chapter 2
QuickBooks creates some of these accounts automatically. For example, QuickBooks
creates an Accounts Receivables (A/R) account when you first create an invoice. You’ll add
other accounts during the company setup, such as a current account—a bank account you
use to carry out daily business transactions. Remember that you can create and modify
your accounts later at any time.
Types of accounts
Balance sheet accounts
Your chart of accounts includes balance sheet accounts. These accounts track:
•
What you have (assets)
•
What people owe you (accounts receivable)
•
What your company owes to other people (accounts payable and other liabilities)
•
The net worth of your company (equity).
The following table describes the various types of QuickBooks balance sheet accounts.
Balance sheet
account type
QuickBooks
account type
Asset
Use to track
What you have and what people owe you
Bank
Transactions in current, savings, and term deposit
accounts. You can also use this type of account for
petty cash.
Accounts
Receivable (A/R)
Transactions between you and your customers,
including invoices, payments from customers,
deposits of customer payments, refunds, and
adjustment notes.
QuickBooks automatically creates an A/R account
when you first create an invoice.
Other Current Asset
Assets that are likely to be converted to cash or used
up within one year, such as the value of your stock
on hand, promissory notes due within a year, prepaid
expenses, and security deposits.
Fixed Asset
Depreciable assets your business owns that aren’t
liquid (not likely to be converted into cash within a
year), such as equipment, furniture, or a building.
Other Asset
Any asset that is neither a current asset nor a fixed
asset, such as long-term promissory notes.
Liability
What your company owes to other people
Accounts Payable
(A/P)
Outstanding bills. When you first enter a bill,
QuickBooks automatically creates an A/P account.
Credit Card
Credit card transactions for your business expenses.
One account per credit card.
Setting up a new company
15
Balance sheet
account type
QuickBooks
account type
Use to track
Other Current
Liability
Liabilities that are scheduled to be paid within one
year, such as tax, payroll taxes, accrued or deferred
salaries, and short-term loans. Some businesses
include the current portion of long-term liabilities in
this kind of account.
Long-Term Liability
Liabilities such as loans or mortgages scheduled to
be paid over periods longer than one year.
Equity
Net worth of your company
(equity = assets – liabilities)
Equity
A company builds equity from three sources:
• Investment of capital in the business by the owners
• Net profit from operating the business during the
current accounting period
• Retained earnings, or net profits from earlier
periods that are carried forward into the current
tax year and that have not been distributed to the
owners
Balances for balance sheet accounts
The Chart of Accounts window shows a balance for each account except for the special
equity account, Retained Earnings.
One of the first
things you should
do when you start
a new business
is create a Bank
Account.
Hint:
If you have multicurrency turned on, the chart of accounts also shows
the currency denomination of each account. For more information on
multicurrency, see Working with Multicurrency on page 130.
16
Chapter 2
Income and expense accounts
Income and expense accounts track the sources of your income and the purpose of each
expense. When you record transactions in a balance sheet account, you usually assign the
amount of the transaction to one or more income or expense accounts. For example, you
not only record that you took money out of your current account but you keep track of what
you spent the money on, such as utilities, advertising, or office supplies.
There are no registers for income and expense accounts but you can create reports to show
totals for these accounts over a period of time. To create a report on an income or expense
account, in the chart of accounts, double-click the account for which you want a report.
Cost of goods sold (COGS) account
Many businesses that track stock have one cost of goods sold (COGS) account. A COGS
account contains the cost of goods or raw materials that you have sold. QuickBooks adds
this account to your chart of accounts the first time you create a stock item. Your chart of
accounts lists the type for this account as Cost of Goods Sold. QuickBooks uses this account
to track how much you paid for goods and materials held in stock that you eventually sold.
After a sale, QuickBooks adjusts your cost of goods sold by multiplying the quantity sold by
the average cost of each item.
Setting up a new company
17
What’s the best way to track my type of detail?
The following table describes situations that require a business to track a particular type of
detail and the best way to track this detail in QuickBooks.
Situation
How to record in
QuickBooks
Comments
For more...
You need to track
details of services
you’re providing or
products you’re selling.
Set up items in the Item
list for your services
and products.
Record the sale,
using the appropriate
items. On sales forms
you can edit the item
descriptions to add
detail you want the
customer or client to
see.
You can get reports
about the items for
services and products
that you have sold,
including quantities
and dollar amounts by
item.
search the Help index for:
items
You need to track
multiple jobs for the
same customer.
Set up jobs for the
customer on your
Customer:Job List.
When entering any
sales for a job, enter
both the job and
customer name in the
Customer:Job field.
Reports by customer
or by job give
subtotals by job and
then a total of jobs for
the customer.
search the Help index for:
jobs, setting up
You need to track
expenses by
customer or job.
If you don’t have
QuickBooks Pro or
Premier, turn on the
preference for tracking
expenses by job.
When entering any
expenses for a
customer or job, enter
the customer name or
the job and customer
name in the Customer:
Job field.
You can track
expenses by customer
alone if you don’t use
jobs.
The Profit & Loss by
Job Report lists both
income and expenses
with a separate
column for each
customer and job.
search the Help index for:
customers,
adding new
Turn on class tracking,
and set up a class on
your Class List for each
fund/monies.
On every transaction,
enter a class as well
as an account (where
appropriate).
The Profit & Loss by
Class Report has a
column for each fund/
monies (class), so you
can see income and
expenses by fund.
search the Help index for:
classes, turning on in
QuickBooks
You need to track
income and expenses
by monies, location,
department, or
business segment.
Examples: Religious
and arts organisations,
retail stores with
multiple locations.
18
Chapter 2
profit and loss reports
Situation
How to record in
QuickBooks
Comments
For more...
You have employees
and need to see detail
about payroll taxes and
other payroll expenses.
Example: Any company
with employees.
Use the QuickBooks
payroll feature to track
your payroll.
The payroll reports
show all your payroll
information.
see Setting up payroll: an
overview on page 146.
You need to track
certain details about
your customers and
suppliers.
Example: Payment
terms, customer’s
tax, customer’s
ship to address, tax
information, your
account number with a
supplier.
Find and fill in the
appropriate field in the
New or Edit Customer
window or the New or
Edit Supplier window.
The field you want may
be on the Additional
Info tab.
If you set up
customers and
suppliers by using
the QuickAdd option,
go back later, to add
missing information.
search the Help index for:
customers, adding new
customers, editing
information for suppliers,
adding, adding a supplier
suppliers, editing
information for
You want to see reports
for a particular group
of customers, jobs, or
suppliers.
Examples: Residential
vs. commercial
customers; remodelling
jobs vs. new
construction; suppliers
that sell materials vs.
subcontractors.
When setting up a
customer, job, or
supplier, assign a type.
(Job types are available
only in QuickBooks
Pro and QuickBooks
Premier.)
You can filter a
relevant report to limit
the transactions to
those for customers,
job, or suppliers of the
type (or types) you
specify.
You can filter a report
of your Customer:Job
List or Supplier List
to limit the names to
those for the type (or
types) you specify.
search the Help index for:
customer types,
job types, supplier,
adding report
customisation
On your Item List, you
want to group similar
items together.
Example: A school
store wants to group
clothing items and also
group book items.
Set up a main, or
parent, item (for
example, clothing).
Then set up subitems
of the parent item (for
example, T-shirt, cap).
Use the appropriate
subitem when entering
a sale or purchase of
items.
On reports that
summarise amounts
by item, QuickBooks
provides an amount
for each subitem, and
then a subtotal for all
subitems of the same
item.
search the Help index for:
subtotals, on sales forms
Setting up a new company
19
Situation
How to record in
QuickBooks
Comments
For more...
You want to track
information that
QuickBooks doesn’t
already track for
customers, suppliers,
employees, or the
items you sell.
Example: Patient’s
insurance company,
item size or colour.
Set up a custom
field for tracking the
particular kind of
information.
Fill in the custom field,
where relevant, for new
and existing customers,
suppliers, employees,
or items.
To display and print the
custom field on sales
forms or purchase
orders, customise the
form to add the new
field.
You can use the
same custom field for
customers, suppliers,
and employees if you
choose.
Custom fields for items
are only for items
you sell or purchase
(services, parts, and
other charges).
You can filter a
relevant report to
limit the transactions
to forms that have
specific text in a
custom field.
search the Help index for:
custom fields, about
estimates, customising
On your profit and loss
statement, you want
to see subtotals for
accounts that have
something in common.
Example: A
construction company
wants a subtotal for
construction income for
labour, materials, and
subcontractors.
Set up a main, or
parent, account for
the subtotal (for
example, construction
income). Then set
up subaccounts of
the parent account
(for example,
labour, materials,
subcontractors).
Use the appropriate
subaccount when
QuickBooks requires
you to specify an
account.
On reports that
summarise amounts
by account,
QuickBooks provides
an amount for each
subaccount and
then a subtotal for all
subaccounts of the
same account.
search the Help index for:
subaccounts, then
click the link Why use
subaccounts?
Tracking income and expenses with classes
Do you need to track income and expenses for separate parts of your business or
organisation? The following table has examples of what you can track by using classes in
QuickBooks. The word class has nothing to do with teaching or learning—instead, it is a way
of classifying income or expenses in addition to assigning an income or expense account.
20
Chapter 2
Use classes to track the following
Industry examples
Account executives (particularly useful if using an
employee incentive program linked to the employee’s
business goals and profitability)
• Advertising
• PR
• Consulting
Construction industry standard categories (General, Site
Work, Concrete, Masonry, and so on)
• Construction contractors
Departments
• Businesses that budget by
department
• Retailers
Use classes to track the following
Industry examples
Monies (General, Building and so on)
You could start with two main classes for restricted and
unrestricted funds, and then make each fund a subclass
of a main class.
• Nonprofit organisations
• Religious groups
Locations (if the business has more than one)
• Restaurants
• Retailers
• Service businesses
Manufacturers
• Distributors
• Manufacturing reps
Partners
• Law firms
• Consulting
• Any other partnerships
Product lines
• Distributors
• Manufacturing reps
• Sales agents
After you set up classes, you can enter them on any income or expense transaction
including payroll transactions. You can’t assign classes to transactions that involve only
balance sheet accounts—for example, transfers from current to savings, setup of stock,
setup of fixed assets. You can set up subclasses of existing classes if you need to subtotal
information about classes on reports.
To learn about…
Search the Help index for…
Turning on the preference for using classes
classes, turning on in QuickBooks
Entering a class on a transaction
classes, assigning to a transaction
Adding classes and subclasses
classes, adding
Setting up a new company
21
Should I use classes, jobs or types?
Ask yourself if you are trying to track income or expense activity associated with a
particular customer or group of customers or group of jobs.
If your answer is yes, then you use jobs, customer types, or job types to track expenses by
job. The following table shows what you can do with each of these.
To do the following…
Do this in QuickBooks…
Examples of reports to
use...
Keep track of sales for separate
jobs or projects for one customer.
Set up and use jobs for the
customer on the Customer:
Job List.
Sales by Customer
Summary (which shows
each job separately)
See income or expenses for one
type of customer, as distinguished
from another type.
Example: A PR writer wants to
compare a restaurant with retail
clients.
When entering or editing
a customer, assign a
customer type.
Sales by Customer
Summary, filtered for one
customer type
Profit & Loss by Job,
filtered for one customer
type
(QuickBooks Pro and Premier
only) See income or expenses for
one type of job, as distinguished
from another type. (Jobs of the
same type can be for different
customers.)
Example: A construction contractor
compares kitchen remodels with
office remodels.
When entering or editing a
job, assign a job type.
Sales by Customer
Summary, filtered for one
job type
Profit & Loss by Job,
filtered for one job type
Assign expenses to a customer (or
to a particular job for a customer).
On every expense
transaction for that
customer or job, enter the
customer name (or the
customer and job name)
in the
Customer:Job field.
The following reports
always break down
amounts by customer. If
you have jobs, they also
break down amounts by
job.
Profit & Loss by Job,
Job Profitability
(QuickBooks Pro and
Premier only)
Profit & Loss Budget vs.
Actual
If you are tracking a segment of your business that is independent of your customers and
jobs, set up a class for the particular business segment. Then enter the class name in the
Class field of every income or expense transaction for that segment.
Reports that measure profitability
The value and performance of your company can be summarised by two reports: the
balance sheet and the profit and loss statement. How you set up your accounts will greatly
influence the level of detail you can get on these reports. You may also want to create the
Statement of Cash Flows Report, which details the net change in your cash during a period.
22
Chapter 2
The balance sheet
A Balance Sheet is a
financial snapshot of
your company on one
given date. This report is
useful when applying for
a business loan or at yearend to get an account of
your company’s equity,
assets and liabilities.
The profit and loss
statement
A Profit and Loss
Statement, also called an
Income Statement, shows
your revenue, expenses
and net profit or loss—
that is, income minus
expenses—summarising
the revenue and expenses
of your business by
category (first income,
then expenses).
The net income of your
business is calculated as
income minus expenses.
Determining a start date
New Business
If your business has no financial transactions yet—that is, you are starting up your business
at the same time you are setting it up in QuickBooks—your start date is today. You can go
on to Information to collect outside of QuickBooks on page 24.
Existing Business
Your start date is the date on which you begin managing your business finances in
QuickBooks. It determines what information you need to enter in the EasyStep Interview
and afterwards—for example, you could choose today as your start date, in which case you
will need to enter how much money you have in each of your accounts and the amounts
that your customers owe you and you owe your suppliers. Or, you could choose an earlier
date, in which case you’ll also need to enter all the business transactions you’ve made
between your start date and today.
Setting up a new company
23
The advantage of choosing today as your start date is that you don’t need to enter many
historical transactions, which saves you time. The advantage of choosing an earlier date
(and entering your business’ historical transactions) is that you’ll be able to see a lot more
detail in your business reports.
To choose a start date that’s best for your company, consider these questions:
•
When does your company’s financial year start?
•
How close is today to the end of your financial year?
•
Do you have an accurate balance sheet for your current financial year?
•
Do you have an accurate profit and loss statement for your current financial year?
•
How far back in time are you willing to enter historical transactions (old invoices, bills,
bank account transactions)?
•
Will you be tracking payroll in QuickBooks?
Hint:
Although you can change your start date later, it determines much of your
setup. It’s easier to decide on the best start date now rather than later.
If it’s almost the end of your company’s financial year, consider finishing it using your old
system of bookkeeping. Then set up your company in QuickBooks with a start date of your
financial year-end so you can use QuickBooks for the new financial year. You’ll have the
detail for each financial year, and you won’t have to do a lot of work setting up.
If it is not near the beginning of your financial year, decide which is more important to you:
•
Do you want to have full detail in QuickBooks for the current financial year?
•
Do you want to enter relatively few historical transactions (covering the period between
your start date and today)?
If you’re not going to enter your historical information for the full financial year, you
may want to choose a start date at the beginning of a calendar quarter, especially if
you’re going to use a payroll.
If your business generates a lot of invoices, bills or cheques, you probably don’t want to
enter more than three months of historical transactions. On the other hand, if your business
has relatively few transactions, you may be willing to enter several months of historical
detail.
Information to collect outside of QuickBooks
Who owns your business?
If you have not already done so, start by determining what type of business ownership is
right for you.
24
•
Sole proprietorships. A sole proprietorship is a business owned by one person.
•
Partnerships. A partnership is an unincorporated business owned by two or more
persons. In a partnership, each partner owns a share of all assets and liabilities. Each
partner may have invested in the partnership and each receives a specified share of
profits. Partners do not receive salaries but they may withdraw money against their
share of profits.
Chapter 2
•
Limited company. A limited company is owned by its shareholders. Unlike a sole
proprietorship or a partnership, a limited company can pay a working owner a salary.
Check with your accountant or your government tax office to make sure you understand the
tax responsibilities for your type of business ownership.
Other important information you’ll need
The following table lists the information that you will need to complete the EasyStep
Interview and also where you will find it. You should be able to enter most of the
information in the Interview, but there may be some areas that you will need to come back
to after completing your company setup.
You can leave and come back to the interview at any point.
Information you need
Where to find it
Company legal name and address.
Owner, your accountant, or tax
forms.

Tax Registration ID (ABN). You must have a
Tax Registration ID (ABN) if you collect tax.
Your government tax office.

The dates of your accounting period:
• first month of your financial year,
• first month of your income tax year,
• your QuickBooks start date
Your records or accountant.

A preprinted activity statement your business
received from your tax office.
Your accountant or tax office.

Chart of accounts for your business.
Tip: If you do not have an existing chart of
accounts, don’t worry. The EasyStep Interview
helps you choose an appropriate chart of
accounts for your industry.
Your accountant or previous
bookkeeping method.

Names of the people in your company who
will use QuickBooks, and which areas of
your financial records you want them to have
access to.
See Working with multiple users
on page 8.

Balances for these types of accounts:
• credit card
• loan and line-of-credit
• bank
• Statements covering your
start date up to today for all
bank accounts, including
current, savings, and fixed
term deposits.
• All uncleared cheques,
deposits, or other items—for
example, credit card receipts.
• Balance sheet prepared by
your accountant.

How much tax you owe.
Accountant or your tax office.

Setting up a new company
25
Information you need
Where to find it
List of types of items you sell (products and
services) including:
• item number or name
• current sales price or hourly rates
• the tax code that is usually associated with
the item,
• income account for tracking sales of the
item
For stock only:
• Purchasing cost
• Quantity in stock
• Total value of stock for the item
Your company records.

List of customers, including:
• Addresses
• Contact names
• Phone numbers
• Outstanding invoices
Your company records.

List of suppliers, including:
• Addresses
• Contact names
• Phone numbers
• Outstanding bills
Your company records.

Value of your assets.
For fixed assets, you also need the original
cost and accumulated depreciation.
Balance sheet prepared by your
accountant.

Equity information.
All the money you have put into the company,
plus the sum of the retained earnings (the net
profit or loss) for each year your company has
been operating.
Your accountant.

Payroll information.
See Setting up payroll: an
overview on page 146 for
details.

