Page1 QuickBooks Basics Level III Part VII Handling the Money Payments and deposits Recording Customer Payments If a payment is received at the time of the sale, QuickBooks automatically records the customer payment in your Accounts Receivables. However, if you invoice a customer, you receive the payment after the fact and you will need to record it in QuickBooks, matching it up with existing customer invoices. Receiving Simple Payments Payments in full for a single job 1. Click on the Receive Payments button in the Customer section on the home page. 2. The Receive Payments window opens. 3. Enter the following data in the fields on the screen: a. Choose the customer from the drop down menu Note that the total amount owed displays to the right of the customer name. b. Enter the amount in the Amount field and TAB to the date field c. The current date is automatically supplied. TAB again. d. Choose the correct payment method. e. Fill in the Check # or Reference number. f. Click Save and New to record the payment and enter another. Behind the scenes, QuickBooks creates a journal entry. It puts the payment into the Updeposited Funds account and also credits your Accounts Receivable account.
Page2 To enter a partial payment 1. Click on the Receive Payments button on the home page. 2. The Receive Payments window opens. 3. Enter the following data in the fields on the screen: a. Choose the customer from the drop down menu. Again, note that the total amount owed displays to the right of the customer name. b. Enter the amount in the Amount field(s) and TAB to the date field c. The current date is automatically supplied. TAB again. d. Choose the correct payment method. e. Fill in the Check # or Reference number. f. If more than one invoice is still open you will see a checkmark in a column to the left of the oldest bill and it lets you know if that bill is paid in full or if there is an underpayment (bottom left corner of form). g. Or, you can choose the invoice to apply it to rather than selecting the QuickBooks default. i. Click Un-Apply Payment (bottom right) ii. Then type in the amounts that you want to apply to each invoice manually in the payment column. h. Click Save and New to enter another payment or Save and close to close the Receive payments window. Behind the scenes, QuickBooks creates a journal entry. It puts the amount of the payment into your Undeposited Funds account and also credits your Account Receivable for the same amount.
Page3 Entering one payment to multiple jobs 1. Click on the Receive Payments button on the home page. 2. The Receive Payments window opens. 3. Enter the following data in the fields on the screen: a. Choose the customer from the drop down menu. Note that the total amount owed displays to the right of the customer name. b. Enter the amount in the Amount field c. Note that QuickBooks automatically applies the amount to the oldest of the bills or all if it is for the exact balance due. TAB to the date field d. The current date is automatically supplied. TAB again. e. Choose the correct payment method. f. Fill in the Check # or Reference number. g. Click Save and New to record the payment and enter another. Overpayments Overpayments are also tracked by QuickBooks to be applied against future invoices or refunded to the customer. 1. Enter all of the information as given above. To refund the overpayment, Select Refund the amount to the customer. 2. Click on Save and New. 3. The Issue a Refund window opens with the amount of the check and customer information automatically supplied. 4. Click OK. Prepayments Occasionally customers will want to prepay you for a service or item before you ve written the Invoice. This is still done at the Receive Payments window. QuickBooks records this as an unused payment and credits the customer s account with this amount. The next time you enter that customer s transactions, the credit amount appears. Do as follows: 1. Click on the Receive Payments button on the home page. 2. The Receive Payments window opens. 3. Enter the following data in the fields on the screen: a. Choose the customer from the drop down menu. Note that the total amount owed displays to the right of the customer name. b. Enter the amount in the Amount field. In this case the Receive payments window says that there are no unpaid invoices for the customer. However, in the bottom left corner it says:
Page4 4. Select leave the credit to be used later. 5. Fill out the rest of the form and click Save and close. 6. Click OK again. Applying prepayments when creating Invoices 1. Go to Create invoices on the home page. 2. Fill out the customer name in the Customer: Job drop down menu 3. Cancel the Available estimates pop-up if it appears. 4. Choose Custom Invoice from the template drop down menu in the upper right corner of the form. 5. Select the service or item in the item column and TAB to the quantity field and type that number 6. Click on the Apply Credits button in the bottom right corner of the screen. 7. The Apply Credits window opens showing the available credits and previously applied credits. 8. Click Done. 9. QuickBooks now show the payments applied to the customer s account at the bottom of the screen and the Balance Due.
