c

Ê





 
In this section, you will learn how to:
6c Vetup QuickBooks for your company
6c îonvert data from Quicken
6c îreate a new company file
 
   

QuickBooks automates double-entry accounting, tracking transactions throughout the accounting cycle
from creating purchase orders and receiving items to selling goods and services and depositing
payments.
QuickBooks uses accounts to group financial data by purpose. Balance sheet accounts track assets and
liabilities: asset accounts track what your company owns, including cash, inventory, equipment,
buildings and money owed by your customers; and liability accounts track your company's debts,
including loans, credit card debt, taxes and accounts payable-what you owe vendors. Equity accounts
track earnings retained for business growth and investment into the company by its owners. As you
enter purchase orders, bills, invoices and payments into QuickBooks, you associate each of these with
a particular asset, liability or equity account.
This is the fundamental basis for QuickBooks' automated balance sheet accounting process. A balance
sheet describes the financial health of your company and is calculated based on the simple formula:
Assets=Liabilities+Equity. Much of QuickBooks' power comes from its ability to track complex, inter-
related transactions as they contribute to this formula. As long as you keep complete records and
associate the transactions you enter with the appropriate accounts, QuickBooks will handle much of
the complexity of business accounting for you.
This section will teach you how to setup your business in QuickBooks. This is a long section as it
walks through the setup process teaching you what you need to know.


     
To create a new company file, open the  menu and select 
 . This starts the Easy Vtep
Interview, which guides you through the process of creating your company database:

The setup process is divided into five stages, which are represented by tabs at the right of the interview
screen. Each of these tabs is further divided into several sections, represented by tabs at the top of the
screen. As you complete each stage of the interview a checkmark will appear on the appropriate tab.
Use the  
and   (Previous) buttons to move forward and backward through the interview. You
can move backward to make changes to information you've already entered.
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To begin the interview, click  
, and then click  
again.
 


   

If you're currently using Quicken to maintain your company records, you can convert the data file to
QuickBooks:
1.c îlick the  
  
 button.
2.c In the dialog box that appears, click  
.
3.c In the  
    dialog box, browse to the location of your existing Quicken data
file and click ! .
QuickBooks converts the data and prompts you to save your new QuickBooks file.
4.c In the  

  " 
  dialog box, browse to the location where
you want to save the file and click  .
5.c QuickBooks then prompts you to select the accounts you use for Accounts Receivable:

6.c îlick on each account you want to use. Velected accounts are indicated with checkmarks.
7.c îlick !#.
8.c If prompted to convert online data, click  .
9.c If necessary, continue to click !# until the main QuickBooks interface appears. At this point,
you may need to enter additional information about your company. To do so, you can either
enter the information manually or complete the Easy Vtep Interview:
6c To enter your company information manually, select   $ 
 from the
  menu.

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6c To complete the Easy Vtep Interview, select 
$

from the File menu.
When the Easy Vtep Interview screen opens, click  
until you reach the  
$ 
 tab.

 

  
If you do not need to convert existing Quicken data, click  
in the Easy Vtep Interview to progress
to the next screen. At this point, you can choose to skip the interview and enter your company
information manually; however, using the Easy Vtep Interview is recommended, since it provides a
great deal of information to help you make the correct choices for your particular company.
To complete the "  screens, click  
until you reach the  $  tab:

To enter your company information:

1.c îontinue to click  
until the following screen appears:

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2.c Enter your company's DBA and Legal names.

3.c îlick  
.
4.c Enter your company's general details:

5.c îlick  
.

6.c Enter your federal tax ID number and the first month of your income tax and fiscal years:

7. îlick  
.

8. From the drop-down menu, select the tax form your company uses:
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9. îlick  
.
10. From the list, select the industry that best fits your type of business:

If you provide a service, select     . Vome of the options available to you later in the set
up will depend on whether you've selected a service or product-based business.
If you don't see an industry that fits your business, select !
 .
11. îlick  
.
12. îontinue to click  
until you're prompted to save your QuickBooks file:

13.cîlick  
to save the file.

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14.cIn the    
  dialog box, browse to the location where you want to save
your QuickBooks file and click  :

The main QuickBooks interface appears, with the name of your company in the title bar.

You're now prompted to set up your income and expenses accounts:

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The  
 list on the right side of the screen contains pre-defined accounts based on the type of
business you selected earlier. For now, it's best to use the accounts QuickBooks has selected; you can
always edit or delete them later, as well as add new accounts as necessary.
15.cVelect   to accept the pre-defined chart of accounts, and then click  
.
16.cEnter the number of people  

   who should be able to access your
QuickBooks company file:

You should include in the number people who will need to enter data and run reports.
You will retain administrative access to the QuickBooks file. As the administrator, you'll be able to set
access privileges for each of your users.
17.cîlick  
.
18.cEnter an administrator name (such as  ) and an administrative password:

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19.cîlick  
.
This completes the  $ 
 tab.
20.cîlick  
to proceed to the     tab:

The     screens let you turn on and off features such as sales tax, payroll and time tracking:
1.c îlick  
until you reach the  
 screen:

2.c If you collect sales tax from customers, select  ; otherwise, select .
3.c îlick  
.

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4.c The next screen asks whether you use single or multiple sales tax rates. If you use a single tax
rate, you will be prompted to enter tax and agency information on the next screen; if you use
multiple sales tax rates  pay sales tax to multiple tax agencies, you will have to set up sales
tax when you've finished the interview.
Velect the appropriate option and click  
.

5.c If you selected a single tax rate, enter your sales tax information and click  
:

Otherwise, click  
to proceed to the next step:

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6.c Velect a default invoice format. When you select a format, a preview of the invoice appears to
the right:

7.c îlick  
.

8.c The next screen lets you enable payroll functionality in QuickBooks:

If you want to use QuickBooks to manage payroll, select  ; otherwise, select .
If you select  , you'll be able to set up your payroll activities after you've completed the interview.
9.c îlick  
.
10.cIf you prepare estimates for customers, select   in the next screen; otherwise, select :

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11.cîlick  
.
12.cIf you want to track time spent on projects, select  ; otherwise, select :

13.cîlick  
.
14.cThe next screen lets you enable the use of classes. îlasses let you break down your business by
transactions, so that you can track income and expenses by the various segments of your
business, such as a retail location, a department or a particular enterprise. This lets you more
easily determine profit and loss for those parts of your business you want to keep an eye on.
If you select  , you'll be able to set up classes when you've completed the interview.

15.cîlick  
.
16.cîhoose how you want to handle bills and payments-by entering checks as you write them, or
by entering bills, which you'll pay as they become due:

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17.cîlick  
.
18.cîhoose when you want QuickBooks task reminders to appear-at start up, when you ask for it,
or rarely:

19.cîlick  
.
20.cThe next screen lets you specify whether you use cash-based or accrual-based reporting. îash-
based reporting tracks income and expenses as money is received and sent; accrual-based
reporting tracks income and expenses based on invoices and bills.
Accrual-based reporting lets you more effectively track expenses generated in producing sales, and
results in a more accurate picture of your company's overall financial health. Unless you pay all your
bills as soon as you receive them and carry  accounts receivable (that is, you sell all your inventory
for cash or credit), you should choose  %&  
. Even if you use cash-based reporting
when you file taxes, you can still select accrual-based reporting here and generate cash reports from
QuickBooks when you need them.

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21.cîlick  
.
This completes the    tab.
22.cîlick  
to enter your company's start date information:

Unless your company is brand new, you'll need to enter historical transactions, so enter a start date as
close to the beginning of your fiscal year as possible.
23.cVelect either the start of your fiscal year (the first option) or another date (the section option)
and click  
.
This completes the steps for the Ê   section of the interview.