Using the EasyStep Interview
Important:
QuickBooks Premier industry-specific editions come with company files that
are partially set up based on a specific industry; therefore, the EasyStep
Interview is not available. For more information, see QuickBooks Premier
industry-specific editions on page 222.
The EasyStep Interview walks you through the process of setting up your entire business in
QuickBooks. It takes about an hour to complete, but if for some reason you need to exit the
interview, you can click Leave at any time. The EasyStep Interview remembers where you
left off.
26
Chapter 2
For a list of the questions that appear in the Interview see the EasyStep.txt file in the
QuickBooks program directory. You can use this list to organise your information for the
Interview.
Starting the Interview the first time you start QuickBooks:
The first time you start QuickBooks, it displays a window with several options. One is to
create a new company. Choose this option and click OK to start the EasyStep Interview.
Opening the EasyStep Interview at other times:
With your company file open, choose File menu > EasyStep Interview. The interview picks
up where you left it and you can continue on.
You can’t change information by returning to the EasyStep Interview
and answering the questions differently.
If you need to change information you entered in the EasyStep Interview,
change it directly in QuickBooks. The EasyStep Interview is designed to help
you with the initial setup of your company file, not for editing it.
Getting around in the EasyStep Interview
The EasyStep Interview is grouped into six sections. After you complete all the sections,
your company file will contain all the basic information about your business that is needed
to maintain your books.
•
General: Lets you enter company information, choose a chart of accounts appropriate
for your business, decide on QuickBooks preferences, and specify a business start
date.
Complete the General section of the Interview before going on to
other areas.
QuickBooks won’t know enough about your company to ask the rest of
the Interview questions unless the General section is completed first.
Setting up a new company
27
•
Income & Expenses: Lets you review the income and expense accounts on your
business’s chart of accounts and create new accounts, if needed.
•
Income Details: Lets you specify whether your business income is from services and/or
products you sell. Based on the information provided, QuickBooks determines which
income tracking and accounts receivable features you need.
•
Opening Balances: Lets you enter information about the customers who owe you
money as of your start date, suppliers to whom you owe money as of your start date,
and balances in your balance sheet accounts as of your start date.
•
Payroll: Lets you enter information like tax file numbers and birth date for your
employees, set how often you will pay them, and set up payroll items (which you use to
assign rates of pay, and other deductions and additions to pay cheques for employees).
•
What’s Next: Describes some common tasks in QuickBooks that you may want to
complete after you have finished the Interview.
Hint:
Some questions ask you to make a decision that is not easily reversed. When
this is the case, you’ll see a warning symbol:
More about customers, jobs and items
During setup you may be wondering whether to set up customers, jobs or items. There
are good reasons to set these up and many ways you can use these in your company file,
increasing the efficiency of your business.
Refer to page 42 for detailed information on how you can use these elements to support
the way you do business in QuickBooks. Use this chapter to make an informed decision
when making choices as you work your way through the EasyStep Interview.
Final steps to completing your setup
This section provides you with the following information to help you to complete company
setup:
•
Fine tuning your accounts
•
Entering your company’s historical transactions
•
Completing your customer, supplier and item information
•
Adjusting opening balances for balance sheet accounts
•
Setting up accounts to track equity details
•
Setting your number, currency, time and date settings
Fine tuning your accounts
QuickBooks sets up a chart of accounts for you during the Interview. Before you begin
entering transactions, make sure your chart of accounts is complete and that it accurately
represents how your business works. Change account names and edit, delete, or add
28
Chapter 2
accounts to make your chart of accounts reflect your company’s financial activity, if you
have to.
You can adjust the opening balances of the accounts in your chart of accounts, too. For
more information, see Adjusting opening balances for balance sheet accounts on page 32.
It’s important to decide on an account structure that meets your needs
now.
Although you can edit your chart of accounts later if you need to, it’s much
easier to make changes before you start entering transactions.
You can fine-tune your chart of accounts at any time by doing the following:
•
Add new accounts or subaccounts.
You can add subaccounts to balance sheet accounts—for example, fixed asset
accounts—as well as to income and expense accounts.
•
Turn on and use account numbers.
QuickBooks has an option for specifying account numbers in addition to names. If the
account is one that QuickBooks added for you, it already has a number but you can
change it.
•
Change the name or number of an existing account.
•
Enter or edit an opening balance for a balance sheet account if the original opening
balance is incorrect.
•
Arrange accounts of the same type in alphabetical order (or numerical order if account
numbers are turned on).
•
Rearrange the order of accounts within the same account type.
•
Make one existing account the subaccount of another (or, conversely, move a
subaccount to a higher level).
You can drag accounts to a new position on the chart of accounts. When your accounts are
not in alphabetical or numerical order and you add a new account, QuickBooks places the
new account above the other accounts of the same type.
To learn about…
Search the Help index for…
Adding new accounts or subaccounts
accounts, adding to your chart of
accounts
Turning on account numbers
accounts (managing), numbering
Changing account names or numbers
accounts (managing), editing
Changing or entering an opening balance for a
balance sheet account
• opening balances, changing for
existing accounts
• opening balances, entering for existing
accounts
Arranging accounts (and other lists) in alphabetical
or numerical order
lists, sorting entries
Setting up a new company
29
To learn about…
Search the Help index for…
Reorganising accounts within the same account
type; also, reorganising other lists that enable
subentries—for example, Customer:Job list
lists, reorganising entries
Remove accounts from your chart of accounts
accounts, deleting
Using account numbers
To better maintain your chart of accounts, develop and follow consistent account naming
and numbering conventions—for example, some accountants like you to add a numbering
scheme to your accounts:
1000-1999 - Assets
2000-2999 - Liabilities
3000-3999 - Equity
4000-4999 - Income
5000-5999 - Expenses
6000-6999 - Other income and expenses
Adding numbers can help you identify the type of accounts, thereby speeding up your
account selection on various forms.
To learn about…
Search the Help index for…
Changing your chart of accounts
accounts, adding, editing, deleting
Entering your company’s historical transactions
If you’ve decided on a start date that is before today’s date, you’ll need to enter past
transactions to have complete financial records from your start date forward. Then your
QuickBooks records will be as complete as if you had started using the program on your
start date. Enter historical transactions in this order:
1.
Invoices you’ve sent out since your start date.
2.
Purchase orders you’ve issued since your start date that have not been received in full.
3.
Cash or cheques you’ve received since your start date.
4.
Bills you’ve received since your start date.
5.
Bills you’ve paid since your start date.
6.
Deposits you’ve made to any of your accounts since your start date.
7.
Any other payments you’ve made (for things other than bills) since your start date.
The order you enter historical transactions is important.
For example, QuickBooks won’t know how to credit a customer payment
unless you’ve previously recorded the invoice to that customer.
Enter transactions in your bank account last, because your accounts payable and
accounts receivable affect your bank account. By the time you enter all of your historical
transactions, your cheque register will be mostly up-to-date.
30
Chapter 2
To learn about...
Search the Help index for...
Entering historical information
historical transactions
Entering current transactions with historical ones
You don’t have to enter all your historical transactions before you start using QuickBooks
for your current ones. Enter current transactions as they occur so you don’t get behind. Then
catch up with historical transactions when you can. Remember, though, that your account
balances will be off until you’ve entered all the past transactions.
If current and historical transactions are related, enter the earlier one first—for example,
if you receive a payment today for an invoice you have not yet entered, enter the invoice
first and then use QuickBooks to record the payment. That way, QuickBooks links your
transactions correctly to each other.
Entering historical payroll information
If you are going to use payroll, enter historical payroll information so QuickBooks has
complete year-to-date records of wages and salaries you’ve paid. QuickBooks needs this
information to compute accurate tax information and payroll reports. See Setting up payroll:
an overview on page 146 for more information.
To learn about…
Search the Help index for…
Entering historical payroll information
Year-to-date amounts, payroll
Entering bank account information
If you entered all your historical transactions, your current account or savings account
register already contains entries reflecting bills you’ve paid, cheques you’ve written for other
purposes, and deposits you’ve received. But there are other transactions that you must
enter to make your account registers complete:
•
Cheques or other payments you created before your start date but weren’t cashed until
after your start date—for example, cheques written a few months ago but not cashed
until recently.
•
Deposits you made before your start date, but which didn’t appear on statements until
after your start date.
•
Cheques or other payments you made after your start date that were not for bills or
accounts payable—for example, credit card payments.
•
Deposits made after your start date that were not customer payments.
•
Bank charges, fees, or interest paid to your account.
To learn about…
Search the Help index for…
Entering information in account registers
registers, entering transactions in
Setting up a new company
31
Completing your customer, supplier and item information
During the Interview, you entered information about customer and supplier open balances.
Now you need to enter more information, such as addresses, phone numbers, and credit
limits—though it’s not necessary to enter this information for all customers and suppliers at
once.
Hint:
If you use QuickBooks Pro or Premier with Microsoft Outlook or QuickBooks
Customer Manager, you can synchronise information about customers and
suppliers (such as addresses and phone numbers). This way you have all
the information up-to-date in all areas. To learn about synchronising contact
information, search the Help index for contact management, synchronising
names with a contact manager.
Items are the goods, services and other things you buy and sell. QuickBooks starts a list of
items when you go through the Interview but you’ll want to add to this list and refine the
information you’ve already entered.
To learn about…
Search the Help index for…
Adding a new customer
customers, adding
Adding a new supplier
suppliers, adding
Item types and uses
items, about
Adjusting opening balances for balance sheet accounts
After creating your company in the EasyStep Interview, you may need to enter additional
opening balances or make adjustments to the account balances you’ve entered.
To adjust an opening balance for an account:
1.
Choose Lists menu > Chart of Accounts and double-click the account that should have
an opening balance.
2.
Click anywhere on a blank entry at the end of the register, change today’s date to your
QuickBooks start date and leave the Ref and Payee fields blank.
3.
Type the opening balance into a column as follows.
4.
32
Chapter 2
Type of account
Type the opening balance amount into the following column
Bank
Deposit
Asset, liability or equity
Increase
Credit card
Charge
Select Opening Bal Equity in the Account field.
Note:
If you have not entered an opening balance for any of your accounts, you
will have to create an Opening Bal Equity account. Enter accounts, equity
in the in-product Help Index for information on creating an equity account.
5.
Click Record.
These accounts may also need adjusting if you do any of the
following:
•
Collect tax, record the amount you owe as of your start date.
If you have entered your historical invoices and purchases, do not include the amount
you owe since your start date. Instead, check whether you owe more than the invoices
cover and, if so, adjust your tax liability accordingly. For more information, see Setting
up tax preferences on page 104.
•
To learn about…
Search the Help index for…
Recording the tax you owed as of your start date
tax, historical data
Adjusting your tax liability
tax, adjusting
Adjust the Uncategorised Income and Uncategorised Expenses accounts, if you’re using
accrual-basis accounting.
When you enter unpaid opening balances for customers, QuickBooks assigns the
income to an account called Uncategorised Income. Similarly, when you enter unpaid
balances owing for suppliers, QuickBooks assigns the expenses to the Uncategorised
Expenses account.
If you keep your books on a cash basis, QuickBooks does not show these two accounts
on your profit and loss statement until a customer makes a payment, which is the
expected behaviour. You do not need to make any adjustments. If you keep your
books on an accrual basis, QuickBooks does show these two accounts on your profit
and loss statement as of your start date. Your accountant may want you to make an
adjustment so that the income from all invoices and the expenses from all bills before
the start date are also tracked on an accrual basis, regardless of whether payment has
occurred. Ask your accountant whether this situation applies to you.
To learn about…
Search the Help index for…
Adjusting for Uncategorised Income and Expenses
Uncategorised Expense account
Uncategorised Income account
Setting up a new company
33
•
Adjust for current income and expenses if your start date is not at the beginning of
your financial year.
If you set up your company in QuickBooks with a mid-year start date and you know
what your income and expenses are from the beginning of your financial year to your
start date, you can enter adjustments for them. Then, when you create a profit and
loss statement in QuickBooks, it will be accurate from the beginning of the financial
year to any date after your start date. To get this information, have your accountant
create a year-to-date profit and loss statement (also called an income statement) for
your current financial year through your start date.
•
To learn about…
Search the Help index for…
Adjusting income and expenses for mid-year
setup
adjustments, income and expenses
Distribute earnings and equity from before your start date.
After you have entered all of your opening balances and made other adjustments, you
may want to distribute the amount in your Opening Bal Equity account to other equity
accounts if you want to identify retained earnings or the equity of several owners.
To learn about…
Search the Help index for…
Distributing earnings and equity from before
your start date
Opening Bal Equity account
Equity carried over from previous financial
periods
equity, retained earnings from
Moving the amount in the Opening Bal Equity
account to other equity accounts
equity, transferring from Opening Bal
Equity
Setting up accounts to track equity details
Your company’s equity comes from two sources:
•
Money invested in your company (capital investments)
•
Profits of your company
Of course, the owner can also take money out of the company. Such withdrawals, called
owner’s draws, reduce the company equity.
QuickBooks sets up two equity accounts automatically:
•
Opening Bal Equity
For every balance sheet account you set up with an opening balance,
QuickBooks records the amount of the opening balance in the Opening Bal Equity
account. (Asset account opening balances increase the equity; liability account
opening balances decrease the equity.)
•
Retained Earnings
If you have data for more than one financial year, the QuickBooks balance sheet has
a balance for the Retained Earnings account equal to the net profit from previous
financial years. The balance for the Retained Earnings account does not display on the
chart of accounts.
34
Chapter 2
Some people like to track owner investments, owner’s draws, and retained earnings before
the QuickBooks start date by putting them in separate equity accounts. If you decide to add
additional equity accounts, QuickBooks still adds the Retained Earnings and Net Income
lines on your balance sheet.
Equity accounts for sole proprietorships
Because all equity of a sole proprietorship company belongs to one person, tracking equity
can be very simple. As of your QuickBooks start date, all equity is in the Opening Bal Equity
account. You have several options:
•
Keep the equity in this account and perhaps rename the account to something like
Owner’s Equity.
•
Transfer all the equity out of Opening Bal Equity into Retained Earnings.
This action is appropriate for companies that have built up assets as a result of
earnings before the QuickBooks start date. From now on, you can take the owner’s
draws out of the Retained Earnings account.
•
Set up additional accounts (or subaccounts) to track the owner’s investments, owner’s
draws, and earnings before your QuickBooks start date.
When setting up a new account for an owner’s draws, enter a negative opening balance
to show the total draws before the QuickBooks start date. The negative opening balance
indicates that the draws have reduced the company’s equity. Or, enter a zero opening
balance and simply record draws from now on.
Setting your number, currency, time and date settings
Your Microsoft Windows settings affect how QuickBooks displays numbers, currency, time,
and dates.
To set your number, currency, time and date settings:
1.
Click Start on your Microsoft Windows screen and choose Settings > Control Panel.
2.
Double-click Regional Options or Regional Settings.
3.
Use the tabs to display and edit your number, currency, time and date settings.
4.
Click OK.
5.
Close the Control Panel.
Things to consider after your company file is set up
This section details the things you need to consider once you have set up your company file:
•
Creating reports to check your setup
•
Maintaining your previous accounting system
Setting up a new company
35
Creating reports to check your setup
After you’ve finished setting up your company in QuickBooks and making any adjustments,
you should create reports to check that QuickBooks has the right numbers.
In both QuickBooks and your former accounting system, create a Profit and Loss Statement
and a Balance Sheet. Each report should cover the beginning of your financial year through
to your QuickBooks start date—for example, if your financial year began on 1 July and your
start date was 1 September, create reports that cover 1 July to 1 September.
Both reports should show the same balances for your accounts.
Maintaining your previous accounting system
If your business existed before you began to use QuickBooks, make sure you keep
your previous accounting system complete in case your government tax office requires
information from your previous years of business.
You should keep any software and the hardware your former accounting system requires
along with the relevant files.
Connecting QuickBooks to the Internet
This section provides you with the following information to help you connect QuickBooks to
the Internet:
•
What you need
•
Why you should connect QuickBooks to the Internet
•
Connecting to the Internet
•
Changing an Internet connection
What you need
Your PC must be connected to the Internet through an Internet Service Provider (ISP). Your
work PC may be connected through a local area network (LAN). If you can read email or
browse the Web, you are connected to the Internet.
Why you should connect QuickBooks to the Internet
You don’t need Internet access to use QuickBooks, but the ability to go online can easily
double the power and flexibility of your software. It enables you to take advantage of
Internet-only features in QuickBooks.
Consider these additional possibilities:
36
•
Explore other opportunities with Tools to help your business.
Choose Company menu > Business Services Navigator. (See Tools to help your
business on page 211 for more details.)
•
Receive QuickBooks updates. Download and install QuickBooks software updates as
they become available.
Chapter 2
Setting up an Internet connection
If you are a new user
If you are a new user, you are immediately prompted to register QuickBooks. If you choose
to do so online, QuickBooks helps you set up your Internet connection. It’s a good idea to
register as soon as you can so that you can begin using all of the QuickBooks features.
Hint:
If you did not activate your copy of QuickBooks immediately after installation,
you can do so at any time by choosing File menu > Activate QuickBooks. (If
you do not see Activate QuickBooks under the File menu, then QuickBooks is
already activated.)
If you are upgrading from a previous version
After you install QuickBooks, you’re prompted to activate QuickBooks. If you owned a
previous version of QuickBooks, QuickBooks 2007/08 uses the same Internet settings as
your previous version. If you have changed your Internet Service Provider or switched from
using a modem to using a direct connection you can change your settings manually.
Connecting to the Internet
1.
Choose Help menu > Internet Connection Setup.
If you have not used QuickBooks on your computer before, QuickBooks automatically
launches the Internet Connection Setup Wizard.
2.
Follow the instructions and click Next to move to the next window.
3.
Repeat for each window and then click Done.
Changing an Internet connection
If you already have a connection to the Internet, you can modify the connection settings.
You can also set up other ways QuickBooks can connect to the Internet. Doing so gives
you an alternate way to connect to the Internet if your regular connection is down for some
reason.
1.
Choose Help menu > Internet Connection Setup to display the Internet Connection
Setup window.
2.
Select Use my computer’s Internet connection settings to establish a connection when
this application accesses the Internet and click Next.
3.
Click Advanced Connection Settings to display the Internet Properties window
4.
Click Add to create a new dial-up networking connection.
5.
Follow the instructions and click Next to move to the next window, and repeat this step
for each window.
6.
Click OK and repeat for each Internet connection profile you want to create. Each
profile you create displays in the Internet Connection Setup window.
7.
Click Done.
Setting up a new company
37
If QuickBooks doesn’t detect your Internet connection, try the following:
•
Close QuickBooks, then connect to an Internet service provider.
•
When you have successfully connected to the Internet, re-open QuickBooks.
•
Display the Internet Connection Setup window and select Use my computer’s Internet
connection settings to establish a connection when this application accesses the
Internet.
Updating QuickBooks to the latest release
This section provides you with the following information that enables you to update
QuickBooks:
•
Getting updates from the Internet
•
Updating from a CD-ROM
From time to time, Quicken provides updates to QuickBooks that you can download from
the Internet.
These updates might be:
•
A service pack that Quicken provides to fix a problem users experience after
QuickBooks is released
•
A new feature or service
•
Timely information that is relevant to your business (such as tax table updates)
If you do not have a company file available but want to update QuickBooks, open one of
the sample data files included with QuickBooks, then update the software as you normally
would.
Getting updates from the Internet
In QuickBooks, the Update QuickBooks window gives you a convenient way to download
updates from the Quicken server to your computer. To download an update, you need to
have set up QuickBooks to work with an Internet connection (see Connecting QuickBooks
to the Internet on page 36).
You should check for updates about once a month. Download times for updates vary
depending on the speed of your Internet connection, the size of the update files, and the
amount of traffic on the Internet.
Note:
To download a QuickBooks update, you will need a Customer ID and PIN.
Your Quicken Customer ID was sent to you with your product registration
details and should be noted on any correspondence that Quicken has made
with you. If you are unable to locate your Quicken Customer ID, speak to a
Quicken representative. For a list of contact details see Contacting Quicken
on page 233.
38
Chapter 2
1.
Do one of the following:
Choose File menu > Update QuickBooks. Connect your Internet browser to
www.quicken.com.au.
Choose Support menu > Downloads > Updates & Service Packs.
2.
Locate the row containing your QuickBooks product and click the associated Updates &
Service Packs icon.
3.
Read through the list of updates to locate the one relevant to you, then click the
product name link to download the update.
4.
Type your Customer ID, PIN and click Login.
5.
Follow the prompts to download and install the update.
Sharing updates among multiple users
Note:
If you use QuickBooks Pro or Premier in multi-user mode, you need to install
updates on each computer that has QuickBooks installed on it.
You can either connect to the Internet from each computer that has QuickBooks installed
on it, or you can download the update to one computer on your network and share it—for
example, if one or more users don’t have Internet access.
To share updates, you need to be sure that all your users can access the location on your
network where the updates are downloaded. Therefore, each computer running QuickBooks
must be:
•
Networked properly
•
Configured to share files across the relevant network
Updating from a CD-ROM
If you don’t have Internet access, you can have an update mailed to you on a CD-ROM (fees
may apply). For more information, contact Customer Service (see page 233).
When you receive the CD-ROM, install the update as you would install any other software.
Before installing from a CD-ROM
1.
Ensure your QuickBooks licence key is recorded somewhere safe.
We’ve provided a space for you to record your licence key on the second page of this
guide.
2.
Back up your company files.
To find your licence key and other QuickBooks information, choose Help menu > My Licence
Information.
To install your QuickBooks update from CD-ROM
Follow the detailed instructions you receive with your update.
Setting up a new company
39
40
Chapter 2
Customers, jobs and items in detail
Customers, jobs and items
3
42
Should I track customers and jobs?
42
Why you probably need to set up items
43
Setting up items
47
Working with items
58
This chapter explores in detail how customers, jobs and items work in QuickBooks. Use this chapter as a
reference to decide how you might use these elements in your company file to support your business.
Customers, jobs and items
You can set up customers, jobs and items in QuickBooks to reflect the way your business
operates. The better these settings in QuickBooks reflect the way you do business, the
better QuickBooks can support your business.
It’s therefore important to understand the many ways you can set up customers, jobs and
items to work in QuickBooks. You can then set up your company file more efficiently.
This chapter explores:
•
Whether you should track customers and jobs
•
Why you probably need to set up items
•
Setting up items
•
Working with items
Should I track customers and jobs?
This section provides you with the information about the QuickBooks terms customer and
job and how to change the opening balance of your company.
What does QuickBooks mean by a customer?
In QuickBooks, a customer can be a person, company, client, homeowner, tenant or so
forth. Some businesses don’t need to keep track of the names of customers—for example,
a retail store or service business that always receives payment with the sale or service.
However, here are some situations in which you would want to track customer names:
•
Customers receive your goods or services and then pay you later.
•
Customers are supposed to pay a regular monthly fee, and you want to track who has
paid and who hasn’t.
•
You want to track income (and perhaps expenses as well) by customer.
If you’re using QuickBooks for an organisation that receives money but doesn’t really
sell anything, you probably don’t need to set up customers—for example, a nonprofit or
religious organisation with members making contributions or paying dues can track the
deposits without making the members customers.
What does QuickBooks mean by a job?
In QuickBooks, a job is a project done for a particular customer. You must always associate
a job with a customer. Use jobs if you do (or expect to do) more than one job for the same
customer—for example, Michele does freelance writing for a large company that supplies
a separate purchase order for each job. Richard’s plumbing business has to keep track of
the separate jobs it does for a general contractor.
On the other hand, if your company never does more than one job per customer, or you do
not want to track individual jobs, you don’t have to enter job names—for example, Jessica’s
printing company refers to each customer order as a job. However, even though Jessica
gets repeat business from customers, all she cares about is whether the customer has
paid, so she doesn’t need to set up jobs for her customers.
42
Chapter 3
Besides using projects for jobs, you can be creative—for example, if you:
•
Manage several blocks of units, set up the building addresses as customers and the
individual units as jobs.
•
Invoice against purchase orders (POs), set up each PO number as a job.
•
Have a practice or organisation that sends one statement to a family to cover
individual members of the family, set up the family members as jobs.
•
Have multiple estimates per customer, search the Help index for estimates, by job.
Reports about jobs in QuickBooks apply to customers as well. You don’t have to set up jobs
in order to use these reports—for example, the profit and loss by job report actually applies
to both customers and jobs. If you have customers but not jobs, you will still see information
about your customers.
Changing the opening balance for a customer or job
When you first set up a customer or job, you have a chance to enter the opening (unpaid)
balance for the customer or job as of a specific date. The date should be your QuickBooks
start date (that is, the date when you enter opening balances for all accounts, customers,
and suppliers).
When you enter the customer’s opening balance in the EasyStep Interview or New Customer
windows, QuickBooks creates an invoice for the amount and date you specify. This invoice
is probably the first transaction in the customer register. (There should not be any opening
balance transaction if the customer had no unpaid balance as of the start date.)
You can change the customer’s opening balance invoice by finding it in the customer’s
register and then editing it.
If you didn’t enter an opening balance but want to create one now, enter an invoice dated
on or before your start date. Summarise amounts owed as of the start date by entering an
item on the invoice set up as a nontaxable Other Charge. Assign the account Uncategorised
Income.
To learn about…
Search the Help index for…
Displaying a customer’s register
customers, registers for
Editing a transaction in a register
registers, editing entries
Entering an invoice
invoices, creating
Setting up an Other Charge item
other charge items
Why you probably need to set up items
This section provides you with the following information to help you decide whether or not
to set up items. It includes information on:
•
Items for what you sell
•
Items for services or products you purchase
•
Deciding how items should affect accounts
•
How many different items you need
Customers, jobs and items in detail
43
Items for what you sell
If your business provides a service—writing, hairdressing, consulting, legal advice, house
painting, or any other service—you may charge by the hour and list the number of hours and
your rate on your sales forms. Or, you may simply charge a flat rate for the service. If your
business sells products or parts, you probably list them on sales forms that you give your
customers.
In QuickBooks, both kinds of businesses—service and product—can benefit by setting up
items to track the services they provide or the products they sell to customers.
Note:
In QuickBooks, sales is a broad term. It refers to any business action that
generates income in exchange for services or products, even if you don’t
think of what you do as selling—for example, a psychologist with patients,
a graphic designer with clients, and a roofing contractor with customers all
would set up items in QuickBooks for what they sell.
Benefits of setting up items
Here are some specific benefits of setting up items:
•
You can use sales forms in QuickBooks to track the details of how your business earns
its income. Estimates and all sales forms—invoices, sales receipts, adjustment notes—
require items. So do QuickBooks statement charges, which print on statements.
•
You can fill out sales forms or enter statement charges quickly. QuickBooks
automatically enters the description and rate or price you entered in the item’s setup
window. When you enter a quantity, QuickBooks calculates the amount.
•
When you record a sale (remember, it can be for a service), QuickBooks automatically
tracks the income in the appropriate income account. You can fill out a sales form or
enter a statement charge, keep track of your sales, and keep track of income—all in
one step.
•
You can create reports that show total units of each service or product sold as well as
dollar amount totals.
If you’re still not sure you need items
Here are some examples of businesses or organisations that use items.
•
John is the bookkeeper for a country club where members sign for meals, drinks, and
fees and receive a statement at the end of the month. John uses items in QuickBooks
for each of these. He uses the items to enter statement charges for each member and
create monthly statements.
•
Mario is a dentist. He has items set up for the various services he provides to his
patients: cleaning, x-rays, filling cavities, and so on.
In contrast, some businesses or organisations probably don’t need items. Here are some
examples.
•
44
Chapter 3
Jack is keeping the books for his church. The church has members who donate and
contribute money, but the church doesn’t sell anything or charge for specific services,
so Jack doesn’t need to create any sales forms.
•
Marina does facials in her home evenings and weekends. Her clients pay at the time of
their visit. Marina simply wants to track the income received. She doesn’t care to track
in QuickBooks how many facials she gives or to whom.
•
Min is a commissioned sales representative. She takes orders for a manufacturer
that then invoices the customers directly. Min tracks the orders in a spreadsheet, not
QuickBooks, because the sales are income for the manufacturer, not Min. When Min
receives a commission cheque, she enters it in QuickBooks as a deposit.
Items for services or products you purchase
Once you’ve decided to set up items for the services or products you sell, you might want to
use items for the services and products you purchase. If you purchase services or products
for a specific customer or job, QuickBooks Pro and Premier enable you to set up items that
you can use for both purchases and sales. See Items for reimbursable costs in QuickBooks
Pro and Premier on page 56.
On the other hand, if you don’t have QuickBooks Pro or Premier and you don’t track stock,
you should not use the same items for both purchases and sales. Instead, use items for
entering sales only. If you purchase property such as buildings, vehicles, computers, or
heavy machinery that will contribute to the operating capacity of your company for several
years, QuickBooks Pro and Premier enable you to set up items that can help you track their
depreciation. You need to track the depreciation of such fixed assets both for tax purposes
and to get an accurate accounting of the worth of your business. Your accountant can give
you more information about using fixed asset items to record purchases and subsequent
sales of fixed assets.
Deciding how items should affect accounts
When you set up most items, you must specify which account it should affect when you use
the item on a sale or purchase. Then, when you record the sale or purchase, each item on it
affects the appropriate account. In other words, while you are recording the items on a sale
or purchase, QuickBooks is adjusting all the right accounts behind the scenes.
If you sell an item (service, non-stock, and other charges), you normally associate an
income account with it. If you purchase the same item, QuickBooks Pro or Premier provides
a way to associate a second account, usually an expense account, to be used on purchases.
See Items for reimbursable costs in QuickBooks Pro and Premier on page 56.
To learn about…
Search the Help index for…
accounts for tracking stock
stock, accounts
Customers, jobs and items in detail
45
If you purchase a fixed asset, you normally associate a fixed asset account with it. When
you sell a fixed asset, you normally associate a fixed asset account with the asset. Before
you set up your items you have to decide how much detail from your sales and purchases
needs to show up in reports about your accounts. You can see details of your sales (such
as number of units and the dollar amount of each item sold) on QuickBooks sales reports.
You don’t need to have the same level of detail on your profit and loss statement, as in the
following examples.
•
Qian has a single income account for all sales income. He doesn’t want to see any
further breakdown on his profit and loss statement and he doesn’t need it for his
activity statements.
•
Chloe, on the other hand, wants to split up income from services and income from
materials she buys for a job and then puts on the customer’s invoice. Thus, she uses
one income account for all her service items and a second income account for all
her non-stock part items (for her materials). Like Qian, she has far more items than
income accounts.
How many different items do you need?
Every business is different but knowing how QuickBooks works can help you decide how
specific your items should be.
First, once you use an item in a transaction, you can never delete the item unless you
delete the transaction or condense (see page 90) your file to remove old transactions and
old items. Fixed asset items are not condensed. Thus, if you sell unique items or a rapidly
changing assortment of items, you probably want to use more general items. If the prices
vary, you can enter prices on the sales form—for example, Joshua has a men’s clothing
store. Because his stock of styles changes so much, he doesn’t use QuickBooks to track
stock. To track his sales, he has more general items such as Suit, Sports Jacket, Dress
Shirt.
On the other hand, if you have two standard services or products that are similar except for
their rate or price, you can save time recording sales by having a separate item for each.
Then QuickBooks can fill in the correct rate or price on the sales form—for example, Mali
employs three stylists in her beauty salon. When she cuts a client’s hair, she charges more
than the rate for a haircut by one of the employees. So she has two separate items for
haircuts.
You can change the rate or price of any item at any time. You don’t have to create a new
item in order to raise your prices.
In QuickBooks Pro and Premier, you can create price levels to increase or decrease stock,
non-stock, and service item prices. Use them on sales forms to automatically adjust
the price of an item. You can create price levels for any customer you have a special
relationship with.
Finally, if there are items you purchase but never sell but that are not fixed assets—for
example, supplies for your office—you probably shouldn’t bother to put them on your Item
Lists. They will lengthen your list, and you’ll find it harder to pick out the items that you do
sell. However, if you plan on using QuickBooks purchase orders, you’ll need to set up the
items you purchase, even though they are only for your office use.
46
Chapter 3
Setting up items
This section provides the following information about adding items to QuickBooks:
•
Where to find information about your items
•
Types of QuickBooks items
•
Setting up different units of measure for your items
•
Reporting in different units of measure
•
Adding items to your Item or Fixed Asset Item Lists
•
Items for reimbursable costs in QuickBooks Pro and Premier
You can add items at any time—as part of setting up QuickBooks or whenever you think of
an item you need to use.
Remember, items are for the services or products you buy and sell. You also may need
special calculating items that calculate subtotals and discounts and that apply specific tax
rates.
The EasyStep Interview helps you set up a few items, so you may already have some items.
Fixed asset items are not set up from the EasyStep Interview.
Where to find information about your items
When you set up an item, you enter information you can use over and over again without retyping, such as the following:
•
Name or code
•
Description
•
Price per unit or rate per hour, if applicable
•
(Sales items) Income account to assign income from the sale
•
(Purchase items) Expense account for purchases of the item
QuickBooks stores information about your items on the Item List.
On the Item List, items
are in order of type.
Within the same item
type, they are usually
in alphabetical (or
numerical) order. You
can change this.
Subitems are indented under the parent item. Use the menu buttons at the
bottom of the list to add, edit, sort or perform other activies on items.
Information about fixed assets is available in the Fixed Asset Item List. The Fixed Asset Item
List is only available in QuickBooks Pro and Premier.
Customers, jobs and items in detail
47
To learn about…
Search the Help index for…
Price levels (Pro and Premier only)
price levels
Displaying the Item or Fixed Asset Item List
items, list of
Sorting the Item List (and other lists)
sorting, list entries
Moving items (and other list entries)
lists, reorganising entries
Types of QuickBooks items
In addition to items for services or products, QuickBooks has several other types of items.
This section explains what each type of QuickBooks item is designed to do.
48
Chapter 3
Item type
Use for…
Usual effect on
accounts
Comments
Service
Services you charge
for or services you
purchase
Examples: professional
fees, labour
On sale: Increases
income.
On purchase:
Increases expenses.
In QuickBooks Pro and
Premier, you can set up
a service item so that it
can affect either income
or expenses, depending
on where you use it. Price
levels can be used on
service items
Stock Part
Products you purchase,
track as stock, then
resell
Examples: Electrical
outlets, T-shirts
On sale: Increases
income, increases
cost of goods sold,
and decreases stock
assets.
On purchase:
Increases stock
assets.
Available only if the stock
feature is turned on. Search
the Help index for stock,
turning on.
Price levels can be used
with stock parts. Search the
Help index for price levels.
You can set up different
units of measure for stock
parts. For information on
units of measure, see
Setting up different units of
measure for your items on
page 51.
Item type
Use for…
Usual effect on
accounts
Comments
Stock
Assembly
Assembled products
you purchase or create
and build, track as
stock, then resell.
Examples: Gift
baskets, watering
system starter kits.
On sale: Increases
income, increases
cost of goods sold,
and decreases stock
assets.
On purchase:
increases stock
assets.
Available only if the
stock feature is turned
on. Appropriate for
“light” assembled items;
QuickBooks does not
track stock through the
manufacturing process.
Price levels can be used
with stock assemblies. You
can set up different units of
measure for stock-assembly
parts. For more information
on units of measure, see
Setting up different units of
measure for your items on
page 51.
Non-stock
Part
Products you sell but
don’t purchase; items
you purchase and resell
but do not track as
stock; items you enter
on purchase orders.
Examples: Custommade slipcovers.
On sale: Increases
income.
On purchase:
Increases expenses.
In QuickBooks Pro and
Premier you can set up a
non-stock part item so that
it can affect either income
or expenses, depending
on where you use it. Price
levels can be used with
non-stock parts.
Fixed
Asset
Property that will
contribute to the
operating capacity
of your company for
several years.
Examples: Vehicles,
Computers, Heavy
machinery.
On sale: Decreases
assets.
On purchase:
Increases assets.
In QuickBooks Pro and
Premier you can create
fixed asset items; in
QuickBooks Accounting
and Plus you can view
fixed asset items in the
Item List and edit or delete
transactions in which
they’re found, but you can’t
create them.
Other
Charge
Other charges on a
sale or a purchase.
Examples: Shipping
charge, delivery
charge, finance charge.
On sale: Increases
income.
On purchase:
Increases expenses.
In QuickBooks Pro and
Premier you can set up an
other charge item so that
it can affect either income
or expenses, depending on
where you use it. Can be a
percentage or a flat amount.
Subtotal
Calculating and
printing a subtotal on
sales forms.
Subtotal items have
no effect on accounts.
On sales forms, if you
want to apply a discount or
add a percentage charge
to several items at once,
subtotal first.
Customers, jobs and items in detail
49
Item type
Use for…
Usual effect on
accounts
Comments
Group
Fast entry of a group of
individual items already
on the list.
Example: A group of
services & food items
provided by a caterer.
Each item in the group
affects the same
account it affects
when used by itself.
Available for either sales or
purchases.
Discount
Calculating an amount
to be subtracted from a
total or subtotal.
Example: A 10%
discount given to
nonprofit organisations.
Either decreases
income or increases
expenses (depending
on item setup).
Available for sales forms
only; not available for
statement charges or
purchase forms.
Payment
On invoices: Payment
received at the time
of invoicing, so that
amount owed on
invoice is reduced.
On sales receipts
summaries: To show
totals for each type
of payment (cash,
cheques, credit card).
Increases the
balance of either
a specific current
account or the account
for
undeposited funds
(depending on item
setup).
Available for sales forms
only; not available for
statement charges or
purchase forms.
Items that calculate
The Items List includes some items used to perform a calculation on one or more lines
above it on a sales form—for example, if you need to subtotal on sales forms, then you need
a subtotal item. A subtotal item adds the amounts of the items above it on the sales form
and enters the subtotal on the form.
Finally, there are some items that can be set up either as percentages or with flat amounts,
depending on what you need—for example, Dave adds a 10% service charge to his invoices.
He has set up an other charge item with a rate of 10%. He uses a subtotal item before the
service charge, so that the 10% will be based on the subtotal amount.
Steve gives a 15% discount to certain customers. He has set up a discount item with a
rate of 15%. He must first use a subtotal item, because the discount is based on the entire
amount. For examples of how to use items that calculate, see page 59 for subtotals and
page 61 for discounts.
Subitems vs. group and stock assembly items
Just as you can set up an account with related subaccounts under it on your chart of
accounts, you can have an item with related subitems. For example, Emily keeps the books
for her symphony association’s gift shop, which sells T-shirts and other items. She has an
item called T-shirts and subitems called Adult and Child, each with its own price.
50
Chapter 3
Subitems enable you to put similar items together on your Item List, so you can locate them
easily on the drop-down list in any Item field. Each subitem can have its own rate or price
and its own description. Each subitem can even have its own account, although you would
probably assign the same account to all subitems of the same parent item.
In this example, Paint
is a parent item with
subitems under it.
On sales forms, you use subitems the same way you use other items. On reports based on
items, QuickBooks subtotals each group of subitems.
Group and stock assembly items have a completely different purpose from subitems. Group
and stock assembly items enable you to enter a group of items—that is, several different
items—at once on a sale or purchase. Group items are appropriate for combining several
types of items, such as catering services and food items, on one line in a sales receipt.
For an example of entering a group of items, see page 60.
Setting up different units of measure for your items
In QuickBooks Pro and Premier, you can set up different units of measure for stock and
stock assembly-type items. For example, you can buy soft drink in cartons with 12 cans to a
carton, and sell them by the can. Then, when you sell one can, QuickBooks understands this
transaction to mean 1/12 of your stock.
The units of measure preference cannot be turned off once it has been
enabled.
You should consider activating this feature only if you purchase, stock or sell
in different units.
Turning on the units of measure preference
Before you can set up different units of measure for your stock parts (items), the units of
measure preference must be turned on.
1.
Choose Edit menu > Preferences.
2.
Select Purchases & Suppliers from the scroll box and click the Company Preferences
tab.
3.
Select Stock and purchase orders are active, and then Units of Measure are active.
Stock must be turned on in order to activate units of measure.
What happens when units of measure is turned on?
With the units of measure preference turned on, you’ll see that QuickBooks adds a:
•
Units of Measure button to the Stock Part and Stock Assembly windows.
Customers, jobs and items in detail
51
This button opens the Define Units of Measure window where you can set up different
units of measure for these items.
•
Field to the Service and Non-stock Part window.
You can now assign a descriptive label that represents the unit of measure used when
dealing with the item.
•
Unit column to all forms.
This new column displays the item’s unit of measure associated with the type of
transaction—for example, the selling unit is used on sales forms such as invoices and
sales orders, and the purchasing unit on purchase forms such as bills and purchase
orders. A Unit column is also displayed on some windows such as Adjust Quantity/
Value on Hand and Change Item Prices. A Unit column is added to display an item’s
units of measure on reports to do with the Item List, and purchases, sales and stock
transactions.
Setting up different units of measure
You can now keep track of how you purchase, stock and sell your items with the units
of measure feature. Different units of measure can be set up for Stock Part and Stock
Assembly type items. The association between an item’s units of measure cannot be
changed once a transaction involving the item is recorded. Therefore, if you have a quantity
on hand for an item, you must set up its units of measure before entering an amount in the
Quantity on Hand field.
1.
Choose Lists menu > Item List.
2.
Click Item and choose New.
3.
Select Stock Part or Stock Assembly from the Type field.
4.
Click Units of Measure to display the Define Units of Measure window.
5.
Click OK.
Type the unit of measure
you use to stock the item.
You can clear these
boxes and type the unit
you use when selling and
purchasing the item.
Enter the number of selling
and purchasing units that
make up a stocking or
purchasing unit.
52
Chapter 3
Using items that have different units of measure on forms
Once units of measure are set up for an item, the item’s appropriate unit of measure is
then displayed on business forms. Sales forms show the selling units, and purchasing forms
show purchasing units. On forms, you cannot switch to a different unit of measure.
A bill displays the
purchasing unit, which
is a carton.
An invoice displays
the selling unit, which
is cans.
You can enter fractional or decimal values on forms—for example, if you purchased only half
a carton of soft drink that you usually purchase by the carton, you could enter 0.5 or 1/2 on
your bill.
Assigning a label to Service & Non-stock Part items
A descriptive label can be added to Service and Non-stock Part items (with units of measure
turned on) to help identify the unit of measure or rate that is used for these items. Different
units of measure cannot be tracked for these item types. These labels act only as a title and
when created, are displayed on business forms and reports.
Reporting in different units of measure
By default, some reports display an item’s unit of measure. The unit that is displayed
depends on the report being created—for example, a Purchases by Item Summary Report
displays the purchasing units of measure, whereas the Sales by Item Summary Report
displays the selling units. You can change the reports to display in the units you want
through the Modify Report window.
Because this
report is a sales
report, by default,
the selling unit is
shown.
Customers, jobs and items in detail
53
If you want to see the
purchasing unit on this
report, click Modify
Report, then from the
Modify Report window,
select Purchasing Unit.
The report
changes to show
the items in their
purchasing unit.
Adding items to your Item or Fixed Asset Item list
As the table starting on page 48 shows, QuickBooks has several different item types. Here
is some general information about what to enter for most types of items when adding a
new item to your Item or Fixed Asset Item List.
54
Chapter 3
Information to
enter
How QuickBooks uses this information
Type of item
After you choose the item type, QuickBooks requests only the information
it requires for that particular item type. (Note: You cannot create fixed
asset items from the Item list. Use the Fixed Asset Item List to do so.)
After you set up an item, depending on the type, you may not be able to
change it to a different type.
Item name or code
Displays this name or number on reports of items and in the drop-down
list in the Item field—for example, on sales forms.
Item description
(optional on all but
fixed assets)
Prefills the entire description in the Description field of sales or purchase
forms.
Displays the beginning of the description in the drop-down list in the Item
field.
You can set up some types of items to have separate descriptions for
sales and for purchases.
Information to
enter
How QuickBooks uses this information
Rate or price
(optional)
Prefills the rate or price in the Rate or Price fields of sales or purchase
forms.
Some types of items can have a rate that is a percentage.
You can set up some types of items to have separate rates or prices for
sales and for purchases.
Account or
accounts
Profit and loss statements report on the income or expense account
associated with items used in transactions.
You can set up some types of items to have separate accounts for sales
and purchases.
Some types of items—for example, payment items—require a balance
sheet account instead of an income or expense account. Stock items
require three separate accounts.
Default tax code
QuickBooks applies tax to the item based upon the rate(s) defined in the
Tax Code List. You can override this tax code on the sales form.
Subitem status
If this field appears, you can make an item a subitem of an existing item.
QuickBooks displays subitems of the same item together.
Custom fields
(optional)
You can set up custom fields that fill your company’s needs—for example,
size. You can also customise sales and purchase forms to display a
column for a custom field. Then QuickBooks prefills the column with the
custom field information for the item.
To learn about…
Adding a new item for one of the following:
• A service
• An assembled product that you purchase or
build yourself
• A product or part that is not held in stock
• A fixed asset
• A miscellaneous charge
Search the Help index for…
• items, services
• items, stock assembly
• items, non-stock parts
• items, fixed assets
• items, miscellaneous charges
Setting up different units of measure
items, units of measure
Adding a new item for a product or part in stock
items, stock
Adding a new item that puts a group of several
items on a sales or purchase form
items, grouped together
Adding a new item that calculates a subtotal
items, subtotal types
Adding an item that calculates a discount on a
sale
items, discount types
Adding a new item that records a customer
payment or deposit received at the time of sale
items, payment types
Creating subitems of another item
items, subitems
Creating custom fields for items
items, custom fields on
Turning tax on
tax, setting up
Customers, jobs and items in detail
55
Items for reimbursable costs in QuickBooks Pro and Premier
Perhaps your business purchases services or products for specific customers or jobs, then
invoices the customer for the items (with or without a markup)—for example, Frank is a
general contractor who uses subcontractors and invoices for their costs at a higher rate
than what they charge him.
In QuickBooks Pro and Premier Editions only, service items, non-stock parts, and other
charge items each have a check box that enables you to pass through their costs at a
markup and track costs and revenues in separate accounts. Then you can track both the
expenses and the income for these items for a particular job—for example, the check box
for a non-stock part is This item is purchased for and sold to a specific customer:job.
Note:
If you don’t have QuickBooks Pro or Premier, use expense accounts.
To learn about…
Search the Help index for…
using expense accounts for reimbursable costs
reimbursable expenses, assigning to a
customer or job
There are several advantages to using items for reimbursable costs in QuickBooks Pro or
Premier:
•
It is easy to associate the cost of an item with an expense account and the income
with a separate income account when you set up the item.
•
You can track the number of units or hours purchased or sold.
•
You can use items on estimates and purchase orders.
•
If you write a purchase order for an item, you can create a bill from the purchase order
and assign a job. Then you can invoice the customer for the item.
•
When you enter a bill, cheque or credit card charge, QuickBooks fills in the description
of the item and the unit cost after you choose the item from the drop-down list on the
Items tab.
•
When you invoice the customer for the cost of the item QuickBooks fills in the sales
description of the item and the sales price.
•
You can create reports that compare costs to revenues for each item.
To learn about…
Search the Help index for…
invoicing for reimbursable time and costs
reimbursable expenses, assigning to a
customer or job
Services performed by subcontractors or owners
If you charge for services performed by outside subcontractors or you pay owners (or
partners) for time worked, set up a service item for each type of service. Be sure to select
the This service is performed by a subcontractor, owner, or partner check box. Then you can
designate separate income and expense (or equity) accounts, and separate descriptions for
sales and purchases.
56
Chapter 3
You can enter different hourly rates for your cost and the sales price to your customer. If
you write cheques based on time tracked or enter the item on a purchase order, purchase,
or estimate, QuickBooks fills in the rate from the Cost field. If you enter the item on a sales
form, QuickBooks fills in the rate from the Sales Price field. However, if the subcontracted
service is usually billed as a flat fee and the fee varies, leave the Cost and Sales Price fields
0.00 when you set up the item.
If you pay owners (or partners) and suppliers for the same service, you need separate
service items because the accounts for the costs must be different.
To learn about…
Search the Help index for…
separate service items
service items, creating items for services you
sell or buy
Products and materials purchased for a job
If you invoice for actual costs of products and materials purchased for a specific customer
or job, set up a non-stock part item for each type of product or service. Be sure to select the
check box for This item is purchased for and sold to a specific customer:job. Then you can
designate separate income and expense accounts, and separate descriptions for sales and
purchases.
You can enter different
rates for your cost and
the sales price to your
customer. However, if
the cost of the product or
material varies, leave the
Cost and Sales Price fields
at 0.00 when you set up
the non-stock part item.
To further aid in tracking the item, you can also specify the customer and job on the
purchase order. When you receive the item this information prefills on the item receipt or
bill. Use the open purchase orders by job report to find out which items are still on order for
your customers.
Customers, jobs and items in detail
57
Miscellaneous charges you pass on
If you invoice for miscellaneous charges incurred on a job you can set up another charge
item for each type of miscellaneous charge. For example, Frank has an other charge item
called Equipment Rental. Be sure to tick the check box for This is a reimbursable charge.
Then you can designate separate income and expense accounts and separate descriptions
for sales and purchases.
As with products and materials, you can enter different cost and sales prices or leave the
fields at 0.00 when you set up the other charge item.
Working with items
This section provides you with the following information to help you work with items:
•
Using items to save time
•
Using items to subtotal on a sales form
•
Showing partial payments received at the time of sale
•
Changing prices or rates
•
Editing item information
After you have set up items, use them to enter estimates, sales, purchase orders, sales
orders, actual purchases, and disposition of fixed assets. Remember, QuickBooks uses the
term sales broadly; it can mean the performance of services or the assessment of fees as
well as the sale of products.
You can enter all item types listed in the table on page 48 on any sales form. You can enter
all but payment items on estimates and sales orders. However, you can’t enter the following
item types on purchase orders or purchases (on the Items tab of bills, cheques, and credit
card charges):
58
•
Other charge items set up as a percentage
•
Discount items
•
Payment items
Chapter 3
To learn about…
Search the Help index for…
Recording discounts from suppliers
discounts, from suppliers
Entering payments to suppliers
suppliers, paying (then Paying bills)
Using items to save time
When you fill out a sales form, you list each service, product, or fixed asset you’re selling
on its own line of the invoice or sales receipt, along with the amount the customer owes for
that item. Similarly, when you write a purchase order or receive a bill, each service, product,
or fixed asset is listed on its own line.
Because information about individual items is listed on separate lines, the items are
called line items. In QuickBooks, you enter line items by choosing from the drop-down list
in the Item field of a sales or purchase form. You can also type in the Item field and let
QuickBooks fill in the rest of the item’s name.
Enter an item
in the Item field
by typing or by
choosing from the
drop-down list.
Each item on the Item List can contain all the information you need to fill in one line. You
can always change the information, such as the description and rate, as you’re filling in a
form.
When you enter a quantity, QuickBooks automatically calculates the amount.
QuickBooks multiplies the Qty by the Rate
to calculate the Amount.
You’ll have separate items not only for each service rendered and each product sold but
also for discounts, markups, tax, and subtotals. If the customer makes a partial payment at
the time of the sale, you can add an item for the payment.
Using items to subtotal on sales forms
The subtotal item adds up the amounts of the items above it, up to the last subtotal.
You’ll need a subtotal item if you ever want to apply a percentage discount or surcharge to
several items. Because QuickBooks calculates percentages on the line above, you’ll need to
subtotal the items before entering the percentage line item.
Customers, jobs and items in detail
59
If you use two subtotals in a row, the last subtotal will add up all the previous subtotals on
the form.
The first subtotal that shows
is for the first two items.
The second subtotal is for
the third item.
The third subtotal adds up
the two previous subtotals.
Entering a group of items
The group item enables you to enter several items all at once on a sales form, estimate,
purchase order, cheque, or bill. If you often sell the same group of items together, using a
group item saves you the trouble of entering the same set of line items again and again.
When you use a group item, you can enter a quantity for the group that affects the quantity
and amount of each item in the group. You can also edit the individual quantity of each
item in the group, and edit descriptions and rates.
Using a group item to hide details on a sales form
The more detailed you are in tracking items, the more information you can get from
reports. The QuickBooks group item enables you to be very detailed in tracking the items
you sell without showing all that detail to your customers. When you set up a group item,
you specify whether to print each item or just the group item. (Of course, if you use a group
item on a purchase order you must show the detail to the supplier so the supplier will know
what you want.)
For example, Frank has a construction company that sends invoices for full jobs, such as
complete remodels. If he used one general service item called Remodel, a sales report
would show his income from remodels.
If you use very general
items, like this one,
your reports won’t be
as useful as if you used
detailed items grouped
together.
However, Frank uses more detailed items, so he can learn more from his sales reports.
Frank breaks down the remodel cost and uses items such as Fence Boards 1x6, Installation
and Paint.
60
Chapter 3
He groups these items under one item called “Remodel”. Even though he chooses not to
print the items in the group on the invoice for his customers to see, he still has those details
on his sales reports.
Applying a discount to one or more items
To apply a discount, you have to enter a discount item. If the discount item’s rate is a
percentage, the item reduces the amount due by a percentage of the line above it.
To take a percentage off several items at once, you must first subtotal the items. On the
other hand, if
you want to
discount one
particular item
you’ve sold and
not the entire
sale, add a
discount item
directly beneath the one discounted item.
If you give discounts of different percentages, you can either set up a separate discount
item for each percentage or edit the amount right on the sales form.
Don’t use a discount item for discounts that you give for early payment.
Enter discounts for early payment through the Receive Payments window.
Search the Help index for receiving payments, about.
Showing partial payments received at the time of sale
If you receive a partial payment toward the amount of an invoice at the time you create the
invoice, you’ll need to enter a payment item.
The payment item tells QuickBooks to subtract the amount of the payment from the total
invoice amount. To record the payment on the invoice, enter a payment item for the amount
you’ve received after you’ve entered all the items sold.
Customers, jobs and items in detail
61
You can set up a payment item so that it automatically deposits the payment directly to a
current or other account. Alternatively, you can set it up so that QuickBooks automatically
puts the payment amount into your Undeposited Funds account so you can deposit it with
other funds.
To learn about…
Search the Help index for…
Receiving and depositing payments
receiving payments, receiving payments
toward a statement
If you need to track the payment method—for example, cheque, cash, credit card charge—
you can have different payment items for different methods of payment. Using a payment
item is not the only way to record a payment. For some types of payment, you should use a
different method:
Type of payment
How to record in QuickBooks
Partial payment received at time of sale
Enter a payment item on the invoice.
Full payment received at time of sale
Use a sales receipt, not an invoice. No payment
item is necessary, because QuickBooks assumes
the sale is fully paid.
Summary of payments, by method, for
daily sales summary
Use a sales receipt to summarise the daily sales.
Enter a different payment item for the summary of
each payment method.
Payment from customer to pay
outstanding invoice or statement
Enter the payment in Receive Payments window.
Indicate which invoices or statement charges
have been paid by the payment.
Advance payment from customer before
work is done or sale is made.
Use one of the following options:
• Enter payment in Receive Payments window.
• Enter a payment item on an adjustment note.
• Record a retainer. See the QuickBooks and
Your Industry help for law firms, or look in the
Help index for retainers.
Avoid entering double payments.
If you receive a payment before the sale and record a deposit before you
record the invoice, do not also enter a payment item on the invoice or you will
record a double payment.
62
Chapter 3
Changing prices or rates
You can change the prices or rates of many items at one time through the Change Item
Prices window. You can tell QuickBooks to raise or lower prices or rates by a specified
amount or percentage. You can change prices or rates for items individually or have
QuickBooks calculate new prices or rates on several or all items of the same type at once.
If you want to apply an increase or decrease to stock, non-stock and service items
automatically, you can use price levels. Price levels enable you to adjust up or down the
amount charged to customers with whom you have a special relationship. When you apply
a price level to an item, QuickBooks calculates the rate to reflect the increase or decrease.
To learn about…
Search the Help index for…
Changing prices or rates of items
items, prices
Price levels
price levels
Editing item information
After you’ve created an item, you can edit information about it at any time, subject to
certain restrictions.
Changing an item type
In QuickBooks Plus, Pro, and Premier, you can change a non-stock part or other charge
item to a service, non-stock part, stock part, or other charge item. However, you cannot
change the item type of any other type of item.
Hiding and redisplaying items on lists
You can hide an item on the Item or Fixed Asset Item List without deleting it by making the
item inactive—for example, you may have a stock item on your Item List that you have not
stocked in the last six months but which you may want to stock in the future.
When you make an item inactive, QuickBooks keeps the information associated with that
item but hides the item on the Item List and removes it from any drop-down lists that use
items. You do not need to change or delete any transaction that uses the item. If you start
to use the item again you can make it active at any time.
You can display all your items, including the inactive ones, on the Item List by selecting
Show All. (Inactive items still appear on reports but never display on drop-down lists.)
Deleting items
You can delete an item only if it is not used in any transaction or group item. To locate all
transactions that use a given item, create a QuickReport for the item for all dates.
If you condense your QuickBooks data through a specified date (to reduce the file size and
remove detail), you can also remove items that are not used after that date. Fixed asset
items are not condensed.
To learn about…
Search the Help index for…
Changing item types
items, changing type of
Customers, jobs and items in detail
63
64
Chapter 3
To learn about…
Search the Help index for…
Changing information about an item
items, editing information
Hiding and showing items on the Item List
and drop-down lists in Item fields
items, hiding and showing
Making hidden items visible on the Item List
as well as on drop-down lists
lists, hiding and showing
Deleting items
items, deleting
Importing and exporting
Importing from / exporting to other software
4
66
Exporting data for your accountant (Accountant’s Review)
68
Converting data from CashBook
70
MYOB® to QuickBooks Data Converter
70
This chapter shows you how you can import and export different types of data between Quicken and
non-Quicken software. You can also export a copy of your company file for your accountant to review.
Managing your QuickBooks data has never been easier.
Importing from / exporting to other software
You can import and export activities with non-Quicken software, as shown in this chapter.
This section provides procedures that enable you to:
•
Import from other software
•
Transfer lists between QuickBooks companies
•
Export to other software
•
Transfer information to Microsoft Word, Excel, Outlook or Interact ACT!
Importing from other software
If you use QuickBooks Pro or Premier, you can synchronise QuickBooks with Interact ACT!
or Microsoft Outlook. For more information, refer to Transferring information to Microsoft
Word, Excel, Outlook or Customer Manager on page 67).
For all other software, QuickBooks imports data in a format called IIF (Intuit Interchange
Format), an ASCII text file.
The IIF format is different to the .QIF format used by Quicken. If you want to import
data from other software programs, create an IIF file or reformat data to conform to IIF
standards.
Hint:
Creating an IIF file requires knowledge of a spreadsheet program and is
technically complex.
To learn about…
Search the Help index for…
Creating an IIF file
importing data
Transferring lists between QuickBooks companies
You can transfer a list—for example, a Customer:Job List—from one QuickBooks company
to another by exporting it to an IIF file then importing it into the new company.
Hint:
When you import a list into an existing QuickBooks company, QuickBooks
replaces any duplicate entries with ones from the import file.
If you import customers or suppliers from an IIF file, you’ll need to edit each one to add
information such as payment terms. Also, if you have unpaid balances for a customer or
supplier, you must enter an invoice or bill that at least tells the total amount owed.
Exporting to other software
When you export a list from QuickBooks it is formatted automatically as an IIF file. You
then import the IIF file into word processors, database programs, or other QuickBooks
companies.
66
Chapter 4
You can’t export transactions from QuickBooks but you can create a report based on
transactions and print it to a file that another program can import.
Method
What it does
Advantages
Disadvantages
Print to disk
Makes a copy of a list
or report in a format
common to other
software programs
You can use the file
in a spreadsheet or
word
processing program.
Only lists and reports can
be printed to disk.
QuickBooks cannot read
files printed to disk.
Export
Puts lists into a file in
IIF format, with one
record per line and
one column for each
field
You can share lists
with other company
files or databases,
word
processors, or
spreadsheets.
You can add to
the list and then
import it back into
QuickBooks.
QuickBooks can export
only lists and reports, not
transactions.
To learn about…
Search the Help index for…
Exporting lists to another QuickBooks
company
exporting data
Transferring information to Microsoft Word, Excel, Outlook or Customer
Manager
If you use QuickBooks Pro or Premier, you can export data to Microsoft Word or Excel and
synchronise your contacts with Microsoft Outlook.
•
Using Microsoft Word as your word processor. Use customer, supplier, employee, and
other names in letters.
•
Using Microsoft Excel. Export your QuickBooks report data to Excel for further
customisation and filtering.
•
Using Microsoft Outlook. Synchronise your contact information with QuickBooks.
•
Using Customer Manager. Synchronise your Customer Manager data with QuickBooks.
To learn about…
Search the Help index for…
Writing letters
letters
Exporting data to Excel
reports, exporting to Microsoft Excel
Synchronising contact information
contact management, synchronising with a
contact manager
Synchronising with QuickBooks Customer
Manager
search from within Customer Manager Help, not
QuickBooks Help
Importing and exporting
67
Exporting data for your accountant (Accountant’s Review)
The Accountant’s Review™ feature enables an accountant to make certain kinds of
changes in a special copy of your company file. Meanwhile, you can continue to enter daily
transactions in the original master file. After the accountant has made the changes, you
merge them into the master company file.
This section explains for the accountant’s review:
•
What your accountant can and can’t change
•
How to work with an Accountant’s Review copy (information for accountants)
To learn about…
Search the Help index for…
Setting up your accountant as a user with all
privileges (if you have set up users)
permissions
Creating an Accountant’s Review copy of your
current company file
accountant’s review copy
Merging the accountant’s file into the master
company file
accountant’s review copy
Making the accountant’s revised copy your
master company file
restoring data
Cancelling an Accountant’s Review copy
accountant’s review copy
What can and can’t be changed?
The Accountant’s Review feature may not be right for everyone. The accountant can make
some kinds of changes but not others.
The advantage of using the Accountant’s Review feature is that you can continue to work
normally with your master company file—that is, the regular company file from which you
make the Accountant’s Review copy. After the accountant has made changes, you merge
them into your master file.
The following table shows what an accountant can and cannot do while using an
Accountant’s Review copy of your file, and any restrictions on you while this copy is out.
68
Chapter 4
Your accountant can...
Your accountant cannot...