Page5 10. Click Save and close. Deposits When you receive payments from your customers, whether from a sales receipt, or an invoice or prepayment, QuickBooks keeps track of all incoming monies until it is deposited in your bank account, in addition to keeping track of monies applied to customer accounts. These payments can be deposited individually or in groups you choose. Selecting payments to deposit While you make keep the physical checks and monies received from your customers in a safe or cash register, QuickBooks holds the un-deposited payments that you have recorded in an account in your Chart of Accounts called Undeposited Funds. When you re ready to take that your checks to the bank, you can record the deposit in QuickBooks and print a deposit slip to bring with you. To do this: 1. Go to the QuickBooks home page. 2. Click on Record Deposits in the Banking section. Or, 3. Click on Banking in the Menu Bar 4. Click on Make Deposits. 5. A list of all of the recorded payments to customers account that have not yet been deposited displays. 6. Click in the left column next to each payment that you want to include on the deposit. 7. Click OK. 8. The Make Deposits window now shows with the individual payments listed and a deposit subtotal in the bottom right corner. 9. Make sure that your Checking account has been selected in the top left corner. 10. Make sure that the correct date displays 11. If you have additional monies to deposit that do not come from a customer, such as a refund on your insurance payment, you would click in the line under the last entry and enter it on the form and QuickBooks would automatically update the deposit total. 12. There is a print button on the Make Deposit menu bar at the top of the form to print a deposit slip to take with you. 13. Click Save and close. Behind the scenes, QuickBooks removes the amounts that you just deposited from your Undeposited Funds account and adds it into your Checking account. You can look at both of these transactions in the Chart of Accounts Undeposited Funds and Checking. 14. Note the bottom left corner of the Make Deposit form. This is where you enter any cash back that you are getting from your deposit. Note also, that you must assign these monies to a specific account such as Petty Cash. 15. Type in the amount (this is deducted from your deposit total, of course) once you have selected the account. 16. Click Save and close.
Page6 Part VIII Entering and Paying Bills Accounts Payable Handling your business expenses can be done in a number of ways depending upon the situation: You can write a check manually if the situation demands it. You can use QuickBooks to write and print a check. You can use QuickBooks Accounts Payable functionality to enter your purchases and amounts owed and pay your bills, a two- step process. You can record your credit card transactions into QuickBooks. For whether you pay your bills as they come in or monthly, QuickBooks is a great asset. It helps you keep track of your upcoming payments and also when they are due. QuickBooks uses the Accounts Payable account to track this. To see this, click on the Chart of Accounts and click on Accounts Payable. Entering Bills 1. On the home page in the Vendor menu choose Enter Bills or 2. Click on the Vendor Center in the icon bar and select Enter Bills. 3. Click in the Vendor field and enter the Vendor name and click TAB. You will get a Vendor Not Found window and have the opportunity to do a Quick Add (you can enter more information about this vendor later.) 4. Type in the amount in the Amount due field. 5. Click in the Bill Due field if you want to make a change. 6. In the bottom half of the form you now want to assign this bill to an account Click in the Account field and choose the account from the drop down menu. QuickBooks automatically fills in the amount from the Amount Due field. 7. However, you can assign bills to more than one account in the form. Click in the next line under account and choose another account. Hit TAB to select. 8. Change the amount in the first line to the partial amount. QuickBooks will automatically change the amount due for the second line item to the balance from the amount due. 9. Click save and close. Paying Bills 1. On the home page in the Vendor menu choose Pay Bills or