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The next stage of the interview lets you set up your income and expense accounts. îontinue to click
 
until you reach the beginning of the $  
 screens:

îlick  
again to view a list of the income accounts you selected when entering your general
company information.

Here, you can add accounts as necessary:

1.c With   selected, click  
.
2.c Enter a name for the account and select the income tax form line associated with the type of
account:

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3.c îlick  
.

The new account now appears in the income account list:

4.c To add another account, repeat the above steps.

5.c When you've finished adding income accounts, select  and click  
.
This completes the $  
 screens.

6.c îlick  
to proceed to the    
 screens:

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Expense accounts let you track the money your company spends in various areas such as equipment
rental, office supplies, utilities and travel. Expense accounts can be subdivided into subaccounts, which
make it easier to view and analyze exactly where money is being spent.
If you want to learn more about using expense accounts in QuickBooks, select ^ 
 and click
 
to proceed through the informational screens. Otherwise, select ' and click  
.
The next screen lists the expense accounts you selected when entering your general company
information:

Here, you can add accounts as necessary:

1.c With   selected, click  
.
2.c Enter a name for the account and select the tax form line associated with the type of account:

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3.c If you want to make this account a subaccount of an existing expense account, check the box
labeled ' & 
.
4.c Under  
 
, select the parent account for the new subaccount you're creating:

5.c îlick  
.

6.c The new account now appears in the expense account list. To add another account, repeat the
above steps.
7.c When you've finished adding expense accounts, select  and click  
.
This completes the $ (   section of the interview.

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îlick  
to proceed to the $ 
 section.

QuickBooks uses the information you provide about your income to determine which income and
accounts receivable features to use. Accounts receivable refers to the money owed to you for unpaid
sales. This feature in QuickBooks lets you track money owed and the dates payments are or were due.

To enter your income details:

1.c îlick  
to progress to the )  
   
screen:

2.c Velect the option that best describes when you receive payment for your goods or services.
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3.c îlick  
.
4.c If you want to produce monthly statements for customers, select  ; otherwise, select .
5.c îlick  
.
6.c îlick  
again to proceed to the $
 screen:

The $
 screens prompt you to define the types of items you'll use to track the goods and services
you sell. Items generally reflect line items on an invoice and are associated with a particular income
account. When sales are recorded, items are posted to the income account and to accounts receivable.
To define items:
1.c îlick  
to proceed to   $
:

2.c If you want to set up items for services you provide, click  ; otherwise, click  to proceed
to % 

(Vtep 20, below).
3.c îlick  
.
4.c If you selected  , the following screen appears:

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5.c Enter a name and description for the item.

6.c Enter a unit rate for the item. If the rate or price varies, you can either enter a default rate or 0.
When creating invoices, you can adjust the price as necessary.
7.c If the item is taxable, check the '& $
 box.
8.c îlick  
.
9.c From the drop-down menu, select the income account to associate with the item:

10.cîlick  
.
11.cIf the service is ever performed by a subcontractor, select  ; otherwise, select .
12.cîlick  
.
13.cIf you selected  , you're prompted to enter purchase information for the item:

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14.cEnter a purchase description and the cost you pay for the service.
15.cîlick  
.
16.cVelect the expense account to associate with the purchase:

17.cîlick  
.
18.cTo set up another service item, select   and click  
. Repeat the above steps until you've
finished setting up your service items.
19.cTo proceed to non-inventory parts, select  and click  
:

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Inventory parts are items you keep in stock. Non-inventory parts are items you sell as soon as you buy.
For inventory parts, QuickBooks tracks the quantity and value of your inventory; for non-inventory
parts, QuickBooks only tracks what you've spent and received.
20.cTo enter a non-inventory part, select  ; otherwise, select  to proceed to !
  
(Vtep 35, below).
21.cîlick  
.
22.cIf you selected   to enter a non-inventory part, the following screen prompts you to enter
sales information for the part:

Enter an item name, description and sales price, and check the '& $
 box if you charge sales
tax for the item.
23.cîlick  
.
24.cVelect the income account to associate with the item.
25.cîlick  
.
26.cIf you ever purchase the item to sell to a specific customer, select  ; otherwise, select  to
add a new non-inventory part or to proceed to the next section.
27.cîlick  
.
28.cIf you selected   above, you're prompted to enter purchase information for the item:

29.cEnter a purchase description and unit cost.

30.cîlick  
.


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31.cVelect the expense account to associate with the item.
32.cîlick  
.
33.cTo set up another non-inventory part, select   and click  
. Repeat the above steps until
you've finished setting up your non-inventory parts.
34.cTo proceed to !
  , select  and click  
:

These screens let you set up items for miscellaneous charges such as shipping and handling or other
expenses for which you're reimbursed by the customer.
35.cTo enter an !
  item, select  ; otherwise, select  to complete the $
 section
of the interview.
36.cîlick  
.
37.cIf you selected  , enter an item name, description and sales price:

If you charge sales tax for the item, check the '& $
 box.
38.cîlick  
.
39.cVelect an income account to associate with the item.
40.cîlick  
.
41.cIf this is an item for which you request reimbursement from the customer, select  ;
otherwise, select .

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42.cIf you selected   above, you're prompted to enter purchase information for the item. Enter a
purchase description and unit cost.
43.cîlick  
.
44.cVelect the expense account to associate with the item.
45.cîlick  
.
46.cTo set up another item, select   and click  
. Repeat the above steps until you've finished
setting up your miscellaneous items.
47.cTo complete the $
 screens, select  and click  
:

48.cîlick  
again to proceed to the $ 
 screens.

Tracking inventory in QuickBooks lets you produce reports showing quantity on hand, inventory
value, cost and other information. However, many businesses choose to track inventory outside
QuickBooks. If you indicated in the Ê   section of the interview that you did not need to track
inventory, you will be given an opportunity to either skip this section or to set up inventory items
anyway.
To set up inventory items:
1.c îlick  
.
2.c Velect $



  

:

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Alternatively, you can select   

 to proceed to the !   section.
3.c îlick  
.
4.c If you opted to add an inventory item, the following screen appears:

5.c Velect   and click  
.

6.c Enter an item name, sales description and unit price:

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7.c If you charge sales tax for the item, check the '& $
 box.
8.c îlick  
.
9.c From the drop-down menu, select the income account to associate with the item:

10.cîlick  
.
11.cEnter a purchase description and the unit cost you pay for the item:

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12.cîlick  
.
13.cEnter a reorder point for the item:

The reorder point is the number of units you want to have remaining in your inventory when
QuickBooks reminds you to reorder.
14.cEnter the number of items in inventory as of your start date.
15.cEnter the total value of the inventory as of your start date. It's important to enter an accurate
value here; however, if you're unsure of the value, you can make an inventory adjustment later.
16.cîlick  
.
17.cTo set up another inventory item, select   and click  
. Repeat the above steps until you've
finished setting up your inventory items.
18.cTo complete the $ 
 screens, select  and click  
:

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This completes the $ 
 section of the interview. îlick  
to proceed to ! 
 .

The !   section of the interview prompts you for information on the balances of your
accounts as of your start date, as well as the customers who owed you money and the vendors to whom
you owed money at that time.
These balances should reflect your start date, rather than the current date, since you'll be entering
historical transactions. If you use the current date, your balances may not be accurate.
Before completing this section, you should have on hand the following information:
6c Bank statements for the periods representing your start date.
6c The values of assets and liabilities as of your start date.
6c îustomer names and the amounts they owed as of your start date.
6c ëendor names and the amounts you owed them as of your start date.
To proceed:
1.c îontinue to click  
until you reach the 
 
  screen:

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2.c If any customers owed you money as of your start date, select  ; otherwise, select  to
proceed to *  (Vtep 11, below).
3.c îlick  
.
4.c If you selected  , select whether or not you want to track jobs (individual projects) for
customers:

5.c îlick  
.