You cannot...
• View all existing
transactions and lists
• Add new items to the
chart of accounts, Item
List, Payroll Item List, To
Do Notes List, Memorised
Transaction List (general
journal transactions only)
• To add stock items, you
must have this feature
turned on
• Edit existing account
names and numbers
• Edit existing payroll items
• Edit account and tax
information for existing
items on Item List
• Enter general journal
transactions in homecurrency accounts
• Reconcile new transactions
• Adjust stock values or
quantities
• Create reports
• Change preferences
temporarily
• Create, adjust, and print/
email payment summaries
• Enter transactions other than
general journal transactions
• Edit foreign-currency
accounts
• Memorise transactions
other than general journal
transactions
• Edit or delete existing
transactions, including payroll
payments
• Reorganise lists (move items,
make one item a subitem of
another)
• Rename accounts or items
• Make items inactive
• Edit names of existing items
on Item List
• Adjust payroll liabilities
• Enter or edit employee YTD
payroll setup transactions
• Edit employee profiles
• Export changes to
preferences
• Memorise reports
• Delete any items from
lists
• Reorganise lists (move
items, make one item a
sub item of another)
For accountants only:
Working with an Accountant’s Review copy
The Accountant’s Review copy of a company file which your client creates from their master
company file is a compressed, special type of company file. It has a .QBX extension instead
of the usual .QBW or .QBB. When you start working with these files for the first time,
QuickBooks decompresses them to a .QBA file.
You cannot make changes to foreign-currency accounts in an Accountant’s Review copy
of a company file. If your client has foreign-currency accounts that you need to make
adjustments to, have your client send you a copy of their company file instead of the
Accountant’s Review copy. Note that the client cannot work on their company file while you
are editing the copy that they gave you.
Hint:
If your client has set up users and passwords, you’ll need to find out the user
name and password assigned to you or the QuickBooks administrator.
Importing and exporting
69
Once you have opened an Accountant’s Review copy, it remains the current QuickBooks
company unless you open a different company or you close the company. If you try to
record a change that is not allowed, QuickBooks tells you that it cannot record the change
in an Accountant’s Review copy.
Hint:
If your computer’s system date and time is earlier than the date and time that
your client created in the Accountant’s Review copy, you will not be able to
open it.
When you export your work from an Accountant’s Review copy, the changes to the client’s
company file are saved in a .AIF file. You should return this file to your client as soon as
possible so it can be merged with their .QBW file.
To learn about…
Search the Help index for…
Creating a file to give to your client
accountant’s review copy
Converting data from CashBook
In previous versions of QuickBooks it was possible to import Quicken CashBook data
directly into QuickBooks. In QuickBooks 2007/08 this is not possible.
If you are a Quicken CashBook user and you would like to upgrade to QuickBooks, you need
to follow a slightly different process.
To convert your data from CashBook to QuickBooks 2007/08:
1.
Temporarily install QuickBooks 2005/06.
(Installing a trial version is acceptable for this purpose.)
2.
Convert your CashBook data as per the printed instructions provided with that version.
3.
Install QuickBooks 2007/08 and upgrade your data file as part of the installation.
If you require assistance (or software) to complete this process, contact Quicken Technical
Support. See Contacting Quicken on page 233.
You cannot convert Quicken Home & Business data to QuickBooks.
MYOB to QuickBooks Data Converter
®
The Data Converter is an easy to use QuickBooks utility that provides a simple process for
converting your export data to a format ready for importing into QuickBooks.
Hint:
Ensure you allocate enough time to perform the entire data conversion
before you begin. You must perform the entire conversion from beginning to
end in one sitting. You cannot stop halfway through the process and resume
at a later time.
To access the Data Converter, choose File menu > Import > Convert from MYOB®...
70
Chapter 4
The Data Converter converts MYOB® export files only, which you create from within MYOB®.
It is able to convert information from the following export data:
•
Accounts List
•
Non-consolidated Tax Codes List
•
Items List
•
Customer cards
•
Supplier cards
•
Employee cards
•
Personal cards
•
Trade debtor balances
•
Trade creditor balances
•
Inventory valuation / Qty on hand
Data Converter software requirements
To convert your MYOB® export data files successfully, you need:
•
Windows 2000, XP or Vista™
Other operating systems may require you to install the Microsoft® Data Access
Components (MDAC) version 2.6 or later. You can download the MDAC from the
Microsoft® Web site.
Hint:
The Data Converter will warn you if you do not have the MDAC installed
whilst attempting to convert your data. It will also warn you if you are
running an outdated version of the MDAC.
•
A recent version of MYOB®
The Data Converter can convert export files from the following versions:
•
MYOB® Accounting v11 to v13
•
MYOB® Accounting Plus v11 to v15
•
MYOB® Premier v5 to v9
It is important to specify in the Data Converter exactly which MYOB® version you are
converting from. Different versions of MYOB® contain different data files. See your
MYOB® documentation for instructions on how to find out which version you have
installed.
•
Internet Explorer 6.0
This is a QuickBooks prerequisite and is included in the QuickBooks installation.
Importing and exporting
71
Export and convert your data
Before you can send your converted data to QuickBooks, you need to ensure the following
steps have been completed:
1.
Set your conversion preferences.
The Data Converter lets you perform the conversion in one of the following modes:
Express conversion
This is the default option. You point the converter to the first file and it will then search
for and convert each of the additional export files. After all of the files have been
converted, they will be joined into one IIF file for sending to QuickBooks.
Advanced conversion
Choose which export files to convert and send very specific data to QuickBooks after
conversion. After conversion you will have an IIF file for each type of list you converted.
You then need to join these into a single IIF file before sending it to QuickBooks.
2.
Export from MYOB®.
Before the Data Converter can convert your data to a format that QuickBooks can use,
you need to export your data to a series of text files from within MYOB®.
3.
Convert exported cards and reports data in the Data Converter.
This step converts the data into an IIF file format that QuickBooks can read.
If using the Express conversion method the utility creates a single IIF file ready for you
to send to QuickBooks.
4.
(Advanced conversion only) Combine IIF files.
This step combines the separately converted IIF files into a single, combined IIF file to
send to QuickBooks.
For detailed information on exporting your data from MYOB® and converting it to IIF format,
open the Data Converter and click Help on the main window.
To learn about…
Search the Data Converter Help index for…
conversion modes
preferences, Data Converter
exporting your MYOB® data
MYOB® data, exporting
converting your data
convert MYOB® file
combining IIF files
IIF files
Send your converted data to QuickBooks
Once you have converted your MYOB® data to an IIF file, you can send your data to
QuickBooks.
To send your converted data to QuickBooks:
72
1.
From the Data Converter activities menu, click Send to QuickBooks.
The Data Converter displays the Send to QuickBooks dialog.
2.
Click Send and follow the onscreen instructions.
Chapter 4
QuickBooks Basics
Getting around in QuickBooks
5
74
Getting information about your company
78
Customising your forms
83
Backing up your company data
84
Condensing data
90
Working with multiple users
92
Auditing your company file
97
Solving printing problems
99
This chapter explains the basics of using QuickBooks, so you can get QuickBooks up and running quickly.
Once you know how to get around in QuickBooks and where to go for more information, you’ll learn how to
use the features of QuickBooks that require additional setup, like backing up and restoring data, allowing
different users to access your company file, running a company file audit, collecting tax and linking your
accounts to tax lines.
Getting around in QuickBooks
QuickBooks gives you many ways to get to the information or feature you want.
This section provides you with the following information to help you get around in
QuickBooks:
•
Understanding QuickBooks file types
•
Using the Getting Started window
•
Navigating in the working area
•
Using lists, forms and registers
Understanding QuickBooks file types
QuickBooks uses several types of files. Here are some of the more common ones:
•
.QBW file: Your company file. This contains your company set up and all the
information you enter for your company—for example, customers, suppliers and
transactions.
•
.QBB file: A compressed backup of your company file.
•
.QBX file: A compressed version of an Accountant’s Review copy of your company
file. See Exporting data for your accountant (Accountant’s Review) on page 68 for
more information.
•
.QBA file: An Accountant’s Review copy of your company file that’s not compressed—
that is, what your accountant gets when they open the .QBX file you provided.
•
.AIF file: A special file containing the changes your accountant made to your
company’s books in the .QBX file you provided. You merge the information from this
file back into your regular company file (.QBW).
Using the Getting Started window
When you first open QuickBooks, the QuickBooks Getting Started window displays. It lists
the steps you need to complete to set up your new company file, tells you how to find the
information you’ll need while you’re working and gives you some useful tips on managing
your business.
QuickBooks also provides information about resources for your business, product
information and news and how to get help, if you need it. Look under the Help menu for
these options.
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Chapter 5
Navigating in the working area
QuickBooks makes it easy to access the feature or information you want. There are several
ways to get around in most areas of QuickBooks—just select the one that best fits your
work style. Also many parts of QuickBooks, such as the Icon bar, are customisable to fit the
needs of your business.
The customisable Icon bar gives you oneclick access to the features you use most.
The Customer Navigator, shown here, contains customer-specific tasks
like creating an invoice.
Shortcuts to
Navigators take
you directly to a
specific screen.
Related
Activities
offer
help and
information
about
associated
tasks.
The Open
Windows list
keeps track of the
open windows
you’re working in.
Each navigator
shows the tasks
for one area of
your business.
Moving between windows
QuickBooks maximises your work space by displaying one window at a time at its full size.
Because QuickBooks keeps a list of the windows you have open, you can quickly switch
between windows as you work. If you’d like to be able to see multiple windows open at the
same time, choose View menu > Multiple Windows.
To learn about…
Search the Help index for…
Customising and using the Icon bar
Icon Bar
Displaying the navigators
navigators
Displaying and using the Open Window List
windows, list of open
Showing, hiding, or customising items on the
QuickBooks desktop
desktop
QuickBook Basics
75
Using lists, forms and registers
When you’re working in QuickBooks, you’ll spend most of your time using a form, list or
register. Since these are so basic to QuickBooks, take a few minutes to become familiar
with them.
Using lists
Lists store information about customers, suppliers, employees, items or services you sell.
They save you time and help you enter information consistently and correctly. You fill out
most QuickBooks forms by selecting entries from a list—for example, when you’re filling out
an invoice form, you select a customer name from the Customer:Job List. QuickBooks then
fills in the customer’s name, address, payment terms and other information.
To re-sort the
list by name or
type, click the
column header.
You can
create notes
on many
lists.
This list includes
each customer
and job and
their outstanding
balances.
An X beside an
item means it is
inactive.
Use the menu buttons at the bottom of lists for a variety of tasks: creating
new entries, editing existing ones, creating reports about items on the list
and using them in transactions.
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Chapter 5
To show the
items marked
“inactive,”
select Show
All. To hide
these items,
clear the
check box.
Using forms
You record most of your daily business transactions on a QuickBooks form which looks just
like the paper forms you’re used to. After you fill it in, QuickBooks does the accounting.
When you record a bill and then write a cheque using the Pay Bills window to pay for the
business expense,
QuickBooks enters
transactions in
your accounts
payable register to
show the expense
you incurred and
the payment you
made.
It also records the
cheque in your
current account,
keeping your
records up to date
and providing an
ending balance of
what you owe at
any time.
Using registers
Just as you use your cheque book stub to view a record of all the transactions in your
current account—for example, cheques you’ve written, withdrawals you’ve made and
deposits—QuickBooks uses electronic registers to record the same activities in its accounts.
The register shows every transaction for that account, as well as the account balance.
Although you would usually use forms for entering and viewing transactions, you can also
do so directly in registers. Following is an example of the register for an accounts receivable
account.
The register shows information about invoices - the date of the invoice, the date it’s due, the
name of the customer and the amount. The register also shows payments you’ve received
against your invoices.
QuickBook Basics
77
At the bottom-right of the register you’ll see an ending balance (as it is referred to in
QuickBooks), of
all your
accounts
receivable so
you always
know how much
you’re owed.
For foreign
accounts,
registers show
their transaction
amounts in
the currency
denomination of
the account.
Getting information about your company
This section provides you with the information about navigators and creating reports to help
you get information about your company.
Finding information about your company file
Information about your company file (and your QuickBooks software) is available from
many sources within QuickBooks.
Licence information
To view information about your QuickBooks licence, product version or activation status, go
to the Help menu and choose My Licence Information.
Product information
Press F2 anywhere in your QuickBooks software to display the Product Information dialog.
This window contains detailed information about your company file including:
78
•
Product name, installation key code, registration and serial numbers
•
Usage information (including audit trail start date if applicable)
•
System information
•
File information (including company name, file size, installation directory and total
number of transactions)
•
List information (including total number of customers and suppliers on file)
•
Condense information
Chapter 5
The Product Information dialog is also available from within the Audit Company File wizard.
Audit Company File wizard
The Audit Company File wizard brings together in one place useful, detailed information
about your company file. See page 97 for details.
Working with navigators
Navigators are the best starting point to see how your company is doing at a glance. They
gather information from your QuickBooks data and display it in one location so you can
manage your business more effectively. There are eight navigators: Company, Customers,
Suppliers, Employees, Banking, Business Services, Reports and Help & Support.
Hint:
Additional navigators are available for QuickBooks Premier industry-specific
editions. See Industry-specific navigators on page 222.
Click these
icons for
quick access
to features
you use to
manage all your
customers.
The flowchart
shows activities
for dealing with
one customer.
Click the icons for
quick access.
Use this dropdown list for
convenient
access to
reports you’ve
added to the
memorised
reports list.
In this area,
QuickBooks
provides you with
suggestions for
working with your
customers.
To learn about…
Search the Help index for…
Navigators
navigators
Using other QuickBooks centres
centres
Decision Tools
decision tools
QuickBook Basics
79
Creating reports
QuickBooks provides a wide variety of preset reports and graphs designed to give you
quick and easy access to your company’s information. In addition, you can create your own
customised reports that have a different look and layout as well as scope of information.
Finding the right report
With the Report Finder you can quickly review and select among the many preset reports
that QuickBooks provides. To help you select an appropriate report, the Report Finder
displays a sample of each report as well as a summary of what the report conveys about
your business.
To display the Report Finder, choose Reports menu > Report Finder.
View a thumbnail
picture with sample
data to get an idea of
a report’s content. You
can customise a report
before or after you
generate it.
Select a report
category and
view a general
description of
your choice.
The specific
reports available
in the category
you selected are
listed here.
QuickBooks
provides details
about a report’s
content to help you
decide whether the
report is appropriate
to your needs.
To learn about…
Search the Help index for…
Finding a report
reports, finding
Creating a report
reports, creating
Preset reports
report types, all
Customising the look of a report
Most reports can be customised for unique presentation of your data. For example, you can:
80
•
Change the typeface (font) and how numbers display
•
Add or remove columns and adjust their width
•
Create or change subtotal lines
•
Change the sort order of transactions
Chapter 5
If you’re using
QuickBooks Pro/Premier
and Microsoft Office,
you can export reports
to a Microsoft Excel
spreadsheet.
Click Modify
Report to
customise a
report for your
needs.
The Modify Report
window is divided
up in to tabs. Each
tab covers different
customisation
options for the
report—for
example, the
Display tab
enables you to
select the columns
you want visible
on the report that
you are currently
working on.
After you have customised a report, you can save the settings for future use. Saving report
settings is called memorising. The next time you run the report, QuickBooks recreates the
format of the report, but uses your latest financial data.
When you memorise a report, QuickBooks adds it to the Memorised Report List. To display
the Memorised Report List, choose Reports menu > Memorised Reports > Memorised
Report List.
Changing the scope of information in a report
Creating your own version of an existing report can also include filtering, or changing the
scope of the information that displays on a preset report.
We encourage you to
explore the extensive
list of filters.
Your options here
include filters for data
you entered in your
custom fields.
QuickBook Basics
81
To learn about…
Search the Help index for…
Changing date ranges
reports, dates in
Customising a report
report customisation
Adjusting, adding, or deleting columns on a
report
report customisation, columns
Tailoring the data in the report (filtering)
reports, changing the scope of
Changing headers and footers
report customisation, headers
What does Other refer to on reports?
If you use subaccounts, subitems or jobs, then sooner or later you will see the word Other
on a report.
The $50 expense
for Labour-Other
is for the Labour
main account and
not for either of the
subaccounts.
QuickBooks shows the word Other when you create a report for an account that has
subaccounts, items that have subitems, customers that have jobs and so forth and there is
a transaction associated with the main account. Generally, if you are using subaccounts or
subitems or jobs, you should associate transactions only with the subaccounts instead of
the master account.
Hint:
To remove the Other line or column on a report, double-click its monetary
amount to see the transaction and adjust it.
When QuickBooks displays a report listing one or more transactions, double-click each one
in turn. In the transaction itself, replace the problem name with the correct subaccount,
subitem, or job.
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Chapter 5
Customising your forms
You can customise any sales or purchase form template and create any number of versions.
Hint:
If you plan to print your invoices or statements on preprinted forms from
Quicken, you should make only minor adjustments to the Quicken templates.
You can add a logo, add your company name and address, or change the
fonts and still use the preprinted forms you purchase from Quicken. However,
you can’t add, change, delete or move columns unless you have purchased
custom designed forms.
For each form you customise you decide which fields (including custom fields) and columns
to include, what they are labelled and where to place them.
Once you’ve created your forms you can save them to use whenever you want and modify
them whenever you want. You can also purchase custom stationery to match.
1.
Open any sales or purchase form—for example, an invoice or purchase order.
2.
Click Customise.
3.
Do one of the following:
•
Select the template you want to customise and click Edit to display the Customise
window.
•
Select the template and click New. Don’t forget to give your new template a name.
Click Layout Designer to view a version of the following diagram, which shows the areas of
the form that you can change using various tabs of the Customise window.
Use the Format
tab to add your
logo and to change
fonts, including font
style—for example,
italic, bold—and size.
Use the Fields
tab to change the
information shown
on this part of the
form.
Use the Header tab
to change the title
of a form or other
information in this part
of the form.
Use the Columns tab
to change the order
in which columns
display. The Amount
column always
displays furthest to
the right. You can
also rename, add, or
delete columns.
You can enter up to
1,000 characters in
the Long text area on
the Footer tab to print
on your custom form.
This information
could include legal
disclaimers or
warranty information.
Use the Printer tab
to change the page
orientation.
QuickBook Basics
83
To learn about…
Search the Help index for…
Creating custom business forms
customising forms, about
Backing up your company data
This section provides you with information on backing up your company data:
•
Recommended backup routine
•
Backing up to a CD-R, CD-RW or hard disk
•
Backing up to a Zip disk
•
Backing up to a tape
•
Backing up to a 3.5 floppy disk
•
Using the QuickBooks Online Backup
•
Searching for your backup file
•
Restoring your backup file
Your data is valuable! No recovery technique can repair all possible file damage or protect
against theft or natural disasters.
To guard against and minimise data loss, make regular backup copies of your QuickBooks
companies. Then, if you lose your data, you can restore it from your backup. It’s a good idea
to store at least one recent backup off site.
The QuickBooks Backup command does not simply copy your company data file; it
compresses the data into a compact file which only QuickBooks can open. You can name
the backup file whatever you want. QuickBooks automatically gives your backup file the
extension .QBB.
Hint:
For a description of the various file types QuickBooks creates for your
company file, see Understanding QuickBooks file types on page 74.
What isn’t included in the QuickBooks backup?
There is some data you use with QuickBooks that is not stored in your company (.QBW) file.
When you back up your QuickBooks company file, this data is not backed up or restored as
part of the QuickBooks backup process.
Some examples of data that is not included in the .QBW file (and therefore not backed up
to the .QBB file) is:
84
•
QuickBooks service packs, or additional releases such as tax scales
•
Customised form templates (for example, user-customised invoices or purchase
orders)
•
BAS files and configurations
•
Fixed assets recorded in the STS Depreciation register
•
SuperLink files
•
ABA file history
Chapter 5
•
Some global user preferences
If you need to restore your company file, or move your software and company file to a
different computer, you need to be aware that while your main business data is secured,
you may lose some or all of this peripheral data.
After you perform a company file restore, service packs and tax scales should be reinstalled. Files such as ABA file history and SuperLink are stored in separate folders in
your QuickBooks program directory. These folders can be directly copied from your old
QuickBooks program directory to the new program directory.
Other QuickBooks files can be restored from a full system backup.
Recommended backup routine
Hint:
If you use QuickBooks Pro or Premier in multi-user mode, you must switch
to single-user mode to create a backup. For more information on single-user
mode, see Working with multiple users on page 92.
Below are recommendations for a backup routine.
•
Prepare several sets of backup media.
•
Label the backup media.
For example, QuickBooks Backup 21 June, QuickBooks Backup Tuesday and so forth.
By having one set of backup disks for each business day, you are unlikely to lose more
than one day’s records if disaster strikes.
•
Each day, back up onto that day’s disks and keep them in your office.
•
Make a second backup at least once a week and store it off your premises.
Alternate between two sets of disks for your weekly off site backup. If disaster strikes
your office, you’ll want a reliable record of your data to fall back on.
•
Periodically replace your backup media with new media on your machine.
•
At the end of the financial year, make an archive copy of your data to keep off your
premises.
Backing up to a CD-R, CD-RW or hard disk
Although Windows XP and Vista™ can write data directly to a CD-R or
CD-RW, we strongly recommend that you use third-party CD writing
software to back up your company file instead.
Because of a limitation in the CD writing program that comes with Windows
XP, it may not allow QuickBooks to back up directly to a CD. Instead, it
may display an error message such as Unable to access the disk. Also, if
Windows XP does allow QuickBooks to access the CD, Windows XP may not
transfer your company file backup from the CD Writing Tasks area to your CD
properly.
Instead, you should first save the backup to your hard drive, then copy it to
your CD with reliable third-party software.
QuickBook Basics
85
1.
Insert the CD into your CD-R drive.
2.
Choose File menu > Back Up.
3.
Click the Back Up Company File tab, locate the Back Up Current Company field box and
select Disk.
4.
Click Browse and navigate to a place on your hard drive where you can find the files
easily.
5.
Locate the File name field, type a name for your backup and click Save.
6.
(Optional) Select the backup options you want
Verify data integrity: Verifies your data before backing up.
Set Defaults: Specifies the defaults for backing up manually.
7.
Click OK.
QuickBooks creates a backup file of your company data.
If you are backing up to hard disk, end the procedure here.
8.
Start your CD writing software and use it to copy the backup file from the hard drive to
your CD.
Hint:
We recommend you give a new name to each backup—for example, the date
of the backup, 28Sep2007. This prevents you from overwriting the previous
backup should there be a problem during the backup process such as a
power failure.
If you are very comfortable working around the limitation in Windows XP’s built-in CD
writing software, the help file includes information about setting up Windows XP so that
you can back up your company files directly from QuickBooks to a CD.
To learn about…
Search the Help index for…
Setting up Windows XP so you can back up to
CDs directly from QuickBooks
backing up to CD drive
Backing up to a Zip disk
86
1.
Insert the Zip disk into your Zip drive.
2.
Choose File menu > Back Up.
3.
Click the Back Up Company File tab.
4.
Click Browse and navigate to your Zip drive.
5.
Locate the File name field and type a name for your backup.
6.
Click Save.
Chapter 5
7.
(Optional) Select the backup options you want:
Verify data integrity: Verifies your data before backing up.
Set Defaults: Specifies the defaults for backing up manually.
8.
Click OK. QuickBooks creates a backup file of your company data.
Hint:
We recommend you give a new name to each backup—for example, the date
of the backup, 28Sep2007. This prevents you from overwriting the previous
backup should there be a problem during the backup process such as a
power failure.
Backing up to a tape
1.
Insert the tape into your tape drive.
2.
Choose File menu > Back Up.
3.
Click the Back Up Company File tab.
4.
Click Browse and navigate to your tape drive.
5.
Locate the File name field and type a name for your backup.
6.
Click Save.
7.
(Optional) Select the backup options you want:
Verify data integrity: Select to verify your data before backing up.
Set Defaults: Click to specify the defaults for backing up manually.
8.
Click OK. QuickBooks creates a backup file of your company data.
Hint:
We recommend you give a new name to each backup—for example, the date
of the backup, 28Sep2007. This prevents you from overwriting the previous
backup should there be a problem during the backup process such as a
power failure.
Backing up to a 3.5 floppy disk
Backing up to a floppy disk is not recommended because of the
volatility of some floppy disks.
If you back up your company file to a floppy disk, you should be aware that
there are risks involved in this type of data storage. While some disks can be
reused several times and retain their integrity for a long period of time, others
can be reused only a few times before they corrupt for no obvious reason.
Formatting your floppy disk
Formatting removes any old data that may be on the disk and prepares the disk to receive
new data. Even if the disk is labelled as preformatted, it’s a good idea to fully format a
new disk before using it. Sometimes new disks can be stripped of their formatting during
shipping. QuickBooks can format disks during the backup process.
QuickBook Basics
87
Hint:
We recommend you keep multiple backups on different sets of disks and that
you periodically replace the disks with new disks. Give a new name to each
backup—for example, the date of the backup, 28Sep2007, to prevent you
from overwriting the previous backup.
Let’s see how to back up to a floppy disk.
1.
Insert a disk into your floppy disk drive.
2.
Choose File menu > Back Up and click the Back Up Company File tab.
3.
Click Browse, navigate to your floppy drive and locate the File name field and type a
name for your backup.
4.
(Optional) Select the backup options you want:
Verify data integrity: Verifies your data before backing up.
Set Defaults: Specifies the defaults for backing up manually.
5.
Format each floppy disk during backup and click OK.
6.
Click Start, and then click OK and wait while the floppy disk is formatted.
7.
Click OK then Close to close the Format dialog box. QuickBooks backs up your data.
Hint:
If you need more than one disk, QuickBooks asks you to insert an additional
disk as each disk fills up. Remember to label the disks numerically—for
example, Monday Disk 1, Monday Disk 2 and so forth.
If you selected to format before backing up the disk, QuickBooks formats sequential disks
as you place them into the drive.
Testing your backup
Due to the volatility of floppy disks, we recommend that you test the data that you’ve stored
on your floppy disk. You’ll use the Restore feature to test your backup. This procedure
uncompresses your backup file and creates a new company file using the data from the
backup.
Unfortunately, testing the backup data doesn’t ensure the integrity of
your floppy disk.
There is still a risk of your backed up data becoming corrupt. Corruption can
occur due to age, environmental changes, over-use or for reasons beyond
your control.
Using Online Backup
Online Backup is a backup that is provided as a subscription service for your QuickBooks
software.
Online Backup is part of a range of third-party Tools offered by Quicken. For more
information on creating an online backup, see Secure your data with Online Backup on
page 213.
88
Chapter 5
Searching for your backup file
If for some reason you can’t locate your backup file (.QBB), you can use the Windows’
search feature to help you find it.
1.
From your Windows desktop, choose Start > Search.
2.
Type *.QBB in the Search for files named field.
The asterisk symbol acts as a substitute for zero or more characters.
3.
Select a drive or folder in the Look in field.
4.
Click Search Now.
Restoring your backup file
If you need to restore your company file from a backup, use the Restore command.
1.
Choose File menu > Restore and locate the Get Company Backup From section, select
Disk or Online.
2.
Click Browse to navigate to the file and click Open.
3.
Locate the Restore Company Backup To section, click Browse and navigate to a folder
where you can store the restored file temporarily.
Don’t save the restored file in the same folder where you normally store your company
file—for example, navigate to the Windows temp folder.
4.
Locate the File name field, type a name for the restored file—for example,
Restore(date)—and click Save.
5.
Click Restore.
6.
If you’re restoring from multiple disks, QuickBooks prompts you to insert the
sequential disks as QuickBooks extracts the compressed data.
QuickBooks lets you know if the restore was successful.
7.
Click OK.
QuickBooks opens your restored company file.
The next time you open QuickBooks, ensure that you’re opening your
main company file and not your restored file.
QuickBooks remembers the last file you worked on.
Your QuickBooks backup copy is in a compressed file format. You
must use the Restore command to bring your backed up data back into
QuickBooks.
Do not use the Copy command from Windows Explorer or the DOS prompt.
If your hard disk has malfunctioned, you first need to reinstall QuickBooks on
the repaired or new hard disk.
QuickBook Basics
89
Note:
If QuickBooks finds a company file with the same name as the one you’re
restoring to a given directory, it asks you whether you want to replace the
existing file. If you answer No, QuickBooks returns you to the Restore
window. You must then give a different name to the restored file and when
the process is finished, you will have two different versions of your company
data.
To learn about…
Search the Help index for…
Restoring your company data
restoring data
Condensing data
If your company file has grown very large, you can reduce its size by condensing the older
transactions you no longer need. For example, you might condense the transactions your
company completed two or more years ago, especially if your company file is quite large,
for example, more than 75 MB.
Condensing large company files can sometimes improve the performance of QuickBooks.
Note the following points about condensing data:
•
When you condense data, you specify an ending date for the period of time you want
to condense. Transactions dated after your selected ending date are not affected. For
example, if your ending date is 31/12/06, all transactions dated 1/1/07 and later
remain intact in your company file.
•
When you condense your company file, QuickBooks deletes only closed transactions.
Open transactions are retained. Therefore, to give unpaid bills and uncleared
transactions some time to complete, it is best to select an end date that is six months
or more in the past.
If you select Remove ALL transactions, QuickBooks deletes all transaction regardless of
dates.
You must keep the archive file that the Condense function creates in
case you need to refer to your transactions during an audit.
As a business owner, you are required to you keep your transactions for five
years. Also, you should make sure you have printed records of your most
important transactions before you condense your data and create an archive.
Examples of transactions that are deleted
•
90
Chapter 5
If an invoice has been paid in full, QuickBooks deletes the details and includes the
amount in a summary transaction showing income accounts. Neither the customer
name nor the items sold are retained. However, if an invoice is not printed or is unpaid,
partially paid, or marked as pending, QuickBooks leaves the invoice in your file so you
can apply payments to the invoice.
•
If you have QuickBooks Pro, condensing deletes only those estimates that are dated
on or before the ending date and that have a job status of Closed. If an estimate
has any other job status (Pending, Awarded, In Progress, Not Awarded, or None),
QuickBooks retains the estimate regardless of its date.
•
(If you select the option in the Condense preferences) If you have paid a bill for a
reimbursable expense, QuickBooks deletes the bill regardless of whether you have
invoiced the customer for the expense.
Examples of transactions that are retained
When you follow the steps in the Archive & Condense Data wizard, you’ll have an
opportunity to remove old transactions and unused items to further reduce the size of your
data file. However, QuickBooks always retains transactions that meet the following criteria.
When QuickBooks retains a
transaction with earlier date
Example of retained transaction
The transaction is linked to another
transaction that has an open balance
An undeposited customer payment that you applied
to an invoice. Even though the invoice is paid,
QuickBooks retains the invoice because it has a link to
an open transaction (the undeposited payment).
The transaction is linked to a
transaction in the current year.
Summary transactions
The summary transactions that QuickBooks creates display in the registers of your balance
sheet accounts—for example, Bank, Accounts Receivable or Accounts Payable.
Each balance sheet account has one GENJRNL summary transaction for each month
in which QuickBooks deleted transactions. The transaction amount is the total of the
transactions that QuickBooks deleted for the month. For a given month, the register may
also show other transactions that QuickBooks did not delete. These are transactions that
could be affected by transactions you have yet to enter. When opening a register, you can
spot the summary transactions by looking for GENJRNL in the Type field.
To view a breakdown of amounts by account, select a GENJRNL transaction and click Edit.
The General Journal Entry window shows the breakdown of amounts by account for all
summarised transactions for this month.
Important:
You cannot edit a GENJRNL summary transaction.
How condensing data affects your reports
Account balances
After you condense your data you can still create reports that summarise financial activity
for the period of time you condensed. For example, if you condense the last financial year’s
data, you can still create Profit and Loss Reports that compare last year’s results to this
year’s. This is because QuickBooks adds summary transactions to your company file to
preserve monthly account balances.
QuickBook Basics
91
Transaction detail
After you condense your data, you won’t be able to create reports that show daily detail for
the period of time you condensed. This is because QuickBooks has deleted the individual
transactions that would have provided the detail. In addition, you won’t be able to create
reports that show balances for individual customers or suppliers over that period of time.
As a result, the totals for sales revenue on Tax Liability Reports will be incorrect. As a
precaution, QuickBooks creates a backup file in case you need access to the deleted
transactions later.
Cash basis reports
After you condense your data, you won’t get an accurate Cash Basis Report for data that
includes a condensed time period. This is because QuickBooks has deleted the individual
transactions that would have provided the information about whether transactions were
paid. As a result, the totals will be incorrect.
To learn about…
Search the Help index for…
Condensing your QuickBooks company file
condensing data
Working with multiple users
This section provides the following information to help you work with multiple users:
•
Sharing QuickBooks Pro or Premier company files
•
Users and passwords
•
Recording who changed what in the Audit Trail
In QuickBooks, you can set up your company file so that users have different access to
features. See Users and passwords on page 93 for more information.
In QuickBooks Pro or Premier, several people can work with your company file at the same
time, over a computer network.
Sharing QuickBooks company files
Using QuickBooks Pro or Premier on a network is basically the same as using it on a single
computer. For most of your day-to-day tasks, up to five users can access the company file at
the same time. When several users are allowed to work in the company file simultaneously,
the file is in multi-user mode.
However, for some activities, only one person at a time can use the company file. The other
users must log off, close the company file, or exit QuickBooks. Then the person who wants
to perform the activity must switch the file to single-user mode. After finishing the activity,
the person can switch back to multi-user mode and the others can log back on or open the
company file again.
Single-user activities include:
92
•
File operations such as backing up, condensing or exporting data
•
Changing lists
•
Adjusting stock
Chapter 5
•
Activities involving an Accountant’s Review copy
•
Running the Audit Company File wizard
There is also a third category of activities. Although all the networked QuickBooks users
with the correct permissions have access to these features, only one person at a time can
use them.
Feature-locked activities include:
•
Paying bills
•
Running payroll
•
Setting up new users or maintaining existing ones
For information about restricting access to features, see Setting up the Administrator and
users on this page)
Refreshing after entering data
If you are creating reports while others are working in the company file, you can use the
Refresh button to make sure you have the most current information on your reports. The
Refresh button updates your screen with the information that others have entered into
QuickBooks Premier since you started the report.
You can refresh lists or forms as you work by pressing F5 on your keyboard or right-clicking
the item and selecting Refresh.
To learn about…
Search the Help index for…
Switching between modes
multi-user mode
single-user mode
Your refresh options
Refresh button
Users and passwords
The QuickBooks password feature provides a basic degree of
protection for your data but it is not a complete security system.
For example, it will not prevent someone using Windows Explorer from
deleting your company file.
Some parts of your company’s data are more sensitive than others. You can use passwords
to make sure that each employee you have can only access those parts of QuickBooks you
want them to use.
Areas you can protect include sales and accounts receivable, purchases and accounts
payable, banking and credit cards, stock, time tracking, payroll, sensitive accounting
activities and sensitive financial reports.
In this way you maintain the security of your business data even when several people
access your company file at the same time. Until you set up users (and passwords) in your
QuickBooks company file, any person who accesses the file will have full access to all
features of the program.
QuickBook Basics
93
Setting up the Administrator and users
About the QuickBooks Administrator
When you create a QuickBooks company file, QuickBooks creates a user called Admin. This
user is the QuickBooks Administrator for the company file. You can set up a password for
the Administrator. When you assign a password to the Administrator, QuickBooks prompts
you to log on when you open the company file.
Do not forget the Administrator’s password. Once you’ve chosen a
password for the Administrator, write it down and store it in a safe
place.
An Administrator’s password, if forgotten, cannot be recovered. If you forget
this password, you’ll have to send your company file to Quicken (there is a
fee associated with this service).
The QuickBooks Administrator has unlimited access to the entire company file and is the
only person who can add additional users and change access privileges.
For each user they set up, the Administrator designates:
•
Password.
The password can contain up to 16 letters and numbers and is case sensitive. The
user can change the password later, but the Administrator will still be able to make
changes to the user’s access privileges and can assign the user a new password, if
necessary.
•
Access.
This can be a selective access, or no access, to each area of QuickBooks.
Setting up and customising users
After you’ve set up the Administrator, you can add new users. Use the New User Setup
wizard to select the parts of QuickBooks you want the new user to use. Choose Company
menu > Set up Users.
You can set up as many users as you want. However, only five users can access the
company file at any one time.
Note:
In Windows 2000, XP and Vista™, using the Users and Passwords control
panel, you can set up each of your employees with a log-in profile. All the
people who will use QuickBooks must be set to Standard User (Power Users
Group) or higher, not Restricted User (Users Group). Otherwise, QuickBooks
will not run properly.
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Chapter 5
When the wizard finishes, a summary screen for all your users displays:
To learn about…
Search the Help index for…
The different access areas
passwords, access areas
The role of the Administrator
admin
Setting up users with passwords
users, adding
Changing passwords
passwords, changing
Deleting passwords
passwords, deleting
Using permissions to close an accounting period
Unlike most other accounting systems, QuickBooks does not require you to “close the
books” at the end of an accounting period. Closing books is often a complicated process
that involves transferring information from one ledger to another and summarising it. You
can generate reports at any time, not just at the end of the year.
However, you may want to restrict access to the transactions of prior accounting periods to
be sure the transactions are not changed without your knowledge. By requiring permission
to delete, add, or edit any transaction before a chosen date, you can discourage accidental
or casual changes to “closed” periods, but still make corrections when necessary,
for example, you may want to prevent your staff from making changes to your older
transactions after you‘ve paid the tax liabilities for them. You can restrict users from
accessing older transactions when you set them up. To deny users access to “closed”
periods, do not grant them permission to change or delete transactions recorded before the
closing date.
To learn about…
Search the Help index for…
Using permissions to “close” your books
closing, books
QuickBook Basics
95
Recording who changed what in the Audit Trail
QuickBooks can record all changes made to transactions and the name of the user who
made the changes. You can then review the changes in the Audit Trail Report. To keep an
ongoing record of changes to transactions, you must make sure the audit trail is turned on
and keep it on.
To turn the audit trail preference on or off:
1.
Choose Edit menu > Preferences.
2.
In the Accounting section, click the Company Preferences tab.
3.
Select/Clear the Use audit trail check box.
4.
Click OK.
If the preference is turned off for a period of time, QuickBooks does not keep a record of
changes, if any, to the transactions in that period.
Select the date range
you want to see on the
report.
The Current
Transaction entry
shows what the
transaction is like now.
If your computer is older or you make a lot of changes to existing transactions, QuickBooks
may slow down slightly when the Audit Trail is on. Also, the size of your company file may
increase more rapidly than it has in the past. These changes occur because instead of
writing over transactions you change, QuickBooks records both the original transaction
and all changes to it. However, for most users, the performance of QuickBooks should not
change.
To view the Audit Trail Report, from the Reports menu choose Accountant > Audit Trail.
96
Chapter 5
To learn about…
Search the Help index for…
Using the audit trail feature
audit trail
Auditing your company file
The Audit Company File wizard brings together in one place all the useful, high-level
information about your company file, as well as performing an integrity check of your
company data.
Once you have viewed all the relevant detail and run the required checks, QuickBooks
displays an exception report which outlines any discrepancies it finds in your company file.
Note:
If you use QuickBooks Pro or Premier in multi-user mode, you must switch to
single-user mode to run the Audit Company File wizard. For more information
on single-user mode, see Working with multiple users on page 92.
To run the Audit Company File wizard, choose File menu > Audit Company File.
The navigation
radio buttons and
the window title tell
you where you are
in the wizard.
Complete any
necessary fields.
The navigation
tools stay the same
throughout the
wizard.
Click buttons or
the radio buttons
to move back and
forwards through
the four wizard
stages.
Click any wizard
button or link
to perform that
function.
Tip:
If your company file is large and/or you expect to find errors, we recommend
that you verify your company file before you run the Audit Company File
wizard. See the in-product Help for more detail on verifying your company
file.
The Audit Company File wizard consists of four stages:
•
Company File Information
Compile and check your high-level company file information, such as version and
installation directory.
•
Company File Actions
Check when you last performed vital product actions on your company file such as
backing up, setting closing dates and data verification.
QuickBook Basics
97
•
Account Reconciliation Summary
Reconcile your QuickBooks accounts and view a detailed summary.
•
Data Auditor
Run the data audit on your company file and view the exception report.
You do not need to complete all four stages, nor do the four stages need to be completed
in any particular sequence. Click the radio buttons in the left-hand navigation to move
between stages as often as you require.
Note:
In multi-user systems, if you do not have the appropriate user rights to
perform a function (for example, accessing Accounts Payable) the ACF
wizard will not complete that section of the audit.
If you do not have the right to produce sensitive financial reports, you cannot
produce the ACF Exception Report.
The Audit Company File exception report
QuickBooks produces a single exception report based on the results of the company audit.
This report can be printed, but it cannot be modified, memorised or exported.
The report exists
only as long as the
current company
audit remains
valid. If you move
back through the
wizard screens,
or open any other
QuickBooks
function, you will
need to run the
data audit again
to reproduce the
report (even if no
information was
changed).
Many audit
processes allow you to drill down from exception report items to the associated transaction.
98
Chapter 5
To learn about…
Search the Help index for…
Verifying your company file
verify data
Using the audit company file wizard
ACF wizard, or
audit company file
Running an ACF Exception Report
audit company file, data auditor
Solving printing problems
This section provides you with information to help you solve printing problems. It covers:
•
When should I reinstall my printer driver?
•
Nothing happens when you try to print.
•
The form is clipped on the top, bottom, left, or right.
•
Dates and the bottoms of letters are clipped on forms.
•
Printing is slow.
If you’re having trouble printing, try checking these areas before you call Quicken Support.
When should I reinstall my printer driver?
If your printer has any of the following problems, you may have to reinstall your printer
driver in Windows if your printer:
•
Isn’t printing at all, from any program
•
Prints “garbage” from any program
•
Won’t feed paper correctly
Contact the printer manufacturer for assistance if reinstalling the printer driver does not
resolve the problem.
Nothing happens when you try to print
There are several things you can try
•
Make sure the printer is turned on and is online
•
Try printing from another application to verify that Windows can still communicate with
the printer
•
Check for stalled printing jobs on your printer
•
Choose Start menu > Settings > Printers.
•
Double-click the printer you’re using.
•
Select the stalled print job in the list.
•
Choose Document menu > Cancel.
The form is clipped on the top, bottom, left, or right
It is likely that you only need to adjust the form’s margins and alignment. However, some
printers can’t print the entire width necessary for the standard forms that come with
QuickBooks. In this case, you’ll need to customise the form to have larger margins.
1.
Choose File menu > Printer Setup and select the form from the Form Name list.
2.
Click the Margins tab.
If there is no Margin tab, you need to adjust the form’s alignment instead. See Adjust
the fine alignment of forms on page 100.
3.
Set the margin you want in the Left, Right, Top and Bottom fields.
QuickBooks displays the margins in centimetres, but you can enter margin sizes in
inches (in), millimetres (mm), centimetres (cm), points (pt), or picas (pi).
If you find that QuickBooks leaves larger margins than you entered, your printer may
QuickBook Basics
99
be unable to print outside a specific area. Check your printer manual or contact the
printer manufacturer if you have such a problem.
If you’re using a continuous printer, you may have to slide the paper clamps over to get
the printer to start at the position you want.
4.
Click OK to save the changes.
Adjust the fine alignment of forms
100
1.
Make sure your printer is turned on and is online and the forms you want to print
inserted to the printer’s paper feeder.
2.
Choose File > Printer Setup.
3.
Select the form you want from the Form Name drop-down list and click Align.
If the Align button is not available, that form cannot be aligned.
If a list of templates displays, click the one you want and click OK.
If you are using a continuous-feed printer, QuickBooks displays a window where you
can select coarse or fine adjustments. Click Fine.
4.
Click Print Sample.
QuickBooks prints the form with a small alignment grid on it. Check the horizontal and
vertical alignment of the text in the alignment grid.
5.
Enter the amounts in the Vertical and Horizontal fields to move the printed text to align
it. The alignment values are in millimetres.
For continuous-feed printers, if the printing is off to the left or right, slide the paper over
to correct the problem. Use the Fine Alignment window for changes of less than half a
centimetre.
Problem
Solution
The text prints too
high.
Decrease the number in the Vertical field—for example, if the text
is printing 2 squares (that is, 0.2”) too high, type -20 in the Vertical
field.
The text prints too
low.
Increase the number in the Vertical field—for example, if the text is
printing 1 1/2 squares (that is, 0.15”) too low, type 15 in the Vertical
field.
The text prints too
far to the left.
Increase the number in the Horizontal field—for example, if the text
is printing a 1/2 square (that is, 0.05”) too far to the left, type 5 in
the Horizontal field.
The text prints too
far to the right.
Decrease the number in the Horizontal field—for example, if the
text is printing 1 square (that is, 0.1”) too far to the right, type -10 in
the Horizontal field.
6.
Click Print Sample to see if the form is now aligned correctly.
7.
Click OK when you are finished making adjustments.
QuickBooks saves the horizontal and vertical alignment adjustments.
8.
Click OK in the Printer Setup window.
Chapter 5
Dates and the bottoms of letters are clipped on forms
The font you‘re using may be too large. Try a font size of 10 points or less.
To change fonts:
1.
Return to QuickBooks and choose File menu > Printer Setup.
2.
Select the form you want from the Form Name drop-down list.
You can’t change the fonts on some forms here. You can change the fonts on these
forms by clicking the Customise button on the forms.
3.
Click the Fonts tab.
4.
Select the font you want.
5.
Click OK in the Select Font window and the Printer Setup window to save the changes.
Printing is slow
There are several things you can try to increase the printing speed:
•
Lower the print resolution for your laser printer. Choose File menu > Printer Setup and
select the Settings tab, then click Options. Find the graphics or image settings and
choose a lower print setting.
•
If you’re printing on blank paper or a letterhead, do not select to print lines around
each field. In the Settings tab of the QuickBooks Printer Setup window, clear the Print
Lines check box.
•
Make more computer memory (RAM) available by closing down programs you don’t
need.
QuickBook Basics
101
102
Chapter 5
Tracking and paying tax
How QuickBooks tracks tax
6
104
Setting up tax preferences
104
Setting up and using tax codes
105
Making adjustments to your Tax Payable account
110
Creating tax reports
111
Paying a tax liability
113
Receiving a tax refund
114
Keeping tax records
114
This chapter explains how to set up tax tracking in QuickBooks. It helps you determine how much tax to collect
on sales you make, how to record the tax you pay on business purchases, and how to pay what you owe when
it is due.
You are responsible for consulting a tax advisor about the tax regulations.
For current and detailed information about collecting and remitting tax please consult your
government tax office.
How QuickBooks tracks tax
Keeping track of tax can be a challenge. Some items you sell may be taxable while others
may not, and some items may be taxed at different rates than others.
Fortunately, QuickBooks can help you automate these complexities. Take the time to
set up your QuickBooks company for tax carefully, so you can enter sales and purchases
quickly. You’ll have accurate information about the tax you’ve collected and paid when it
comes time to remit it.
Setting up tax preferences
The procedures in this section enable you to:
•
Turn on tax tracking and other tax preferences
•
Choose a tax reporting period
Turning on tax tracking and other tax preferences
If you haven’t done so already—that is, during the EasyStep Interview— you need to turn on
tax tracking to enable QuickBooks to track your tax.
1.
Choose Edit menu > Preferences.
2.
Select Tax from the scroll box, then click the Company Preferences tab.
3.
Locate the Do you track tax? field and click Yes.
4.
Click OK.
Tip:
You can also set other tax preferences, as displayed in the Preferences
window below, during this step.
104
Chapter 6
Choosing a tax reporting period
In QuickBooks, each company’s tax reporting period sets up automatically when it’s
created.
QuickBooks defaults to a quarterly reporting period—for example, quarters ending in
Jun/Sep/Dec/Mar. However, you can change the setting and track your tax on a monthly,
bimonthly, six monthly or annual basis.
1.
Choose Edit menu > Preferences and select Tax from the scroll box, then click the
Company Preferences tab.
2.
Complete the following fields:
3.
Field
Action
Tax Reporting
Select the activity statement’s reporting period—for example, quarterly.
Ending
Select the statement’s ending period—for example, Mar/Jun/Sep/Dec.
Return due
Type the number of days after the end of the reporting period that
your tax office gives you before you have to lodge your statement—for
example, 30.
Click OK.
Setting up and using tax codes
This section explains the concepts of tax codes, the Tax Codes List and the Tax Payable
account. It also shows you how to:
•
Apply tax codes to items–automatically and manually
•
Creating new tax codes
•
Set a company-wide, default tax code
Tax codes and the Tax Codes List
Tax codes—for example, GST—enable QuickBooks to identify the type and amount of tax to
apply to each item in a purchase or sale and to track the types of tax you have collected or
paid. Tax codes are grouped together on the Tax Codes List. Default tax codes are added to
this list when you set up your QuickBooks company. You can add extra tax codes to the Tax
Codes List.
Tax Payable account
When you set up your company, QuickBooks creates an account called Tax Payable in
your company’s chart of accounts. As you process sales invoices, cash sales receipts,
adjustment notes, bills, credit card transactions, and cheques that are linked to a tax code,
QuickBooks automatically records the tax type and amount in the Tax Payable account.
The Tax Payable account is the backbone of your tax tracking. The Tax Payable account
stores all the tax information QuickBooks uses to generate your tax reports and activity
statements.
Tracking and paying tax
105
Tracking your tax liability
The GST you record as part of goods you purchase decreases the balance of your Tax
Payable account and therefore decrease your tax liability with your tax office. Taxes you
record as part of your sales increase the balance of your Tax Payable account and therefore
increase your tax liability with your tax office. For example, if you link a tax code to a bill,
your tax liability will decrease, and, if you link a tax code to an invoice, your tax liability will
increase.
Be aware that while tax codes help you track and categorise your tax position, they have no
effect on the positive or negative balance of your Tax Payable account—what is important is
whether the tax code is linked to a purchase or sale form.
Important points to remember about linking tax codes
• When you process purchases (pay suppliers) to which you have
linked a tax code, the balance of your Tax Payable account decreases
(regardless of the tax code).
• When you process sales (receive payments from customers) to which
have linked a tax code, the balance of your Tax Payable account
increases (regardless of the tax code).
• If you have not linked a tax code to your purchase or sale form, no tax is
recorded in your Tax Payable account.
If you are unsure about which tax codes to apply to which transactions,
contact your accountant or tax office for advice.
Default Tax Codes (Australia)—purchases
Usually, you use these tax codes for items that you buy from your suppliers. For example, if
you are a chef and you buy fish for your restaurant, that is a purchase.
106
Code
Description
Type
Function
CAF
Capital acquisitions. No
GST in the price
GST-free
Purchases of equipment over $300.
No GST paid.
CAG
Capital acquisitions
including GST
GST
Purchases of equipment over $300.
GST paid.
CAI
Capital acquisition for
making input tax supplies
Input
Taxed
Purchases of equipment over $300.
Tax paid
NCF
Non Capital acquisitions.
No GST in price.
GST-free
Non Capital acquisitions bought for
your business, with no GST in the
price
NCG
Non capital acquisitions
including GST
GST
Non capital acquisitions bought for
your business. GST paid
NCI
Non capital acquisitions
for making input taxed
supplies
Input taxed
Non capital acquisitions bought for
your business for making input taxed
supplies.
Chapter 6
Default Tax Codes (Australia)—sales
Usually, you use the these tax codes for items that your customers buy from you. For
example, if you are a chef and a customer buys a meal at your restaurant, that is a sale.
Code
Description
Type
Function
GST
Taxable Supplies
GST
Goods and services subject to 10%
GST
INP
Input Taxed Supplies
GST-free
Supplies which are input taxed
EXP
Exported Supplies
GST-free
Supplies for export with no GST
included in the price
FRE
GST-free Supplies
GST-free
Supplies with no GST included in the
price - excluding exports
WET
Wine Equalisation Tax
Sales Tax
Special wine tax levied at 29% rate
WC
Combined WET and GST
tax
Combined
Tax incorporating both WET and GST
WGST
GST on WET
GST
WET goods subject to 12.9% tax
CDS
Wine Equalisation Tax
Sales Tax
Sales tax levied on cellar door supplies
CDG
GST on WET
GST
GST levied on cellar door supplies
CDC
Combined Cellar door with
GST tax
Combined
Tax incorporating cellar door sales tax
and GST
Default Tax Codes (New Zealand)
Code
Description
Type
Function
E
Tax Exempt
Tax-Free
Supplies not liable for tax
N
Not Registered
Tax-Free
Business entity not registered for tax
S
Standard
Tax
Taxable supplies charged at a 12.5%
rate
Z
Zero Rated
Tax-Free
Supplies charged at a 0% rate
I
Imported Good
Tax-Free
Imported supplies charged at a 0%
rate
Tracking and paying tax
107
Default Tax Codes (Singapore)
Code
Description
Type
Function
ZERO
Zero rated supplies
GST Free
Charged at 0% rate
FRE
Exempt supplies
GST Free
Charged at 0% rate
GST
Standard rated supplies
GST
Charged at 5% rate
ZGS
Zero GST Warehouse
Scheme
GST Free
Charged at 0.00%
Default Tax Codes (Philippines)
Code
Description
Type
Function
Output VAT
Value Added Tax (sales)
GST
Charged at
10.00%
Input VAT
Value Added Tax (purchases)
GST
Charged at
10.00%
FREE
Value Added Tax FREE
GST Free
Charged at 0.00%
Zero
Zero Value Added Tax
Input taxed
Charged at 0.00%
PT0%
PT 101/102/112
Sales Tax
Charged at 0.00%
PT1%
PT 101/112
Sales Tax
Charged at 1.00%
PT2%
PT 060
Sales Tax
Charged at 2.00%
PT3%
PT 010/040/041/070/101/112
Sales Tax
Charged at 3.00%
PT5%
PT 101/103/111/112/120/131/132
Sales Tax
Charged at 5.00%
PT7%
PT 210
Sales Tax
Charged at 7.00%
PT10%
PT 130
Sales Tax
Charged at
10.00%
Applying tax codes to items
You can apply tax codes to your purchases and sales automatically or manually.
Applying tax codes to items automatically
You can apply tax codes to items automatically by locating the items in your Item List and
linking them to a tax code. For example, if you are a hardware business and sell paint
brushes, you can link your QuickBooks paint brush items to the GST tax code. Whenever
you process an invoice that contains a paint brush item, QuickBooks automatically knows
to apply a 10% tax to the invoice and to record that amount of tax in your Tax Payable
account.
108
Chapter 6
Note:
If you do not know which tax code to use, contact your accountant or tax
office for advice.
1.
Choose Lists menu > Item List.
2.
Locate the item and double click it to display the Edit Item window.
3.
Locate the Purch Tax Code field and select a tax code from the drop-down list.
You usually select tax codes that apply to purchases—for example, NCG.
Refer to Default Tax Codes (Australia)—purchases on page 106 for a list of purchase
tax codes and further information on these.
4.
Locate the Sales Tax Code field and select a tax code from the drop-down list.
You usually select tax codes that apply to sales—for example, GST.
Refer to Default Tax Codes (Australia)—sales on page 107 for a list of sales tax codes
and further information on these.
5.
Click OK.
Now, whenever you process that item as part of a sale, purchase or adjustment,
QuickBooks automatically applies the linked tax code to the transaction and increases or
decreases the balance of your Tax Payable account.
To learn about…
Search the Help index for…
Creating an item
items, creating
Applying tax codes to items manually
You can apply tax codes to items manually by opening the purchase or sales form, or
adjustment, and selecting a tax code.
1.
Display the sale, purchase or adjustment form to which you want to apply a tax code.
2.
Locate the Tax column, click once and select a tax code from the drop-down list.
3.
Process and save the form or adjustment as usual.
Creating new tax codes
Use the following steps to create a new tax code.
1.
Choose Lists menu > Tax Code List.
2.
Click Tax Code at the bottom of the Tax Code List window, then select New.
3.
Locate Tax Code, and type a unique tax code.
4.
Type the tax percentage represented by this tax code.
5.
Type a brief description for this code—for example, GST-free.
6.
Click OK.
Once you have created a new tax code, you apply it in the same way as default tax codes.
Tracking and paying tax
109
Setting a company-wide, default tax code
You can set up a company-wide, default tax code that links automatically to any new items
you create. This setting is useful if your company tends to use one tax code, such as GST,
quite a lot.
1.
Choose Edit menu > Preferences.
2.
Select Tax from the scroll box, then click the Company Preferences tab.
3.
Locate the Default Tax Code field and select a tax code from the drop-down list.
4.
Click OK.
Note:
If you are unsure which tax code to use as your default, select the tax code
you use the most often.
Remember, that you can always override the default tax code later. Do this by changing
the default tax code you apply to an item, or changing the tax code on your sales form,
purchase form or adjustment.
Making adjustments to your Tax Payable account
From time to time, you may need to adjust the tax liability in your Tax Payable account,
possibly to correct an error in your activity statement or to account for a discrepancy in
a tax payment. This section shows you how to make a general journal entry in your Tax
Payable account.
Making a general journal entry in your Tax Payable account
You can adjust your Tax Payable account by making a general journal entry.
The general journal entry requires you to enter two lines as follows:
•
First line—increases or decreases the balance of your Tax Payable account
•
Second line—increases or decreases the balance of another account—usually the
account that contains the error
The total of
both lines must
add up to zero—
for example,
if you debit
(decrease) the
Tax Payable
account by
$45 then you
must credit
(increase) the
other account
by $45 to
create a zero
balance.
110
Chapter 6
To adjust your Tax Payable account:
1.
Choose Banking menu > Make General Journal Entry.
2.
Check the Date field displays today’s date and type a reference number in the Entry
No. field.
3.
Select Input or Output in the Show on Tax Reports field.
First line
1.
Locate the Account column in the first empty row of the journal, click once and select
the Tax Payable account.
2.
Locate the Debit or Credit column, and type the amount to adjust your Tax Payable
account by.
•
To decrease your tax liability—that is, if your Tax Payable account shows that you
owe more to the government than you actually do—type a positive amount in the
Debit column.
•
To increase your tax liability—that is, if your Tax Payable account shows that you
owe less to the government than you actually do—type a positive amount in the
Credit column.
Second line
1.
Locate the Account column on the next empty line, click once and select the other
account—for example, the account that contains the error.
2.
Locate the Debit or Credit column, and type the amount by which to adjust your
account.
If you decreased your tax liability, enter a positive amount in the Credit column.
If you increased your tax liability, enter a positive amount in the Debit column.
Note:
The transaction must have a zero balance. That is, the total in the Debit
column on one line must equal the total in the Credit column on the other
line.
3.
Type a brief description of the adjustment in the Memo column on both lines.
4.
Click Save & Close to record the adjustment.
Creating tax reports
This section explains the types of tax reports you can create with QuickBooks and shows
you how to:
•
Create tax reports
•
Change the tax accounting periods on tax reports
Tracking and paying tax
111
Types of tax reports
At any time, QuickBooks can create reports to show your tax situation.
QuickBooks’ flexible tax reports make it easy for you to understand your tax position in
a variety of ways. They can tell you if you owe money to your tax office or if you are due a
refund, and also provide all the information necessary for lodging your activity statement.
QuickBooks has the following types of tax reports:
•
Tax Liability
•
Tax Summary
•
Tax Detail
Tax Liability report
The Tax Liability Report shows you the amounts you need to report in your activity
statement.
This report is strictly a liability report and shows the tax information as of the date
specified. If you want the report to be as of a different date, change the date range in the
From and To fields.
Tax Summary report
The Tax Summary Report provides a summary of transactions by tax code.
It includes total inputs (purchases), total outputs (sales), and the balance due to or from the
your tax office at the end of a reporting period. If you select a longer period than your tax
quarter, the report splits the figures by tax quarter.
Tax Detail report
This report is an expanded version of the Tax Summary Report and shows every transaction
that contributes to the total inputs (purchases) and outputs (sales).
Getting ready to prepare an activity statement
Before preparing your activity statement, you should run a Tax Summary Report covering
your reporting period. Also, you should create Tax Summary and Tax Detail Reports to verify
the accuracy of your Tax Liability Report. You should print all these tax reports before you
prepare your activity statement and file them in a safe place for future reference once you
have finished.
Creating a tax report
Use the following steps to create a tax report.
1.
112
Chapter 6
Choose Reports menu > Tax, then select one of the following:
- Tax Liability
- Tax Summary
- Tax Detail
QuickBooks creates the report for the last full tax quarter using the four quarters you
specified in your tax preferences.
2.
(Optional) Customise the report.
QuickBooks enables you to run tax reports for different periods. You will need to
customise the tax reports if your tax accounting periods are non-standard.
3.
(Optional) Click Print.
Changing the tax accounting periods on tax reports
You can change the tax accounting period on tax reports by doing one of the following:
•
Change the Tax Reporting field on the Preferences window.
Refer to Choosing a tax reporting period on page 105 for more information.
•
Create a tax report, click Modify Report and select the date range in the To and From
fields.
Paying a tax liability
Use the following steps to pay a tax liability.
1.
Choose Suppliers menu > Pay Tax Liability.
2.
Check or complete the following fields on the cheque:
3.
Field
Action
Pay to the order of
Ensure the name of your tax office is correct.
Number
Ensure the cheque number is correct.
Date
Select the date of the cheque.
$
Type the amount you will pay your tax office and push the down
arrow on your keyboard. The amount in words displays under the
Pay to the order of field.
(If you accidentally press Enter, QuickBooks will save and close
the cheque. If this happens, click Previous at the top of the window
to scroll back to your tax cheque).
Address
Ensure the address is correct, and if not, type the address.
Memo
Ensure your Tax Rego Id displays.
Click Save & Close, print the cheque and send it to your tax office.
Note:
To pay the tax office using online banking (Australia only), see Setting up
your employees and suppliers for online banking on page 205.
Tracking and paying tax
113
Receiving a tax refund
Use the following steps to receive a tax refund.
1.
Choose Suppliers > Receive Tax Refund.
2.
Click OK to display the Make Deposits window.
3.
Select the name of your tax office in the Received from field.
4.
Select the payment method in the Pmt Meth. field.
5.
Type the amount in the Amount field.
6.
Click Save & Close.
Keeping tax records
You are required by law to keep records and accounts of the taxable and exempt goods and
services that you supply in the course of your business. You must also keep a record of your
Tax Payable account, and should track the taxable goods and services you receive, too.
Normally, you should preserve your tax records for five years in Australia. Check with your
tax office for more information. We recommend that you regularly print out and keep all of
your sales invoices that show tax and tax reports, both Tax Detail and Tax Summary.
You will want to keep your computer files as well. Be sure to protect your data by making
regular backups of your QuickBooks file.
114
Chapter 6
Working with activity statements
Activity statements in QuickBooks
7
116
Getting ready to configure and generate an activity statement
116
Configuring the activity statement
120
Generating a BAS
125
Generating an IAS
126
Function buttons
126
Lodging your activity statement with the ATO
127
QuickBooks enables you to generate two activity statements: Business Activity Statement (BAS) and
Instalment Activity Statement (IAS). This is done from the Simplified BAS utility.
Activity statements in QuickBooks
There are two ways you can generate data for an activity statement in QuickBooks:
•
Manually
This involves configuring your activity statement before entering values in the fields
yourself so that QuickBooks can calculate the results in key fields such as 8A, 8B and
9.
•
Automatically
This involves ensuring your company file is set up properly so you can use your
company data to populate fields in the activity statement.
QuickBooks also enables you to lodge an activity statement electronically to save time.
This chapter is organised around the three major stages you must go through to generate
a BAS:
•
Ensuring your company is set up properly for your activity statement reporting
•
Configuring your BAS
•
Creating and lodging your activity statement
We’ll then touch briefly on how to generate an IAS based on the BAS information covered.
Note:
To find out more about activity statements and your obligations to the Tax
Office, contact your accountant or the Australian Tax Office
at www.ato.gov.au.
Getting ready to configure and generate an activity statement
Before you can configure and generate a BAS, your company file needs to be set up to
track your GST-related transactions. There are basic setup tasks that you must complete if
you want QuickBooks to track your GST correctly.
A basic understanding of how QuickBooks uses data in your company file to populate
fields in your activity statement will help your setup make more sense. More importantly, it
should help you avoid errors that result in an incorrect activity statement.
We strongly recommend that you do a rough calculation of your BAS data outside of
QuickBooks before creating an activity statement for the first time. You can then test the
results of the QuickBooks report and see that you’ve set up your system correctly. If you
get unexpected results, a good understanding of how QuickBooks draws data from your
company file will help you troubleshoot your setup to avoid any problems.
Are you ready for GST reporting?
Before you’re ready to configure a BAS, your company file needs to be set up for GST
tracking and your daily transactions recorded diligently. The following table lists basic
setup tasks that you must have completed before it’s time to start the configuration. It
references chapters from this user guide for further details. A brief explanation for each
task is given after the table.
116
Chapter 7
Have you...
Tick if Yes
If not, refer to...
Enabled tax tracking in QuickBooks?