Page7 2. Click on the Vendor Center in the icon bar and select Pay Bills. 3. All the unpaid bills will appear. 4. You can select the bills you want to pay by Due Date in the top left corner of the screen 5. Click off on the list the bills you want to pay or leave all bills showing. 6. You can also filter by vendor and sort by discount date, amount due, date due or vendor. 7. To use the QuickBooks to print your checks make sure that the To be printed option is selected (bottom middle if check is selected) so that QuickBooks knows to print it later. 8. Click Pay Selected Bills. 9. A summary of your bill payments appears. (You can print the checks, pay more bills, or click Done.) Behind the scenes - QuickBooks makes an entry in your Accounts Payable register decreasing it by the total amount that you just paid out. It also creates an entry(s) in your checking account which subtracts the amount you just paid out in the register. Applying Vendor Discounts Some vendors may offer discounts for early payment. You can record and track those discounts in the Pay Bills window. 1. On the home page in the Vendor menu choose Pay Bills or 2. Click on the Vendor Center in the icon bar and select Pay Bills. 3. All the unpaid bills will appear. 4. In the Sort by field, select Discount Date. 5. The vendors which give discounts for early payment rise to the top of the list. Note that the regular date due is on the left while the date by which the payment is due in order to get the discount is to the right of the vendor name
Page8 6. Put a checkmark next to the bill. 7. At the bottom of the screen the discount terms that you originally entered when you set up that vendor will appear along with the suggested discount amount. 8. Click Set Discount. 9. A discount and Credit window will display your terms. 10. You will need to choose an account to track the discount amount. 11. Click Done. 12. Click Pay Selected Bills in the bottom right corner of the Pay Bills screen. IX Analyzing Your Financial Data The prior lessons have concentrated on entering data in QuickBooks and using it to manage your financial transactions. Another side benefit of entering all your company s data into QuickBooks is the reports that you can extract from it that will help you analyze your company s profitability based on your actual financial data. You can use the dozens of preset reports that come with QuickBooks to plan for improvements. You can also customize and save those reports and share them as needed. QuickReports Quick Reports are predesigned reports that come from whatever information that you see on the screen whether it be a list, a register or a form. E.g. click on the name of a vendor in your Vendor Center. The link to the Quick Report will appear in the upper right corner of the window. You can also choose to see only unpaid bills and unapplied credits by clicking on the Open Balance link below it.
Page9 A vendor report can show you all of the transactions for the month to date and also include POs, bills and bill payments, item receipts and credits. Do the same with your Customer Center and click on the name of a customer and then the link. The link will give you the name of the customer and job, dates, invoice or estimate numbers, the account that that transaction is tracked in, splits, debits and credits. You can double click on an item in a Quick Report for more detail if you see the magnifying glass with the Z in it Quick Zoom. Click Save and close to return to the report. Customizing Quick Reports Note the Modify Report in the Button Bar across the top of the report. Clicking this will allow you to modify some of the parameters of the report and the report layout.
Page10 The Display tab: Allows you to select the data fields that you want to display. Put checkmarks next to any additional fields that you want to see in the Columns section. You can also arrange the sorting order. Click OK to display the changes. Note that you don t have to go into Modify Report in order to modify by dates, although that option is in there. The Filters tab: Filters let you change the scope of a report. When you apply a filter to a report, you choose how you want QuickBooks to restrict the report; for example, to certain customers. QuickBooks then excludes from the report any transactions that don't meet your criteria. You can apply filters either one at a time or in combination with each other. Each additional filter you apply further restricts the content of the report. 1 The Header/Footer and Fonts & Numbers tabs: Allows you to add this formatting to the report for printing or sharing for a more professional looking report. To Change the report layout and move a column of data: Put your mouse cursor over the column that you want to move in the report until it looks like a hand. Holding the left mouse button down, click and drag the column header to where you want it to display in the report. Release the mouse button. The Button Bar in Quick Reports: In addition to Modifying Reports, which allows you to customize your Quick Reports, you also have additional options for using your Quick Reports. These include: Memorize - this allows you to save the report that you just created to a folder by category for future reference. Print with all of the options available for printers on your computer or company network, including printing to a file. Email to email in either Excel or PDF format Export directly into Excel spreadsheet 1 QuickBooks program help feature What are Report Filters?