6.c Enter the customer's name and the balance owed to you on the start date:

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7.c If you opted to track customer jobs, a m 
  +& checkbox is available. îheck this box
if you're tracking more than one job for this customer.
8.c îlick  
.
The customer's name appears in the  
  list.

9.c To add another customer, select   and click  
. Repeat the above steps until you've
finished adding customers with outstanding balances.
After you've completed the interview, you'll be able to add additional details for these customers, as
well as those customers who didn't have balances at your start date.
10.cTo complete the  
  screens, select  and click  
:

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11.cîlick  
to proceed to the *   screens.

12.cIf you owed money to any vendors as of your start date, select  ; otherwise, select  to
proceed to *  (Vtep 18, below).

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13.cîlick  
.
14.cIf you selected  , enter a name for the vendor and the balance you owed as of your start date:

15.cîlick  
.
16.cTo add another vendor, select   and click  
. Repeat the above steps until you've finished
adding the vendors to whom you owed money.


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After you've completed the interview, you'll be able to add additional details for these vendors, as well
as new vendors as necessary.
17.cTo complete the *   screens, select  and click  
:

18.cîlick  
to proceed to the  
 screens.

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You use the  
 screens to set up your balance sheet accounts. Balance sheet accounts are those
showing your company's assets and liabilities. They include bank accounts, property, credit cards,
loans and equity accounts.
19.cîlick  
to set up your credit card accounts.

20.cIf your company has a credit card account, select  ; otherwise, select  to proceed to lines
of credit (Vtep 28, below).
21.cîlick  
.
22.cIf you selected  , enter a name for the credit card:

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23.cîlick  
.
24.cEnter the date of the statement closest to your start date:

25.cEnter the ending balance shown on that statement.

26.cîlick  
.
27.cTo add another credit card account, select   and click  
. Repeat the above steps until
you've finished adding your company's credit cards.

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28.cTo proceed to lines of credit, select  and click  
:

29.cIf your company has a line of credit, select  ; otherwise, select  to proceed to loans and
notes payable (Vtep 37, below).
30.cîlick  
.
31.cIf you selected  , enter a name for the credit line:

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32.cîlick  
.
33.cEnter the date of the statement closest to your start date:

34.cEnter the ending balance shown on that statement.

35.cîlick  
.
36.cTo add another credit line, select   and click  
. Repeat the above steps until you've
finished adding your company's credit lines.

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37.cTo proceed to loans and notes payable, select  and click  
:

38.cIf your company has taken out any loans, select  ; otherwise, select  to proceed to bank
accounts (Vtep 44, below).
39.cîlick  
.
40.cIf you selected  , enter a name for the loan and the outstanding balance as of your start date:

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41.cIf the loan will not be paid off within a year, check the box indicating that it's a long-term
liability.
42.cîlick  
.
43.cTo add another loan, select   and click  
. Repeat the above steps until you've finished
adding your company's loans.

44.cTo set up your bank accounts, select  and click  
:

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45.cVelect   to add a bank account and click  
.

46.cEnter a name for the account:

47.cîlick  
.
48.cEnter the date of the statement closest to your start date:

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49.cEnter the ending balance shown on that statement.

If you opened the account after your start date, enter 0 for the account balance.
50.cEnter the account number and a check reorder number.
51.cîlick  
.
52.cTo add another account, select   and click  
. Repeat the above steps until you've finished
adding your company's bank accounts.

53.cWhen you've finished adding your accounts, select  and click  
to proceed.

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54.cIf you want to use QuickBooks to print checks and deposit slips for your accounts, select  ;
otherwise select .
55.cîlick  
.

56.cîlick  
to begin entering your company's assets.

In QuickBooks, "assets" refers to property, investments and money you've loaned. While bank and
inventory accounts are also considered assets, these are tracked separately.


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57.cTo add an asset, select  ; otherwise, select  to proceed to equity accounts (Vtep 68,
below).
58.cîlick  
.
59.cEnter a name for the asset:

60.cFrom the drop-down menu, select the type of asset you're adding:
6c Fixed assets are those you own for a year or more, such as buildings, vehicles or office
equipment. Velecting  
lets you track depreciation of these items.
6c Velect !
   

if the asset is easily converted to cash, such as stock or a
certificate of deposit.
6c Velect !
 
for everything else. This includes loans you've made.
61.cIf you selected !
   

or !
 
, enter the value of the asset as of your
start date.
If you selected  
, the next two screens will prompt you for additional information.
62.cîlick  
.
63.cIf you selected  
, the following screen asks you whether or not you want to track
depreciation:

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Velect   if you want depreciation to be reflected in your financial statements.

64.cîlick  
.
65.cIf the item is a fixed asset, enter its value as of the start date:

66.cîlick  
.
67.cTo add another asset, select   and click  
. Repeat the above steps until you've finished
adding your company's assets.

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68.cTo proceed to equity accounts, select  and click  
.

QuickBooks automatically sets up equity accounts to track the net worth of your business. Equity
results from profits and from money invested in the company, and is calculated by subtracting your
company's total liabilities from its total assets.
69.cîlick  
to view the equity accounts QuickBooks has established.

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70.cîlick  
again to complete the  
 screens. This also completes the ! 
  section of the interview.

îontinue to click  
to proceed through the informational topics contained in the "
, 

section of the Easy Vtep interview. When you've finished, click -  to exit the interview and begin
using QuickBooks.

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The next section of this tutorial describes how to use the QuickBooks interface. The following section
will guide you through the remainder of the tasks you'll need to complete to finish setting up your
business.
In this section, you learned how to:
6c Vetup QuickBooks for your company
6c îonvert data from Quicken
6c îreate a new company file

 
In this section, you will learn how to:
6c Use the QuickBooks interface
6c Use the toolbars and shortcuts

 
The QuickBooks interface uses "navigators" to group related tasks and information, such as company
information, customer information and vendor information. The navigators are listed on the left-hand
side of the QuickBooks window:

When you click on a navigator in the list, the main window for that navigator opens:

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The îompany Navigator, shown above, displays icons you can select for accomplishing particular
company-related tasks, such as setting up budgets or opening the îhart of Accounts.
Each navigator is divided into panels that group related tasks or information. The primary navigators-
îompany, îustomer, ëendor, Employee and Banking-each have panels for tasks (containing icons),
related activities, memorized reports and solutions (a kind of QuickBooks marketplace). You can click
on an icon or a hyperlink in any of these panels to open the linked window.
Each time you open a new window, QuickBooks displays it in the ! " 
 list on the left-hand
side of the QuickBooks window:

To move between open windows, simply click on a window in the list.

To close an open window, click the close button in the upper right-hand corner of the window.
Make sure you aren't clicking the close button in the upper-right corner of the QuickBooks window;
this will close QuickBooks entirely.
All of the options available in the navigators can be accessed from the QuickBooks menu bar, which
also groups related tasks, such as company tasks, customer tasks and vendor tasks.
In addition, QuickBooks includes a toolbar that provides quick access to the commands you'll use most
frequently:

6c îlick $ to create invoices for customers.