Setting up tax preferences on
page 104.
Configured your program for your choice
of reporting - cash or accrual - and entered
your ABN?

What accounting method should
I use? on page 14.
Identified QuickBooks tax codes associated
with sales (outputs) and tax codes
associated with purchases (inputs)?

Setting up and using tax codes
on page 105.
Applied the correct tax codes to items?
Alternatively, have you applied the correct
tax codes when creating invoices or bills?

Setting a company-wide, default
tax code on page 110.
Diligently tracked all sales (outputs) and
purchases (inputs) by creating invoices and
bills?

Tracking sales and purchases
by creating invoices and bills on
page 118.
Checked transactions by generating a tax
summary report

Online Help, searching the
index for report types, tax.
Enabling GST tracking in QuickBooks
To track GST in QuickBooks, you need to turn on tax tracking in the tax preferences (choose
Edit menu > Preferences > Taxes). This enables the features associated with tracking GST,
including creation of a tax payable account.
Configuring your reporting method and entering your ABN
When registering to get an ABN from the tax office, you would have indicated cash
or accrual as the reporting method for your taxes. This needs to be reflected in your
preferences (choose Edit menu > Preferences, then choose the Tax icon and click the
Company Preferences tab).
You also need to make sure you have entered your ABN number in the Tax Preferences
under Tax Rego Number. This is needed for electronic file lodgement.
Understanding the QuickBooks tax codes
The default tax codes in QuickBooks fall into two categories: sales (outputs) and purchases
(inputs). You need to be familiar with the list of tax codes that apply to sales and the list of
tax codes that apply to purchases.
Working with Activity Statements
117
Applying tax codes to items
When setting up an item, you can apply a tax code so that every time you add it to an
invoice or bill, the tax code will appear on the item’s line in the invoice or bill.
Alternatively you can add a tax code to the item line on an invoice or bill where there is not
already a tax code
associated with the
item.
Make sure you have
applied the correct
tax code to items
so that they reflect
whether they are
bought or sold.
Applying a salesrelated tax code
to an item your
business purchases
will lead to an
incorrect activity
statement.
Tracking sales and purchases by creating invoices and bills
It’s easy to sell something and forget to create a sales receipt or invoice in QuickBooks to
reflect the sale. Or forget to enter the purchase of some expensive equipment. Remember
that QuickBooks generates reports based on what you enter into QuickBooks. Not what you
forget to enter.
If you forget to enter the sale of a few $100 items, your profit reports might be down. Forget
to enter the purchase of some expensive equipment, and you could be paying more tax
than necessary. So it’s worth being diligent in this area - besides, such an approach affects
more than just your BAS.
118
Chapter 7
Why it’s important to set up properly - the big picture
In the same way QuickBooks uses different account types to track your income and
expenses and generate reports, QuickBooks uses the Tax Payable account to track GST.
QuickBooks creates the Tax Payable account when you turn on tax tracking for QuickBooks.
This is a liability account (refer to Tax Payable account on page 105).
Each time you
apply GST to an
item line on an
invoice or bill,
QuickBooks
calculates a
portion of the
amount received
or paid as GST.
That portion is
then transferred
to the Tax
Payable account.
For GST sales
(outputs), where
taxes are collected for the government by you, QuickBooks adds the amount to your Tax
Payable account. For purchases (inputs) that include GST, where you can claim the GST
paid, QuickBooks subtracts the amount from your Tax Payable account.
Check your results
Unfortunately, the Simplified BAS can’t do all the thinking for you. It won’t recognise an
input related tax code applied to an output related item, or even a sales item connected to
an Accounts Payable account. It will make calculations based on what you enter.
You need to be sure that your company file is set up correctly so that your reports give you
the right figures. It’s good to calculate what you expect to see in your activity statement
outside of QuickBooks. Then, if you don’t get a similar result in QuickBooks, you know that
your setup may not be right. We recommend that you:
•
Calculate your first activity statement outside of QuickBooks
•
Check that you have applied the correct tax codes to items in QuickBooks
•
Generate a tax liability report to see that the numbers make sense
Calculate your first activity statement outside of QuickBooks
It’s sometimes a good idea to take paper notes outside of QuickBooks. Particularly if you’re
new to using QuickBooks and have a different way of making calculations.
Work out what you would expect to see as the results and then test these against the
QuickBooks report. If you get figures that don’t make sense, you know to start examining
the way you have set up your company file.
Working with Activity Statements
119
You can use the calculation sheet method available by choosing Reports menu > Tax >
Activity Statements > GST Calculation Sheet.
Check that your items and tax codes apply correctly
If you’re getting figures in your activity statement that don’t make sense, a good place to
look in your setup is your list of items. Make sure that each is associated with the correct
account in your chart of accounts. Also see that the correct tax code is applied. Look out for
input tax codes being applied to output items.
Any discrepancies? You can fix them up.
Generate a tax summary report to see that the numbers make
sense
Another way to check your setup is to generate a Tax Summary Report. This gives you an
overview of what money you owe on different tax types for purchases (inputs) and sales
(outputs). Use the QuickZoom feature to access further detail in the QuickZoom Report.
The QuickZoom Report lists the line item entries that make up the amount you doubleclicked in the Tax Summary Report. The line item entries are grouped by account. If you
suspect that a line entry has been assigned to the wrong account for income tax reporting,
you can display the transaction where the entry appears and assign the entry to a different
account.
Any discrepancies? You can fix them up.
Note:
You cannot use the QuickZoom feature if you are reporting on a cash basis
The Next Step
Once you’re sure that your company file is set up, it’s time to configure your activity
statement.
Configuring the activity statement
As the Simplified BAS is designed for use by many businesses with different circumstances,
you’ll need to configure your activity statement to provide information that’s relevant for
your business needs.
For example, if you don’t have employees, you won’t want the report to display PAYG
withholding information.
Elements you can configure include:
120
•
Turning the GST reporting feature for BAS on or off (you may only want to report on the
PAYG Instalment aspects, not GST, such as when generating data for an Instalment
Activity Statement)
•
Defining your GST reporting period
•
Turning the PAYG reporting aspects on or off (you may not need to report PAYG and so
not be required to report on this)
•
Other taxes that you can report on the BAS, such as WET, LCT, FTC or FBT
Chapter 7
You can configure your activity statement from the Configuration window.
Configuration window
The Configuration window defines what type of information QuickBooks will report in your
activity statement. This includes GST liability, PAYG liability or other taxes.
When you choose not to report on a type of information, for example PAYG withholding,
QuickBooks will still display the relevant fields on your activity statement but grey them out.
The Configuration window has three tabs:
•
GST Configuration tab (applies when generating a BAS or when choosing to report on
WET, FBT, FTC or LCT)
•
PAYG Instalment tab
•
PAYG Withholding tab
GST Configuration tab (Simplified BAS only)
Options on this tab allow you to:
•
Enable/disable GST reporting
You need to enable GST reporting for BAS from this tab if you are to report GST on your
activity statement. Some businesses may only need to report PAYG information on
their BAS, in which case they would disable the GST reporting.
If you were creating an IAS, you would need to disable this.
•
Enter your document ID
The activity statement you receive from the tax office includes a document ID number.
You need to include that number as part of the configuration process for BAS or IAS in
QuickBooks.
•
Set your reporting period
Businesses submit an activity statement annually, quarterly or monthly in arrangement
with the tax office. You will need to choose how regularly you report and choose the
beginning dates for the reporting period you want QuickBooks to display results on.
If you want to
report WET, LCT,
FTC or FBT on
your BAS, select
the relevant
check box in the
Other Taxes area
of this window.
Selecting a check
box enables the
associated field
so you can include
details on it in
your QuickBooks BAS.
Working with Activity Statements
121
To learn about...
Type in the Help index
Completing the GST Configuration tab
GST configuration tab
PAYG Instalment tab
Options on this tab allow you to:
•
Enable/disable PAYG Instalment reporting
You need to enable PAYG Instalment from this tab if you are to report PAYG
Instalments on the activity statement. For selected periods some businesses may only
need to report GST information on their BAS, in which case they would disable PAYG
Instalment reporting.
•
Set the reporting period
You will need to choose how regularly you report and choose the dates you want
QuickBooks to display results on.
•
Choose an accounting method
You will need to specify the accounting method that you want QuickBooks to report
PAYG instalments from. Note that for PAYG instalments QuickBooks references the
selection you make here, not the selection you make in QuickBooks tax preferences.
To learn about...
Type in the Help index
Completing the PAYG Instalment tab
PAYG instalment configuration tab
PAYG Withholding tab
•
Enable/disable PAYG Withholding reporting
You need to enable PAYG Withholding from this tab if you are to report PAYG
Withholding on the activity statement. For selected periods some businesses may only
need to report GST information on their BAS, in which case they would disable PAYG
Withholding reporting.
122
Chapter 7
•
Set the reporting period
You will need to choose how regularly you report and choose the beginning dates for
the reporting period you want QuickBooks to display results on.
To learn about...
Type in the Help index
Completing the PAYG Withholding tab
PAYG withholding configuration tab
Configuration buttons
Note:
The following section applies if you want to have QuickBooks populate BAS
fields automatically from data in your company file. If populating your BAS
fields manually, move to instructions covered under Generating a BAS on
page 125.
Once you have defined the type of information QuickBooks will report in your activity
statement, you will need to define in some fields specific tax codes or account types that
you want QuickBooks to pull data from when reporting in your activity statement. This is
done from the open activity statement.
A couple of points on how we use the terms to “open” or “generate” an
activity statement:
When referring to opening an activity statement, we mean the task of
following the menu path so that the BAS or IAS window opens, but not
necessarily showing the relevant data. You will need to “open” the BAS to
configure the activity statement before it can show relevant data.
On the other hand, when we say “generate” an activity statement, we mean
the task of following the menu path to display an activity statement after
doing the necessary configuration, so that it displays relevant data.
Working with Activity Statements
123
Next to a number of fields in the open activity statement, you will find a grey button with
the field name. For example, G1, W1 or T1. Clicking this will display a window listing tax
codes or relevant account types from which you then apply to the field.
Click a configuration
button to display a
window to select
from.
Select the
relevant item/s.
Transactions that
use these item/s
will be used to
report in this field.
•
By applying a tax code to a field, you are telling QuickBooks to calculate a result for
that field based on transactions that include the codes you have applied. Transactions
that don’t include the tax codes you have selected are not used when QuickBooks
calculates a value for that field.
For example, if you apply GST and EXP to the G1 field, QuickBooks will only use
transactions that contain GST or EXP when calculating a result to populating that field.
Transactions that contain other codes, such as CDC, will not be included as part of the
calculation.
It’s important that you apply the correct tax codes to a field. For example, G1 relates
to income, so you will only want to apply tax codes used for sales (outputs), not
purchases (inputs). Note that you can apply any number of tax codes to a field.
•
By applying a specific account to a field, you are telling QuickBooks to calculate a
result using transactions from that account only. Transactions in accounts not applied
to a field are not used in calculations.
For example, take T1, under Option 2: PAYG Instalment Rate. The activity statement
gives you the option of applying of a list of Profit/Loss accounts to the field, such as
Sales:Foreign and Sales Income. If you apply Sales Income, QuickBooks will only use
transactions from the Sales Income account when calculating a value for that field. It
will not use transactions from other Profit/Loss accounts such as Sales:Foreign.
124
Chapter 7
In choosing accounts to apply, you will be given a list of accounts that fit a specific type
of account, for example Profit/Loss or Balance Sheet.
To learn about...
Type in the Help index
Tax codes you can apply to fields on the BAS
and/or IAS
All tax codes window
Accounts you can apply to fields on the BAS
and/or IAS
Balance sheet accounts window
Profit/Loss accounts window
The Next Step
Once you’ve configured your BAS, you’re ready to generate it.
Generating a BAS
You can generate your BAS automatically so that QuickBooks populates the fields of your
BAS based on information in your chart of accounts. Alternatively, you can generate your
BAS manually so that, after defining what type of information you want to report on, it’s a
matter of populating the fields manually so that QuickBooks can calculate for fields like 8A,
8B and 9.
1.
Open the BAS report by choosing Reports menu > Tax > Activity Statement > Simplified
BAS/IAS.
2.
Choose your option.
3.
Using the Configuration buttons select the relevant tax codes or accounts for the fields.
4.
(PAYG Instalment only.) Choose an option for PAYG Instalments.
5.
Enter figures for FBT or other taxes, if applicable.
6.
Check that the information QuickBooks displays is correct.
(You might find it helpful to calculate your BAS outside of QuickBooks by using the
calculation sheet provided in QuickBooks by choosing Reports menu > Tax > Activity
Statements > GST Calculation Sheet. You can then compare data.)
7.
Lodge your BAS information to the Tax Office as shown in Function buttons on
page 126.
To learn about...
Type in the Help index
fields on the Supplies and Acquisitions tab
Supplies and acquisitions tab
fields on the Taxes and Amounts Withheld tab
Taxes and Amounts withheld tab
fields on the Debits and Credits tab
BAS debits and credits tab
Working with Activity Statements
125
Generating an IAS
An IAS is like a BAS but without the GST reporting element.
Therefore, to create an IAS in QuickBooks, follow the instructions for configuring the BAS.
However, when setting the configuration, disable the GST reporting elements. Then you can
generate an IAS as follows.
1.
Open the IAS report by choosing Reports menu > Tax > Activity Statements >
Simplified BAS/IAS.
2.
Choose your option.
3.
Choose an option for PAYG Instalments and enter information into the relevant fields
manually.
4.
Enter FBT or other tax information in the relevant fields, if applicable.
5.
Check that the information QuickBooks displays is correct.
6.
Lodge your IAS information to the Tax Office as shown in Function buttons on this
page.
To learn about...
Type in the Help index
fields on the PAYG Instalment tab
PAYG Instalment tab
fields on the PAYG Withholding tab
PAYG Withholding tab
fields on the Debits and Credits tab
Debits and Credits tab
Function buttons
You’ll find a row of function buttons at the base of your activity statement. These are
explained briefly below. Refer to in-product Help for more information.
126
•
Config. Displays the Configuration window so you can define what type of information
QuickBooks will report in your activity statement.
•
Open. Displays a standard Windows Open dialog so you can navigate to a Windows
folder and open a previously saved BAS report.
•
Save. Displays a standard Windows Save dialog so you can save the current BAS
Configuration for use with future statements.
•
Print. Prints your activity statement to your default printer.
•
Lodge. Sends your activity statement electronically to the ATO.
•
Refresh. Refreshes the data in your activity statement.
•
Cancel. Closes your activity statement.
•
Help. Activates QuickBooks in-product Help for the open tab.
Chapter 7
Lodging your activity statement with the ATO
There are two ways you can get your activity statement to the ATO:
•
Lodge an electronic activity statement with the Tax Office
•
Lodge a paper activity statement with the Tax Office
Lodging your activity statement electronically
Note:
At the time of publication, Internet Explorer 7.0 does not work with the ATO
Business Portal
Before lodging electronically, you must have:
•
Registered your business and have a valid ABN
•
An ATO supplied digital certificate (PKI)
•
Installed an ATO Digital Certificate on your machine
•
Minimum computing environment requirements, as defined at http://www.ato.gov.
au/onlineservices/
Once you’re happy that your Simplified BAS is ready to go and you are logged on to the
Internet, you can lodge it with the Tax Office electronically.
1.
Open your BAS or IAS.
2.
Click Lodge. QuickBooks displays the activity statement in HTML format.
3.
Verify that the details are correct. If you need to change some details, close the HTML
viewer and open the BAS or IAS and make the necessary modifications so that it
displays correctly.
Click Lodge and then verify the details once again after QuickBooks displays the
activity statement in HTML format.
4.
Click Continue in Portal. The ATO Business Portal displays where you can follow the
instructions to log in and lodge your activity statement. Help is provided at this portal
by the ATO.
Lodging a paper activity statement
If you prefer to send your activity statement on paper through standard mail, you can print
a copy of the QuickBooks Simplified BAS and transfer the numbers to the official ATO form.
Click Print to print the activity statement you have just generated.
Note:
Although you may enter information in some fields shown on the QuickBAS
window, these may not print because the fields do not apply to the option you
are completing. For example, if you elect to report GST on a monthly basis
for a BAS and enter information in the Option 3 fields, these will not print
because the information contained in these fields is not relevant to the printed
form.
Working with Activity Statements
127
Note:
The QuickBAS printed form does not have a form or payment due date as this
information is supplied by the ATO. To produce an Annual GST Report from
your QuickBAS, make sure you specify the Annual Reporting Period in the
GST section of the BAS Configuration window.
128
Chapter 7
Working with multicurrency
Multicurrency: an overview
8
130
Setting up multicurrency
130
Exchange rates and how they affect your transactions
137
Dealing with foreign customers
140
Dealing with foreign suppliers
142
Transferring foreign funds
144
QuickBooks Pro and Premier easily handle multiple currencies. At the conclusion of this chapter, you’ll know
how to set up prices in foreign currencies for items you sell internationally, enter information for foreign
customers and suppliers, and deal with the exchange rates of the foreign currencies you use.
Multicurrency: an overview
In QuickBooks Pro and above, you can record transactions in many currencies. With the
multicurrency feature turned on, QuickBooks tracks foreign transactions and accounts
for them properly, regardless of the currency that is used. For example, if you sell goods
to the United States as well as within Australia, you can enter some transactions in US
dollars and others in Australian dollars. Tracking these foreign-currency transactions is as
easy as selecting the foreign customer or supplier from your list; QuickBooks takes care of
everything else.
With multicurrency, you can also set up a fixed foreign price for items, or enter prices in
your home currency and then have QuickBooks calculate the foreign price based on the
current exchange rate. See page 134 for more information on setting up foreign prices.
The home currency refers to the currency that is used in the country in which your business
is located. In registers and forms, home-currency transactions are displayed in the home
currency, whereas foreign transactions are displayed in their foreign currency. On most
reports, however, foreign balances are converted into the home currency.
Note:
Once multicurrency is turned on, you cannot turn it off. We recommend that
you make a backup of your company file before turning multicurrency on.
A note about exchange rates
Exchange rates change daily, and these fluctuations can generate a gain or loss in your
books. QuickBooks accounts for these gains and losses by tracking them in the Exchange
Gain/Loss account (see Exchange rates and how they affect your transactions on page
137 for more information). The home currency is used to determine the value of all other
currencies in relation to it. For this reason, the home currency’s exchange rate value is
fixed at one. Once the home currency is chosen, it cannot be edited or deleted.
When should I use multicurrency?
You should turn on multicurrency if you invoice, receive payments or pay bills
in a currency other than the currency denomination of the country you live in.
Setting up multicurrency
1.
Follow the procedures under Turn on the multicurrency preference on page 131.
2.
Follow the procedures under Set up foreign accounts on page 132.
3.
Follow the procedures under Create foreign customers and suppliers on page 133
4.
Follow the procedures under Set up foreign prices for items on page 134 (Optional).
You’ll find that the multicurrency preference is turned off in QuickBooks by default, unless
you have specified otherwise in the EasyStep Interview. Remember that once turned on,
you cannot turn this feature off.
If you already have customers and suppliers set up before activating the multicurrency
feature, QuickBooks will continue to apply your home currency to existing customers and
suppliers.
130
Chapter 8
Note:
You cannot edit foreign accounts in an Accountant’s Review file. For more
information, see Exporting data for your accountant (Accountant’s Review)
on page 68.
Each foreign currency you deal in must have a matching Accounts
Receivable or Accounts Payable account in the same currency. This allows
you to track transactions specific to each currency you set up in QuickBooks.
You can also set up foreign-currency bank and credit card accounts.
Turn on the multicurrency preference
There are two points in QuickBooks from which you can turn on the multicurrency
preference:
•
EasyStep Interview
•
Preference window
The EasyStep Interview is usually completed as part of the general QuickBooks setup, so
chances are that if using the EasyStep Interview to turn on multicurrency, you will have
already turned it on. You are ready to start setting up foreign accounts (see page 132).
Note:
Remember that you cannot turn off multicurrency.
If you’ve decided to turn on multicurrency some time after your initial QuickBooks setup, it’s
best to do this using the Preferences window:
1.
Choose Edit menu > Preferences.
2.
From the scroll box on the left, select Accounting.
3.
In the Company Preferences tab, select Use multicurrency and choose your home
currency.
The home currency is the currency denomination of the country in which you live. If you
live in Australia, select Australia Dollar as your home currency.
Working with multicurrency
131
4.
Click OK.
Multicurrency is now turned on, and the home currency is set. You can now:
•
Assign a foreign currency to a customer or supplier.
•
Use the currency list, which includes many common currencies and the latest
exchange rates as of the QuickBooks release.
•
Generate a report to calculate unrealised and realised gains and losses.
•
Quickly convert foreign currency to your home currency or vice versa with the
Currency Calculator.
•
Use the Exchange Gain & Loss expense account to track gains and losses due to
fluctuations in exchange rates.
•
Set a fixed foreign price for items that you sell frequently to one particular country.
•
Locate multicurrency transactions with two new filters in the find function.
Set up foreign accounts
You can choose a foreign currency for Bank, Credit Card, Accounts Receivable (A/R) and
Accounts Payable (A/P) accounts.
You do not need to set up foreign Bank and Credit Card accounts to track foreign
transactions. However, for each foreign currency you deal in, you must create an A/R
account (if you have customers), an A/P account (if you have suppliers), or both in that
currency.
For example, if you have customers in Canada and the US, you’ll need two additional A/R
accounts: one with its currency set to Canadian dollars, and another set to US dollars.
You cannot use the same A/R and A/P accounts that you use for your home-currency
transactions because the currencies rarely trade as equal.
Once a transaction is recorded in an account, the currency of the account cannot be
changed.
132
Chapter 8
To set up a foreign account:
1.
Choose Company menu > Chart of Accounts.
QuickBooks displays the chart of accounts.
2.
On the Chart of Accounts window, click the Account menu button, and choose New.
3.
Enter the account details.
Choose the
currency of the
account here.
When you select a currency, the Exchange field shows its exchange rate. If you want to
update the exchange rate, do it from the Currency List. See Using the Currency List on page
135 for more information.
To learn about...
Type in the Help index...
Setting up account
accounts
Create foreign customers and suppliers
After you’ve set up foreign A/R or A/P accounts, you can set up the foreign customers or
suppliers who will be using these accounts. To do so, create the customer or supplier as
you normally would and select the currency from the drop-down list in their profile. Once a
currency is assigned to a customer or supplier, all future transactions involving them are
recorded in the currency you assigned, with the exception of bill and credit card payments
(in this situation, the account you use to pay determines the currency of the transaction).
Existing customers or suppliers (that is, ones you set up before turning on the multicurrency
feature) are automatically assigned the home currency. The currency of these customers
or suppliers cannot be changed if you have already recorded a transaction for them. If you
want to use a different currency for these individuals, you’ll need to create second profiles
for them in the correct currency.
Note:
Once you record a transaction for a foreign supplier or customer, you cannot
change the currency that is assigned to them.
Working with multicurrency
133
1.
Open the Customer Navigator.
2.
Under Related Activities, click Add a Customer.
3.
Fill in the details as you normally would.
4.
(Optional) Enter an opening balance if applicable.
Once a transaction is recorded for a customer, you cannot enter an opening balance in
this window.
5.
Select the currency you want to associate with this profile from the Currency drop-down
list. If the currency you want is not in the drop-down list, select <Add New> to create a
new currency.
Only one currency can be associated with a customer, supplier or other name.
If you deal with a customer or supplier in more than one currency, you’ll need to create an
additional profile for them for each currency in which you do business.
To learn about...
Type in the Help index
Creating new customers
customers
Set up foreign prices for items
By default, items in the Item List use the currency designated as your home currency.
What that means is when an item is used in a foreign transaction, the price of the item is
calculated by multiplying the home currency amount with the foreign currency’s exchange
rate. Because the price is converted based on an exchange rate, there is a possibility that
the price of an item may go up or down if the exchange rate changes.
QuickBooks allows you to set up a fixed foreign price on items you sell frequently to one
particular country. By doing this, the foreign price of the item will not change due to
fluctuations in exchange rates. You can only select one other currency besides your home
currency to assign to item prices.
Let’s see how you can turn on foreign pricing.
134
Chapter 8
1.
Choose Edit menu > Preferences.
2.
From the scroll box on the left, select Accounting.
3.
In the Company Preferences tab, select Use foreign prices on items.
4.
From the Foreign item currency drop-down list, select the currency you want to use as
a fixed foreign price on items. If you deal with more than one foreign currency, choose
the currency you deal in the most.
5.
Click OK.
You’ll see a new field
on the New Item
window where you can
enter a fixed foreign
price for an item.
QuickBooks uses an
item’s Foreign Price
in transactions where
the currency matches
the currency that you
chose in the foreign
pricing preference.
Using the Currency List
The Currency List is a list of all the currencies that are set up in QuickBooks. It contains
information about each currency such as its exchange rate and currency symbol.
When a foreign transaction is recorded, QuickBooks uses the exchange rate from the
Currency List to convert the foreign amount into the home currency amount. You should
rarely need to make changes to the Currency List, except to add and delete currencies, and
update exchange rates. You cannot delete your home currency or a currency that has been
used in a transaction.
Working with multicurrency
135
If you want to use a fixed foreign price for an item, (in other words, the price
is not multiplied by an exchange rate), use the foreign pricing feature. See
Set up foreign prices for items on page 134 for more information.
To create a currency:
1.
Hot keys help you convert
foreign amounts to your home
currency quickly.
To use hot keys on any form,
select the foreign amount you
want to convert, then hold SHIFT
and type that currency’s hotkey.
QuickBooks multiplies the foreign
amount by its exchange rate,
which gives you the amount in
your home currency.
Inactive
currencies are
not shown in
this list. There
are more than
40 currencies
created in
QuickBooks.
To display all
currencies,
Select this
check box.
2.
At the bottom of the Currency List, click the Currency menu button and select New.
The New Currency window appears.
Select this check box to
make a currency inactive.
This hides the currency
from the list as opposed to
deleting it.
Minimising the Currency List
makes it easier to read from
drop-down lists on forms.
Update the
exchange rate
often to keep
your records
up-to-date.
3.
136
Choose Lists menu > Currency List.
Chapter 8
On the New Currency window, fill in the options (at the very least, the Currency Name,
Country, and Currency Code fields must be filled in):
- Currency Name. The name of the currency.
- Country. The country in which the currency is used.
- Currency Code. The internationally-recognised code for the currency.
- Currency Symbol. The letter and/or symbol (such as $) to represent this currency on
forms.
- Hotkey. A unique letter or symbol to use with the SHIFT key to multiply an amount by
the currency’s exchange rate.
- Exchange Rate. The value of the home currency for one unit of the foreign currency. In
order to keep your foreign records accurate, you should update the exchange rate on a
regular basis.
- Symbol Position. Select where you want the currency symbol placed. Your options
include Leading (in front of the money value) or Trailing (behind the money value).
Decimal Separator. Enter the symbol you want to use on forms to represent the
decimal place holder. The default is a period or full stop (.).
- Decimal Places. Select the number of decimal places you want to use on forms. You
can select zero through 2.
- Thousand Separator. Enter the symbol you want to use on forms to represent the
thousand place holder. The default is a comma (,).
4.
Click OK.
The new currency is added to the Currency List and is available on forms that use it.
To learn about...
Type in the Help index...
Creating, editing, or deleting a currency
multicurrency, adding currencies
multicurrency, updating exchange rate
multicurrency, deleting currencies
Using the currency calculator
The currency calculator is a handy way to convert a home currency amount into a foreign
amount or vice versa.
1.
Choose Company menu > Currency Calculator. You can also get to the calculator by
pressing F4 while a money value is selected.
In the accountant edition of QuickBooks Premier, this feature is available from the
Accountant menu.
2.
Type the money value you want converted.
3.
Select the currency of the money amount to convert.
4.
Select the currency you want the dollar amount converted to.
5.
Click here to copy the converted amount to the clipboard. Then, use the paste
command (CTRL+V) to paste the amount onto a field within a form.
Exchange rates and how they affect your transactions
The exchange rates provided in QuickBooks were accurate at the time your software was
released. However, because currencies fluctuate in value, you should update the exchange
rates of your currencies often—every week or possibly more frequently, depending on
the volatility of the currency. (The easiest way to update exchange rates is by using the
Currency List. See Using the Currency List on page 135 for more information.)
Working with multicurrency
137
Note:
An exchange rate field also appears on some forms so that you can enter the
latest exchange rate “on the fly”, without having to go to the Currency List.
You should (when reconciling your current accounts, for example) update
the exchange rate used for cheques and deposits to reflect the actual rate
that was used by your bank at the time the cheques were processed or your
deposits accepted.
It is these changes in exchange rates that can affect the profits you make from foreign
sales and your costs on foreign purchases. Basically, as a business owner, you want to
track the potential effect of exchange rate changes on foreign transactions that haven’t
been completed (referred to as unrealised gains and losses) as well as the actual effect of
the changes on transactions that have been completed (referred to as realised gains and
losses). QuickBooks provides a report to help you track both types of gains and losses.
Unrealised Gains and Losses
When you create a foreign transaction, the foreign currency is worth a certain amount
in your home currency as determined by its exchange rate on the day of the transaction.
However, the exchange rate is likely to change before the transaction is closed. Until the
transaction closes, the difference between the value of the foreign currency when you
created the transaction and its current value is your unrealised gain or loss.
For example, say a US customer purchases an item from you for US$100, which is
AUD$150 at the time you issue the invoice. Before the customer pays you, the Australian
dollar climbs and the US Dollar exchange rate falls. The US$100 that the customer owes
you is now worth AUD$160, so your unrealised gain is AUD$10. (You won’t know how much
money in Australian dollars the customer actually pays you until you receive their payment
and deposit it in a bank. At that point, the bank converts it to Australian dollars, and your
gain or loss is then “realised”.)
Many accountants prefer you take your unrealised gains and losses on open foreign
transactions (invoices and bills) into account when you create reports about your company’s
net worth, as doing so gives a more accurate picture of the value of your company on that
date. Check with your accountant to see what they recommends.
To ensure your net worth reports show the true value of your foreign currency accounts (and
therefore your company) at the end of a reporting period, your accountant should make a
home-currency adjustment in the general journal if your records show an unrealised gain or
loss.
Create an Unrealised Gains and Losses Report
138
1.
Choose Reports menu > Multicurrency > Unrealised Gain & Loss.
2.
In the Exchange Gain/Loss window, update the exchange rates for the purpose of this
report. (Note that doing so does not update the Currency List.)
Chapter 8
3.
Click OK.
QuickBooks summarises your open foreign transactions and the potential gain or loss
on them.
Create a home currency adjustment in the General Journal entry
Use the information in the report to create a home currency adjustment in the General
Journal entry to account for your gain or loss. Select the Exchange Gain/Loss expense
account as the other account that will be affected by this entry.
1.
Choose Company menu > Make General Journal Entries.
2.
You need to specify a customer name when a journal transaction is entered for an A/R
account (or supplier name for an A/P account).
3.
Select the Home Currency Adjustment check box to ensure these amounts are
recorded as an adjustment to the home currency without affecting the foreign balance
of that account.
4.
When making home currency adjustments, create a phony customer or supplier to
which you can assign unrealised gains & losses.
5.
Create your net worth reports.
6.
Reverse the General Journal entry to remove the unrealised gain or loss from your
books.
Realised Gains and Losses
A gain or loss on a foreign transaction because of changes in the exchange rate becomes
realised once the transaction is paid (either partially or in full). When you close the
transaction, QuickBooks compares the value of the foreign amount when the transaction
began to its value when the transaction closed. QuickBooks enters the difference (gain
or loss) in the Exchange Gain/Loss account (this account is created automatically when
multicurrency is turned on).
For example, just say you owe a supplier CHF500, which works out to be AUD$520.
However, when you pay the bill a week later, the Aussie dollar has improved against the
Swiss Franc, and CHF500 is now worth AUD$514. Your realised gain would be $6. That is,
Working with multicurrency
139
when you ordered the products, you owed AUD$520, but you actually paid only AUD$514
because the Swiss Franc fell relative to the Australian Dollar. QuickBooks balances the
transaction by assigning the $6 gain to the Exchange Gain/Loss expense account.
To determine your realised gains and losses over time, use the Realised Gains and Losses
report. This detailed report shows the original amount of each foreign transaction in
your home currency, the actual exchange rate when the transaction was closed, and the
resulting gain or loss to you.
To print a realised gains and losses report choose Reports menu > Multicurrency > Realised
Gain & Loss.
Dealing with foreign customers
QuickBooks handles customers who pay in foreign currencies in much the same way as
customers who pay in your home currency. You create an invoice and receive payments in
exactly the same way. The only difference is that the currency you assign to the customer
in their profile becomes the currency of the transaction (see Create foreign customers and
suppliers on page 133).
Creating invoices for foreign customers
Before you can create an invoice for a foreign customer, you must set them up in the
Customer:Job List and create a foreign A/R account. Once these are done, you can create
an invoice as you normally would. As you do, you also need to:
140
1.
Select a foreign customer.
QuickBooks selects an A/R account that matches the currency of the selected
customer. If one doesn’t exist, QuickBooks prompts you to create one. In this case, it is
a US customer, so a US A/R account is selected.
The rate/price of the item is converted into the customer’s currency using an exchange
rate.
You can
also set up
a fixed
foreign
price for
items. See
Set up
foreign
prices for
items on
page 134.
2.
Update the
exchange
rate if
necessary.
Chapter 8
Note:
Tax codes are not transferred to sales forms when the invoice is created for a
foreign customer.
Receiving payments from foreign customers
You receive payments from foreign customers as you normally would. As you do, follow
these steps:
1.
Select the foreign customer from whom you are receiving the payment.
In this case, it is a US customer. QuickBooks selects an A/R account that matches the
currency of the selected customer. If one doesn’t exist, QuickBooks prompts you to
create one.
Fill out the rest of the Receive Payment window as you normally would.
2.
Update the exchange rate if necessary.
Depositing foreign money
1.
Choose Banking menu > Make Deposits.
If you have payments in more than one currency to deposit, the Payments to Deposit
window appears.
2.
(If necessary) In the Payments to Deposit window, from the drop-down list, select the
currency for which you have payments to deposit.
You can only deposit payments from one currency at a time.
When you have made your selection, click OK. The Make Deposits window appears.
3.
In the Deposit To field, select the account to which you want to deposit the payment.
You can deposit foreign money into a home currency account (the amount is
converted using the currency’s exchange rate or a foreign bank account as long as the
currency of the bank account matches the deposit’s currency).
Working with multicurrency
141
4.
In the Exchange Rate field, update the exchange rate to match the rate of exchange on
the same day the deposit was made.
5.
Fill in the remaining fields as you normally would.
If you are getting cash back from a foreign deposit, you need to set up a Petty Cash
account that matches the currency of the money you are depositing and account for the
holdback in it.
Dealing with foreign suppliers
Working with foreign suppliers is much the same as working with suppliers in your home
currency. You still make purchases and pay bills in the same way, but the currency of the
transaction is the currency that you assigned to the supplier in their profile (see Create
foreign customers and suppliers on page 133).
Creating a purchase order for a foreign supplier
Before you can create a purchase order for a foreign supplier, you must set them up in
the supplier list, create a foreign A/P account, and have purchase orders enabled in your
company preferences.
To enable purchase ordering in your company preferences:
1.
Choose Edit menu > Preferences > Purchases & Suppliers > Company tab.
2.
Select the stock and purchase orders are active check box.
Create a purchase order for a foreign supplier as you normally would. As you do, you’ll also
need to:
142
1.
Select a foreign supplier.
Because the currency of this supplier is US dollars (for example) the currency of this
transaction is in US dollars.
QuickBooks selects an A/P account that matches the currency of the selected supplier. If
one doesn’t exist, you are prompted to create one.
2.
Fill out the rest of the Create Purchase Orders window as you normally would.
3.
Update the exchange rate, if necessary.
Chapter 8
As you enter items on foreign purchase orders, their prices are converted to the supplier’s
currency. If you have set up a foreign price for an item and the currency of the price
matches the currency of the supplier, QuickBooks uses the foreign price instead (see Set
up foreign prices for items on page 134 for more information).
Paying bills from foreign suppliers
Often, you will receive bills in a foreign supplier’s currency and be expected to pay in the
same currency. If you make purchases from a foreign supplier, you should consider opening
a bank account in the supplier’s currency.
You can only pay bills from one currency at a time.
1.
Choose Suppliers menu > Pay Bills.
2.
In the A/P Account drop-down list, select the A/P account that matches the currency
of the bill you want to pay.
For example, if you are paying a bill from a US supplier, select your US A/P account.
3.
Select the account from which the payment will be taken.
If the bank account is not foreign, QuickBooks calculates the amount in the home
currency that is to be withdrawn using the exchange rate.
If the exchange
rate changes
between
the time you
entered the bill
from the time
you paid the bill,
a gain or loss
is generated.
QuickBooks
accounts for
it by making
an entry in the
Exchange Gain/
Loss expense
account.
You can only
display bills in
one currency
at a time. The
currency is
determined by
the A/P that is
selected. In this
case, we’ve
selected a US
A/P account, thus
the bills listed
here are from US
suppliers.
To learn about...
Type in the Help index...
Payments using your credit card
credit cards you use, for bill payments
Working with multicurrency
143
Transferring foreign funds
You can transfer money from a home currency bank account to a foreign bank account,
or from a foreign account to a home currency account. Money can also be transferred
between foreign accounts of the same currency.
However, transferring money between two foreign bank accounts can only be done if the
currency of the accounts are the same.
144
1.
Choose Banking menu > Transfer Money.
2.
Select the currency denomination of the amount you want to transfer.
For example, if you know the transfer amount in US dollars, select USD from the dropdown list and then enter the amount you want to transfer in US dollars.
3.
Update the exchange rate to match the rate of exchange on the day of the transfer.
Chapter 8
Setting up payroll
Payroll: before you begin
9
146
Setting up payroll: an overview
146
Payroll expense and liability accounts
149
Setting up your payroll items
150
Summarising amounts for the year-to-date
157
Changing payroll and employee information
161
Customising pay slips
164
Payroll helps you track employee information and compensation. Before you can use payroll to process
pays, you need to set up all your employee and company payroll information carefully. This chapter gives
you an overview of the important information you need to enter into QuickBooks.
*The Payroll feature is not available in New Zealand.
Payroll: before you begin
QuickBooks Payroll
QuickBooks Payroll takes the worry out of processing your payroll. It fully integrates payroll,
reporting, and accounting with QuickBooks, so you only need to enter data once. This
chapter gives you an overview on how to set up your employee details and payroll items
correctly so you can carry out all the standard payroll tasks.
QuickBooks uses specially prepared tax tables that take into account the latest rates for
PAYG tax (in Australia).
If you don’t use the payroll feature in QuickBooks
You don’t have to use QuickBooks to pay your employees—you may already be using an
accountant or payroll service. Nevertheless, you still need to set up your employees on the
Employee List and track their payroll payments and other payroll amounts so that your
accounts will be correct.
If you’re not using the QuickBooks Payroll feature or you have it turned off, the Employee
List allows only very basic information about each employee — name, contact information,
employee number, start and finish dates, and custom information you define.
You can still use the time tracking features of QuickBooks Pro and Premier if not using the
payroll feature.
Setting up payroll: an overview
The amount of time it takes to enter your payroll information into QuickBooks varies
depending on the size of your company. Typically, it can take one to two hours.
To set up your payroll system:
146
1.
Ensure payroll is turned on in QuickBooks.
Choose Edit menu > Preferences. From the scroll box on the left, select Payroll &
Employees, and then on the Company Preferences tab, ensure the Full payroll features
check box is selected.
At this time, you can also set other preferences, such as how to sort your Employee
List and what prints on a pay slip or payroll cheque and voucher.
2.
Gather the information you need to set up payroll (see page 147).
3.
Confirm that the payroll liability and expense accounts that QuickBooks creates for
you meet your needs (see page 149).
4.
Set up:
- Payroll items (see Setting up your payroll items on page 150).
- Your employees (see Setting up employees on page 156).
- The employee year-to-date amounts (see Summarising amounts for the year-to-date
on page 157).
- Pay slips (see Customising Pay slips on page 164).
Chapter 9
5.
Protect your company’s payroll data from unauthorised access by setting up user
permissions.
For information about restricting access to your company file, see Users and passwords
on page 93).
To learn about...
Type in the Help index...
Setting up payroll
payroll setup, required information
Setting payroll preferences
preferences, payroll
Set user permissions for payroll
permissions
Collecting the information you need
If you paid employees before you set up your company in QuickBooks, you need to get
information from your previous accounting package or your accountant.
Information you need to start
Where to find it
Company
How often you pay your employees
Your accountant or company records
Your company’s tax registration ID
Your accountant or company records
Start date for payroll
Your company records
Tax information
The current payroll laws and taxes that
apply to your company
Your accountant or the Tax Office
Current tax tables covering payroll
withholdings
Tax Office (or download and install the latest
QuickBooks service pack)
Compensation, benefits, and other payroll items
How you pay your employees: hourly
wages, salaries, time in lieu and/or
commissions
Your accountant or company records
Things you add to employee payroll
payments:
Examples include bonuses, travel
expenses, employee loans
Your accountant or company records
Things you deduct from employee payroll
payments:
Examples include union dues, repayments
of employee loans or advances, health
or life insurance paid by the employee,
deductions for personal superannuation
plans
Your accountant or company records
Setting up payroll
147
Information you need to start
Where to find it
Expenses your company pays that are
based on employee payroll payments
(employer contributions):
Example includes super paid by the
company
Your accountant or company records
Employees
Employee names, addresses and date
of birth
Employees
Employee withholding setup
Employee, or existing payments, reports, or
payroll ledger
Employee’s rate of pay or salary, tax file
number, and payroll payment additions,
deductions, and employer
contributions (if any)
Payroll cheques, reports, or payroll ledger
Sick and holiday time accruing policies and
amounts
Existing payments, reports, or payroll ledger
Year-to-date amounts
Note: It’s not necessary to include year-to-date information in QuickBooks Payroll, as the Tax
Office will accept two or more end-of-year payment summaries for the one employee for the
same financial year.
148
Each employee’s payroll amounts from the
beginning of the payroll year to the date
you started using QuickBooks:
• That is, the total amount you’ve paid out
to the employee so far this year, and
• The total amounts you withheld from
each of the employee’s payments and
what for
Copies of employee payroll cheques, payroll
slips, payroll service, payroll reports, accountant,
payroll ledger
Your payroll liability amounts from the
beginning of the financial year to the date
you started using QuickBooks:
• That is, the total amounts you withheld
from all payroll cheques you issued this
year, and
• How much you already remitted to the
Tax Office, benefits providers, etc. as a
result of these liabilities
Former payroll service, accountant, payroll
ledger.
Chapter 9
Payroll expense and liability accounts
QuickBooks automatically adds two accounts to your chart of accounts:
•
Payroll Expenses Account (an Expense account)
•
Payroll Liabilities Account (an Other Current Liability account)
To keep your balance sheet and profit and loss statement accurate, QuickBooks associates
each payroll item with the appropriate account/s.
Whenever you create a new payroll item, QuickBooks helps you assign it to the correct
account or accounts by pre-filling the account name to use. However, you can use a
different account if you like.
For example, an accountant for a limited company may want to create subaccounts of
the Payroll Expenses and Payroll Liabilities to track expenses for directors versus other
employees.
It is also correct for some types of payroll items (such as a deduction for a loan repayment)
to be associated with an account other than an expense or a liability account.
To learn about...
Type in the Help index...
Payroll Liabilities account
payroll liabilities, account
Payroll Expenses account
payroll, expense accounts
Adding new accounts
accounts, adding to your chart of accounts
Creating and using subaccounts
subaccounts
Customising payroll accounts
You can change the names of the payroll liability account and payroll expense account that
QuickBooks provides by default. And, if you use numbered accounts, you can change the
default account numbers.
To see more detail of your payroll liabilities on your balance sheet, break down your Payroll
Liabilities account by using subaccounts. Similarly, use subaccounts for your Payroll
Expenses to see more detail of your expenses on your profit and loss statement. For
example, a limited company may need to report expenses for directors separately from
other salaries.
To learn about...
Type in the Help index...
Adding new accounts
accounts (managing), adding subaccounts
Changing account information
accounts (managing), editing
subaccounts
subaccounts
Setting up payroll
149
Setting up your payroll items
Payroll items are the building blocks of your payroll system. When you create any kind of
payroll transaction in QuickBooks—whether it’s a payroll payment, a liability payment, or
a payroll adjustment—you use payroll items to do it (in the same way that sales forms use
service or stock items).
There are payroll items for employee remuneration (salaries and hourly paid), amounts
you withhold from employee payroll payments (taxes, superannuation and other liabilities),
employer-paid expenses, and additions and deductions (such as bonuses and loan
repayments). QuickBooks uses payroll items to track the individual amounts on a payroll
cheque and the accumulated year-to-date wage and tax amounts for each employee.
QuickBooks displays your payroll items on the Payroll Item List. The names of the payroll
items are what you’ll see on payroll payments and in payroll reports.
About the default payroll items
When you first turn on the payroll feature, QuickBooks creates the Payroll Item List with the
following default payroll items:
150
Payroll item
name
Type
Use for
Holiday Salary
Salary
Amount paid for holidays taken by a salaried employee
Other 1 Salary
Salary
Amount paid for Other 1 leave time taken by a salaried
employee
Other 2 Salary
Salary
Amount paid for Other 2 leave time taken by a salaried
employee
Salary
Salary
Amount paid per year, irrespective of hours worked
Sick Salary
Salary
Amount paid for sick time taken by a salaried employee
Holiday Hourly
Hourly Pay
Amount paid for holidays taken by an hourly employee
Hourly Pay
Hourly Pay
Amount paid per hour to an hourly employee
Other 1 Hourly
Hourly Pay
Amount paid for Other 1 leave time taken by an hourly
employee
Other 2 Hourly
Hourly Pay
Amount paid for Other 2 leave time taken by an hourly
employee
Sick Hourly
Hourly Pay
Amount paid for sick time taken by an hourly employee
Time in Lieu
Other
Extra time worked and time in lieu taken by employee
Bonus
Addition
Amount paid as a bonus to the normal hours
Holiday Loading
Addition
Percentage paid on holiday pay
Super
Employer
Contribution
Employer Superannuation (9% SGC)
PAYG Tax
Payroll Taxes
PAYG tax withheld from an employee
Chapter 9
Payroll item
name
Type
Use for
State Payroll Tax
Payroll Taxes
Tax paid on payroll (over certain thresholds) to the
appropriate state government
Note:
You can rename the default payroll items marked Other to accommodate the
leave requirements of your business. For example, you may want to use:
• Other 1 Hourly for accruing and recording rostered days off (RDO)
• Other 2 Hourly for accruing and recording long service leave (LSL)
You can do this by choosing Edit menu > Preferences. Then select Payroll
& Employees from the scroll box on the left, and then on the Company
Preferences use the Other Leave Names fields to enter the leave names you
want to use.
To learn about...
Type in the Help index...
super payroll items
superannuation, deductions
state payroll tax
payroll, State Payroll Tax
“other” payroll items
payroll, other leave types
Time in Lieu
time in lieu
Creating new payroll items
As you set up your payroll system, you will need to create new payroll items to match the
way you pay your employees. To create new items, use the Add New Payroll Item wizard.
To start the Add New Payroll Item wizard:
With the Payroll Items List open, click the Payroll Item menu button. Then select New and
follow the onscreen instructions.
What payroll item should I choose?
Payroll item type
Use for
Wage
Use Yearly Salary payroll items for
• remuneration to employees whose annual
salary is independent of the number of hours actually worked.
• remuneration to salaried corporate directors (with expenses
assigned to an expense account for corporate director salaries).
Use Hourly Wage payroll items for payments based on the number of
hours worked.
Use Other payroll items for “other” payments, such as commissions,
time in lieu and miscellaneous adjustment.
Setting up payroll
151
Payroll item type
Use for
Deduction
Any deduction from gross or after-tax (net) pay. Examples
include union fees, loan repayments, employee deductions for
superannuation schemes, or employee-paid insurance.
Addition
Any addition to gross or after-tax (net) pay such as a bonus.
Employer Contribution
Any employer-paid benefit or expense that you want to track with
each payroll payment. Examples include superannuation and fringe
benefits.
A few pointers when using the wizard
As you create the item in the wizard, you should:
•
Confirm that the expense and liability accounts assigned to it meet your needs and
change them, if you need to.
•
Select superannuation if this payroll item is part of the Ordinary Time Earnings (OTE)