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6c îlick  
to open your customer list, where you can add, edit and delete customer
information.
6c îlick $
 to open your item list, where you can add, edit and delete item information.
6c îlick ^ ' to open your memorized transaction list, where you can add, edit and delete
memorized transactions.
6c îlick *  to open your vendor list, where you can add, edit and delete vendor information.
6c îlick   to write checks.
6c îlick  to pay bills.
6c îlick )  to view and work with your account registers.
6c îlick 
to open your chart of accounts, where you can add, edit and delete account
information, and enter transactions for accounts.
6c îlick ) to view your reminders list.
6c îlick  to search for transactions.
6c îlick  
to open the m  ( 
window.
6c îlick  to back up your company file.
In this section, you learned how to:
6c Use the QuickBooks interface
6c Use the toolbars and shortcuts
$
 
. 
 

/
6c Backup your QuickBooks data
6c Vet up users and passwords
6c Manage your accounts
6c Vet up classes
6c Manage your customer information
6c Manage your vendor information
6c Manage your items
6c Enter historical transactions
 
   

  

Once you've completed the business setup process, you should back up your QuickBooks file:

1.c îlick the  button on the QuickBooks toolbar. You can also click the 
icon in the îompany Navigator or select  from the QuickBooks  menu.
The   dialog box opens.

c
c
c

2.c Under    
 , make sure  is selected. Then click the 
 button
to browse to the location where you want to save the backup file.
3.c îlick !#.
It's a good idea to schedule automatic backups, so the data in the backup file is kept up to date. You
can have QuickBooks automatically back up your file when you exit the program:
1.c In the   dialog, select the    tab.

2.c Velect the checkbox under 

& (

& 

  

   ); then enter the frequency with which you want to back up the data. For example,
enter 0 to have QuickBooks back up the data every 3 times you exit the program.
3.c îlick !#.
 c
c
c
 


  
You can also schedule QuickBooks to create a new backup file at the days and times you specify; in
this case, QuickBooks will save a specified number of backup files:
1.c In the   dialog, select the    tab.
2.c îlick the 
button.
3.c In the    dialog, enter a description for the backup. This will appear in the list
of scheduled backups in the   dialog.

4.c îlick the 

 button to browse to a folder where you want to keep the backup files.
5.c If you want to limit the number of backup files to keep, select the  &  & 

checkbox and enter the number of files you want to save. Otherwise, QuickBooks will save all
the backup files.
6.c Velect the start time and frequency for creating the backups.

/When QuickBooks backs up the data, your computer must be running and you cannot be using
the company file that's being backed up.
7.c Vome platforms require a password for the Windows user logged in while the backup is being
performed. To enter your Windows login password, click the 

 button. îonfirm
that the correct Windows user name is entered and enter your password; then click !#.
8.c îlick !# to save the new backup schedule.
9.c îlick !# to close the   dialog.


   
 
Only the QuickBooks administrator can set up new users.
1.c From the   menu, select 
  .
The  -
window opens.

 c
c
c

2.c îlick the    button.

The 
    
    window opens.

3.c Enter a user name and password for the new user.
4.c îlick  
.
5.c Velect whether or not you want to limit the user's access to selected areas:

6.c îlick  
.


c
c
c
7.c If you granted the user access to all areas of QuickBooks, confirm the selections and click
; otherwise, for each screen, select the level of access the user should have and click
 
:

8.c When you've completed all the screens, review the access rights you granted:

To make a change, click   to backtrack through the screens.

9.c îlick .
10.cîlick  to close the  -
window.
^  

The îhart of Accounts lists all the accounts you've created for your company. From here, you can add,
edit and delete accounts, open the register for a particular account and enter account transactions.

To open the îhart of Accounts, click the 
button on the QuickBooks toolbar, or select

  
from the -
 menu. You can also access the îhart of Accounts by clicking the

  
 icon in the îompany Navigator.
The îhart of Accounts opens in a new window:

c
c
c
Double-clicking any account in the list opens the account register, where you can view and enter
account transactions.
The buttons at the bottom of the window contain commands for accomplishing account-level tasks,
such as creating and editing accounts, writing checks and running reports.

V

 


You can add a new account at any time after you've completed the business setup process:

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The 
 
window opens.


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The account numbering option lets you select accounts by the numbers you've given them. Developing
and using a numbering scheme can help you select accounts quickly when completing forms. To turn
on the option, select     from the  
menu. In the     window, select the
 
 icon from the list on the left, and then select the      tab. Finally,
check the   
 & box and click !#.

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To edit account information:

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 !    

If you need to adjust the opening balance you recorded for an account, you should open the account
register and adjust the amount of the transaction:

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The account register opens.

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cc

 
 

You can delete an account as long as it has no balance and is not used in payroll. To delete an account:

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Êenerally, unless the account was created in error, it's better to maintain records for it. You can do this
while hiding the account from daily operations by inactivating it.
$

 ) 

 

When an account is inactive, it does not appear in drop-down menus or in the îhart of Accounts unless
you select the 
 
 option. You might make an account inactive, for example, when the
account is closed but you want to maintain a record of it.
To inactivate an account:

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cc


c c c3 

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  cc c
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The account disappears from the îhart of Accounts. To view it in the list, click the  
button
and select 
 
. Inactive accounts appear with an X next to them.
To reactivate an inactive account:

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cc


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The îlass List lists all the classes you've created for your account transactions. îlasses let you break
down your business by transactions, so that you can track income and expenses by the various
segments of your business, such as a retail location, a department or a particular enterprise. When
classes are enabled, a  field appears in your various account registers, letting you select a class
for the transactions you enter.
If you enabled the use of classes during the Easy Vtep Interview, you can set up your classes now. If
you didn't enable classes and want to do so now, or you want to turn off classes:

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To open the îlass List, select -
from the -
 menu. From here, you can add, edit or delete a
class using the  button at the bottom of the window.
To add a new class:

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The 
 window opens.

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^  
 $ 

The îustomer List lists all the customers you've entered for your company. From here, you can add,
edit and delete customer information, add jobs for a customer, create invoices, receive payments and
run customer-related reports.

To open the îustomer List, click the  
button on the QuickBooks toolbar, or select
 
 /1&-
from the -
 menu. You can also access the îustomer List by clicking the
 
  icon in the îustomer Navigator.
The îustomer List opens in a new window:

Double-clicking any customer name in the list opens the  
  window, where you can view and
enter detailed information for that customer.
The buttons at the bottom of the window contain commands for accomplishing customer-level tasks,
such as entering customer information, adding jobs, creating invoices and running customer reports.

  
 

To add a new customer:
1.c On the QuickBooks toolbar, click the  
button, or select  
 /1&-
from the -

menu.
2.c At the bottom of the îustomer List, click the  
 /1& button and select 
from the
menu that appears:

c
c
c

The 
 
  window opens.

3.c Enter the name of the customer as you want it to appear in the îustomer List (for example,

.1 ).
4.c If the customer has an outstanding balance, enter the balance and the date the balance reflects.

/If you are going to track jobs for the customer, don't enter an opening balance; QuickBooks will
calculate this for you.
5.c The tabs on the window provide fields for entering detailed information for the customer, such
as address information, payment terms, payment methods, and job information. Velect each tab
and complete the fields as appropriate. All this information is optional.

/ To enter a billing address for the customer, click the   
 button under the '
box. îomplete the address fields in the window that opens and click !#. You can then click the
22 22 button to copy the address to the  ' box, or you can click the   
 button
under the  ' box to enter a different shipping address.

c
c
c
6.c îlick !# to save the customer information, or  
to save the customer information and add
a new customer.

 1&  
 

To add a job for an existing customer:
1.c In the îustomer List, highlight the customer.
2.c îlick the  
 /1& button and select  1& from the menu.
The 
1& window opens.

3.c Enter a name for the job.

4.c If necessary, make changes to the customer address and payment information.
5.c Velect the 1&$  tab.

6.c Velect the job status and enter a start date and projected end date for the job. Leave the end date
blank until you've finished the job.

c
c
c
7.c Enter a job description.
8.c Velect a job type from the drop-down menu, or select Ú 
2 to define a new job type.
If you selected a new job type, complete the job type fields in the window that appears and click !#.
7.c îlick !# to save the job, or  
to save the job and add a new one.
 
 
 $ 

To edit customer information:
1.c In the îustomer List, double-click the customer's name.
2.c In the  
 
  window, make your changes as necessary and click !#.
To adjust a customer's opening balance:
1.c In the îustomer List, click the 

  button and select  ) 
.
2.c Velect the customer's opening balance transaction, if you entered one. Otherwise, select the first
of any individual transactions you need to adjust.
3.c îlick inside the 
 column for the transaction and change the amount. Do the same for
any additional transactions you need to change.
4.c îlick the )  button, or press 
.
5.c To close the register, click the close button in the upper right-hand corner of the window.
 
 
 1&
QuickBooks does not automatically update job status or completion dates. To change the status of a
job, or to enter an end date:
1.c In the îustomer List, double-click the job under the customer's name, or double-click the
customer's name and, in the  
 
  window, select the 1&$  tab.
2.c Make your changes as necessary and click !#.
^ *  $ 

ëendors include any businesses, tax agencies and individuals with whom you do business. The ëendor
List lists all the vendors you've entered for your company. From here, you can add, edit and delete
vendor information, create purchase orders, pay bills and run vendor-related reports.

To open the ëendor List, click the *  button on the QuickBooks toolbar, or select *  
-
from the -
 menu. You can also access the ëendor List by clicking the *   icon in the
ëendors Navigator.
The ëendor List opens in a new window:

Double-clicking any vendor name in the list opens the *   window, where you can view and enter
detailed information for that vendor.
The buttons at the bottom of the window contain commands for accomplishing vendor-level tasks,
such as entering vendor information, creating purchase orders and running vendor reports.

 *  
To add a new vendor:
1.c On the QuickBooks toolbar, click the *  button, or select *  -
from the -
 menu.
2.c At the bottom of the ëendor List, click the *   button and select 
from the menu that
appears:

 c
c
c

The 
*   window opens.

3.c Enter the name of the vendor as you want it to appear in the ëendor List (for example, 
.
1 ).

/ The same name cannot appear in more than one QuickBooks list. If the vendor you're adding is
also a customer, you'll have to vary the name slightly; for example, you can add the word    to
the end of the name. In forms and on checks, QuickBooks will use the name you enter into the 

  field.
4.c If you have an outstanding balance with this vendor, enter the balance and the date the balance
reflects.
5.c The tabs on the window provide fields for entering detailed information, such as the vendor's
contact information, your account number and your credit limit with the vendor. Velect each tab
and complete the fields as appropriate. All this information is optional.
To enter the vendor's address, click the   
 button and complete the fields in the window
that opens. îlick !#to save the address and close the window.
6.c îlick !# to save the information, or  
to save the information and add a new vendor.
 
*  $ 

To edit vendor information:
1.c In the ëendor List, double-click the vendor's name.
2.c In the  
*   window, make your changes as necessary and click !#.
To adjust your opening balance with the vendor:
 c
c
c
1.c Open the îhart of Accounts by clicking the 
button on the QuickBooks toolbar or
selecting 
  
 from the -
 menu.
2.c In the îhart of Accounts, highlight  
& .
3.c îlick the 

  button and select  ) 
.
4.c In the register, select the vendor's opening balance transaction and change the amount in the
 column.
5.c îlick the )  button, or press 
.
6.c To close the register, click the close button in the upper right-hand corner of the window.
^ $

Items include all the goods and services you offer customers, as well as the taxes you charge and pay
for them. The Item List lists all the items you've entered for your company. From here, you can add,
edit and delete items, create invoices, receipts and purchase orders, change item prices and run item-
related reports.

To open the Item List, click the $
 button on the QuickBooks toolbar, or select $
-

from the -
 menu. You can also access the Item List by clicking the $
(   icon in either
the îustomers or ëendors Navigator.
The Item List opens in a new window:

Double-clicking any item in the list opens the $
 window, where you can view and enter detailed
information for that item.
The buttons at the bottom of the window contain commands for accomplishing item-level tasks, such
as entering item information, creating invoices and receipts and running item-related reports.

 $

To create a new item:
1.c On the QuickBooks toolbar, click the $
 button, or select $
-
from the -
 menu.
2.c At the bottom of the Item List, click the $
 button and select 
from the menu that
appears:


c
c
c

The 
$
 window opens.

3.c Velect the type of item you're adding from the drop-down menu.

/You cannot change a service item to another item type.
4.c The remainder of the fields on the window will vary depending on the type of item you select.
For most, you should enter an item name or number; this will appear in item selection menus
when you fill out forms.
5.c If appropriate, check the  &
 box and select the parent item under which you want to
this item to appear.
6.c îomplete the remainder of the fields as appropriate.
7.c îlick !# to save the item, or  
to save the item and add another one.
 
$
$ 

1.c In the Item List, double-click the item.
2.c Make the necessary changes and click !#.
 
 '$

If you selected multiple tax rates for your business during the Easy Vtep Interview, you can use the
Item List now to set your sales tax items. îreate an item for each sales tax rate, and for each sales tax
agency:
1.c On the QuickBooks toolbar, click the $
 button, or select $
-
from the -
 menu.
2.c At the bottom of the Item List, click the $
 button and select 
from the menu that
appears.
3.c In the 
$
 window, select  '$
 from the ' drop-down menu.
4.c Enter a name for the sales tax.
5.c Enter a description for the sales tax; this description will appear on your sales forms.
6.c Enter the tax rate as a percentage (for example, 7.25%).
c
c
c
7.c Enter the tax agency.
8.c îlick !#to save the tax item, or  
to save the item and add another one.



 'Ê 
If you charge multiple taxes, consider setting up tax groups, which allow you to print sales tax as a
single line item on an invoice:
1.c In the Item List, click the $
 button and select 
.
2.c From the ' drop-down menu, select  'Ê .
3.c Enter a name for the group and description for the group. The description will appear on your
forms.
4.c îlick inside the '$
 column of the list box. îlick the down arrow button to select a tax
item to include in the group.
QuickBooks automatically populates the rest of the columns for that item.
5.c îlick inside the '$
 column for the next row and select another tax item. îontinue to
select tax items until you've added all the necessary taxes to the group.
6.c îlick !# to save the tax group, or  
to save the group and add another one.

m
'

Once you've added all your accounts, vendors, customers and items, you should enter all your
historical transactions. These are transactions that occurred between the start of your fiscal year and
your QuickBooks start date. Include both cleared and uncleared transactions during that time.
It's extremely important to enter accurate and complete historical data, since QuickBooks uses this
information in the reconciliation process.
You should enter historical transactions in the order in which they occurred, beginning with accounts
payable transactions and ending with bank transactions. For each transaction, you'll need to complete
the workflow process; for example, for a customer payment, you should create an invoice (or a sales
receipt), receive the payment and then make the deposit. Finally, you should reconcile your bank
account.
The remainder of this tutorial describes the processes you'll need to follow for both accounts payable
and accounts receivable.
$
 
.   

/
6c Backup your QuickBooks data
6c Vet up users and passwords
6c Manage your accounts
6c Vet up classes
6c Manage your customer information
6c Manage your vendor information
6c Manage your items
6c Enter historical transactions
$
 
. 
 