as described by the ATO.
•
Choose how to track the payroll item if it’s an addition, deduction, or employer
contribution. If you’re not sure how to tax a payroll item, check with your accountant or
the Tax office.
To learn about...
Type in the Help index...
Adding payroll items
payroll items, adding
Changing the name of payroll items
payroll items, editing
Payroll items for expenses
Common employer payroll expenses include gross pay, employer-paid PAYG tax, and
employer-paid benefits for employees.
Generally, you should assign all payroll expenses to the Payroll Expenses account. When
you run payroll, QuickBooks keeps track of your company’s expenses for each employee.
You can then see totals for your expenses on the Payroll Summary Report and on the Profit
and Loss Statement.
Keeping track of payroll expenses
You can track payroll expenses not only for salaries and hourly wages, but also for
additions, commissions, and employer contributions if the Track Expenses by Job check box
is ticked for the individual payroll item. (In the Add New Payroll Item wizard, Select Track
Expenses By Job.)
QuickBooks pro-rates the employer-paid expenses for an employee in the same proportion
as you pro-rate the dollar amounts of the employee’s earnings.
152
Chapter 9
Tracking expenses by customer and job
Some businesses like to see which customers and jobs create the most expense or work
for them. If you want to keep track of all payroll expenses by customer or job, you need to
do the following:
•
Make sure the accounting preference for Customer:Job tracking is turned on. (In
QuickBooks Pro and Premier, Customer:Job tracking is always on.)
•
Make sure that the Report all payroll taxes by... payroll and employees preference is
turned on.
•
On every payroll item for a commission, addition, or employer contribution, Select the
check box for Track Expenses by Job.
•
On each payroll payment you create, associate every salary or hourly wage with the
correct job or jobs.
Tracking expenses by class
If your business is a non profit organisation that needs to do fund accounting, or if you have
a business where you want to be able to track the expenses of different departments or
stores, you may want to keep track of expenses by class.
To track payroll expenses by class, do the following:
•
Turn on Use class tracking in the accounting preferences.
•
Turn on the Report all payroll taxes by... payroll and employees preference.
•
Select the Track Expenses by Job check box on every payroll item for a commission,
addition, or employer contribution.
•
Assign one class to an entire payroll payment, or assign a separate class to each
earnings payroll item on a payroll payment, depending on the payroll and employee
preference you choose.
Tracking expenses by service item (QuickBooks Pro and Premier)
Some businesses keep track of expenses by service item. To track payroll expenses by
service item, do the following:
•
Turn on the payroll and employee preference for Report all payroll taxes by Customer:
Job and Service Item.
•
Select the Track Expenses By Job check box on every payroll item for a commission,
addition, or employer contribution.
•
Set up each employee to Use time data to create payroll payments.
•
Associate every Customer:Job with the correct service item on each payroll payment
you create.
To learn about...
Type in the Help index...
Keeping track of payroll expenses by customer
and job, or class, or service item
payroll, tracking expenses
Setting up payroll
153
Payroll items associated with liabilities
Often, you have to deduct amounts from your employees’ pay and pass them on to the
government. For example, when you pay an employee, your company temporarily keeps the
PAYG taxes they owe and remits that money to the government later.
These types of deductions are not expenses because the money you pass on comes from
the employee, not your company. Instead, because you temporarily keep money that you
owe to someone else, these types of deductions are liabilities. Payroll items for liabilities
are usually assigned to the Payroll Liabilities account.
When you run your payroll, QuickBooks calculates how much you owe the government for
each employer contribution payroll item (such as PAYG tax) and records the amounts in the
Payroll Liability account. With each payroll payment you create, the balance of this account
increases. When you pay your PAYG taxes and other payroll liabilities with the Pay Liabilities
window, QuickBooks decreases the balance of the liability account.
Combinations of expenses and liabilities
Some payroll items are a combination of liabilities and expenses. For example, the portion
of superannuation that you withhold from an employee’s payroll payment is a liability, while
the portion that you pay as an employer is an expense.
Payroll items for employer-paid taxes and employer contributions are usually assigned to
both a liability account and an expense account.
How to set up common payroll items
Follow this guide as you set up payroll items.
154
Payroll Item
Type
Expense Account
Payment
Summary
Tracking
Super
Guarantee
Contribution
Holiday Salary
Salary
Payroll Expenses/Gross
Gross Payments
On
Salary
Salary
Payroll Expenses/Gross
Gross Payments
On
Sick Salary
Salary
Payroll Expenses/Gross
Gross Payments
On
Holiday Hourly
Hourly
Payroll Expenses/Gross
Gross Payments
On
Hourly Pay
Hourly
Payroll Expenses/Gross
Gross Payments
On
Sick Hourly
Hourly
Payroll Expenses/Gross
Gross Payments
On
Bonus
Addition
Payroll Expenses/Gross
Gross Payments
Off
Lump Sum A Termination Pay
Addition
Payroll Expenses/Gross
Lump Sum A
Off
Lump Sum B Termination Pay
Addition
Payroll Expenses/Gross
Lump Sum B
Off
Lump Sum D Termination Pay
Addition
Payroll Expenses/Gross
Lump Sum D
Off
Chapter 9
Payroll Item
Type
Expense Account
Payment
Summary
Tracking
Super
Guarantee
Contribution
Lump Sum E
- Retrospective
Pay
Addition
Payroll Expenses/Gross
Lump Sum E
Off
Super
Employer
Contribution
Payroll Expenses/Super
Payroll Liabilities/Super
None
Post June
1983 Untaxed
Element
Addition
Payroll Expenses:Post
June 1983 Untaxed
Post June
1983 Untaxed
Element
Off
Pre July 1983
Component
Addition
Payroll Expenses:Pre
July 1983
Pre July 1983
Component
Off
PAYG Tax
Payroll Tax
Payroll Liabilities/PAYG
Tax
Note:
It is important to create sub-accounts for Super and PAYG Tax to allow
for the relevant amount to be selected for the BAS report. Refer to your
accountant for more details.
Setting up an employer-paid benefit or other expense
You must set up a separate payroll item for each employer-paid benefit or other payroll
expense you want to track with each payroll payment.
You can use these payroll items to track both taxable and non-taxable employee benefits.
Examples of employer-paid benefits and expenses include superannuation, health or life
insurance paid by the employer or a per-kilometre travel allowance. You can also use these
payroll items to track miscellaneous taxes paid by the employer.
1.
Choose Employees menu > Payroll Item List.
2.
Click the Payroll Item menu button and then choose New.
3.
Select Employer Contribution and then click Next.
4.
Follow the onscreen instructions.
If you need to go back to a previous screen, click Prev.
5.
On the Taxes window: If the benefit or contribution is taxable, put a Select mark next to
the payroll withholdings that apply. Otherwise, clear all the Select marks.
Employees
Generally, an employee is a person you pay on a regular and ongoing basis to perform
services for your company, using materials and equipment you provide.
To set up employees for payroll, you need to:
•
(Optional but recommended) Set up employee defaults.
•
Add the employees to your Employee List, or add payroll information for employees
already on your Employee List.
Setting up payroll
155
Entering standard employee defaults
Employee defaults help you set up new employees quickly. You enter information that most
employees have in common. These defaults then show up every time you set up a new
employee. If the information isn’t right for an employee, you can change it for them.
If you change the defaults, the new information shows up the next time you set up a new
employee. Employees that you have already set up do not change, in most cases.
The Employee Defaults window resembles the Payroll Info tab of the New/Edit Employee
window. You can set up the following information in it:
•
Salary or wage payroll items (with or without rates)
•
Pay frequency and pay method
•
Class, if you’re using classes to track your employees
•
Whether you want to use time data to create payroll payments (QuickBooks Pro/
Premier only)
•
Additions, deductions, and employer contributions that appear on payroll payments
•
PAYG taxes and other withholdings
•
Sick, Holiday and Other leave time
•
Position Details (including weekly hours)
To learn about...
Type in the Help index...
Setting up the employee defaults
employee defaults, creating
Determining the order in which you add
payroll items to the Employee Defaults
window
employee defaults, order of payroll items in
Setting up employees
Before setting up your employees in QuickBooks, you should create the payroll items you
need for your company (see Setting up your payroll items on page 150).
Also, consider setting up your employee defaults (see Entering standard employee defaults
on page on this page), so that QuickBooks can pre-fill much of the information you need
when you set up an individual employee.
Remember that in Australia new employees need to submit the ATO supplied declaration
forms.
Using the Employee List and Employee Profiles
In QuickBooks, each of your employees has a profile containing information about them
(such as contact information, date of birth, and the payroll and banking information you
need to create pay cheques). These profiles are stored in the Employee List and are made
up of three tabs:
156
•
Address Info. Contact information, date of birth, start and finish dates.
•
Additional Info. Custom fields for tracking any information you prefer.
Chapter 9
•
Payroll Info. Actual payment details plus access to other windows to record
information about sick/holiday leave, tax, bank, super and position.
If you pay on commission (QuickBooks Pro and Premier)
As you enter the employee’s name in the employee profile, QuickBooks Pro and Premier
automatically records the employee’s initials. If your employees earn commissions for
items they sell, you must also add the employee to the Customer Sales Rep List.
Then you can select an employee’s initials from the Rep drop-down list when entering a
sale or estimate to give the correct employee credit. You can also produce reports showing
sales by employee. Pay these employees with a payroll payment, not a regular cheque.
To learn about...
Type in the Help index...
Adding employees
employees, adding
Setting up payroll information for existing
employees
employees, payroll information for
Categorising employees by class
employees, grouping by department or location
Types of employees
employees, types of
Paying the owner(s) of a business
owners’ drawings
How the order of payroll items affects
the amount on your employee’s payroll
payments
payroll payments, affecting amounts
Summarising amounts for the year-to-date
Note:
Skip this section if your company has not done payroll before, not issued
any payroll payments this year or plans to allow the payments already made
this year to be used for all accounting and record purposes. You are ready to
start creating payroll payments.
It’s not necessary to include year-to-date information in QuickBooks
Payroll, as the Tax Office will accept two or more end-of-year payment
summaries for the one employee for the same financial year.
This means that you can create a payment summary from your old payroll
system that covers the period leading up to the QuickBooks start date and
then from QuickBooks Payroll for the remaining period.
If you’re just starting to use QuickBooks for payroll and you’ve already issued payroll
payments for this payroll year, you may want to record these in QuickBooks to consolidate
all your records. In this case you need to:
•
Enter year-to-date (YTD) information to summarise your payroll transactions from 1
July (the start of the payroll year) through to your QuickBooks start date.
Setting up payroll
157
You must enter two types of YTD summary: one for each employee you have paid and
one for the payroll liability payments you’ve sent in to the Tax Office so far.
A wizard helps you enter this information. To start it, choose Employees menu > Set Up
YTD Amounts.
•
Enter your payroll transactions (payroll payments and liability cheques) for the period
between your QuickBooks start date and today.
As you enter this information, QuickBooks updates your payroll year-to-date amounts
as you issue payroll payments and keeps your payroll liabilities correct.
Entering year-to-date summaries for each employee
For each employee (both current and former) you paid during the current payroll year,
you can enter a summary of their earnings, withheld taxes, and other amounts from the
beginning of the current financial year through to your QuickBooks start date.
For each employee enter both taxes withheld from his or her earnings and taxes that are an
employer expense, as long as you owed them as a result of the employee’s earnings.
Then you’ll be able to do the following:
•
Print correct year-to-date amounts on each payroll payment.
•
Create accurate payroll reports, including reports of current payroll liabilities.
•
Correctly observe annual limits for taxes, deductions, and additions.
Depending on how you’ve kept your records, you can enter amounts summarised by month,
by pay period, or for the entire year to date.
You enter employee year-to-date summaries with the Set up YTD Amounts wizard. When
you select an employee and click Enter Summary, QuickBooks displays each payroll item
you entered in that employee’s profile.
If the amount you paid
the employee has
already come out of your
bank account, select this
option.
In this area, enter totals
for all other earnings,
withholdings, and
employer-paid taxes or
payroll expenses for this
employee.
Include taxes regardless
of whether you have
paid them yet.
To insert a payroll item,
press CTRL+INSERT.
You can skip over items
not used in this period.
In this area, enter the
totals for salary, hourly
wages, and holiday
and sick time paid out
during this period.
Enter hours worked
during the period if
you want hours to
appear on reports.
QuickBooks displays a
message if hours are
required.
After you’ve entered the amounts for this period, click OK to finish. If you have another
period to enter, click Next Period instead.
158
Chapter 9
Should my YTD information affect my accounts?
You can choose how employee YTD information affects your accounts. In the YTD
Adjustment window, click Accounts Affected. The table below summarises the options
available to you from the Accounts Affected window:
Option
When to choose
What QuickBooks does
Do not affect
accounts
Most people should choose this option at
setup.
• You need to enter all your account
opening balances in QuickBooks as of
your start date, and you do not want
these amounts to change the balances
of your accounts.
• If your start date is midyear, and you
make an adjustment for all income and
expense accounts, you do not want
these amounts to affect that adjustment.
• Affects no balance sheet
accounts and adds no
expenses.
• Adjusts payroll year-to-date
amounts that print on cheque
vouchers and pay slips;
display in payroll reports;
and determine annual limits
for taxes, deductions, and
additions.
Affect liability
and expense
accounts but
not the bank
account
You may want to choose this option at
setup if you have never used a payroll
liability account before, and you want a
correct balance in the account.
This option is also appropriate after you
start using payroll if you need to adjust the
amount owed for a payroll item.
• Enters an increase in each
liability account associated
with a payroll item used for the
period.
• Tracks an expense for each
expense account associated
with a payroll item used for the
period.
• Enters a decrease in the
Opening Bal Equity account
for the net amount paid the
employee during the period.
(This adjustment keeps your
books in balance.)
Affect liability,
expense,
and bank
accounts
You are unlikely to want to choose this
option at setup since it affects your bank
account balance.
• Enters a payment in the
designated bank account for
the net amount paid to the
employee during the period.
• Enters an increase in each
liability account associated
with a payroll item used for the
period.
• Tracks an expense for each
expense account associated
with a payroll item used for the
period.
Setting up payroll
159
Entering YTD summaries of liability payments
Note:
Skip this section if your company has not made any payments for PAYG
taxes or liabilities incurred during this payroll year.
For this adjustment, you’ll need to know how much you paid from the start of the payroll
year (1 July) to your QuickBooks start date for each of the following:
•
Each PAYG tax (whether withheld from employees or paid as an employer expense).
•
Each deduction you withheld and then paid.
•
Each employer contribution you paid.
Except for employer-paid PAYG taxes, this adjustment is only for payroll liabilities you paid.
It is not for other expenses related to or paid to employees (for example, salaries, wages,
and bonuses).
To learn about...
Type in the Help index...
Entering YTD liability payments
year-to-date amounts, liability
payments
Making sure your payroll data is complete
QuickBooks bases new payroll transactions on existing data so, it’s very important that you
enter all of your payroll data accurately. After setting up your payroll system and entering
your YTD information, you should make sure that it is complete and correct.
160
Procedure
Comments
Search the Help
index for...
Review your Employee
List.
The Employee List should include names
of all employees on your payroll at any time
during the current payroll year (even if they
have left).
employees,
reports about
lists, printing
Review your
Payroll Item list.
The Payroll Item List should list everything
you need to track on a payroll payment.
payroll, reports
about
lists, printing
Review an employee
contact list report.
The report should include names,
addresses, and phone numbers for all
employees.
employees,
reports about
Review your payroll
summary for all employees
for this entire payroll year.
You should be able to match the amounts
for payroll items with the amounts for
payroll accounts in the payroll report from
your former accounting system.
employees,
reports about
Chapter 9
Procedure
Comments
Search the Help
index for...
Review your payroll
liabilities as of 1 July of
this year.
You should be able to match the amounts
for payroll items with the amounts for
payroll accounts in the liability report from
your former accounting system.
payroll, reports
about
Print a balance sheet as 1
July this year.
It should match the balance sheet from
your former accounting system as of 1 July
of this year.
report types,
balance sheets
Print a balance sheet as of
1 July last year.
It should match the balance sheet from
your former accounting system as of 1 July
last year.
report types,
balance sheets
Print a profit and loss
statement for the entire
payroll year.
It should match the profit and loss
statement from your former accounting
system for the entire payroll year.
profit and loss
reports
Note:
Protect your company’s payroll data from unauthorised access by setting up
user permissions. For information about restricting access to your company
file, see Users and passwords on page 93).
Changing payroll and employee information
As your business grows and changes, you will probably find it necessary to add or
remove payroll items, start (and sometimes terminate) employees, and track additional
information about your payroll.
Changing payroll item information
By default, the Payroll Item List is organised by payroll item type. Earnings items (for
salaries, hourly pay and other payroll items) are at the top of the list. To re-sort the list, click
a column header.
Remember that you can use the same payroll item for many employees. You can customise
hourly wage payroll items - for example, in the setup window for each employee to allow for
different rates of pay.
You can change the information for existing payroll items, although you probably do not
want to change whether the item is subject to tax. You may want to change a payroll item,
for example, because:
•
The annual limit for a deduction changes.
•
Your accountant wants you to assign it to a different account.
If you’ve set up a payroll item properly, you most likely won’t need to change the way it
affects taxes, even if you need to change other information. Also, you don’t have to create
different earnings and other non-tax items for each employee as you can customise
amounts or percentages in their setup window.
Setting up payroll
161
You can’t delete special payroll items that QuickBooks creates for you (such as PAYG Tax
and Holiday Loading), but you can hide them by making them inactive.
How changes to payroll items affect QuickBooks
Changes you make to payroll items affect new payroll payments you create, and certain
changes can also affect how past payments are classified historically on tax forms, reports,
and payment details.
Changing the following information for a payroll item affects employee profiles and all
previously-created payroll payments:
•
Payroll item name
•
Account(s) assigned to it (liability or expense)
Changing the following information affects future payroll payments only:
•
Whether it is calculated on Gross Pay or Net Pay
•
PAYG tax affected (for additions to or deductions from gross pay)
•
How the item is calculated on the payroll payment (For example, Selecting or clearing
the Based on Quantity option if the payment is based on a unit or quantity you must
enter into QuickBooks, such as units sold.)
Changing employee information
You can change an employee’s personal or payroll information whenever necessary, and
the changes will affect all future payroll payments you write to them. Changes you make to
an employee’s name and address are also reflected in previously-written payroll payments,
but do not affect any of the amounts on those payroll payments.
The following types of information must be changed individually for each affected
employee. Changing the payroll item doesn’t affect the employees who use it.
•
Annual limits for a deduction
•
Rate or amount changes for a deduction, addition or employer contribution Note:
Change the information in the employee defaults first. In many cases,
QuickBooks asks if you want to also change the information for all matching
employees.
To learn about...
Type in the Help index...
Changing employee information
employees, editing
Adding custom fields
employees, custom fields for
Giving an employee a rise
employees, rises for
Starting and terminating employees
When you start a new employee, simply set up a new Employee profile for their (see
Setting up employees on page 156). If you have set up employee defaults (page 156), this
information is copied from the defaults into the new employee profile. Then, if you need to,
you can change any of the information for this particular employee.
162
Chapter 9
When an employee leaves the company, you need to enter the finish date into their profile.
It’s a good idea to enter a finish date for an employee only after you have created his or her
final payroll payment.
In addition to what would normally be paid to the employee upon resignation, for
example, untaken leave entitlements, employers make payments in accordance with the
employment contract and/or company policies. Eligible termination payments, being in
excess of the tax free limit, are subject to PAYG tax deductions at the time of payment.
Note:
If you need to specify that an employee has passed away, enter a finish date
for the employee as per usual and click OK. Re-open the employee record.
QuickBooks now displays the Deceased check box, which you should select.
You can’t delete an employee who has left your business if there are transactions
associated with them. You can hide the employee’s name in your Employee List.
To learn about...
Type in the Help index...
Starting a new employee
employees, adding
An employee finishing
employees, terminating
Eligible termination payments
Eligible termination payments
Hiding, showing or merging employees
You can’t delete an employee who has any existing payroll transactions. Instead, you can
hide an employee on the Employee List by making the employee inactive.
When you make an employee inactive, QuickBooks keeps the information for the employee
but hides the employee’s name on the Employee List and removes it from most drop-down
lists that reference employees. However, the employee’s payroll figures still appear on
payroll reports. You do not need to change or delete any transaction that references the
employee. You can make an employee active again at any time.
If the same employee appears in your Employee List twice, you can merge the two names if
there are no payroll transactions for either instance. Merging employees is not reversible.
To learn about...
Type in the Help index...
Making employees inactive, hiding them, or
showing them
employees, hiding and showing
Merging employee names
employees, merging two names
Deleting an unused employee
employees, deleting
Setting up payroll
163
Contacting your employees by mail
In QuickBooks Pro and Premier you can use your QuickBooks data in conjunction with
pre-written Microsoft Word letters to send your employees notices about such matters as
accrued holiday and sick leave by standard mail.
To learn about...
Type in the Help index...
Using your QuickBooks data with Microsoft
Word letters
letters, using QuickBooks data in Microsoft
Word
Customising pay slips
You can customise your own pay slips using the pay slip template from the Template List.
When you have created a pay slip it will be listed in the Print Pay Slip window.
Using the Customise Pay Slip template you can add, change or delete any of the various
items and fields existing in the standard single template. The Layout Designer can be used
to add more data and text boxes and to move existing fields. For information on paying your
employees, see Paying your employees on page 168.
Pay slips can provide the following information:
•
Employee’s full name, address, and Employee number
•
Pay period start and end dates
•
Salary or hourly rate and hours, and gross pay for the pay period
•
Deductions from and additions to the gross pay, including PAYG tax withholding or
exemptions
•
Net pay
•
Accrued leave time used and available, if you have chosen to print them in the Payroll
& Employees preferences
•
Payroll-year-to-date amounts for the preceding items
•
Relevant tax withheld information
•
Employment status
•
Dissection to bank accounts
•
Superannuation information
To customise a pay slip:
164
1.
Click Lists menu > Templates.
2.
Click Templates > New.
3.
Select Pay slip and click OK.
Chapter 9
4.
Use the various tabs in the Customise Pay Slip window to change the template to suit
your needs.
5.
Click Layout Designer to view the customised pay slip and edit it further.
To learn about...
Type in the Help index...
Printing pay slips
pay slips, preferences for
Emailing pay slips
email, pay slips
Use the Format
tab to add your
logo and to
change fonts,
including font
style—for
example, italic,
bold—and size.
Use the Fields
tab to change
the information
shown on this
part of the
form.
Use the Header
tab to change the
title of a form or
other information
in this part of the
form.
Use the
Columns tab
to change
the order in
which columns
display. The
Amount
column always
displays
furthest to the
right. You can
also rename,
add, or delete
columns.
Note:
Depending on your location it may be compulsory to include certain elements
on an employee’s pay slip. Please ensure you understand the relevant
legislative requirements when customising your company pay slips.
Setting up payroll
165
166
Chapter 9
Working with payroll
Using payroll
10
168
Paying your employees
168
Paying PAYG tax and liabilities
172
Preparing year-end payroll forms
175
Emailing pay slips and payment summaries
176
Getting information about your payroll
178
QuickBooks helps you track employee information and compensation. With the payroll features, you can
create payroll payments, administer holidays, bonus payments and benefits, and track data for end-ofyear forms.
*The Payroll feature is not available in New Zealand.
Using payroll
After you have set up employee details, payroll items and have begun to record everyday
work-related information for an employee, you can begin to carry out all the standard
payroll processing tasks.
Payroll processing tasks include:
•
Paying your employees
•
Paying PAYG tax and liabilities
•
Preparing year-end payroll forms
•
Emailing pay slips and payment summaries
•
Running payroll reports
Before you begin processing payroll payments, be sure that your payroll
system is set up completely and correctly (see page 146). Also, you should
go online to download the latest tax table or install it from disk (if you
received one).
Paying your employees
The vast majority of the effort involved in payroll processing is in the setting up of
employees, payroll items and preferences. When you actually come to process your payroll,
if you have set up the system correctly, the process should be straightforward.
This chapter offers an overview of the processes you need to follow. The QuickBooks
in-Product Help contains more detailed information, as well as suggestions for how to
streamline your payroll processes.
Selecting employees to pay
To select which employees you want to pay, choose Employees menu > Pay Employees.
If all your employees
are salaried and
receive a standard
payroll payment for
this pay period, select
this option.
If you enter hours
worked, time
in lieu, sick or
holiday time, or
other variations
from pay period to
pay period, select
this option.
You can specify
different payment
date and pay
period ends date
on the payments,
if you need to.
You can sort the
list by either the
employee’s first
or last name,
according to the
setting in Payroll
and Employee
Preferences.
When you create a payment, the date changes to the
latest pay period end date for the employee.
168
Chapter 10
Note:
Use the Payment Date field to enter the date that the selected employees
will be paid. The Pay Period Ends field is used to record the last day of the
pay period for selected employees. QuickBooks will automatically determine
the start date of the pay period by reference to the pay frequency of that
employee.
When you’ve selected the employees you want to pay, click Create to display payment
information for the first employee.
Note:
You can pay employees in groups. For example, first select your monthly
employees, whose payments you don’t need to review, and pay them. Then
select your weekly employees and choose to preview their payments so you
can enter their hours.
Previewing, adjusting, and creating payroll payments
Select the Enter hours and preview payment before creating option in the Select Employees
To Pay window. Click Create and QuickBooks will open the Preview Payroll Payment
window.
The Employer Summary shows employer-paid taxes and contributions that do not directly
affect the amount of the payment. The Employee Summary shows wages, commissions,
withheld taxes, and other additions and deductions that print on the voucher of the pay slip.
If the employee is paid by the
hour, edit the number of hours
worked for each rate.
(QuickBooks fills in the hours
either from time data or from
the last payroll payment.)
If this is a bonus or commission cheque, you likely
don’t want sick or holiday time to accrue for it.
To prevent sick and holiday time from accruing for
this payment only, select this check box.
To process advanced holiday
pay, select this check box.
If the employee is paid on
salary, you can enter hours
if you want to split the salary
amount between jobs.
However, QuickBooks
calculates the amount of the
payment from the employee’s
pay period and total annual
salary.
If a commission, addition,
deduction, or employer
contribution is based on a
quantity, enter it here. (Based
on Quantity option must
be ticked in the associated
payroll item.)
Working with payroll
169
In the Preview Payroll Payment window, you can do all of the following:
•
View the amounts QuickBooks calculated for each payroll item (including gross
earnings, taxes, and all other additions, deductions, and employer contributions) for
the payment
•
Enter or edit the number of hours worked
•
Enter sick or holiday time, or prevent these from accruing (on this payment only)
•
Enter extra hours worked and time in lieu taken
•
Enter the base quantity on which to calculate commissions, additions, deductions, or
employer contributions that are based on quantity
•
Add or delete wage, commission, addition, deduction, or employer contribution payroll
items
•
Pay employee’s Advance Holiday Payments
Note:
To suppress the payment of regular salary on a bonus payment, delete
the salary item in the Preview Payroll Payment window. (Select it and
press CTRL+DEL.)
•
Edit the amount for any payroll item
When QuickBooks creates a payroll payment, it does the following:
•
Updates the pay period end date of the last payment written for the employee, and
removes the Select mark in the Select Employees to Pay window
•
Creates a payroll payment (a cheque/bank online transaction and pay slip) for your
employee for the net amount, showing the deductions
•
Increases or decreases the employee’s accrued sick, holiday or other leave time by the
amount entered for the payroll payment
If you selected the Do not accrue time check box in the Preview Payment window, you
prevent the sick, holiday or other leave time from accruing for this payment only
170
•
Increases or decreases time in lieu quantities; these quanities can be viewed using the
Quantity by Employee Report
•
Updates year-to-date balances for the employee
•
Draws the amount of the payment from the bank account you chose (usually your
current account)
•
Records an increase in each affected liability account, showing the extra liability
resulting from the payroll transaction (for both the employee’s payroll deductions and
employer contributions
•
Updates and tracks your payroll expenses in expense accounts
•
Updates any other accounts you have assigned to any payroll items used in the payroll
transaction.
Chapter 10
To learn about...
Type in the Help index...
Previewing and adjusting payroll payments
payroll payments, checking amounts in
Time in lieu
Time in lieu
Reviewing and correcting payroll payments
After you’ve recorded a payroll payment, you can review it at any time.
1.
Choose Lists menu > Chart of Accounts.
2.
Select the current account on which you create payroll payments.
3.
Click the Activities button (at the bottom of the Chart of Accounts window), then
choose Use Register.
4.
Locate the payment in the register.
5.
Select the payment, then click Edit Transaction.
6.
QuickBooks displays the Payment window. This window is similar to the Write Cheques
and Bill Payments windows but has a Summary section instead of a voucher.
The Payment
Summary section
summarises
earnings, additions,
taxes withheld, and
deductions.
It also displays the
pay period end
date and the hours
worked.
Click Payment Detail
to see more detail or
to edit the payment.
7.
(Optional) Change the cheque number, memo, address, or the To be printed status
directly in this window.
8.
(Optional) Click Payment Detail.
QuickBooks displays the Review Payment window. Here, you can make any necessary
corrections. When you finish, click OK.
9.
(Optional) Click Print to print a copy of the payment.
•
For payroll cheques, the voucher gives the complete details of the payment.
•
If you pay employees through online banking, you can print or email pay slips to
provide your employees with the information that appears on a payment voucher
(see Printing payroll cheques and pay slips on page 172).
Working with payroll
171
Note:
To ensure the accuracy of subsequent tax calculations, you cannot change
certain things. On payroll payments, you cannot edit the payment date,
amount, or payee. To do so, you must delete and re-enter the payment, as
well as any subsequent payments to the employee.
Deleting or voiding a payment
You cannot void bank online payment cheques. Instead, you must delete and (if necessary)
re-enter them. However, you can only edit, delete or void the last payroll payment that you
issued. You may want to do so if:
•
A payroll cheque misprinted and you need to re-print it, but also need to account for all
the cheque numbers used
•
An employee’s payroll cheque is lost or stolen, and you need to reissue it
•
There was an error in a recent payroll cheque that your employee has not yet cashed
You may want to delete a payroll payment if it is a duplicate that has not been printed yet.
To learn about...
Type in the Help index...
Editing existing payroll payments
payroll payments, changing
Deleting payroll payments
payroll payments, deleting
Voiding payroll cheques
payroll payments, deleting
Printing payroll cheques and pay slips
You can print all your payroll cheques at one time, but you must print them separately from
other cheques. Set up your printer for payroll cheques the same way as for other cheques in
QuickBooks.
If you don’t print payroll cheques with vouchers (for example, if you pay your employees
through online banking), you can print or email pay slips for your employees instead.
To learn about...
Type in the Help index...
Printing payroll cheques
payroll payments, printing cheques
Printing pay slips
pay slips, preferences for
Emailing pay slips
email, pay slips
Customising pay slips
customise, pay slips
Paying PAYG tax and liabilities
When it’s time to pay your payroll liabilities, QuickBooks shows you how much you owe and
to whom, lets you choose which liabilities to pay, and creates cheques for you. It also helps
you fill in the forms you need to send in with your payments.
172
Chapter 10
Note:
Always use the Pay Liabilities window to write cheques for your payroll
(and other) liabilities. Do not use the Write Cheques window! If you do,
QuickBooks does not update your payroll liability accounts, and your payroll
reports will not be accurate.
There are three steps to creating your payroll liability cheques:
1.
Create a Payroll Liability Balance Report to see how much you owe, to whom, and for
what.
2.
Adjust the amounts you owe, if necessary.
3.
Use the Pay Liabilities window to create cheques for the amounts you owe.
Adjusting a payroll liability
In rare cases, you may find that the amount for a payroll item tracking a liability doesn’t
match what you actually owe. For example, there may be a small discrepancy due to
rounding. You can adjust your payroll liabilities with the Liability Adjustment window.
1.
Choose Employees menu > Process Payroll Liabilities > Adjust Payroll Liabilities.
Effective date
Payroll item
2.
Select a payroll item to adjust.
3.
Enter the date you want this adjustment to affect your payroll liability account.
4.
Enter the amount of the adjustment. A positive amount increases what you owe. A
negative amount reduces what you owe. For example, if the Liability by Payroll Item
Report says that you owe $450 but you know you owe $475, enter the difference: $25.
5.
(Optional) Click Accounts Affected to select how the adjustment will affect your
accounts.
If your liability and expense accounts have the wrong totals as well as your liabilities
(the usual case), you should choose to affect your accounts.
If your liabilities are wrong but your liability and expense accounts have the correct
totals, choose to not affect your accounts.
6.
Click OK.
Working with payroll
173
7.
If you chose to affect your liability and expense accounts and you adjusted an amount
withheld from payroll payments, you need to adjust an expense account to offset the
change in your liability account. Type the name of the expense account you want to
affect, then click OK. (Most people choose Payroll Expenses.)
To learn about...
Type in the Help index...
Adjusting payroll liabilities
payroll liabilities, adjusting
Paying payroll liabilities
When it’s time to pay liabilities, you can use QuickBooks’ Pay Payroll Liabilities feature.
1.
Choose Employees menu > Process Payroll Liabilities > Pay Payroll Liabilities.
2.
Type the date range for the liabilities you want to pay, then click OK.
3.
In the Pay Liabilities window, mark the payroll item liabilities you want to pay now and
select options for the cheque.
Before you can pay a liability, you must have a payee entered in the payroll item’s
Payable To field. If you don’t have one, you’ll be asked to add one here.
Certain liabilities can be selected and paid only as a group.
If you use
QuickBooks to
print cheques,
select this
check box.
Click Report
to generate
a Payroll
Liabilities report
for the specified
period.
This is the date
the transaction
affects your
bank account.
If you want, you
can change the
amount you’re
paying in this
column.
4.
Select whether you want to review the cheque(s), then click Create.
After you create a cheque, the Payroll Liabilities Report shows a decrease in the
amount you owe to reflect the payment. However, other reports may show the amount
you owed for the period regardless of payments you’ve made.
174
To learn about...
Type in the Help index...
Paying payroll liabilities
payroll liabilities, paying
Adding an agency name missing in the Payable To column
payroll items, editing
Creating a report that shows your payroll liabilities
payroll, reports about
Entering a discount for payroll liabilities
payroll liabilities, discounts
Chapter 10
To learn about...
Type in the Help index...
Entering a penalty or fine for payroll liabilities
payroll liabilities, penalties
Entering a refund cheque for overpayment of payroll liabilities
payroll liabilities, refund
Preparing year-end payroll forms
Near the end of the payroll year, you need to create year-end payroll forms for your
employees and Tax Office such as the payment summary and associated electronic file
(EMPDUPE).
1.
Consult your accountant or the Tax Office for guidelines about reporting employee
benefits and any items or amounts about which you are uncertain.
2.
Create and review a payment summary for each employee who worked for you at any
time during the last year (see Creating and reviewing payment summaries on this
page).
3.
Enter any other adjustments you need to make.
4.
Test the printing alignment by printing a sample form, and make any adjustments that
are necessary (see Solving printing problems on page 99 if you have trouble).
5.
Print or email the payment summaries. (To email, see Emailing pay slips and payment
summaries on page 176.)
6.
Distribute the printed forms.
7.
Create an empdupe file to send the Tax Office with your withholding payments.
Creating and reviewing payment summaries
At the end of the payroll year, you must create a payment summary for each of your
employees. QuickBooks can print or email these forms for you.
1.
Choose Employees menu > Process Payment Summary.
QuickBooks displays a list of all employees you paid during the year.
2.
Select the correct payroll year from the drop-down list.
3.
Mark the employees to process now.
Working with payroll
175
Emailing pay slips and payment summaries
If you have Internet access and use Microsoft Outlook for your email, you can choose to
email an employee a pay slip or payment summary from QuickBooks.
You first need to enable an employee to receive emails by entering a valid email address in
the individual employee’s record and selecting check boxes that enable email for pay slips
and/or payment summaries.
Enter a valid email
address in the employee
record on the Address
Info tab.
Then select the Email
check box against the
form you would like
QuickBooks to email on
the Payroll Info tab.
When you then go to process a pay, you’ll have the option of clicking Email Pay Slips on the
Select Employees To Pay window. This displays the Select Pay Slips to Email window, from
where you can select pay slips to email employees.
Also, when you go to process payment summaries, you’ll have the option of emailing a
payment summary after it has been successfully reviewed. Click Email and follow the
onscreen prompts.
If you get this dialog box from
Microsoft Outlook, click OK.
Outlook needs you to confirm
that QuickBooks can access
your email from outside Outlook.
176
Chapter 10
Pay slips and payment summaries are attached to emails as Portable
Document Format (PDF) attachments. Microsoft Outlook may advise you
each time you email a pay slip or payment summary that the attachment you
are emailing may be harmful. You can safely ignore this message. To avoid
receiving these messages, go to Edit menu > Preferences, select Online and
then Company tab and Select the Display each email when sending more
than one check box.
To learn about...
Type in the Help index...
Emailing pay slips
email, pay slips
Emailing payment summaries
email, payment summaries
Creating an electronic file (EMPDUPE)
After you print or email your payment summaries, you also need to create an EMPDUPE
file that contains the payment summary data you have just printed. The EMPDUPE file is
used to supply the Australian Taxation Office with payment summary information for all
employees in your company.
QuickBooks takes the data from each employee’s payment summary and stores it in a
spreadsheet. To create an accurate EMPDUPE data file, you must first review and print or
email your payment summaries.
1.
Choose Employees menu > Process Payment Summaries and select all employees
Note that all employees in the INB Payment Summary list, and those with ETP
payments in the ETP Payment Summary list, will be included in the EMPDUPE data file,
whether you have selected them or not.
2.
Review the payment summaries.
3.
Click Electronic File.
QuickBooks creates the EMPDUPE file and places it in the QuickBooks root directory or
another folder that you select.
4.
Using Windows Explorer, copy the EMPDUPE file from your PC to a disk (your A:\ drive)
for sending to the tax office.
Note:
The EMPDUPE file must be accompanied by a Magnetic Media Information
form when you send it to the tax office. Instead of submitting the EMPDUPE
file via magnetic media, you can use the ATO’s online submission process
(ECI).
To learn about...
Type in the Help index...
Creating an EMPDUPE file
EMPDUPE, creating
Submit an EMPDUPE file online
EMPDUPE, submit online
Working with payroll
177
Getting information about your payroll
Use these QuickBooks reports to gather the payroll information you need:
178
Report
Description
Payroll summary
Shows the total wages, taxes withheld, deductions from net pay,
additions to net pay, and employer-paid taxes and contributions for
each employee on your payroll.
Payroll item detail
Lists the payroll transactions on which each payroll item appears.
For example, you could use this report to find out which payroll
payments had deductions for a dental plan.
Payroll detail review
Provides detailed information about how QuickBooks calculates
tax amounts on employee payroll payments and in year-to-date
transactions. You can use this report as a research tool to see
exactly what numbers QuickBooks used to calculate the tax
amounts.
Employee earnings
summary
Shows information similar to the Payroll Summary Report, but in a
different layout.
State Payroll Tax Detail
(Australia only)
Shows the base amount of State Payroll Tax liability (for all states)
based on State Payroll tax table calculations for the specified date
range, broken down by employee detail.
State Payroll Tax
Summary (Australia
only)
This report shows the base amount of State Payroll Tax liability
(for all states) based on State Payroll Tax table calculations for the
specified date range.
Payroll transactions by
payee
Lists payroll transactions, grouping them by payee. For example,
you could use this report to create a listing of the payroll payments
you paid to each employee.
Payroll transaction detail
Shows the line item detail that appears on each payroll transaction.
Payroll liability
balances
Lists the payroll liabilities your company owes to tax agencies and
labour unions for example.
Super Report by Fund
Lists payments you have made to super funds in order of super
fund. Use this to work out the cheque you need to write a super
fund to cover relevant contributors.
Super Report by
Employee
Lists the amount of super you have paid to a super fund for
each employee. This includes compulsory and non compulsory
payments.
Employer SGA
Contributions
Lists the compulsory SGA payments you have made to a super
fund for each employee.
Employee QuickReport
Lists chronologically the transactions related to a particular
employee. This report is available from the Employee List by
clicking the Report menu button.
Payroll item listing
Shows detailed information about each payroll item you use to track
payroll-related expenses and liabilities.
Payroll item
QuickReport report
Lists chronologically the payroll transactions that contain a
particular payroll item. This report is available from the Payroll Item
List by clicking the Report menu button.
Chapter 10
Report
Description
Quantity by Employee
Lists transactions processed under the Other type of payroll item.
The reports which are generated show a total, per employee, of the
Quantity processed. Use this report to view employee’s time in lieu
quantities or commissions.
Finding out how much you owe for payroll liabilities
Let’s say you want to see how much you currently owe for payroll tax for the current payroll
period.
You can find out quickly by creating a Payroll Liability Balances Report. This report shows
liabilities incurred during the date range specified that are still unpaid or outstanding.
Finding out how much you spend on your payroll
Let’s say you want to know how much money you spend on your payroll. You can run a
Payroll Summary Report to see your payroll totals by employee and for the whole company
for a single payroll period.
Figuring out what wage amount each tax is based on
For each tax amount on employee payroll payments, you may want to check the amount
of wages it is based on. You can generate the Payroll Detail Report to see the amount for
every earnings base and tax transaction on payroll payments.
Finding out how much to pay a super fund
Let’s say that of fifteen employees for which you have to make super contributions, five
have their super fund with Colonial First State, another six with ING and a further four with
Bankers Trust.
Rather than writing 15 individual cheques for each employee’s contribution, you can write
three cheques—one for each fund provider for who you are providing payments. So how
do you know how much to pay and to whom? Simply run the Super Report by Fund to see
your super payments organised around the actual fund providers, then see the total your
business is paying a single super fund within the particular period. Then write one cheque
for each fund and send with a report of employees for which the payment is covering.
QuickBooks also includes Super Report By Employee if you want to see how much you are
paying into each employee’s super fund, or Employer SGA Contributions if you want to see
the same but only for payments linked to the SGA.
Note:
For information on how to pay all your superannuation funds online, see Pay
many superannuation funds at once using SuperLink on page 218.
To learn about...
Type in the Help index...
Payroll reports
payroll, reports about
Paying many super funds electronically
SuperLink
Working with payroll
179
180
Chapter 10
Using the Timer and Stopwatch
Should I track time?
11
182
Setting up and using the Timer
186
Using the Stopwatch to time an activity
191
Paying for time worked
193
Charging customers for time worked
194
Installing the Timer
196
QuickBooks Pro/Premier Timer Reference Sheet
197
Time tracking, available only in QuickBooks Pro, QuickBooks Premier and Custom Editions, allows you to
track hours worked by yourself, employees, or subcontractors. You can make the time billable for specific
jobs. QuickBooks can then transfer the tracked time to pay cheques, regular cheques, and bills from
subcontractors.
Cost tracking allows you to pass costs along directly to your customers.
Should I track time?
QuickBooks Pro and Premier provides time-tracking capability to suit your needs:
•
The Stopwatch: When you’re working in QuickBooks and want to take a stopwatch
approach (that is, turn on a timer, work, and then stop the timer), use the Stopwatch
on the Time/Enter Single Activity window.
•
The QuickBooks Timer: The Timer is a separate program that runs on any computer
running Windows. Because it’s separate, you can distribute copies of the Timer to
people who don’t have access to QuickBooks, such as employees and subcontractors.
Then you can merge their time data into the QuickBooks company file.
•
You can also enter time data manually into QuickBooks in the Weekly Timesheet
window or Time/Enter Single Activity window.
Tracking time can help you make better decisions about work capacity, future hiring needs,
and employee productivity.
Furthermore, if you track the time you, your employees, or your subcontractors spend on
each job, you’ll be able to:
•
Invoice customers based on the number of hours of work done for them
•
Automatically fill in hours on pay cheques
•
When paying subcontractors, automatically fill in hours on cheques and bills
•
Track payroll costs by job, class, or type of work
•
Report hours worked by person, job, or type of work
•
Track billable versus non-billable time
Should I make time billable?
When you record time worked for a particular customer or job, one option is to mark it as
billable. Then, when you invoice the customer, you can add the billable time to the invoice.
After you put the time on a sales form, QuickBooks marks it non-billable, so you won’t
charge twice for the same thing.
If the work done by your employees is billable to a customer, it becomes billable as soon
as you record the time in QuickBooks. It doesn’t matter whether you have actually paid the
employees for it yet.
Some businesses track time without making it billable. For example, if you agree to do a
job at a fixed price, you would not invoice for time. However, you may still want to track
time so you can decide after completing the job whether you set the right price.
Also, you can track accrued time (like sick time), which is normally not billable.
Should I track time for subcontractors?
Most businesses don’t need to track time for subcontractors, with a few exceptions:
182
•
On time reports, you want to see all time for a particular job, whether for an employee,
a subcontractor, or an owner.
•
If your company has only one employee now. By tracking time worked by
subcontractors, you’ll know what to expect when you have employees doing this type
of work in the future.
Chapter 11
•
You want to track subcontractor time independently of the time subcontractors report
on the bills they submit to you.
•
You give subcontractors copies of the Timer program and ask them to return time data
to you weekly so you can track how many hours have been spent on your project long
before you receive the bills.
•
You want to pay subcontractors based on time worked, using the time information
entered in QuickBooks.
•
You track time for subcontractors and pay them within 30 days. On a weekly basis, you
enter a bill for each subcontractor and transfers the time worked during the previous
week.
How much detail should I track for time activities?
You track time based on activities. Each activity needs, at a minimum, the following to
describe it:
•
Name of person who did the work
•
Date the work was done
•
Time spent doing the work
The level of detail you include when tracking an activity depends on whether or not it’s
billable and how much detail you want in your reports.
Describe an activity by specifying …
Comment
Name of person who did the work
Required.
Date the work was done
Required; each activity can be for only one date.
Time spent doing the work
Required. (If you use the Timer or the Stopwatch
to time an activity, fill in the time spent.)
Customer (and job) the work is for
Required only if you plan to invoice for the time.
Even if you don’t invoice for the time:
• Allows you to report on hours worked by
customer and job.
• Allows you to track payroll expenses by
customer and job.
Type of work (described by a service item
from the Item List)
Required only if you plan to invoice for the time.
Even if you don’t invoice for the time:
• Allows you to report on hours worked by type
of work.
• Allows you to track payroll expenses by type
of work.
Whether time is billable
Time must be billable if you plan to invoice for the
time.
Using the Timer and Stopwatch
183
Describe an activity by specifying …
Comment
Class
If your company does class tracking, you can do
the following:
• Filter time reports by class.
• Assign classes to employee time, if you are
set up to split payroll item expenses by class.
Then you can track all payroll expenses by
class automatically.
Choosing a method to track time
QuickBooks Pro and Premier come with a separate Timer program that can run regardless
of whether QuickBooks is on the same computer. You can track time with the Timer and
transfer the time data into QuickBooks later.
You can also use the built-in Stopwatch or enter time data into QuickBooks manually using
weekly timesheets.
184
Situation
How to track time
See…
You have access to
QuickBooks and want to
use a stopwatch approach
to time tracking: turn on a
timer, work, then stop the
timer.
Use the Stopwatch in the
Time/ Enter Single Activity
window in QuickBooks
Pro.
• Setting up QuickBooks Pro/
Premier to track time on
page 185
• Using the Stopwatch to time
an activity on page 191
You want people who
don’t have access to your
QuickBooks company data
file to track their own time.
Distribute copies of the
QuickBooks Timer to these
people, and have them
give you their time data.
• Setting up QuickBooks
Pro/Premier to track time on
page 185
• Setting up and using the Timer
on page 186
• Importing Timer data into
QuickBooks Pro/Premier on
page 190
• Installing the Timer on page
196
You (and others in your
company) have access to
QuickBooks and want to
enter time data after the
work is done.
Enter time data directly
into QuickBooks Pro,
either on a weekly
timesheet or as separate
activities one at a time.
• Setting up QuickBooks
Pro/Premier to track time on
page 185
• Entering time manually into
QuickBooks on page 191
Your employees submit
paper timesheets.
One person can enter
everyone’s time data
directly into QuickBooks
Pro on a weekly timesheet
for each person.
• Setting up QuickBooks
Pro/Premier to track time on
page 185
• Entering time manually into
QuickBooks on page 191
Chapter 11
Setting up QuickBooks Pro/Premier to track time
You must do this preparation before other users can install and use the
Timer.
What to set up
Comments
Search the Help
index for…
Turn on time tracking.
The timesheet starts with the
day you choose as the first day
of your work week.
• preferences, time

On the Customer:Job List,
set up the customers and
jobs you want to track
time for.
If you don’t plan to track time
for a customer or job, you
don’t need that name on the
Customer:Job List now.
• customers, adding
new
• jobs, adding new

On the Item List, set up
service items for the work
to be tracked.
Service items are required only
if you make the time billable to
a customer or job.
Be sure to create separate
service items for subcontracted
services.
• service items,
setting up
• subcontractors,
service items for

Set up the people whose
time will be tracked.
Each name must be on
one of the following lists:
• Employee
• Other Name (for
owners and partners)
• Supplier (for
subcontractors)
If you plan to pay employees
based on tracked time, you
must also set up their payroll
information. See:
• Setting up to use time
tracking with payroll on next
page.
• It is important to create
sub-accounts for Super
and PAYG Tax to allow for
the relevant amount to be
selected for the BAS report.
Refer to your accountant for
more details.
• employees, adding
• other names, list of
• suppliers, adding

On the Payroll Item List,
set up salary or hourly
wage payroll items to use
when paying employees
for time tracked.
Required only if you will track
time for employees.
• hourly wages
• salaries

On the Class List, set up
classes for the work to be
tracked.
Class tracking is completely
optional.
• classes, adding

Using the Timer and Stopwatch
185
Setting up to use time tracking with payroll
When you set up your employees, be sure to tick Use time data to create payment on their
Payroll Info tab.
Payroll payments will then automatically have the employee’s
time data (including job, class, and type of work) for the
period covered by the payment. QuickBooks keeps track of
your payroll expenses for hourly or salaried gross pay, employer taxes, and other payroll
overhead by job, class, and type of work.
Setting up and using the Timer
How the Timer works with QuickBooks Pro and Premier
The QuickBooks Timer is designed to track and record time data which you can then export
to QuickBooks Pro or Premier. Use the Timer when you want to gather time data from
people who don’t have access to QuickBooks but do have access to a computer.
Note:
If you simply want to time an activity in QuickBooks—not gather time data
from others—use the Stopwatch instead. See Using the Stopwatch to time
an activity on page 191.
You can make copies of the Timer program to give to other people whose time you want
to track in QuickBooks. When you do, photocopy the two-page Quick Reference Sheet on
page 197 for them as well.
Note:
If you distributed the Timer program that came with an earlier version of
QuickBooks, replace those copies with the Timer program that comes with
this version of QuickBooks. The newer version of the Timer can update
company files created by the earlier version.
This flowchart shows the relationship between the Timer and QuickBooks.
The two programs share information this way:
186
•
QuickBooks exports lists, such as the Customer:Job List.
•
The Timer imports those lists.
•
The Timer records data about time activities for the jobs, then exports it.
•
QuickBooks imports the time data.
Chapter 11
Setting up the Timer
Before you can set up the Timer, you must first install it, see Installing the QuickBooks
Timer from CD-ROM on page 7. Also, be sure to do all the tasks on the following task list.
The task list for setting up the Timer shows whether the QuickBooks user or the Timer user
has to do the task (in case they are not the same person).
Task
Which user
and which Help
index?
Search the Help index
for…
Export QuickBooks lists for the
Timer and give the file to the
Timer user.
QuickBooks
Timer, exporting lists to

Prepare Timer install disks (if
the Timer user can’t use the
QuickBooks CD-ROM).
QuickBooks
Timer, creating disks for

Install the Timer on the user’s
computer.
Timer
See Installing the Timer on
page 196.

Create a Timer data file for the
QuickBooks company file that
will be using the Timer data.
Timer
data files, creating
(search the Timer help)

Import QuickBooks lists in the IIF
file into the Timer data file.
Timer
lists, importing
(search the Timer help)

From the Timer’s list of users,
choose the name of the person
whose work will be recorded in
this Timer file.
Timer
default user
(search the Timer help)