/
6c Open your company file
6c Order and receive items
6c ëiew Purchase Orders
6c îreate Purchase Orders
6c Enter bills
6c Pay bills
6c Write a check
6c Pay sales tax
6c Record sales
c
c
c
6c Receive payments
6c îreate a sales receipt
6c Deposit payments
6c Reconcile your bank account
6c Adjust inventory
6c îreate reports
6c îlose your books
%
%  ! 

!    
When you first open QuickBooks, you're prompted to log in to your default company file:

Enter your password and click !#.

To open another company file while using QuickBooks:
1.c From the  menu, select !  3-.
2.c In the !   dialog, browse to the location of the company file. Highlight the file
and click ! .

The  - dialog opens.

3.c Enter your password and click !#.
!  )  $


c
c
c
Use purchase orders to order goods or services from vendors. Purchase orders help you track what you
order, what you receive and what you need to pay vendors. When you enter a bill for a vendor,
QuickBooks lets you check the items you've received against the open purchase orders for that vendor,
and updates your inventory as appropriate.
For over-the-counter purchases-that is, purchases you pay for at the time you receive the items-you can
bypass the purchase order and simply write a check or enter a different kind of transaction (for
example, a credit card transaction).
The ëendor Navigator displays the workflow for ordering and receiving items and paying bills, with
shortcuts for creating purchase orders, receiving items, paying bills and paying sales tax:

You can click any of these icons to accomplish the related task.
*
   ! 
All the purchase orders you've created appear in the Purchase Orders List, which you can view by
clicking the !-
icon in the ëendor Navigator, or by selecting   ! -
from the
*   menu.
From here, you can use the buttons at the bottom of the window to create, edit and delete purchase
orders, receive items against a specific purchase order, enter bills and run purchase and inventory
reports. Êenerally, however, it isn't necessary to go to the Purchase Order List to accomplish these
tasks.

/You'll be unable to open the Purchase Orders List until you've created at least one purchase
order.
 
  ! 
To create a purchase order:
1.c îlick the   !  icon in the ëendor Navigator, or select  
  ! 
from the *   menu.
The  
  !  window opens.

c
c
c

2.c Velect a vendor from the drop-down menu.

3.c If appropriate, select a class to assign to the purchase order.
4.c If the order should be shipped to a customer or vendor instead of to you, select the name from
the  ' drop-down menu.
5.c îonfirm the entries in the remainder of the fields, making changes or entering information as
necessary. At the bottom of the window, you can enter a message for the vendor in the *  
^  field and information for yourself in the ^  field.
6.c To enter an item, click inside the $
 column and select the item from the drop-down menu.
7.c For each item you select, enter a description, quantity and rate, if the default rate you defined
for the item is variable.
8.c If the item is for a specific customer or job, select the customer and/or job from the drop-down
menu in the  
  column.
9.c When you've finished entering items, click the  ( button to save the purchase order,
or the  (
button to save the purchase order and create another one.

To print the purchase order, click the 
button at the top of the window. In the 

dialog, verify the printer settings and then click 
.
To print multiple purchase orders, click the down arrow on the 
button and select 

. In
the window that opens, select the purchase orders you want to print and click !#.

)  $
 *  

Once you receive items you've ordered using a purchase order, you should create an item receipt.

/If you received a bill with the items, enter a bill instead of an item receipt.
To create an item receipt:

c
c
c
1.c îlick the )   $
 icon in the ëendor Navigator, or select )   $
 from the
*   menu.
The  
$
)  
 window opens.

2.c Velect the vendor from the drop-down menu. If open purchase orders exist for this vendor,
QuickBooks prompts you to receive against them:

3.c îlick  .
The !   !  window opens.

c
c
c

4.c Velect the purchase order containing the items you're receiving and click !#. You can select
more than one purchase order.
5.c QuickBooks completes the item receipt for you. If you need, you can make changes to any of
the line items.
6.c Enter any expenses, such as shipping or taxes, on the    tab, making sure to associate
each with the appropriate expense account.
7.c îlick  ( to save the item receipt, or  (
to save the receipt and add
another receipt.
You should create an item receipt even if you didn't create a purchase order, as long as the bill will
arrive later; the only difference in the process is that you won't be prompted to receive the items
against a purchase order. When you complete an item receipt, QuickBooks updates your inventory
accordingly.
If you receive a bill with items, you should enter a bill instead of an item receipt.
For over-the-counter purchases (in which you receive and pay for items at the same time), write a
check or enter a transaction for the account from which you're paying for the items.

 
ë
 
You should enter bills for all expenses you don't pay immediately, including items you receive against
a purchase order or for which you've created an item receipt. Bills for expenses are tracked using
expense accounts, while bills for items are tracked using the Item or Fixed Asset Item List.
To enter a bill for items you've already received, and for which you've created an item receipt:

c c c1 c2-' cc c   u c
c
The   
$
)  
window opens.

c
c
c

c * c c- cc c !$ %c
c

c * c c c! c  c! c c cc&c- c ccD
c

The 
 window opens with the information contained in the item receipt.

 c
c
c


c ^c'c c c cc&c ccV "
c
To enter a bill for all other expenses, including items you've received for which you haven't created an
item receipt:

c c cu c c cc cc cc c
u cc c#
c
c
If you're receiving items from a vendor and the bill has been included with the items (that is, no item
receipt exists), you can also click the )   $


 icon in the ëendor Navigator.
The 
 window opens.

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c
c

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c 'c c  c c c  cc ccc&
c

c ë c c c c c! c c  cTc cc cc&
c

c c ccccc)!c cc)!c cc c !$ %ccc c3 

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c
c cccc cc c cc c c c c cc c !$ %c
cc&c
- c c c' cc!c c c c c &c!!cc c +c&cc  c
cc&
c

/To enter charges not associated with a specific item, such as shipping or tax, select the   
tab and enter each charge, selecting the appropriate expense account.

c c cV "c c c-c cccV "c c-c cc c cc%c
c
º
 
To pay a bill you've entered:

c c c!yu ccc c1 c2-' cc c!yu cc c#
c
c


c c&c c c c!&c c c
c
The  window opens.


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c
c


c (cc c c ccc !& cc c% %c&c 'c c

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 'cc  
c

c ,c!&c !ccc c ccccc
c,c!ccc) c c
cc cc&c
c

c c&c-c&c  cc  c c c c c  c c c 
c

c #ccc c c c&3c!&'
c

c * cc!& c c c  cc c !$ %cc c c cc c% %c c
! c c cc c cc!!! 
c

c c!y"
c

"
 
To pay bills when you receive them, use the "
  window. Do not use this window to pay
taxes or bills you've already entered.
To write a check:

c c c c c cc cc cc c$  cc cu

c

c
The "
  window opens.

c
c
c

c * c c c&c% c ccc cu
3 

c !$ %c
c

c * cccc c!yD c !$ %c
c

c cc!c!c c) cc c!&cc!! c&c c-c c' c
c
cucc&3c!&'cc c&3c-'cccc&3c'cc-$ $ c
!
c
If you're receiving items against a purchase order, select the purchase order in the window that opens
and click !#. You can select multiple purchase orders if necessary.

c c&3c-'c c' cc!c cc!! c c cc c c
% c c c  cc c!c c c c  c
c(cc  c c cc
&
c %c c c c&3c!&'c c coc
c

/You can leave the amount blank and have QuickBooks automatically complete it based on the
total of the item amounts you enter.

c 3 c cc  c c3c cc cc&
c

c ,c cc c c cc c !$ %ccc cc 
c

c #cc c c c4  &c c
c

c c&3c!'c c ccc! c cc5c c c c 6c5cc c

%&c !$ %c
c

cc!!! c c ccc%c c c'
c

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c 
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&3c% 'ccccc)!cccc  &cc c cc 
ccc c c
c)!c% c c!!! c)!c
c


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c)cc +c
 %cc c)c c ccc
c

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c,c! c ccc c!
c c c c c !cc c% %
cc c 'c  c
!c c c!  ccc ccD
cc c!
c 'cc c! c 'c
 cc!

c
To print multiple checks, click the down arrow on the 
button and select 

. In the
window that opens, select the checks you want to print. Then enter the first check number and click
!#.

ccV "c c-c cccV "c c-c cc c% cc%c
c

 '
When the time comes to pay sales tax, you should use the  ' function, rather than 
 or "
 :

c c c1 c2-' cc c!yVTccc cVTc c c!yVTcc
c#
c
c
The  ' window opens.

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c

c c c 'c  cc c )
cc&c&cc  c c  
c

/ To confirm or change the sales tax period set up for your company, select     from the
 
menu. In the     window, select the  ' icon. Under  ', select the
appropriate tax period-monthly, quarterly or annually.

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c3  -&cc!y3
Tc c!&cc c )c%
c

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c

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^ 4'

Memorizing a transaction saves its details so you can easily re-enter it on a regular basis; this is most
useful for regular payments, such as utility bills. You can have QuickBooks remind you when the
transaction needs to be entered, or automatically enter it for you.
To memorize a transaction:

c ë c c  c.c)!ccccc/cc&c% c c7
c
Leave blank any fields you'll need to change, such as the  
field, if the amount varies from
transaction to transaction.


c #c c cc c c!!! c 'c c.cc ' cc
 'u /
c
c
c
c
The ^ 4 '
 window opens.


c ë cccc c7 c  ccc  yu 
c

c c&c% cc c c&c c c c  c%c 3c c c 
+cc&c
% cc c  &c c c  cc&c c3
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c
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( 

c

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  c c c c  c c c c'
c

c cD
c

c c&c  c c  cc c!!cc7'c c c 3 c% c c c c
 c%ccc c cc c% %
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)   
You can use two methods to track sales to customers, depending on when the customer pays you:
invoices let you record sales when the customer isn't paying in full (or is paying in advance), while
sales receipts record sales paid for in full at the time the goods or services were provided.
The îustomer Navigator displays the workflow for recording sales, with shortcuts for creating invoices
and sales receipts, receiving payments and making deposits:

You can click any of these icons to accomplish the related task.

 
$ 
Use invoices to track what customers owe you for goods and services, when they don't pay in full at
the time of the sale, or when they pay in advance.
To create an invoice:

c
c
c

1.c îlick the $ button on the QuickBooks toolbar, or select  
$ from
the  
  menu.
2.c If QuickBooks asks if you want help selecting an invoice format, click ; this simply opens a
checklist to help you determine whether to use invoices, sales receipts or statements.
The  
$  window opens.

3.c Velect the name of the customer and/or job from the drop-down menu.
4.c If the customer currently has outstanding billable costs, QuickBooks notifies you that this
information is available:

îlick !#.

5.c If the customer has outstanding billable costs, click the ' 3
 button at
the top of the invoice window to open the  & '  
 window:

c
c
c

a.c Review the items and expenses shown in the window by selecting the appropriate tabs.
b.c îlick inside the  column for each item and expense to include in the invoice.
c.c îlick !#.
QuickBooks adds these items and expenses to the invoice. You can edit them as necessary.
6.c Velect the class associated with the invoice, if applicable.
7.c Velect an invoice template.
8.c For each item you need to add to the invoice, select the item from the drop-down menu in the
$
 column.
9.c Enter a quantity and adjust the price, if necessary.
10.cîonfirm that the appropriate tax entry appears in the ' column. If the item is non-taxable,
select  from the drop-down menu.
11.cReview the remainder of the fields, completing them as necessary. The ^  field is for your
own use; any entry you make will not appear on the invoice you send to the customer, but it
will appear in sales reports and on reminder statements.

12.cTo print the invoice, click the 
button at the top of the window. îonfirm the
printer settings and click 
.
To print multiple invoices, click the down arrow on the 
button and select 

. In the
window that opens, select the invoices you want to print and click !#.

Alternatively, you can click the   button to e-mail the invoice to the customer. In the
window that opens, confirm the e-mail addresses being used and the body of the message, and then
click   
(or   -
, if you want to wait and e-mail several invoices at once). The invoice
will be attached to the e-mail as a PDF file.
13.cîlick the  ( button to save the invoice, or  (
to save the invoice and add
another one.
)  $  

Once you receive payment for an invoice, you need to apply the payment to the invoice:
1.c In the îustomer Navigator, click the )    
 icon, or select )    

from the  
  menu.

c
c
c
The )    
 window opens.

2.c Velect the customer and/or job from the )    drop-down menu.
QuickBooks automatically adds the outstanding charges from open invoices to the payment form.
3.c Enter the amount of the payment you received and complete the payment method fields.
4.c To apply the payment, click inside the first (checkmark) column for each of the line items to
which you want to apply the payment. QuickBooks tracks the unused portion of the payment at
the bottom right of the window.
To have QuickBooks automatically distribute the payment, click the 
  button at the bottom
of the window. QuickBooks automatically applies the payment to the oldest invoices first.
5.c If you want to wait to deposit the payment with other undeposited funds, select the Ê 



   
   option at the bottom of the window; otherwise, select the  
'
option and the account that should receive the payment.
6.c îlick  ( to save the payment, or  (
to save the payment and add another
one.
 
 )  

When you receive full payment from a customer at the time of sale, you should create a sales receipt
instead of an invoice:
1.c In the îustomer Navigator, click the  )  
 icon, or select 
 )  
 from
the  
  menu.
The 
 )  
 window opens.

c
c
c

2.c Velect the name of the customer and/or job from the drop-down menu.
3.c Velect the class associated with the sale, if applicable.
4.c Velect receipt template.
5.c Velect the payment method from the drop-down menu.
6.c For each item you need to add to the receipt, select the item from the drop-down menu in the
$
column.
7.c Enter a quantity and adjust the rate, if necessary.
8.c îonfirm that the appropriate tax entry appears in the ' column. If the item is non-taxable,
select  from the drop-down menu.
9.c Review the remainder of the fields, completing them as necessary. The ^  field is for your
own use; any entry you make will not appear on the sales receipt.

10.cTo print the receipt, click the 
button at the top of the window. îonfirm the
printer settings and click 
.
To print multiple receipts, click the down arrow on the 
button and select 

. In the
window that opens, select the receipts you want to print and click !#.

Alternatively, you can click the   button to e-mail the receipt to the customer. In the
window that opens, confirm the e-mail addresses being used and the body of the message, and then
click   
(or   -
, if you want to wait and e-mail several receipts at once). The receipt
will be attached to the e-mail as a PDF file.
11.cIf you want to wait to deposit the payment with other undeposited funds, select the Ê 



   
   option at the bottom of the window; otherwise, select the  

' option and the account that should receive the payment.
12.cîlick the  ( button to save the receipt, or  (
to save the receipt and add
another one.
 c
c
c

 


 

You can create statements for customers showing outstanding balances and the length of time the
balances have been outstanding:
1.c In the îustomer Navigator, click the 

 
 icon, or select  


 
 from the
 
  menu.
The  


 
 window opens.