Exporting lists from QuickBooks Pro or Premier for the Timer
The first step in getting the Timer ready to use is to prepare a file with the information the
Timer needs to work with your company file. You need this file because the Timer must
describe activities using the exact same names that are on your lists in QuickBooks.
To create an IIF file, choose File menu > Timer > Export Lists for Timer. Now follow the
instructions on your screen. If the Timer will be used on another computer, the exported
IIF file should be copied either to a floppy disk or on a network that both computers can
access.
To learn about…
Search the Help index for…
Preparing a file from QuickBooks lists, for use
by the Timer
Timer, exporting lists to
Using the Timer and Stopwatch
187
Using the Timer
After you have done the tasks described in Setting up QuickBooks Pro/Premier to track
time on page 185 and in Setting up and using the Timer on page 186, you are ready to
track time with the Timer.
Recording activities in the Timer
You can use the Timer either to time an activity while you are doing it, or to record the time
after you have finished.
The first time you do an activity for a given customer, job, and type of work, you have to
set up the activity in the Timer. To understand how much detail you should include in an
activity, see How much detail should I track for time activities? on page 183.
Once you have set up an activity, you can choose it from the drop-down list as a template
for the new day’s work (instead of setting it up again every day). You can also add a note
while timing an activity or after completing it.
To learn about…
Search the Timer Help (not the QuickBooks
Help) for…
Timing an activity while you are doing it
• activities, setting up for timing
• activities, timing
Recording an activity after doing it
activities, entering time for manually
Recording notes about an activity
activities, adding notes to
Viewing and editing recorded activities
You can view a list of the activities you’ve recorded in the Timer. However, you cannot
print this list (or anything else) in the Timer. After you export time data to QuickBooks, the
QuickBooks user can print the list of activities.
188
Chapter 11
To learn about…
Search the Timer Help (not the
QuickBooks Help) for…
Viewing a list of all recorded activities within a
specified date range
activities, viewing data about
Changing information about a recorded activity
activities, editing data about
Deleting a recorded activity
activities, deleting the record of
Viewing and changing customer information
When you import information from QuickBooks, you import customer contact information
as well as customer names.
If a customer is imported from QuickBooks, or if you already exported Timer data for the
customer, you cannot change the information about them. Instead, the QuickBooks user
must change the information and give you an updated file.
You can add a new customer to use when recording an activity. However, you cannot add a
job for a new or existing customer. The Help topic suggests what to do instead.
To learn about…
Search the Timer Help
(not the QuickBooks Help) for…
Viewing contact information about a customer
customers, contact information for
Adding, editing, or deleting a customer
• customers, adding
• customers, editing
• customers, deleting
Managing Timer data files
From time to time, you will need to update the lists in your Timer data to make them match
those in the QuickBooks company file. The QuickBooks user must prepare the updated list
and make it available for importing into the Timer.
If you track time for more than one QuickBooks company, you must have separate Timer
data files.
To back up a Timer file, choose File menu > Backup from within Timer. To use the backed
up file again, choose File menu > Restore from within Timer. Also, you can reduce the file
size of a Timer data file by choosing File menu > Condense from within Timer.
To learn about…
Search the Timer Help (not the
QuickBooks Help) for…
Updating the Timer’s lists of customers, jobs,
service items, and classes to match changes
in the QuickBooks file
lists, updating
Backing up your Timer data onto a floppy disk
or your hard disk
data files, backing up
Using the Timer and Stopwatch
189
To learn about…
Search the Timer Help (not the
QuickBooks Help) for…
Restoring a backup of Timer data so you can
use or view it
data files, restoring from a backup disk
Reducing the size of your Timer file
data files, condensing to save disk space
Switching to the Timer data file for a different
QuickBooks company
data files, opening
Exporting Timer information to QuickBooks
When you are finished recording time, you need to export your recorded activities to an IIF
file that QuickBooks can import.
To learn about…
Search the Timer Help (not the
QuickBooks Help) for…
Exporting activities to an IIF file that
QuickBooks can read
activities, exporting to QuickBooks
Importing Timer data into QuickBooks Pro/Premier
After the Timer user exports their time data into an IIF file, you can import it into your
QuickBooks company file. In addition to activities, QuickBooks imports any items on
lists (that is, names, service items, classes) that are not currently on the corresponding
QuickBooks lists.
After importing information from the Timer, check the Timer Import
Detail report to ensure that the correct payroll items are assigned to
each activity.
The Timer Import Detail report is only available from the Import Summary
window.
Time reports in QuickBooks show all timed activities, including those imported from the
Timer. To create a report similar to the Timer Import Detail Report, you can customise a
Time by Job Detail Report to add columns for payroll item and import date.
190
To learn about…
Search the QuickBooks Help index for…
Importing a Timer IIF file into the
QuickBooks company file
Timer, importing timed activities from
Viewing a report of the imported Timer
activities or the imported items on lists
Timer, reports about imported
activities
Editing an imported activity in QuickBooks
time, entries
Viewing a report on activities exported to or
recorded in QuickBooks
time, reports about jobs and time
Chapter 11
Using the Stopwatch to time an activity
Use the Stopwatch on the Time/Enter Single Activity window in QuickBooks Pro or Premier
when you want to time an activity—simply start the Stopwatch, work, and stop it when
you’ve completed the work.
To start the Timer, choose Employees menu > Time Tracking > Time/Enter Single Activity.
Once recorded, the time
shows up in both this
window and in the Weekly
Timesheet window.
Use the Duration section
either to time an activity
or to enter a time for the
activity.
To see how much detail to include when you time an activity, see How much detail should I
track for time activities? on page 183.
Entering time manually into QuickBooks
If you want to enter time data a week at a time and you generally don’t enter a lot of
detailed notes about your activities, use the Weekly Timesheet window to enter time data
manually.
Using the Timer and Stopwatch
191
On the weekly
timesheet, the
far-right column
has symbols that
indicate whether the
time is billable, not
billable, or already
billed.
If you tend to enter a lot of detailed notes about your activities or prefer to enter time data
as you complete each activity, use the Time/Enter Single Activity window.
When you fill in and record a Time/Enter Single Activity window, you can later view the
information on a weekly timesheet.
Conversely, when you fill in and save a weekly timesheet, you can view Time/Enter Single
Activity windows that each show the work on one job on one day. The two are simply
different views of the same data, similar to views of individual cheques versus your cheque
register.
192
To learn about…
Search the Help index for…
Blank timesheets
timesheets, blank
Filling out a weekly timesheet
timesheets
Entering details for a single
activity
single activity entries
Using the Stopwatch to time an activity
Stopwatch
Chapter 11
Paying for time worked
QuickBooks does not track whether you have paid workers for time or
not, only whether you have passed time costs on to your customers.
If you pay a worker (employee, owner, or subcontractor) for time and then
edit the time data or import new data from the Timer, QuickBooks does not
track which time has been paid for and which has not. All it tracks is the end
date of your last payment for time to the worker.
To avoid paying for the same time twice, make sure your worker has
submitted all their time data for a period before you create a payroll payment
covering that period–that is, pay a worker only for work that takes place after
the end date of your last time payment to them. If you accept late time data,
print a Time by Job Detail Report and mark the activities you are paying for.
QuickBooks automatically transfers time data when you create payroll payments for
employees who are set up for time tracking. It fills in the hours for each salary or hourly
wage payroll item included in the time data for the payroll period.
If customers or jobs, service items, or classes are assigned to an employee’s time
activities, this detail is also included. For example, out of 40 hours altogether, 19 may be
assigned to Job A, 11 to Job B, and the remaining 10 hours to Job C. QuickBooks then
splits the payroll expenses for the employee according to how you assigned the time.
Paying non-employees for time worked
Some businesses need to pay people who are not employees (such as owners, partners, or
subcontractors) based on time worked. QuickBooks can transfer time data for a specified
date range to a payment to a non employee. That is, it can fill in the number of hours
worked and the rate for that type of work.
To pay a subcontractor or other supplier, you can either write a cheque (if you want to
pay immediately) or enter a bill (to be paid at a later time). To pay an owner or partner
(someone on your Other Names List), you can write a cheque.
Note:
To show payments for time worked on reports, set up subcontractors as
suppliers. Always use the subcontractor’s supplier name when you track time
and pay them. Then QuickBooks will report the amount paid correctly.
To learn about…
Search the Help index for…
Setting up an owner or partner
owners
partners, setting up
Adding a name to the Supplier List
suppliers, adding
Editing an employee name
employees, editing
Using the Timer and Stopwatch
193
Service items for non-employee time data
If you plan to transfer time data for non-employees to a payment, it should have a service
item assigned to it. QuickBooks uses the rate for purchases of the service item when
calculating how much to pay a non-employee for the hours worked.
•
Service items for subcontractors (suppliers)
When you pay a subcontractor set up as a supplier, the payment is an expense to
the business. You should assign the time to a service item set up to track costs in an
expense account. (This service item should not be used for owners or partners.)
•
Service items for owners or partners
When you pay an owner or partner, the payment is a drawing against equity rather
than being an expense to the business. You should assign the time to a service item
set up specifically to track costs in that person’s equity account. The service item
should not be used for any other purpose.
To learn about…
Search the Help index for…
Setting up a service item for services with
both costs and income
service items, for subcontractors
Transferring non employee time to a payment or bill
When you pay a non employee for time worked, use the Write Cheques window. (To pay
employees, always use the payroll system!)
When you write the cheque or enter the bill, QuickBooks alerts you if there is current time
data for the payee. If you want to pay for the time now, you can specify the date range the
payment should cover. Then QuickBooks pre-fills the Items tab of the payment with the
service item, customer and job (if any), rate, number of hours, and amount.
To learn about…
Search the Help index for…
Writing a cheque to pay a non-employee for
time worked
time, paying non-employees for
Charging customers for time worked
You can transfer time data to an invoice for a customer as long as the time data includes
the Customer:Job name, is recorded for a service item, and is marked as billable.
As you create an invoice, you can display the unbilled time for the job and select what to
include. When you record the invoice, QuickBooks Pro and Premier marks the time you’ve
selected as billed, so you won’t bill for it again by mistake.
194
To learn about…
Search the QuickBooks Help index for…
Transferring time to invoices
invoices, time and cost
Making time billable again if you billed for it
mistakenly
time, making billed time billable again
Chapter 11
Recording the cost of the work vs. invoicing for it
Don’t make both a worker’s time and your payment to that worker for
the time billable.
• If you make an invoice from a subcontractor billable, you can invoice
your client in turn for the subcontractor’s charges. When invoicing your
client, open the Choose Billable Time and Costs window, then select the
subcontractor’s bill from the Expenses or Items tab (whichever you used
on the subcontractor’s bill).
• If you pay a subcontractor, owner, or partner for time worked with the
Write Cheques window, you can make the service items on the cheque
billable. Then, when invoicing your client, open the Choose Billable Time
and Costs window, then select the time from the Items tab.
• If you make the time itself billable, you can invoice for the time from the
Time tab of the Choose Billable Time and Costs window.
• If you make both the time and the bill or payment billable, you are in
danger of invoicing the customer twice for the same work!
When you record time or bill your customer for it, you are not recording its cost to you. To
record the cost, you have to take a second step. The following table shows how you record
costs for time worked and what you have to do to invoice customers for work.
The work is done
by …
You record the cost of the work
when you …
To invoice other people for the
work…
Employees
Pay the employees.
Make the time billable.
Subcontractors
(suppliers)
Enter bills from the
subcontractors (or write cheques
or enter credit card charges for
the work).
On the bills, cheques, or credit
card charges, make the items or
expenses billable
OR
track the time and make the time
billable
Owners or partners
Payments to owners or partners
for time worked are a draw
against equity, not an expense,
and therefore do not affect the
net profit.
Make the time billable
OR
write a cheque to pay for the time
worked, and make the items on the
cheque billable.
Using the Timer and Stopwatch
195
Installing the Timer
You can make copies of the Timer program and its Quick Reference
Sheet to give to people whose time you want to track in QuickBooks
Pro.
Be sure you have completed Setting up QuickBooks Pro/Premier to track
time on page 185 and Setting up the Timer on page 186 before you do.
The QuickBooks Pro CD-ROM allows you to create a set of 3.5-inch install disks to give to a
person who needs the Timer.
Once you have created the disks, see the QuickBooks Timer Reference Sheet for installation
instructions.
196
To learn about…
Search the QuickBooks Help for…
Using the CD-ROM to create a set of install
disks for the Timer
Timer, creating disks for
Chapter 11
QuickBooks Pro/Premier Timer Reference Sheet
The Timer and QuickBooks Pro or
Premier
Installing from 3.5-inch disks
1.
Insert the first Timer install disk in your 3.5inch disk drive.
2.
Choose from the Windows task bar Start
menu > Run.
3.
Type the letter of your floppy drive, then \:
install (for example, a:\install), then click OK.
4.
Follow the instructions on your screen.
Starting the Timer
•
Before you can use it, the Timer needs to
import information from QuickBooks Pro or
Premier.
•
Then use the Timer to time your activities.
•
Finally, export a file of time data for
QuickBooks Pro or Premier to import.
Choose from the Windows task bar Start >
Programs > QuickBooks Pro [or Premier] >
QuickBooks Pro [or Premier] Timer.
Setting up the Timer
1.
Installing from the QuickBooks
Pro or Premier CD-ROM
In the Open Timer File window (displayed the
first time you start the Timer), choose Create
New Timer File, then click OK.
2.
Other users can only install the Timer from the
Type a name for the Timer file and the
location to save it, then click OK.
3.
Open the Timer and choose File menu >
Import QuickBooks Lists.
4.
Select the name of the .IIF file to import from
QuickBooks Pro or QuickBooks Premier. (You
may have to navigate to a new drive or folder.)
Click OK.
QuickBooks CD-ROM, not QuickBooks too.
1.
Insert the CD-ROM in your CD-ROM drive.
2.
If the Installer starts automatically: Click
Other Installation Options and choose Timer.
If the Installer does not start automatically.
The person who works with QuickBooks Pro
display the Run window:
or QuickBooks Premier must make this IIF file
Choose from the Windows task bar Start
menu > Run.
Type the letter of your CD-ROM drive,
then :\timer\install.exe and click OK.
Follow the instructions on your screen.
available to you.
5.
Choose in Timer, File menu > Preferences >
Default Name.
6.
Choose your own name from the drop-down
list.
7.
If your time is always billable to a customer or
job, select the check box, then click OK.
8.
Fill in the fields you need and click OK.
For help with this window, click Help.
Using the Timer and Stopwatch
197
198
Chapter 11
Online Banking
Online banking in QuickBooks
12
200
Setting up online banking
200
Importing statements
202
Paying employees and suppliers using online banking
205
Creating an online banking (ABA) file
207
It is now becoming more and more common to do all your banking from your desktop. This chapter
covers setting up your system for online banking, creating online payments for employees and suppliers,
importing bank statements as well as matching and reconciling imported transactions with your existing
QuickBooks accounts.
Online banking in QuickBooks
Online banking in QuickBooks covers two different forms of banking: importing and
reconciling online bank statements, and paying your employees and suppliers directly
using direct bank deposit:
Online banking in QuickBooks allows you to:
•
Import an electronic record of your transactions from your financial institution.
Import and match the electronic QuickStatement to the transactions recorded in your
QuickBooks accounts. This way your books are always up to date and you can be sure
that both you and your financial institution’s records are accurate.
•
Pay employees and suppliers (including the tax office) using an online banking file
(ABA format).
Process automatic payments from your bank account via bank deposit directly to your
employees and suppliers.
Setting up online banking
Before you can use online banking in QuickBooks, you need to set up some specific
company preferences, enable your QuickBooks accounts for online banking, and
understand how to use the Online Banking Centre.
Setting up online banking preferences
QuickBooks has some company preferences that affect online banking that you need to
check before setting up your online accounts.
Two types of company preferences affect online banking:
•
Banking preferences
•
Online preferences
To set up your banking preferences:
1.
Choose Edit menu > Preferences.
QuickBooks displays the Preferences window.
2.
In the Banking preferences, click the Company Preferences tab.
3.
Enter your company’s APCA number in the Default APCA number field.
The APCA number identifies your business or company to the bank.
If you have more than one APCA number (for example, an APCA number for different
financial institutions) you should enter the one you use the most as the company default,
and enter any other APCA numbers at the account level (see the note on page 201).
200
Chapter 12
To set up your online preferences:
1.
From the Edit menu, choose Preferences.
QuickBooks displays the Preferences window.
2.
In the Online preferences, click the Company Preferences tab.
3.
Select the check boxes next to your preferred WebConnect and email preferences.
Note:
WebConnect settings do not affect any files in .QIF format. See Importing
statements on page 202 for more detail.
Enable an account for online banking
Before importing a statement or making online payments, you need to set up bank
accounts in QuickBooks to mirror your real life accounts. You then need to enable these
QuickBooks accounts for online banking.
1.
Choose Company menu >
Chart of Accounts.
2.
Click and highlight the account
you want to enable for online
banking.
3.
Choose Accounts > Edit.
QuickBooks displays the Edit
Account dialog.
4.
Click the Online Bank Details
tab.
5.
Select the Online Account
Access check box to enable
the account.
QuickBooks enables the
remainder of the fields in the
Online Bank Details tab.
6.
Complete the required details.
7.
Click Help if you need assistance with any field.
Note:
Include your business’s APCA number only if you require a separate APCA
number for this account than the default number stored in your company’s
banking preferences. An APCA number entered at bank account level
overrides the number entered as the company default (for this account only).
To learn about…
Search the Help index for…
Entering an APCA number in QuickBooks
online banking, entering an APCA number in
QuickBooks
Online Banking
201
Navigating the Online Banking Centre
Once you have enabled at least one account for online banking, QuickBooks allows you to
access the Online Banking Centre.
To access the Online Banking Centre, choose Banking menu > Online Banking Centre.
This is where you see a summary of all your online banking activities. This includes
downloaded QuickStatements, all of your online-enabled accounts and a list of online
banking payments waiting to be processed.
The Online Banking Centre is also the place where you can preview, create (and if necessary
recreate) your online banking files.
Choose the financial
institution for which
you want to process
online banking
information.
Click Go Online to
access your Netbanking
and download bank
statements.
Select an onlineenabled account from
this financial institution.
See page 201 for how
to enable an account for
online banking.
View the list of
QuickStatements you
have downloaded
for this account.
Highlight and click
View to reconcile or
match transactions.
To remove a Quick
statement, click
Delete.
Use the online banking
file tools to choose
payees from the list and
to preview and create
ABA files.
View a list of payees
waiting to be paid via
online banking (these
can be a mixture
of employees and
suppliers).
Click ABA File History to
view your online banking
history and recreate a
previous ABA file.
Importing statements
You can import statements into QuickBooks from .QBO (Web Connect technology) or .QIF
files provided by your financial institution.
This is possible once you have set up an online banking account with your financial
institution. You need to contact your bank to find out if they support downloading of bank
statements.
There are three stages to importing a statement into QuickBooks.
1.
202
Chapter 12
Generate a statement from your financial institution’s Web site and save it on to your
computer’s hard drive.
Refer to your financial institution for detailed instructions on how to do this. Usually
this involves selecting the statement period and file format (.QBO or .QIF), before
nominating a location on your hard drive to save the file.
2.
Import the statement into QuickBooks.
For .QBO (Web Connect technology) files, use Windows Explorer to locate the file on
your computer’s hard drive. Double-click the file and follow the QuickBooks wizard to
import transactions. You don’t need to have QuickBooks open for this process.
QuickBooks
displays this
wizard when
you open a
.QBO file.
For .QIF files, from within QuickBooks choose Banking menu > Import Bank Statement.
Follow the instructions to complete the process.
Enter the file you
wish to convert
here. Use the
Browse button to
find the file on your
system.
Choose the account
in QuickBooks that
you want to import
the newly converted
file.
3.
Enter the name
and location for the
converted file you
wish to save. Use
the Browse button
to find a suitable
location.
Reconcile transactions between your electronic statement and QuickBooks account
registry. (See Reconciling bank accounts with physical statements on page 204 for
more details.)
.QBO versus .QIF files in online banking
A QBO file is a QuickBooks version of the OFX file format used in Web
Connect technology, the latest technology used around the world to make
online banking easier to use and more efficient.
Only some financial institutions support this technology. Most only support
the older QIF format.
Therefore you can choose to download QBO or QIF files. We recommend
you opt for QBO format if possible because it allows you to download more
information per transaction.
To learn about…
Search the Help index for…
Online banking
online banking, about
Setting up online banking
online banking, setting up
Online Banking
203
To learn about…
Search the Help index for…
Importing bank statements
online banking, importing bank statements
Reconciling bank accounts with physical statements
You should plan to reconcile your bank statements—for example, chequing, savings and
money market accounts—and credit card statements on a regular basis to make sure your
records and the bank’s agree.
Situation
What to do in QuickBooks
You haven’t
reconciled for
over a month.
Reconcile each month you skipped. Balance each month separately, starting
with your earliest statement since you’ve been using QuickBooks, through to
your most recent statement.
You added
earlier
transactions in
QuickBooks.
After you add earlier transactions and you want to reconcile past months, you
should reconcile month by month only if you’ve never used the QuickBooks
reconcile feature.
However, if you’ve already reconciled one or more months, you should
reconcile forward only, that is, reconcile months after your start date. Use
the previous months’ data for reporting only. You need to mark all older
transactions as cleared to reconcile future months.
You are
reconciling for
the first time.
Enter all uncleared transactions in your account.
Update the Opening Balance transaction to reflect the amount actually in your
account when you began using QuickBooks.
You cancel in
the middle of
reconciling.
QuickBooks keeps track of the items you’ve marked as cleared with an
asterisk (*) in the cleared column of the account’s register. This indicates that
the items are still pending and reconciliation wasn’t complete.
When you start reconciling again, you’ll need to re-enter your ending balance.
You’ll also need to check off additional payments and deposits.
Note:
In New Zealand, the Phillipenes and Singapore, when you reconcile you can
add any bank service charges, interest earned and finance charges.
204
To learn about…
Search the Help index for…
Reconciling a bank account
reconciling, bank statements
Reconciling a credit card account
reconciling, credit card statements
Adjusting for differences
reconciling, adjusting for differences
Chapter 12
Matching bank deposits and credit card deposits
You can use QuickBooks to help match your customers’ credit card payments with the lump
sum deposit on your bank statement, as well as account for banking fees.
To do this, in the Receive Payments or Enter Sales Receipts window, select the Group with
other undeposited funds option.
In the Make Deposits window, you can display credit card payment views, grouped by credit
card type, which lets you see the individual credit card transactions that make up each
lump sum deposit.
Often, the bank deposit total is less than the payments you received from individual
customers due to credit card transaction fees. QuickBooks calculates the difference for you
automatically and lets you assign the transaction fee to an expense account.
Paying employees and suppliers using online banking
You can pay your employees and suppliers by getting your bank to transfer money from
your business account to individual payees. This is done using an online banking file (ABA
format) that you create in QuickBooks and send to your bank. The online banking file
contains enough detail for the bank to make the right transfers based on your QuickBooks
accounts.
There are three stages to paying employees and suppliers:
1.
Set up bank accounts and banking preferences.
2.
Process transactions.
3.
Create an online banking file.
Setting up your employees and suppliers for online banking
To bank online you need to first create QuickBooks accounts that mirror your real-world
accounts and enable them for online banking. (See Enable an account for online banking
on page 201).
Online Banking
205
Once you have enabled your online accounts, you need to set up your employees to be paid
using online banking.
1.
Choose Employees menu > Employee List.
2.
Right click Employees > Edit, then select the Payroll Info tab.
3.
Choose Bank (Online) from the Pay Method drop-down list.
4.
Click Bank Details to enter all the online banking details for this employee.
If you want to pay suppliers using online banking, you also need to set up your supplier
banking details.
1.
Choose Suppliers menu > Supplier List.
2.
Choose Suppliers > Edit.
3.
Select the Bank Details tab.
Complete the full bank
account details for each
supplier.
If this supplier is the
Australian Tax Office,
ensure you enter the
correct EFT Code
supplied by the ATO in the
Lodgement Reference field.
For any other supplier this
field may remain blank,
or used for any internal
purpose that suits your
business.
206
Chapter 12
To learn about…
Search the Help index for…
Setting up employees or suppliers for bank
online payment
online banking, setting up a supplier for; or
online banking, setting up an employee for
Paying the ATO online
online banking, set up ATO as supplier
Processing online banking transactions
Process online banking transactions as you would normally. Choose the Bank (Online)
payment method when processing a payment in QuickBooks.
The transaction is automatically listed in the To Bank section of the Online Banking Centre.
From there you can preview, create or recreate (if necessary) an online banking file (ABA
format).
Note:
You can perform multiple pays on the same day to the same employee. For
example, if an employee was leaving on a day coinciding with a pay day, the
payroll department are able to process subsequent amounts owing - such as
from accrued holiday leave - on the same day.
To learn about…
Search the Help index for…
Paying employees by online banking
employees, banking online
Paying suppliers by online banking
pay method
Creating an online banking (ABA) file
When paying employees or suppliers directly into their bank accounts, you need to create
an online banking (ABA) file.
An ABA file is a special file format used to transfer information between your account and
an employee or supplier you have set up in QuickBooks. It details the source account and
target account for transferring the relevant payments.
The bank receives the ABA file and uses the data to action the transfer details itemised in
the online banking file. QuickBooks enables you to create the ABA file.
1.
Choose Banking menu > Online Banking Centre.
2.
Choose your bank from the Financial Institution drop-down list.
3.
Go to the To Bank section.
4.
Choose the Process On date.
5.
(Optional) Enter a meaningful description for this payment in the Description field.
The description provides information about payments you are about to include in the
ABA file. This description flows through to an employee’s or supplier’s bank statement.
Online Banking
207
6.
Select the payees whose payments you want to include in the ABA file.
Each payee must have online banking details defined for them under their employee
or supplier record. (See Setting up your employees and suppliers for online banking on
page 205.)
7.
Click Preview ABA File.
QuickBooks displays the Preview ABA window and runs the ABA report.
8.
Click the available links to drill down and correct any errors in the ABA file.
If there are no errors, close the report.
9.
Click Create ABA File.
QuickBooks displays the standard Windows Save As dialog box with *.ABA entered in
the File Name field.
10. Enter a name for the online banking file, e.g. “DecemberPay.aba”.
QuickBooks saves this file to a sub folder in the QuickBooks root directory:
[QuickBooks root directory] > Export Files > ABA Files.
You can save the file to a different folder if you want. The next time you save an ABA
file, however, QuickBooks will take you to the default location: [QuickBooks root
directory] > Export Files > ABA Files.
11. Click Save.
You can now transfer your online banking file from the saved location to your bank. This
is done using a bank supplied desktop application or Web site, depending on your bank.
Contact your bank for more details.
Note:
The ABA Files directory is not included when you create a backup of your
company file. If you change computers and/or restore your QuickBooks
company from a backup, you need to manually copy the ABA Files directory
from the old QuickBooks root directory to the new root directory.
Recreating an online banking (ABA) file
There may be situations where you need to recreate an ABA file. You may need to recreate
the ABA file if it:
•
Was accidentally deleted after it was created, before you could upload it to the bank
•
Includes a payment which should not have been made
•
Excludes a payment that should have been made
•
Contains incorrect bank details or payment amounts for any payee
•
Contains the wrong mix of payees
•
Is rejected by the bank because it contains the wrong APCA number
Note:
If the ABA file has been uploaded and accepted by your bank, you should not
recreate it. If you do, you risk paying the same payees twice.
208
Chapter 12
To recreate a specific ABA file, you need to open your ABA file history in the Online Banking
Centre.
1.
In the Online Banking Centre, click ABA File History.
QuickBooks displays the Select ABA File dialog.
This dialog shows your ABA file history for the selected financial institution. You now
need to locate the ABA file you want to recreate.
2.
Choose a date range from the Dated and To drop-down lists.
3.
Click the ABA file you want to recreate to highlight it.
4.
Click OK to open and display the details of the selected ABA file.
5.
Click Edit.
QuickBooks asks you to confirm that you have not already sent the ABA file to your
bank.
6.
Click Yes.
QuickBooks returns to the Online Banking Centre. You’ll notice that the To Bank
section is now called To Bank [History]. From here you can make amendments to the
previous ABA file and recreate it.
7.
Edit the contents of the ABA file as necessary.
For example, you may want to exclude a payee, or change the payment details
associated with a payee.
8.
Preview and create the new ABA file.
Note:
If you removed a payee from a previous ABA file, this means that the payee
has yet to be paid. This payee’s details are transferred to the To Bank section
of the Online Banking Centre ready to be processed. If you want to remove
the payee from To Bank, you need to void the associated transaction in
QuickBooks.
To learn about…
Search the Help index for…
ABA file history
online banking, ABA file history
Recreating an ABA file
ABA, recreating
Online Banking
209
210
Chapter 12
Further tools to help your business
13
What are the Tools to help your business?
212
Accept credit card payments using Payment Services
212
Recover outstanding debt using Debt Recovery
215
Secure your data with Online Backup
217
Pay many superannuation funds at once using SuperLink
218
Accept payments using Customer Payment Solution
220
QuickBooks users in Australia and New Zealand can now take advantage of a range of add-on, online
services that extend the functionality of your software. Refer and recover bad debt, accept credit
card payments directly into QuickBooks, perform an online backup, make meeting your Super Choice
obligations an easy process or accept payments using Customer Payment Solution. This chapter tells you
how.
What are the Tools to help your business?
The Tools that can help your business use the Internet as a business tool to simplify and
improve your business processes.
They are integrated, third-party services that work with QuickBooks to extend the
functionality of your software. They can help make your business more efficient and more
profitable in two important ways: by extending the range of options that you offer your
customers, and by reducing the time and effort you need to spend on day-to-day business
accounting.
These tools include:
•
Payment Services
•
Debt Recovery
•
Online Backup Service
•
SuperLink
•
Customer Payment Solution
Once you have subscribed to a service and configured your QuickBooks preferences, the
operation between the third-party service and your QuickBooks software is seamless.
Note:
You must have an active Internet connection to use any of the following tools.
See Connecting QuickBooks to the Internet on page 36 for details.
Accept credit card payments using Payment Services
Through Payment Services, you can accept VISA, MasterCard, Bankcard, American Express
or Diners Club card details either over the phone or in person. You can then process the
transactions directly into your QuickBooks software.
The transaction is approved or declined within seconds. You can then reconcile your
payments and refunds using the daily transaction report. The credit card transaction is
settled overnight and deposited into your designated merchant bank account.
All you require to begin processing credit card transactions directly within QuickBooks is:
•
A Payment Services subscription
•
An Internet connection
•
An Internet merchant account with an acquiring institution
Note:
If you do not have an Internet merchant account, please contact the
Merchant Solutions team at your bank.
Once your subscription has been activated, you can process sales and credits from within
QuickBooks.
212
Chapter 13
Subscribe to Payment Services
Payment Services is a 12-month subscription-based service. When you subscribe to the
service, you automatically receive an initial package of transactions. Once you have
reached the transaction limit, you are able to purchase additional transaction bundles.
To register for payment services from within QuickBooks:
1.
Choose Customers menu > Customer Services > Accept Credit Cards.
2.
Read the information on the Payment Services information page.
This page explains the service, answers common questions and allows you to
subscribe immediately online.
Setting up payment services preferences
Once you have subscribed to Payment Services, you need to set up your payment services
account details in your QuickBooks preferences.
1.
Choose Edit menu > Preferences.
2.
Select Online, then click the Company Preferences tab.
3.
Select the check box to enable online payment transactions in QuickBooks.
4.
Enter the Quicken Customer ID you used to subscribe to Payment Services.
5.
Enter your password.
Passwords are case sensitive. Ensure you enter the password exactly as it was entered
during the subscription process.
6.
Re-enter your password for confirmation.
QuickBooks must close all open windows to register the change in preferences. Click OK
when prompted to do so.
Further tools to help your business
213
Processing a credit card payment or refund
Processing credit card payments or refunds is simply an extension of the process you
already follow to enter customer payments or adjustment notes into QuickBooks.
Note:
Ensure you are connected to the Internet before processing a credit card
payment or refund.
To process a credit card payment:
1.
Choose Customers menu > Receive Payments or Enter Sales Receipts.
2.
Complete the details of the payment. Choose the type of credit card being used from
the Pmt. Method drop-down list.
If the credit cards type is not available as a payment type, you can choose <Add New>
to add it to the list.
3.
Select the Process credit card payment when saving check box.
This option is located in the lower-right corner of your
payment window.
Note:
If you have not specified your subscriber details in company preferences,
selecting this check box automatically displays new subscriber
information for Payment Services.
4.
Click Save & Close (or Save & New to enter more than one payment).
QuickBooks displays the Enter Credit Card Details dialog.
5.
Enter the customer’s credit card details.
If the customer’s details are already in your Customer list, these fields populate
automatically. You can change any details you require before processing.
6.
Click Send.
QuickBooks verifies the transaction. If successful, QuickBooks displays a Transaction
Approved message. If unsuccessful, QuickBooks displays the appropriate error
message.
7.
Click Cancel at any time to cancel the transaction and return to the payments window.
To process a credit card refund:
Note:
To issue a credit card refund, you must have recorded a credit card payment
against the selected customer.
214
1.
Choose Customers menu > Create Adjustment Note.
2.
Complete the details of the adjustment.
3.
Select the Process credit card credit when saving check box.
Chapter 13
4.
Click Save & Close (or Save & New to enter more than one refund).
QuickBooks displays the Select Credit Card Payment dialog with a list of credit card
payments made by this customer.
5.
Click the customer payment you wish to refund.
6.
Click OK.
QuickBooks verifies the refund. If successful, QuickBooks displays a Transaction
Approved message. If unsuccessful, QuickBooks displays the appropriate error
message.
7.
Click Cancel at any time to cancel the transaction and return to the Create Adjustment
Note window.
To learn about...
Type in the Help index...
Payment Services
Payment Services
preferences
credit cards, company preferences
processing credit card payments
credit cards, process payments
Recover outstanding debt using Debt Recovery
Quicken has collaborated with a third party to provide your business with a complete debt
recovery solution. Debt Recovery provides a cost effective, automated and quality assured
debt recovery solution for your business.
In addition to referring outstanding debt, QuickBooks also notifies the debt recovery
provider of partial and complete payments received against outstanding invoices, as well as
any bad debts you choose to write off against outstanding amounts currently being pursued
by the debt recovery agency.
Debt Recovery is a subscription based service provided through a third party. You are
entitled to use the service as many times as you like during the subscription period.
Subscribe to Debt Recovery
Subscribing to Debt Recovery is a manual process between you and the third party debt
recovery agency. Subscriptions and contracts are set up externally to QuickBooks between
you and the debt recovery agency and are based on a 12 or 24 month basis (your choice).
All financial transactions take place privately between you and the third party agency.
To register for Debt Recovery from within QuickBooks:
1.
Choose Customers menu > Customer Services > Refer Outstanding Debt.
2.
Follow the instructions to complete the subscription request online and send directly to
the debt recovery agency.
The agency will contact you to complete the subscription and to provide you with your
account details.
Further tools to help your business
215
Setting up Debt Recovery preferences
Once you have subscribed to Debt Recovery, you need to set up your debt recovery account
details in your QuickBooks preferences.
1.
Choose Edit menu > Preferences.
2.
Select Finance Charge, then select the Company Preferences tab.
3.
Enter the client code as provided by the debt recovery agency.
(The client code field is case sensitive. Enter the code exactly as provided by the
agency.)
4.
Choose 12 or 24 months from the Subscription period drop-down list.
5.
In the Subscription date field, enter the start date for your subscription (as provided by
the agency).
QuickBooks must close all open windows to register the change in preferences.
6.
Click OK when prompted to do so.
QuickBooks informs you automatically when your subscription has expired.
Email notice of outstanding debt
Once you have subscribed to the service and set up your account details, you can now email
a notice of outstanding debt directly from QuickBooks to your debt recovery agency. This is
also known as referring a debt.
216
1.
Find and open the unpaid invoice.
2.
Click Refer Debt in the toolbar.
QuickBooks displays the Debt History Notes dialog.
3.
Complete the details.
4.
Click Send to deliver the debt referral.
QuickBooks generates the email with the debt recovery agency’s details already filled
in. The information about the debt is attached to an email as a Portable Document
Format (PDF) attachment.
5.
Click Send.
Chapter 13
Note:
Do not alter any of the details in the email once it is generated. If you want to
send any additional details about the debt, you must write these in the Debt
History Notes dialog.
Receiving partial payments on a referred debt
If you receive partial payment of an outstanding referred debt, or you write off a referred
debt in QuickBooks, you need to inform the debt recovery agency of the change in the
status of the referred debt.
1.
Complete the payment details as per usual in the Receive Payments window.
2.
Select the Select here if you are receiving a payment (part or full) against a debt that is
currently being pursued by a debt recovery agency check box.
3.
Click Save & Close.
4.
Follow the onscreen instructions to generate an advice for the debt recovery agency to
update them on the status of this referred debt.
To learn about...
Type in the Help Index...
Debt Recovery
Debt Recovery
Debt recovery preferences
preferences, finance
Secure your data with Online Backup
Online Backup is the no-fuss, reliable solution for backing up your QuickBooks company file.
No more worrying about storage or the integrity of your backup media (CD-ROMs, Zip drives,
disks). Theft and/or damage of your data will never be an issue as your backup is always
offsite and secure.
You can schedule backups or perform them manually, and you can access and restore your
company file at any time.
Subscribe to Online Backup
Before you can use Online Backup, you need to sign up for it. You can use the 30-day
free trial period to test the service, after which a scale of charges will apply if you want to
continue to use the service.
To subscribe to Online Backup from within QuickBooks:
1.
Choose File menu > Online Backup Manager and click OK.
2.
Click New Account.
3.
Read the Terms and Conditions and Privacy statements thoroughly, and then if you
want to proceed, click I Agree.
Further tools to help your business
217
4.
Add your personal details, a user name and password (ensure you complete all
compulsory fields), then click OK.
QuickBooks creates your new account.
Note:
If you are in multi-user mode, you must switch to single-user mode to back up
your company file.
Pay many superannuation funds at once using SuperLink
Sick of the red tape involved with complying with your Super Choice obligations? SuperLink
takes the headache out of Super Choice. No more writing cheques, no more printing
reports and posting them off to multiple super funds. SuperLink offers an end-to-end,
online solution for managing Super Choice.
SuperLink takes the information and funds straight from your QuickBooks file and
transmits it electronically to all of the required super funds. All this for a low subscription
fee. Once you are subscribed to SuperLink, you can remit superannuation payments to
many super funds easily whenever you process your payroll.
Subscribe to SuperLink
Subscriptions and contracts for SuperLink are set up externally to QuickBooks. All financial
transactions take place privately between you and SuperLink.
To set up a SuperLink account from within QuickBooks:
1.
Choose Company menu > Company Navigator.
2.
In the Company Solutions area, click the link for more information about SuperLink.
Remit SuperLink payments from QuickBooks
SuperLink liabilities are calculated and compiled for processing as an extension of your
regular payroll processing.
To remit SuperLink payments you need to:
•
Subscribe to SuperLink and set up the appropriate accounts.
•
Ensure that payroll (including superannuation) details are complete for all applicable
employees.
For information on setting up your employees, see Setting up payroll: an overview on
page 146.
•
218
Chapter 13
Connect to the Internet.
The SuperLink process is triggered from the Pay Employee or Preview Payment windows,
depending on whether or not you choose to preview payments before creating them.
1.
Click Create.
QuickBooks displays the message: Do you want to process your Superannuation
liabilities now using SuperLink?
2.
Click Yes.
QuickBooks processes your payroll and displays the SuperLink Report.
Note:
If you click No, or if you do not receive the SuperLink prompt, QuickBooks
processes your payroll as normal without processing payments for
SuperLink. To process your SuperLink payments manually—using details
from the most recent payroll run—choose Employees menu > SuperLink
Export and continue with these instructions.
3.
Check the details in the SuperLink Report.
The SuperLink Report is specifically designed to be display-only. You can print
the report and export the data to SuperLink. You cannot drill down to associated
transactions from this report, nor can you modify what is displayed.
4.
Click Export to SuperLink.
QuickBooks displays the Save File As dialog.
5.
Name and save the SuperLink file.
Save the file in the default SuperLink directory created by QuickBooks, or browse to a
directory of your choice.
Note:
When naming the file, ensure that the file retains the .csv file extension.
6.
Launch the SuperLink Web site and follow the upload instructions.
Tip:
If you do not have appropriate permissions on the PC, network or
directory you attempt to upload the SuperLink file from, SuperLink may
be unable to access the file. Similarly, if SuperLink detects that your
network has been configured to reject Active-X controls it will be unable
to upload your SuperLink file. In these situations, ask your network/
system administrator for assistance.
To learn about...
Type in the Help index...
SuperLink
SuperLink
Processing payroll
payroll, paying employees
Superannuation and Super Choice
Superannuation
Further tools to help your business
219
Accept payments using Customer Payment
Customer Payment allows you to receive payments faster through any of the Customer
Payment options, which include over the counter, IVR, online, direct debit and through
locked bags.
You can subscribe to Customer Payment through QuickBooks 2007/08. Once approved
for an account through the approval process, you can create invoices with the Customer
Payment options printed at the bottom. Your customers can then make payments to you
and you can record them in QuickBooks.
Subscribe to Customer Payment Solution
You must subscribe to Customer Payment Solution before you can use this functionality.
1.
Ensure your PC is connected to the internet.
2.
In QuickBooks, choose Customers menu > Customer Services > Get Paid. Faster.
Sooner.
3.
Read the information on the Customer Payment information page.
This page explains the service, answers common questions and allows you to
subscribe immediately.
4.
Enter your details and click Submit.
A Biller Prefix will be sent to you.
Customer Payment Preferences
The Biller Prefix is provided to you when you sign up and are approved for Customer
Payment. You must enter your Biller Prefix before you can use the Payment Reference field.
1.
Select Edit menu > Preferences.
2.
Select the Sales & Customers icon.
3.
Click the Company Preferences tab.
4.
Enter the Biller Prefix into the field provided.
5.
Click OK.
Note:
The Bill Prefix should be 5 characters long.
220
To learn about...
Type in the Help index...
online payment
online payment
Chapter 13
QuickBooks Premier industry-specific
editions
14
What are QuickBooks Premier industry-specific editions?
222
Industry-specific navigators
223
Industry-specific menus
223
This chapter gives you more information about QuickBooks Premier industry-specific editions* and
describes some of the special features you’ll find in each edition.
*Industry-specific editions of QuickBooks Premier are not available in the Philippines.
What are QuickBooks Premier industry-specific editions?
Industry-specific editions are tailored editions of QuickBooks Premier that offer specialised
tools and features unique to a select industry.
QuickBooks Premier 2007/08 offers the following industry-specific editions:
•
Accountant edition
•
Contractor edition
•
Non-profit edition
•
Manufacturing & Wholesale edition
•
Property Management edition
•
Professional Services edition
•
Retail edition
What can you expect from an industry-specific edition?
Quicken recognises that different industries have special (and specific) accounting needs.
QuickBooks offers the following special features in the industry-specific editions of our
QuickBooks Premier software.
Accountant edition
QuickBooks Premier Accountant edition includes the ability to make, adjust, and reverse
journal entries, plus keep track of your company’s fixed assets. The Accountant edition
also includes reports designed to give you greater insight into where you’re making your
money.
Contractor edition
QuickBooks Premier Contractor edition includes the ability to see which jobs are profitable,
get airtight estimates, set up and track your holdbacks, and set up multiple labour rates
for your various employees, jobs, and customers.
Non-profit edition
QuickBooks Premier Non-profit edition includes tracking features for funds (by individual
program), memberships, donations, grants and pledges. In addition, you can create a
monthly budget based on your actual QuickBooks data and use customised reports to see
how you’re doing.
Manufacturing & Wholesale edition
QuickBooks Premier Manufacturing & Wholesale edition includes the ability to track
mileage and shipping expenses, handle volume discounts, issue work orders to your
manufacturing plant and document your damaged goods.
Property Management edition
QuickBooks Premier Property Management edition includes the ability to set up and
track your buildings and properties, set up and track tenants and manage your building
maintenance costs.
222
Chapter 14
Professional Services edition
QuickBooks Premier Professional Services edition includes the ability to track job costs,
write proposals, set up and track retainers, and track and manage labour rates.
Retail edition
QuickBooks Premier Retail edition enables you to track your stock using different units
of measure, assemble components from your stock to build finished goods, track sales
by item, sales representative or customer and determine which stock items are your top
sellers.
Industry-specific navigators
Your software also includes an industry-specific navigator to help you perform tasks and
find information specific to your industry.
See the following example from our Contractor edition.
Industry-specific menus
The industry-specific menu, exclusive to each QuickBooks Premier industry-specific edition,
lists the most commonly-used tasks that you need to accomplish in
each working day. This example is from our Accountants edition.
Think of the industry-specific menu as a short-cut to those activities
you do most often.
Using it will save you time.
QuickBooks Premier industry-specific editions
223
More information
If you need help with an industry-specific edition feature, or would like to know more about
the features offered with each edition, see the QuickBooks Premier Industry-Specific
Editions user guide. This user guide is available on your QuickBooks CD-ROM in Portable
Document Format (PDF).
The QuickBooks online Help contains detailed instructions on how to use the features in
your QuickBooks industry-specific edition. See Getting information about your company on
page 78 for more information.
224
Chapter 14
What’s New in QuickBooks 2007/08
What’s new in QuickBooks
15
QuickBooks user feedback
226
227
Each year that Quicken releases QuickBooks, we like to add new features and make improvements to
some of our existing features to enhance the experience of QuickBooks supporting your business.
This year we’ve added a host of new and improved features in many different areas of the software.
What’s new in QuickBooks
Since our last release, we’ve spoken to many QuickBooks customers about how we can
make QuickBooks better. QuickBooks 2007/08 has several new and improved features
that have come directly from you, our most valued customers.
Please take a moment to review these features, as they may change how you work with
QuickBooks.
New feature or enhancement
226
Accounting
Plus
Pro
Premier
Customise pay slips
Using the Template list you can customise
your own pay slip to meet your companys
specifications and design. Display accrued
leave such as Holiday and Personal,
Superannuation information and many
more.



Payroll Tax Tracking Types
The following payroll tax tracking types
have been added to assist you with eligible
termination payments:
• Post June 1983 Untaxed Element (Low
Rate Threshold)
• LRT applicable to employees aged 55
years or over
• Calculation is reflected in ETP summary
and magnetic media



Improvements to make QuickBooks
WorkChoice friendly, include ability to:
• enter negative components in a pay
• display salary hourly rate on pay slip
• add Leave Accrued information on pay
slip
• add a new time in lieu payroll item



Customer Statements filter option.
You can choose to email or print statements
to:
• Customer with and without email address
• Customers with email address
• Customers without email address




Improved Reconciliation Date
The Statement Date is now blank so you
must enter a date.




Enhanced Feedback feature
You can now submit feedback to Quicken
using the Help menu > Suggest New
Feaures option.




Chapter 15
New feature or enhancement
Accounting
Plus
Pro
Premier
New Customer Payment Solution
Once you have been approved for Customer
Payment and received your Biller Prefix,
your customers can pay their bills in person,
over the phone or by using the Internet.




Time in lieu payroll item
A new payroll item has been added to the
payroll item list so you can use it to process
extra time worked and time in lieu taken by
your employees.



Quantity By Employee Report
Lists transactions processed under the
Other type of payroll item. The reports which
are generated show a total, per employee,
of the Quantity processed. Use this report
to view employee’s time in lieu quantities
or commissions and another Other type of
payroll item.



QuickBooks user feedback
The new features delivered with each version of QuickBooks are often based on requests
and suggestions from our users. In QuickBooks 2007/08 we have streamlined the process
for you to request new features or make comments on existing functionality.
With the new feedback system, when you make a suggestion it is stored directly in the
QuickBooks database. From this database, suggestions are read by Quicken staff when
considering which features to add or enhance for the following year.
To give product feedback or to suggest an enhancement:
1.
Ensure you are connected to the Internet.
2.
Choose Help menu > Suggest New Features.
QuickBooks launches the feedback Web site.
3.
Enter your Customer ID and Pin.
4.
Follow the instructions on the Web site.
Please be detailed in your descriptions. The more information you can tell us about the
feature/s you are commenting on, the more useful your suggestion will be.
The collection of personal information about you and your system is used for product
enhancement purposes only and is subject to the Quicken Privacy Policy. A Quicken
representative may use the details provided to contact you about your comments.
Do not use the feedback form for technical support requests. See Contacting
Quicken on page 233 to contact Quicken for technical support issues.
What’s New in QuickBooks 2007/08
227
228
Chapter 15
Contacting Quicken
16
Technical support options and Quicken services
230
Talking to a technical support representative
231
Contacting Quicken
233
If you can’t solve a problem you’re experiencing with QuickBooks, you can get help by telephone, fax or
email. Quicken also provides a Web site with a database of support articles (Knowledge Browser) plus
contacts for Quicken accredited professional partners.
Technical support options and Quicken services
Fast forward to...
Refer to page...
Fee Based Services
on this page
Quicken’s Web site
on this page
Quicken Advantage
on this page
Quicken accredited professional partners
on this page
Be prepared when you call
231
Solving problems on your own
231
If the program “hangs” or locks up on you
232
Fee based services
Quicken offers a number of support plans to meet your individual needs.
•
Timed Call Support: A one-off support call that is charged by the minute. Maybe you
don’t have twenty four hours to solve your problem but need to speak with one of
our specialists right away? For instant help during business hours, ring our telephone
support service for the advice you need.
•
Data Recovery: If your QuickBooks data file becomes damaged, we can provide data
recovery service, which is available for a fee.
•
Password removal: If you forget your Administrator password, we can remove your
password so you can access your important data, a service that is also available for a
fee.
Quicken Advantage
Quicken Advantage membership entitles you to free weekday technical and installation
phone support, product upgrades and special offers. Terms and conditions apply. For more
information, visit www.quicken.com.au.
Quicken’s Web site
Quicken’s Web site is the official site for QuickBooks users. You can get answers to many
QuickBooks questions, important updates, and access to help through it. If you have an
Internet Connection, you can access the Quicken Web site directly from the Help menu in
QuickBooks.
Quicken accredited professional partners
Developing a strong, knowledgeable network of professionals is an important part of our
commitment to delivering exceptional support to our QuickBooks customers. Whatever your
individual needs, Quicken has an expert to help. For details on what services are available,
see Quicken accredited professional partners on page 4.
The Quicken accredited professional partners referral service is free. The professional you
select will provide you with information about their fees.
230
Chapter 16
If you are an accountant, bookkeeper, or computer consultant, consider becoming a
member of this unique community. To find a Quicken accredited professional partner, or
to become one yourself, visit the Quicken Web site for details. For details on contacting
Quicken Australia turn to page 233.
Talking to a technical support representative
Be prepared when you call
If you need to call for assistance, you will get an answer quicker if you:
•
Make sure you have registered your copy of QuickBooks and have your registration
number and Quicken customer ID number ready. (It’s a good idea to have written this
down in the front of this user guide following registration.) To display your registration
number, choose Help menu > About QuickBooks.
•
Are at your computer with QuickBooks installed.
•
Try to remember the windows you opened and the tasks you did before encountering
the problem. Know the exact wording of any message that appeared on the screen.
•
Have your company file set up for multiple users who have access to different areas of
QuickBooks, you’ll need to have access to most of the software. You might also want to
switch to single-user mode.
•
Have a pencil and paper handy to take notes.
•
Have the following information ready when you call:
•
Model of computer and amount of memory (RAM) and hard disk space
•
Accessory manufacturer, type and model (for example, monitor or printer)
•
Operating system version
•
Network configuration and software version
Solving problems on your own
Note:
We recommend you back up your data before you start solving your
problems. For more information, see Backing up your company data on page
84.
Guidelines for solving typical problems
Use the following examples as a guide to solve the problems you have.
Try the procedure again
Start at the beginning. Examine windows where you filled in fields to be sure you are asking
the program for what you want.
For example, if invoices you just entered are not showing on your Profit and Loss statement,
you should ask questions such as:
•
Does the date of the report include those invoices?
•
Do the invoices appear if you change the report from cash to accrual basis?
Contacting Quicken
231
•
Does this problem occur with only invoices for one particular customer?
•
Have you changed any filters on the report? (Try to create a new report from scratch to
see if the problem is solved.)
Try a related procedure
For example, if you have a printing problem:
•
Ensure the printer is working by trying to print something else. If you have trouble
printing cheques, try printing a report. If you can’t print one of the sales forms, try
printing a similar form.
•
If you can’t print from QuickBooks, try printing from another program such as MS
Notepad. If nothing prints from Notepad, you know the problem is related to the
printer, not the software. Check the printer connections, printer driver, print queue and
so forth.
Think about what has been changed
If something used to work but no longer does, think about what changed.
•
Have you changed or added other programs on your computer?
•
Have you added a new printer?
•
Have you moved the QuickBooks company file to a new location?
•
Have you changed a setting in the Preferences window?
If the program “hangs” or locks up on you
There are a number of reasons why your system freezes while using QuickBooks. Try
restarting your computer. If restarting doesn’t help, go through the following list of
questions and take any related action:
•
Does your computer system or network meet the minimum requirements necessary
for QuickBooks? (See Installing and running QuickBooks on page 4.)
•
Are you making the best use of available system resources by shutting down
other programs that are running? (Check for programs that may be running in the
background without your knowledge.)
•
Do you have enough hard disk space available? (This is common for those working in a
multi-user, peer-to-peer network situation.)
•
Do you have any conflicts with sound or video drivers?
Note:
If you encounter system freezes while using QuickBooks, you may want to
call for technical support.
232
Chapter 16
Contacting Quicken
Australia
Product Activation
Products can be registered online 24 hours
a day or by telephone.
If you can’t activate your product using
onscreen instructions after choosing File menu
> Activate QuickBooks, call: 1300 650 061
Product
Reactivation
You can reactivate your program through
this service
Reactivation is a service that attracts
a small per-minute charge. (Charges
include GST and only apply once you are
connected to a representative.)
1902 266 522
Customer Service
and Quicken
Sales
For pre-sale, product specific information,
to purchase an upgrade, for order inquiries
or information on Quicken Advantage and
so on.
Call:
1300 QUICKEN (1300 784 253)
Email:
[email protected]
Fax:
02 9577 5557
General Product
Information
For general product information and FAQs.
Visit:
http://www.quicken.com.au and click on the
business finance tab
Technical Support
To speak immediately to a technical
support representative, call Quicken
ExpressSupport®. This is a service that
attracts a small per-minute charge.
(Charges include GST and only commence
once you are connected to a technical
support representative).
Call: 1902 223 101
Advantage customers receive free
technical support for the duration of their
membership.
Refer to your Advantage Welcome Pack for
information on free Technical Support
Search the Quicken Knowledge Browser for
answers to common questions.
http://quicken.com.au/Support/FAQs.aspx
Quicken Training provides classroom
training to assist you in getting the most
from your software.
Call:
1300 655 975
Or you can visit a Quicken accredited
trainer near you. The Quicken Web site
provides a list of all the Quicken accredited
trainers.
Visit:
http://www.quicken.com.au and click on the
Services tab.
To request data recovery for a damaged
QuickBooks file.
Call 1300 QUICKEN (1300 784 253)
For more information on data recovery
online.
Visit:
http://www.quicken.com.au click on the Support
and Training tab and select Data Services.
Data Recovery
Contacting Quicken
233
To prevent having to request data recovery
use Online Backup. (See page 213 for
details.)
Visit:
http://www.quicken.com.au click on the Support
and Training tab and select Data Services.
Password
Retrieval
To request a forgotten password be
removed from your file.
Call:
1300 QUICKEN (1300 784 253)
Visit:
http://www.quicken.com.au click on the Support
and Training tab and select Data Services.
Reckon Stationery
Quicken offers a range of stationery
that works with your Quicken Software.
Cheques, invoices, pay slips and more helps deliver the most from your accounting
software!
Call:
1300 301 166
Fax;
1300 131 972
Visit:
http://www.quicken.com.au/services/stationery.
Update your
details
Keep your details current so we can keep
you up to date on product developments
and important software changes.
Update your details online at http://www.
quicken.com.au/services/updatedetails.aspx.
Postal Address
Quicken postal address to send software
orders as well as any other written
correspondence.
Quicken Australia
Locked Bag 15
PO Broadway
NSW 2007
New Zealand
Product Registration
Call:
0800 933 606 or from abroad, +64 9 489 9440
Customer Service
Call:
0800 447 292
Email:
[email protected]
Visit:
www.quicken.co.nz
Technical Support
Call:
0800 933 666 (attracts small charge per incident)
0900 33 609 (attracts a small per-minute charge)
Charges are higher from public and mobile phones.
Visit:
www.quicken.co.nz
234
Chapter 16
Philippines
Product Registration
Call:
+65 6254 2322
Fax:
+65 6254 2922
Customer Service
Call:
+63 (2) 533-1529, or
+63 (2) 533-4095
Fax:
+65 6254 2922
Email:
[email protected]
Visit:
www.quicken-asia.com
Technical Support
(Available 9am to 5pm Monday to Friday,
charged per incident)
Call:
+63 (2) 533-1529, or
+63 (2) 533-4095
Fax:
+65 6254 2922
Email:
[email protected]
Visit:
www.quicken-asia.com
Singapore
Product Registration
Call:
+65 6254 2322
Fax:
+65 6254 2922
Customer Service
Call:
+63 (2) 533-1529, or
+63 (2) 533-4095
Fax:
+65 6254 2922
Email:
[email protected]
Visit:
www.quicken-asia.com
Technical Support
(Available 9am to 5pm Monday to Friday,
charged per incident)
Call:
+63 (2) 533-1529, or
+63 (2) 533-4095
Fax:
+65 6254 2922
Email:
[email protected]
Visit:
www.quicken-asia.com
Contacting Quicken
235
236
Chapter 16
Glossary of Terms
APCA number
A number issued by the Australian Payments Clearing Association (APCA). You need it if you wish to export a
payroll file for processing when banking online.
The APCA number identifies your business or company to the bank. It is included in the online banking (ABA)
file that your business sends to the bank.
ABA file
See online banking file.
accounts payable
The record of outstanding bills a business must pay. Called A/P for short.
accounts receivable
The record of money owed to a business, that is, outstanding invoices or statement charges for which the
business has not received payment. Accounts receivable is called A/R for short. (Even though the word
accounts is plural, QuickBooks uses a single account on the chart of accounts to track all the money that
different people owe you.)
accrual basis
A method of bookkeeping in which you regard income or expenses as occurring at the time you ship a product,
render a service, or receive a purchase rather than at the time you pay or receive cash. With this method, the
first time you enter the transaction into your records and the moment when you pay or receive cash may be
two separate events.
adjustment note
A document notifying a customer that you have reduced his or her balance (for example, when something is
returned).
ageing
The tracking of due dates and amounts of outstanding invoices (and of your unpaid bills). QuickBooks has
preset accounts receivable and payable ageing reports.
asset
Assets include what you have and what people owe you. Examples include:
•
cash on hand
•
money in your current account
•
money you are owed
•
furniture
•
vehicles
total assets = total liabilities + equity
audit trail
A report of all changes to transactions, including who made the change, when it occurred, and what the
change was.
Glossary
237
balance sheet
A report that summarises the financial position of a business. A balance sheet shows the value of your
company’s assets, liabilities, and equity as of a particular day. It is called a balance sheet because the value
of the assets is always exactly equal to the combined value of the liabilities and equity.
billable
Time worked or purchases made for a particular customer or job, that you want to charge back to that
customer or job in QuickBooks.
After you put the time or purchase on a sales form, QuickBooks marks it non-billable, so you won’t charge
twice for the same thing.
cash basis
A method of bookkeeping in which you regard income or expenses as occurring at the time you actually
receive a payment or pay a bill.
chart of accounts
A complete list of the accounts you set up for your business. You use accounts to track income from different
sources, expenses for different causes, and your assets and liabilities.
class
A way to categorise parts of your business (other than a customer or job) for which you need to track both
income and expenses.
Cost of Goods Sold (COGS)
The cost of goods and materials held in stock and then sold.
customer
Any person, business, or group that buys or pays for the services or products that your business or
organisation sells.
earnings basis
The total amount of employee wages or earnings on which payroll withholding is calculated.
Employee Tax Number
This is a unique number given to each employee for reference when dealing with the Tax Office. In Australia,
this is called the Tax File Number (TFN).
EMPDUPE file
An EMPDUPE file is an electronic data file that contains payment summary information for each employee.
This file acts as a summary of all payment summaries created for a tax period. You can use this to send to the
tax office.
EMU
Economic and Monetary Union: Formally adopted by the Treaty on European Union of 1992, EMU designates
the zone of countries within the EU which share the same monetary policy and currency (the Euro).
238
Glossary
equity
The net worth of a company, equal to the total assets minus the total liabilities. All the equity belongs to the
owners.
equity = assets - liabilities
Free on Board (FOB)
Terms between you and your customer setting transportation costs and the point at which the customer
assumes ownership of the item.
general journal
The ledger which records all transactions for your company chronologically. In the general journal, each
transaction shows an amount in the Debit column equal to the amount in the Credit column and the accounts
between which the funds are being moved.
gross
An amount before adjustments are made to it, such as the amount of a payroll payment before NI and income
tax are withheld.
HECS
HECS is a scheme used by the Australian Government that allows a tertiary student to defer payment of
university fees until the student can afford it.
The HECS debt, as it is often called, is paid back as part of a person’s tax on their salary. It becomes necessary
once the student, now working, earns above a set salary determined by the Australian Taxation Office.
Different tax rate for payment apply for different salary brackets.
item
A product or service that you sell to customers or buy from suppliers. Some special types of “items” also allow
you to perform calculations or enter payments or charges on sales forms. Once items are set up on your Item
list, they appear automatically in drop-down menus on sales forms.
job
A project done for a particular customer.
journal
A chronological record of all transactions for one account. The easiest way to access the journal for an account
is to use its register.
liability
Any money your company owes to other people. Examples include:
•
unpaid bills
•
loans or credit card accounts
•
money you collect on behalf of the government, such as GST
limited company
A business organisation that is owned by its stockholders.
Glossary
239
multicurrency
A feature that, when turned on, gives you the ability to deal in foreign currencies.
multi-user mode
More than one person can access your company file at the same time.
net
An amount after adjustments are made to it, such as the amount of a payroll payment after NI and income
tax are withheld.
online banking file
This is a special file format used to store an account holder’s data to a bank. Data can be wages, salaries, or
supplier payments. It details the source account and target account for transferring relevant payments.
The bank receives an online banking file in the format of an ABA file and uses the data to make the necessary
transactions from the company or business bank account to the payee’s nominated bank account.
partnership
An unincorporated company owned by two or more persons.
payment summary
A payment summary, as the name suggests, is a summary of an employee’s pay for a particular pay period
from a specific employer. It includes amounts withheld for tax purposes. It is similar to a Group Certificate,
which was issued under the old tax system in Australia.
An employee in some circumstances may have two or more payment summaries issued at the end of a tax
period if he or she worked for two or more employers during that tax period.
postdate
To give a transaction a date in the future, which is when it will affect your accounts.
profit and loss statement
This report shows how your cash position changed over a period of time. It shows your income, expenses, and
net profit or loss.
progress invoice
One of a series of invoices all based on the same estimate for the same job. Use progress invoices when you
want to invoice for a job in phases—that is, by milestone or by percentage complete.
QuickBooks keeps track of the amount you have invoiced and the amount not yet invoiced.
QuickReport
A report that shows transactions you are likely to want to see for the thing you have selected. The particular
report depends not only on what you select but also where you select it.
reconcile an account
To confirm that the transactions you have recorded in QuickBooks for an account agree with the statement
you receive from the bank for that same account.
240
Glossary
register
A chronological list of transactions for an account. Other accounting systems refer to these lists as journals.
reimbursed expenses
Expenses you have incurred on behalf of a customer, and for which you have requested reimbursement.
retained earnings
Profits from an earlier time period that have not been distributed to the owners, tracked in an equity account.
At the beginning of a new financial year, QuickBooks automatically transfers net income into your Retained
Earnings account.
single-user mode
Only one person can access your company file at any time.
sole proprietorship
An unincorporated company owned by one person.
start date
The date on which QuickBooks will have complete information about your company finances. The start date
can be in the past if you enter historical records; it can be the current date; or it can be some day in the future
if you prefer to enter information gradually.
stock
Items you sell, resell, or hold to resell. The most common kinds of stock are merchandise or stock in trade;
raw materials; work in process; finished products; and supplies that physically become a part of the item
intended for sale.
superannuation
Superannuation (commonly called super) is a long-term investment plan to save money towards retirement.
Superannuation providers pool superannuation contributions from members and direct the funds into a wide
range of investments. In the event of retirement, disablement, or death of a member, the superannuation
provider pays benefits either in the form of regular periodic payments, a lump sum payment, or a combination
of both.
terms
The conditions for payment stated on an invoice. The terms specify the number of days until the due date.
transaction
Any event that affects your company finances. Examples include invoices written, bills paid, deposits made,
and loans received.
Glossary
241
242
Glossary
Licence Agreement
THIS IS AN IMPORTANT DOCUMENT. PLEASE READ THIS CAREFULLY.
This is a contract between Reckon Limited (ACN 003 348 730) (Reckon) and you. By using the
QuickBooks® software supplied with this document, and the related user guides and materials (together
with the Software), you agree to be bound by the terms of this Licence. This Licence covers copies of
the Software provided for evaluation or trial purposes, subscription versions and non-subscription or
full versions of the Software. Some Licence provisions may not be applicable to you, depending on the
particular version of the Software you have purchased or if you are using the Software for evaluation
purposes. The defined terms and the rules of interpretation in this Licence are set out in clause 11.
Important: There are a number of technical features within the Software that may affect your ability to continue
to use the Software. These are outlined in more detail in the terms of the Licence, but in summary:
• you are purchasing the right to use the Software, not to own it;
• if you have been provided with a Trial Version, you may only use the Software on a temporary
basis to evaluate the Software’s functionality and suitability for your requirements;
• the Software contains registration and activation processes to guard against illegal copying;
• to continue using the Software, those processes require you to verify your compliance with the terms under
which you are licensed to use the software (for example: the number of computers on which the software is
installed) and to permit continued reactivation of the Software from time to time. This involves, in all versions,
periodically verifying your licence details, and in the subscription version, renewing your subscription when
it falls due. Reckon may also verify subscription customers during a subscription period and not only at
renewal. You will also need to reactivate your Software if you want to reinstall it (for example, if you upgrade
your computer or if you have a hard drive failure, and you may incur a technical support cost for this);
• when you purchase the Software or during the course of your subscription you will be provided with an installation
key code. Please keep the installation key code in a safe place. You may need it when you first install or reinstall (if permitted) the Software and to reactivate the Software. Please note if you lose your installation key
code that it will not be replaced by Reckon and you will not be able to install or reactivate the Software;
• you also need a licence key to reactivate your Software. In addition, with some older versions
of the Software, you will not be able to re-install or reactivate the Software if you do not
have your installation key code - see details below on Reckon’s sunset policy;
• there will be no charge to activate the Software initially or to reactivate your Software when you verify your
licence details or renew a subscription, Reckon may charge you a fee for technical support if it needs to
reissue a licence key provided also that the version of the Software you are using has not been ‘sunsetted’ as
explained below. Reckon may also charge a fee if you need to reactivate the Software in other circumstances
(for example, if you need to reinstall the Software if you upgrade your computer or due to a hard drive failure);
• if you do not verify your licence details or renew your subscription (as applicable) within the required
period, the Software may continue to operate but with impaired functionality or you may not be able
to access the Software at all (including printing out or viewing any of your data or records); and
• Reckon has a ‘sunset policy’ which means that technical support is not available for some older versions
of the Software. This includes the ability to install or re-install that Software for any reason if you have
lost your installation key code for those old versions. If you wish to continue using the Software in those
circumstances, you will need to purchase a new copy of the current version of that Software.
1. LICENCE
a) Evaluation licence: If Reckon has provided a Trial Version of the Software to you,
your rights to use the Trial Version are solely as set out in clause 10.
b) Licence to use: Reckon grants you a personal, non-exclusive, non-transferable, limited licence to use
the Software on the terms of this Licence for the period determined in accordance with clause 8.
c) No transfer of copyright: The Software is licensed not sold, despite any reference to “purchase” or “sale” in this
Licence or in any invoice or purchase order for the supply of the Software. Reckon reserves all rights not expressly
granted to you. Intuit Inc. is the owner of copyright in the Software and retains ownership of the copyright and all
other intellectual property rights in the Software and is protected by copyright law and international copyright treaty.
2. YOUR PERMITTED USE OF THE SOFTWARE
a) Single use licence: If you have purchased a single user licence, you:
(i) may install the Software once, on one computer only. However, if you wish to reinstall the Software (for example,
if you need to install the Software on a replacement computer), then clause 3 will apply; and
ii) must ensure that the Software is used by one person only at any one time.
b) Additional licences: If:
(i) more than one person is to use the Software at the same time; or
(ii) the Software is to be installed on more than one computer
License Agreement
243
then you must, for example in the Pro version, purchase another full version or a
subscription version of that software, for use by up to a maximum of five users.
c) Premier Version
If you have purchased a full version of QuickBooks Premier, this Licence entitles you to load the Software on up
to three computers (for use by a single processing unit only on each computer) for use by up to three individuals
simultaneously. If you wish to install the Software on more than three computers you must purchase additional
licenses that will permit up to five users to simultaneously access a data file. If Reckon releases the next release of
QuickBooks Premier while you are a member of the Advantage programme subject to its terms and conditions, you
will be permitted to make a total of five installations.
If you have purchased a subscription version of QuickBooks Premier, this licence entitles you to load the
Software on up to five computers (for use by a single processing unit only on each computer) for use by up to five
individuals simultaneously. If you wish to install the Software on more than five computers you must purchase
another full version or a subscription version of that software but for simultaneous access you will need to
upgrade to an appropriate version that permits more than five users to simultaneously access a data file.
d) Enterprise Solutions Version
(i) If you have purchased the QuickBooks Enterprise Solutions version of the Software, this Licence entitles you to
load the Software on up to ten computers (for use by a single processing unit only on each computer) for use by up
to ten individuals simultaneously. You may not load the Software onto any further computers.
(ii) If you have purchased the QuickBooks Enterprise Solutions Accountants version of the
Software, this Licence entitles you to load the Software onto one computer (for use by a
single processing unit). You may not load the Software onto any further computers.
e) General restrictions: You must not:
(i) use or rely upon the Software for any purpose or in any manner for which the Software is not warranted;
(ii) copy, reproduce, translate, adapt, vary, merge or modify or create any derivative work based on the Software;
(iii) reverse engineer, decompile, disassemble, reconfigure or otherwise attempt to discover the source code of the
Software; or
(iv) sell, market, network, transfer, lease, license, sub-license, rent, lend or otherwise dispose
of or distribute the Software or use the Software to provide a bureau service.
f) Licence verification: Upon written request from Reckon, including by e-mail, you agree to provide Reckon with a
signed certificate:
(i) verifying that the Software is being used fully in accordance with this Licence, including user and machine
limitations, and
(ii) listing locations, types and serial numbers of equipment on which the Software is run.
You agree to allow Reckon to use and disclose any personal details provided to Reckon in connection with
this Licence in accordance with Reckon’s then current privacy policy displayed on Reckon’s website.
g) Audit rights: Reckon may also audit the number of copies of the Software in use or possession by you,
the equipment on which the Software is installed or used and the number of users using the Software.
Audits will be conducted in your normal business hours, or upon reasonable prior written notice, at
Reckon’s expense. If the audit reveals underpaid or unpaid fees due to Reckon, Reckon may require
you to uninstall any unauthorised versions of the Software and may deny you access to the Software
or you will be invoiced for them based on Reckon’s then current price list, and if these exceed 5%
of the license fees you have already paid, you will also be invoiced for the cost of the audit.
3. PRODUCT ACTIVATION AND VERIFICATION
a) Initial registration and verifying licence details: This Software may contain technology that protects Reckon against
illegal copying. As a consequence, you may be required to:
(i) register your details during the initial installation (including your name, contact details and details of the hardware
on which the Software will be installed (if this is not done automatically by the Software);
(ii) if you have a full version, have the Software reactivated periodically thereafter by verifying your licence details to
confirm you are using the Software in accordance with these Licence terms;
(iii) if you have a subscription version, have the Software reactivated (on payment of Reckon’s renewal fee and
verification of your licence details) if you wish to renew the subscription;
(iv) have the Software reactivated by Reckon if you wish to re-install the Software (for example, if you would like to
install the Software on a new computer or if you have a hard drive failure and need to reload your Software); and
(v) provide to Reckon the details of your installation key code and product key for the Software as part of the
reactivation process.
You agree to activate or reactivate the Software within a reasonable time
or within such time as the Software prompts you to do so.
b) Key codes: Each copy of the Software is provided with a unique installation key code (which
may appear on the packaging or the cover of the media on which the Software is contained).
You should keep the installation key code safe. As per clause 3(a)(v), you will be required to
provide your installation key code to Reckon when you reactivate your Software.
c) Manner of verification: You must verify your licence details in the manner required by
Reckon from time to time (which may include email or on-line registration via the Internet).
The Software may prompt you as to the required manner of verification.
244
License Agreement
d) Charges for reactivation: Reckon will not charge you to activate the Software initially or to reactivate your
Software when you verify your licence details or renew a subscription, unless you have lost your installation
or licence key code. You need both your installation code and your licence key to be able to reactivate the
Software. Reckon may charge you a fee for technical support to reissue a licence key. Reckon may also charge
a fee for technical support if you need to reactivate the Software in other circumstances (for example, if you
need to reinstall the Software because you have a new computer or need to reload the Software due to a
hard drive failure). For the current fees go to http://www.quicken.com.au. If you have lost your installation
key code it will not be replaced by Reckon and you will not be able to install or reactivate the Software.
e) Consequences of non-renewal and failure to verify details: This Software is provided to you on the understanding
and acknowledgment that it may contain technology which deactivates and disables the Software if a
subscription is not renewed or in the case of a full licence version, you have not verified your licence details
when periodically prompted to do so by Reckon or by the Software. If the Software is not reactivated within
the required period, the Software may continue to operate but with impaired functionality or you may not
be able to access the Software at all (including printing out or viewing any of your data or records).
f) Statutory declaration: In certain circumstances, before permitting a re-activation, Reckon may require you to
provide it with a Statutory Declaration stating the reasons for re-activation in a form required by Reckon.
g) Older versions: Reckon has a sunset policy (covered in more detail in clause 4(a)) which means that
technical support is not available for certain older versions of the Software. If technical support is
not available for your version, you will not be able to reactivate or reinstall your Software if you do
not have your installation key code. Reckon will not be obliged to provide you with a replacement
key code and in those circumstances you will need to purchase a new version or Upgrade in order to
continue using the Software. Please go to http://www.quicken.com.au to see the sunset policy.
4. TECHNICAL SUPPORT
a) Period when technical support is available: Reckon will provide technical support for the Software, during the
following periods:
(i) in the case of a subscription version of the Software, during the period for which you have paid the relevant
subscription fees (unless further releases of the Software in question are discontinued); and
(ii) in the case of a full version of the Software, there is a ‘sunset period’ during which technical support may not be
available for that version. The sunset period for a version will commence on the earlier of:
(A) 2 years after the date on which you first installed the version on
our computer; or
(B) the date Reckon releases the second successive Upgrade to that version.
For further explanation of Reckon’s sunset policy please go to http://www.quicken.com.au.
b) What is included as part of technical support: Reckon will provide technical support in accordance with its then
current technical support policy, which may include:
(i) as contemplated by clause 3, the technical support required to reactivate the Software or to issue a replacement
registration key code (for example, when you verify your licence details, renew a subscription or if you need to
reinstall the Software);
(ii) provision of telephone help desk support services;
(iii) access to technical information about the software contained on Reckon’s website; and
(iv) the ability for you to download Updates,
but it does not include provision of Upgrades of the Software. For further explanation of
Reckon’s technical support policy please go to http://www.quicken.com.au.
c) Fees: Clause 3(d) sets out the circumstances when you will (and when you will not) be required
to pay charges for the technical support to reactivate your Software (including when you wish
to reinstall the Software) or for Reckon to issue a replacement registration key code.
For all other technical support, Reckon may charge you a fee in accordance with its then current technical support policy.
5. ONLINE SERVICES
a) Interaction with Online Services: The Software may contain access to, or features that interface with,
online services (“Online Services”). Examples of Online Services that may be applicable to the Software
are an online share price download facility, a statement download facility, bill and other payment services,
a superannuation choice facility, online backup facility, and a debt recovery facility which are provided at
an additional charge on a subscription basis measured for one year from the date of registration.
b) Terms for Online Services: Certain Online Services are not available for all versions of the Software. For example,
in the case of bank statement download services, not all banks provide services that connect to the Software.
Online Services are only available for 12-month periods for subscription versions and 24-month periods for full
versions. In the case of a full version, access to Online Services in the second 12-month period may be subject
to payment of the applicable charges. In order to renew access to Online Services at the end of the 24-month
period in the case of a full version, you will be required to have purchased or upgraded to the latest version of
the Software. In the case of a subscription version, you must have renewed your subscription. Internet access
is required for all Online Services. Charges may apply for the use of Online Services (in addition to the cost of
Internet access levied by your ISP). Where Online Services are available, separate terms and conditions with the
provider of the Online Services may apply. You should check with the relevant third party provider as to the terms
License Agreement
245
and conditions of use. Access to Online Services may be withdrawn by Reckon at any time. Reckon will not be
liable for the withdrawal of access to any Online Services. Where access is to be withdrawn, Reckon may choose
to notify you in advance provided that you have supplied Reckon with a valid and up to date email address.
6. LIMITED WARRANTY
a) Software provided on an ‘as is’ basis: Subject to clause 7(b), Reckon provides the Software
to you on an “as is” basis and without any representations by Reckon or any of its authorised
distributors regarding the use, performance or results of the use, of the Software.
b) Defects in media: Reckon warrants that the media on which the Software is recorded is free from defects in
manufacture for a period of 90 days from the date of delivery. During this period, if you return the Software
to your place of purchase, Reckon will replace any defective media on which the Software was supplied and
any Software on that media, free of charge, unless you caused damage to the media due to poor handling.
c) No guarantee that error free or uninterrupted use: While Reckon has endeavoured to make sure that the
Software works substantially as per the specifications published by Reckon from time to time, Reckon does
not guarantee that the Software will work on all computer hardware platforms or configurations and makes
no warranty that the Software will be error free, that its use will be uninterrupted or be fit for your purpose.
d) Internet access, telecommunications networks, firewalls and security: Reckon does not
guarantee connections to its online activation server as these may be dependent upon
third party networks and security measures over which Reckon has no control.
7. LIABILITY
a) Certain rights cannot be excluded: The Trade Practices Act, 1974 and other laws may imply certain
conditions and warranties into this Licence and give you certain rights and remedies that cannot be
excluded or modified. This clause 7, and the limited warranties provided in clause 6, do not exclude or
modify any of those rights if to do so would contravene that law or make any part of this Licence void.
b) Exclusion of warranties: To the full extent permitted by law, Reckon excludes all conditions, warranties and
rights that may be implied into this Licence. If conditions, warranties or other rights for your benefit are implied
in this Licence or otherwise conferred by law and it is not lawful to exclude, restrict or modify them, then those
conditions, warranties and other rights will (but only to the extent required by law) apply to this Licence.
c) Limitation of implied terms: Reckon’s (and its distributors’) liability for breach of any implied conditions
or warranties that cannot be excluded is limited, to the extent permitted by law and at the option of
Reckon, to replacing or re-supplying the goods or services or their equivalent again or the payment
of the cost of having the goods or services or their equivalent replaced or supplied again.
d) General exclusion and limitation: Other than as set out in clauses 7(b) and 7(c), and to the full extent permitted by
law:
(i) Reckon (and its authorised distributors) will not be liable to you or any other person for any direct or indirect
loss, damages, liability, costs or expenses suffered by you or any other person relating to the performance or nonperformance of the Software or any breach of this Licence or the supply of the Software or in connection with,
but not limited to, the Online Services, use of tax tables or provision of technical support (whether by telephone or
remote access or other means); and
(ii) Reckon’s maximum liability for damages arising in connection with this Licence or the
supply of the Software is limited to the amount paid by you for the Software.
e) Your liability to Reckon: You agree that Reckon (and its authorised distributors) will not be liable,
other than as expressly set out in this Licence, and that you will indemnify Reckon (and its authorised
distributors) from any liability, loss, damage, costs or expenses which you may suffer or incur as a
result of your use of the Software (including any claims made against you by third parties).
f) Use of Software is not provision of professional advice: The information contained in this Software may contain
features designed to assist you in complying with the requirements of the relevant legislation, eg: imposing the
Goods and Services Tax (the ‘GST’) or the equivalent in the user’s home country. These features in the Software
have been developed with regard to the GST laws and regulations and guidelines provided by the Australian
Taxation Office (the “GST Laws”) as at the date of development of the Software (or the user’s home country tax
office) (the “GST Laws”). The GST Laws are subject to change and the Software may not be correct at the date
upon which you make use of the Software. While the features will assist in GST calculations, Reckon does not
warrant that the Australian Taxation Office or the user’s home country tax office will agree with such calculations.
The help contained in this Software is not a substitute for professional advice. The GST, Tax and other Laws are
extremely complex in nature and legal and accounting advice should be obtained before taking any action in
reliance on this Software. The software is also not financial product advice. If the Software contains features
to assist with superannuation guarantee requirements, then Reckon does not warrant that the relevant reports
will be compliant with legal requirements, as these change from time to time. In addition any tax tables (which
are included with certain versions of the Software, eg: QuickBooks and Payroll) that might be supplied with this
Software are also changed from time to time and you should consult with your professional adviser before relying
on the tax tables. Reckon does not warrant that the tax tables are up to date at your date of purchase. In providing
you with the tax tables, Reckon is not engaged in rendering legal, accounting or other professional services. If
legal advice or other expert assistance is required, you should seek the service of a competent professional.
246
License Agreement
g) Reckon has no responsibility for recommendations: Reckon, its employees, agents, contractors and the
authors disclaim any and all liability and responsibility to any person, whether a user of this Software
or not, in respect of anything (including, without limitation, any error in or omission from this Software)
and of the consequences of any actions taken or omitted to be taken in reliance, whether wholly or
partially, upon all or any part of the content, recommendations or help contained in this Software.
h) Corruption of Data and on-line access: To the full extent permitted by law, Reckon and its authorised
distributors disclaim all liability for any corruption of data, inability to access data, loss of data, breach
of privacy, or downtime as a result of or arising from the use of any online link available between the
Software and another server including without limitation in connection with any Online Services.
i) On-line services: Reckon makes no warranty or representation in connection with the Online
Services, the responsibility for which rests with the relevant provider of such Online Services.
8. TERM AND TERMINATION OF LICENCE
a) Licence Term: Unless this Licence is terminated earlier in accordance with its terms, your right to use the Software in
accordance with this Licence continues:
(i) in the case of a subscription version of the Software, for an initial period of 12 months from the date of
registration of the Software. This Licence will automatically renew for a further 12 month period upon the payment
of Reckon’s annual subscription fee. If the annual subscription fee is not paid on or before the termination of the
current 12 month period, this Licence will automatically terminate; and
(ii) in the full version of the Software, indefinitely, however:
(A) you may be required to periodically verify your licence details and have the Software reactivated as per clause 3
in order to keep using the Software; and
(B) if you need to reinstall the Software, you will need a copy of your original CD (or other media on which the
Software was provided) and the installation key code. If you do not have the CD, you will need to purchase or
upgrade to a new full version and pay for the postage associated with sending the CD to you. Clauses 3(d) and 3(g)
outline when Reckon may charge you a fee for the provision of a replacement key code and, more importantly,
when a replacement key code will not be provided by Reckon due to the operation of Reckon’s sunset policy.
b) Termination by Reckon for breach: Reckon may terminate this Licence if you
are in breach of its terms or as otherwise set out in this Licence.
c) Survival: Clauses 2, 4, 6, 7 and this clause 8 will survive the termination of this Licence.
Termination of this Licence will not prejudice any right which Reckon may have, or but
for the termination may have had, against you for a breach of this Licence.
d) Things you must do on termination: Upon the termination of this Licence, you or your representative
must promptly uninstall the Software from your computer, destroy the CD, User Guide and related
materials and any copies of them in your possession or control or return or dispose of them in the
manner directed by Reckon. Upon written request from Reckon you agree to provide a Statutory
Declaration to Reckon that you have complied with your obligations under this clause 8(d).
9. SUBSCRIPTION TERMS
If you have purchased a subscription version of the Software, this additional clause 9 will apply.
a) Entitlement to Upgrades and Updates: During the period for which you have paid subscription fees you will receive,
included in the cost of the subscription, all Upgrades and/or Updates of the Software, via Internet download.
b) No extension of Licence term: Your right and entitlement to use the Software, as enhanced by any Upgrades and/
or Updates, concludes at the end of the term of the Licence (subject to payment of an annual subscription fee)
and is not linked to the dates of release, registration or provision by Reckon of any Upgrades and/or Updates.
c) This Licence prevails: If you have bought this Software as an Upgrade to an earlier version
of the Software, this Licence shall supersede any previous licence agreement.
d) Not all Upgrades included: Your subscription to the Software and any Upgrades and/or Updates
under this Licence does not grant you the right to receive special versions of the Software created for
certain customers or market segments, even though they may contain similar features or functions.
Versions of the Software which may from time to time be offered in retail or other channels in
different configurations as special promotions are not included as part of the subscription.
e) No obligation on Reckon to upgrade: Upgrades and/or Updates will be developed and released by
Reckon in its sole discretion, and Reckon does not warrant or represent that it will develop or release any
Upgrades and/or Updates during the term of the subscription period or Licence. Furthermore, Reckon
does not warrant that the Upgrades and/or Updates will be provided to you or made available within
any specified time period following the commercial release of such Upgrades and/or Updates.
f) When payment is due: If applicable to the Software licensed to you, you will be required to pay the
monthly subscription fee in advance on the first business day of each month. You authorise Reckon
to direct debit your monthly subscription fee from the bank account nominated by you.
g) Deactivation at end of subscription period: As per clause 3, the subscription version of the Software
is provided to you on the understanding and acknowledgment that it may contain technology which
deactivates and disables the software if your subscription is not renewed or you are found to be in
License Agreement
247
breach of this license agreement If the Software is not renewed by the end of the required period,
the Software may continue to operate but with impaired functionality or you may not be able to
access the Software at all (including printing out or viewing any of your data or records).
h) You need a full version if you don’t renew: If you elect not to renew your subscription, the Software
does not allow you to upgrade to a non-subscription version of the Software by way of the purchase
of an Upgrade pack. In such circumstances, you are only able to upgrade to a later non-subscription
version of the Software by purchasing a full (non-upgrade) version of the Software.
i) Early termination: If you wish to terminate your subscription early, you must do so by giving Reckon no less than
one calendar month notice to that effect. Depending on the type of software you have subscribed to and the type of
subscription you are signed up for, you may be required to pay a cancellation fee. See http://www.quicken.com.au
for a schedule of fees. Reckon will direct debit your account, and you agree to pay, the applicable cancellation fee.
10. TRIAL LICENCE
If you have been provided with a Trial Version of the Software, this clause 10
sets out the terms that will apply to your use of the Trial Version.
a) Licence: Your licence to use the Trial Version:
(i) permits you to evaluate the Software’s functionality and suitability for your requirements;
(ii) is for the number of users set out in the material accompanying your copy of the Trial Version;
(iii) is subject to the general restrictions in clause 2(e) and the limited warranty in clause 6(a); and
(iv) is for up to 6 uses of the Software, upon the sixth attempt you will be required to activate
the Software, and then for ninety days after activation. (Evaluation Period).
b) Duration: You acknowledge that your licence to use the Trial Version will only apply for the Evaluation Period. At the
end of the Evaluation Period:
(i) you must not and will not be able to continue to access the Trial Version, including any data that you have entered
into the Trial Version; and
(ii) if you wish to use the Software you must purchase a full version or subscription version of the Software.
c) Entitlements: You:
(i) are not entitled to Upgrades or Updates (or any other software other than the Trial Version); and
(ii) may be required to pay for any technical support that you may require in relation
to the Trial Version in accordance with Reckon’s then current charges.
d) Liability: You acknowledge that [subject to clause 7(b) and 7(c), and to the full extent permitted by law,
Reckon excludes all liability to you for any loss, damage, liability, costs or expenses suffered by you
relating to the performance or non-performance of the Trial Version or any breach of this clause 10.
11. GENERAL
a) Some defined terms: In this Licence:
Trial Version means Software that has been provided to you on a temporary basis in order to carry out a trial of that
Software to determine whether you wish to use the Software on an ongoing basis.
Upgrade means a new version of the Software which contains additional functionality or other enhancements.
Reckon will determine whether a new version constitutes an Upgrade or an Update.
Update means a new version of the Software which contains minor enhancements.
b) Applicable law: This Licence is governed by the laws of the State of New South Wales, Australia.
c) Entire Agreement: This Licence contains the entire agreement between Reckon and you in relation to its
subject matter and supersedes any prior agreements and understandings, whether written or oral.
d) Waiver: Any failure to enforce any rights under this Licence by Reckon is not to be taken as a waiver of those rights.
e) Variation: To the extent permitted by law, Reckon may vary any of the terms and conditions of this
Licence upon providing you with thirty (30) days notice in writing and a copy of the replacement
terms and conditions. In the case of subscription users no new terms will come into force until
the commencement of your renewed subscription period. Reckon will display any new terms
and conditions on Reckon’s web site and you should check the website regularly.
f) Headings: Clause headings are for ease of reference only and do not affect the meaning of this Licence.
Quicken and QuickBooks are registered trademarks of Intuit Inc.
Copyright© 1985-2008 Intuit Inc, 2007-2008 Reckon Ltd
248
License Agreement
Index
A
ABA file, 207
Account numbers, 29-30
Accountant
edition, 222
Review, 68
Accounts to track equity details, 34
Accrual basis accounting, 14
Activate QuickBooks, 7
Activity statements, 112, 116, 120, 127
Add new accounts, 29
Adding items, 54
Adjustments to the account balances, 32
AIF file, 74
Apply a discount, 61
Applying tax codes to items, 108, 118
Audit
Company File exception report, 98
Company File wizard, 97
Trail, 96
B
Backing up
3.5 floppy disk, 87
tape, 87
your company data, 84
CD-R, CD-RW or hard disk, 85
Balance sheet accounts, 15
Bank deposits, 205
249
Index
C
Cash basis accounting, 14
Changing
an Internet connection, 37
employee information, 162
payroll item information, 161
the opening balance for a customer or job, 43
Charging customers for time worked, 194
Chart of accounts, 14
Choosing a method to track time, 184
Classes, 20, 22
Client-server networks, 9
COGS, 17
Commission, 157
Common payroll items, 154
Configuring the activity statement, 120
Connect QuickBooks to the Internet, 36
Connecting to the Internet, 36-37
Contacting Quicken, 233
Contractor edition, 222
Converting data from CashBook, 70
Create foreign customers and suppliers, 133
Creating
purchase order for a foreign supplier, 142
tax report, 112
invoices and bills, 118
invoices for foreign customers, 140
payroll items, 151
tax codes, 109
tax reports, 111
Credit card
deposits, 205
payment, 214
refund, 214
Index
250
Customer
Manager, 67
types, 22
Customising
pay slips, 164
payroll accounts, 149
D
Data Converter, 70-71
Default payroll items, 150
Deleting items, 63
Depositing foreign money, 141
E
EasyStep Interview, 26
Edit an opening balance, 29
Editing item information, 63
Emailing pay slips and payment summaries, 175-176
EMPDUPE, 177
Employee defaults, 156
Employer Summary, 169
Employer-paid benefit, 155
Enable an account for online banking, 200-201
Enabling GST tracking, 117
Enter time data manually, 191
Entering
a group of items, 60
bank account information, 31
historical payroll information, 31
Equity accounts, 35
Exchange rates, 130, 137
251
Index
Exporting
data for your accountant, 68
lists from QuickBooks Pro or Premier for the Timer, 187
Timer information to QuickBooks, 190
to other software, 66
ExpressSupport, 3
F
Foreign
customers, 133, 140-141
suppliers, 142-143
G
Generating
a BAS, 125
an IAS, 126
GST
Configuration tab, 121
reporting, 116
H
HECS, 239
Help, 3
I
Importing
from other software, 66
statements, 202
Timer data, 190
In-product Help, 3
Income and expense accounts, 17
Industry-specific editions, 222
Interact ACT!, 66
Index
252
Items
what you sell, 44
that calculate, 50
J
Job, 42-43, 153
K
Knowledge Browser, 3
L
Layout Designer, 83
Limited company, 24
Lodging your activity statement, 127
M
Making adjustments to your Tax Payable account, 110
Managing Timer data files, 189
Manufacturing & Wholesale edition, 222
Microsoft
Excel, 67
Outlook, 67
Word, 67
Multi-user environment, 8
Multicurrency preference, 131
MYOB® to QuickBooks Data Converter, 70
N
Non-profit edition, 222
253
Index
O
Online
Backup, 217
Banking Centre, 202
Opening Bal Equity, 34
P
Partnership, 24
Passwords, 93
Pay slips, 164, 172, 176
PAYG
Instalment tab, 122
tax, 172
Withholding tab, 122
Paying
a tax liability, 113
bills from foreign suppliers, 143
employees and suppliers using online banking, 205
non-employees for time worked, 193
your employees, 168
Payment summaries, 175-176
Payroll
cheques, 172
Expenses Account, 149
items associated with liabilities, 154
items for expenses, 152
Liabilities Account, 149
liability, 173
Peer-to-peer networks, 9
Printing
payroll cheques and pay slips, 172
problems, 99
Processing online banking transactions, 207
Professional Services edition, 222-223
Index
254
Property Management edition, 222
Q
QBA file, 74
QBB file, 74
QBW file, 74
QBX file, 74
QuickBooks
Administrator, 94
backup, 84
help, 3
Timer, 182, 186
QuickStatements, 202
QuickZoom Report, 120
R
Realised Gains and Losses, 138-139
Rearrange the order of accounts, 29
Receiving
a tax refund, 114
payments from foreign customers, 141
Reconciling bank accounts, 204
Recording activities in the Timer, 188
Reinstall my printer driver, 99
Reporting
in different units of measure, 53
period, 105
Reports to check your setup, 36
Restoring your backup file, 89
Retail edition, 223
Retained Earnings, 34
255
Index
S
Searching for your backup file, 89
Service items for non-employee time data, 194
Set up foreign
accounts, 132
prices for items, 134
Setting up
and using tax codes, 105
different units of measure, 52
items, 47
multicurrency, 130
online banking, 200, 205
the Administrator and users, 94
to use time tracking with payroll, 186
your employees and suppliers for online banking, 205
Showing partial payments received, 61
Sole proprietorship, 24
Stopwatch, 182, 191
Subaccount, 29
Subitems, 50
Summarise your payroll transactions, 157
T
Tax
Detail report, 112
Liability report, 112
Payable account, 105, 110
Summary report, 112
Terminating employees, 162
Timer data, 189-190
Track
my type of detail, 18
time based on activities, 183
time for subcontractors, 182
Index
256
Tracking
expenses by
class, 153
customer and job, 153
service item, 153
sales and purchases, 118
your tax liability, 106
Transferring
foreign funds, 144
lists, 66
Types of
accounts, 15
files, 74
QuickBooks items, 48
U
Units of measure, 51-53
Unrealised Gains and Losses, 138
Updates from the Internet, 38
Updating from a CD-ROM, 38
Upgrade a company file, 10
Using
items, 59
currency calculator, 137
Stopwatch, 191
Timer, 188
V
Viewing and editing recorded activities, 188
W
Working with multiple users, 92
257
Index
Y
Year-to-date
summaries for each employee, 158
information affects your accounts, 159
summaries of liability payments, 160
Index
258
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