2.c If necessary, select the accounts receivable account from which to print statements.
3.c îonfirm the statement date. This will appear at the top of the statements as the  
, and
affects the date due.
4.c Velect whether to create statements for transactions within a particular date range or all open
transactions.
5.c Velect whether to print statements for all customers, multiple customers or one customer. Each
of these options, with the exception of  
 , provides a button or drop-down menu
that lets you select the customers (or type of customers) to include. Make this selection as
necessary.
6.c Velect a template to use for the statements. You can customize the template as necessary by
clicking the  
4 button.
7.c To create a separate statement for each customer job, select  1& from the  
! 


 
drop-down menu; otherwise, select   
 .
8.c The remainder of the checkboxes let you select additional options. îheck or clear these boxes
as necessary.
9.c To add finance charges, click the     button.
a.c If prompted, click   to set up finance charges.
b.c In the     window, select the options to use for assessing finance charges,
including the annual interest rate and grace period, and then click !#.
c.c In the     window, select the customers to whom the finance
charges should be applied.
 c
c
c
d.c îlick   .
QuickBooks returns to the  


 
 window.
10.cîlick  
to preview the statements, and then click 
to print the statements, or %
 to e-mail the statements to customers.
 
 

You can deposit individual payments at the time you enter an invoice payment or a sales receipt, or
you can wait and deposit multiple payments at once. When you're ready to deposit a payment or
payments:
1.c îlick the  
icon in the Banking Navigator, or select ^  
 from the 
menu.
If there are currently undeposited funds from invoice payments or sales receipts, the  


 
window opens.

2.c Velect the payments you want to deposit and click !#. If you don't want to deposit any of the
payments, leave all the items unselected and click !#.
If you selected payments to deposit,
 ^  
 window opens.


c
c
c

3.c Velect the account the funds should be deposited into.

4.c îonfirm the date and the entry in the ^  field, making changes as necessary.
5.c Enter any additional deposits as new line items. You can enter cash deposits separately for
bookkeeping purposes; QuickBooks will total these and enter a single amount on the deposit
slip.

/If you're entering a credit card payment, enter any fees you're charged as separate line items and
associate them with an expense account. You cannot enter credit card payments on printable deposit
slips.
6.c If you want to get cash back, select an account and enter the amount at the bottom of the
window.

7.c To print the deposit slip or a deposit summary, click the 
button at the top of
the window. Velect whether to print the deposit slip and a summary or a deposit summary only.
Then confirm the printer settings and click 
.
8.c îlick  ( to save the deposit or  (
to save the deposit and add another
one.
)   

You should reconcile your bank account as soon as you've finished the business setup process and have
entered all your historical transactions. You should then reconcile the register each time you receive a
bank statement.
To reconcile your account:
1.c In the Banking Navigator, click the )  icon, or select )  from the 
menu.
The  ) 
 window opens.

c
c
c

2.c Velect the account you're reconciling from the drop-down menu.
3.c Enter the date of the bank statement you're using for reconciliation. If you're reconciling after
entering historical transactions, you should use the bank statement that covers the start of your
fiscal year.
4.c îompare the beginning balance QuickBooks has displayed with the beginning balance shown
on your statement. If the balances are the same, continue with the next step. If the balances are
different, you have several options:
a.c îlick   to cancel the reconciliation. Then open the account register and find and
fix the problem. Once you've done this, begin reconciliation again.

/Transactions you cleared in your account register are excluded from the beginning balance; if
you've used your register to clear transactions, ignore the discrepancy. You can clear the transactions
in the next window.
b.c îlick -
  . In the -
   window, click  
) 
to view a list of transactions that were modified since the account was last
reconciled. Make any necessary changes to the transactions and, in the -

   window, click ) 

) 
 to continue.
c.c Ignore the discrepancy and let QuickBooks add a balance adjustment transaction.
5.c Enter the ending balance from your statement.
6.c Enter any service charges or interests earned and select the account used to track each.
7.c îlick 
 .
The )  window opens, listing uncleared checks and deposits.

c
c
c

8.c îompare each check and deposit with the ones listed on your bank statement. îlick on each
item in QuickBooks as you match it; this places a checkmark next to the item, indicating it will
be cleared.
6c If a transaction amount doesn't match the amount shown on your statement, double-
click the transaction to open it and make the necessary changes. Then save and close the
transaction to return to the )  window.
6c If a transaction shown on your statement is missing entirely from your register, open
your register and enter the transaction. Then save and close it to return to the ) 
window.
9.c As you clear transactions, QuickBooks calculates the total amount you've cleared against the
statement and displays the difference. When the difference is 0.00, click )  
.
If you finish clearing the transactions and QuickBooks still shows a difference (a discrepancy), then
you can either use the methods described above to find and fix the discrepancy, or you can click
)  
to have QuickBooks enter a balance adjustment. If you later find the source of the
problem and are able to correct it, you can (and should) delete the balance adjustment transaction from
your register.
 + 
$ 

Although QuickBooks can automatically update your inventory when items are received and sold,
you'll need to manually adjust inventory to account for gains and shrinkage (theft, breakage, etc.):
1.c From the *   menu, select $ 


 , and then select  + 
 

3* 
m from the submenu.
The  + 
 

3* m window opens.

c
c
c

2.c îonfirm the date and enter a reference number (optional).

3.c Velect the adjustment account from the drop-down menu. For losses, this will be an expense
account associated with the loss; for gains, it will be an income account.

/You should create separate adjustments for each account.
4.c Velect the associated customer and class, as appropriate. This is optional.
5.c To adjust the quantity of an item in the inventory list, enter the new quantity or the difference
in quantity (whichever you prefer) into the appropriate column.
6.c To update the value of inventory items, select the *  + 
 
checkbox. This displays
the 
* column. Enter the new value of the items you're adjusting.
7.c îlick  ( to update the inventory.
 
) 

You can create a range of reports using the ) 
 button at the bottom of most of the QuickBooks
navigators. You can also select a report using the Report Finder:
1.c From the navigators list, select ) 
.
The ) 
  opens.

c
c
c

2.c Velect the type of report to view a list of reports in that category. Then select a report from the
list. A preview of the report is displayed on the right side of the window.
3.c Velect a date range for the report.
4.c To customize the report, click the ^  ) 
button.
This opens the ^  ) 
dialog, which contains various options for the report you selected. For
instance, you can select which columns to include in the report, select filters to limit the data included
in the report, change the headers and footers and change the fonts used for column and row labels, data
and other elements.

c
c
c

Make your selections and click !# to close the dialog.

5.c îlick   to view the report in the Report window. Or, click 
to print a hard copy of
the report.
îlicking   opens the report in Microsoft® Excel.
   
  
When you close your books at the end of an accounting period, you restrict access to transactions from
prior accounting periods. To enter a closing date for your books:
1.c From the  
menu, select    .
2.c In the     window, select the  
 icon from the list on the left.
3.c Velect the      tab.
4.c Under 
, enter the date through which you want your books closed.
5.c To limit access to the closed period, click the 

 button.
6.c In the window that opens, enter a password and click !#.
7.c îlick !# to close the     window.
Historical transactions are still visible, but the password is required in order to modify or delete any of
the transactions, as well as to enter new transactions prior to the closing date.
$
 
.   

/
6c Open your company file
6c Order and receive items
6c ëiew Purchase Orders
6c îreate Purchase Orders
6c Enter bills
6c Pay bills
6c Write a check
6c Pay sales tax
6c Record sales
6c Receive payments
6c îreate a sales receipt
6c Deposit payments
6c Reconcile your bank account

c
c
c
6c Adjust inventory
6c îreate reports
6c îlose your books
c

c
c