Page11 Hide the Header this is a toggle on or off. Refresh if you include additional data, click refresh to update the page display. The Report Center QuickBooks has dozens of present report formats available from the Report Center on the icon bar. Report types include: Profit and Loss Balance Sheet Accounts Payable & Receivable Sales Inventory Click on the Report Center button to see the menu of reports by type. There are twelve major types available with additional industry specific reports at the bottom of the list. The Accountant edition (which you see at the Library s computers) includes all. Navigating the Report Center Finding Reports Note that tabs that run across the top of the Report Center window. Click the tabs to see the Standard reports that come with QuickBooks(see screen shot at right), any reports that you have Memorized, reports you have selected as a Favorite, or Recent reports that you have run. There is also a Search box in the top right corner where you can type in keywords to find a report that you are looking for. Although perhaps the best way to find reports that you might like to use as a new user is to browse the categories to see what standard reports are available. Find More Reports is a link to the online community of QuickBooks ProAdvisors and other users where you can download and use additional reports. The Learning Center contains the Report Center help features.
Page12 Views: The Icons at the top right corner allow you to choose between the display views of Carousel (QuickBooks 2009>...), List or Grid for finding your reports. Carousel view Note that the Carousel View has a scroll bar across the bottom for navigating between reports. When you click on any one of them you get the following options (from left to right): o A quick view of the report (little pop-up) o An option to open the report o An option to mark it as a Favorite o The Help feature on the report for more information. When you click on any view, the reports available within that area will be organized by categories. Create a Report Example To see a report that compares the current year against the past year in both dollar amount and percentage for your company:
Page13 Choose Company and Financial from the Standard tab. Find the Balance Sheet and Net Worth Section Choose Balance Sheet Previous Year Comparison. Click the Display Report icon. The report display will be very similar to the Quick Reports display with the Button Bar across the top for Modifying, Memorizing, Printing with the exception of the Collapse button. This hides subaccounts, jobs and subclasses. This button affects the screen display AND the printed display. Click the Expand button to see the original display. Note also that the contents of the Modify window change with this report. For example, you can choose to display the contents in either Cash or Accrual terms. Use the Revert button if you make changes in the data in the report and then want to see the original. Filtering Report Data Filters from the Modify Report button on the Button Bar allows you to customize the data/transactions that you want to see included on your report. To filter: Open the report that you want in the Report Center. Click the Modify Report Click the Filters tab In the Choose Filter box, choose a filter from the menu. The contents of the column on the right will change according to the filter you have selected to allow you to choose how you want to apply that filter. Note also that below each filter type as you click on it, a brief description appears with a link for more information about that topic the Tell Me More button. You can choose multiple filtering options. The Box on the right will display all of your choices as you add them. Removing Filters - You can also click on any of the filters that you have selected in the Current Filter Choices box and click on the Remove Selected Filter button to remove it or click on Revert to return to the original report. Click OK to view the new filtered report. You can go in and out of the report modification multiple times as needed by clicking Modify Report until you get it to return the data that you want in the way you need it. Some filters represent more than one thing. Examples.
Page14 Item Name Transaction type Any kind of line item that appears on a purchase order or sales form. These include goods and services, discounts, and sales tax. Customers, jobs, vendors, employees, or any name on your Other Names list. Any type of transaction, including invoices, cash sales, statement charges, payments from customers, bank deposits, purchase orders, item receipts, bills, bill payments, credit card charges, checks, paychecks, and general journal entries 2 Memorizing Reports FYI, by default, if you have made modifications to a QuickBooks report, when you go to close it out, you will be asked if you want to Memorize the report. Click No just to exit it or yes to Memorize. Memorizing will allow you to quickly reproduce the same report again more easily. If you Memorize you will want to rename it appropriately so that it doesn t overwrite the canned report. You also will need to save it in one of the areas of the reporting center so that you can find it easily again. To find your memorized reports: Go to the Report Center Click on the Memorize tab. Click on the category under which you saved it on the left (see drop down menu screen shot above) Search by the name that you gave it. (The Balance Sheet Prev Year Comparison Test example above will appear in your Accountant s list of reports.) Double click on it to open it. New Memorized Report Groups You can also add to the list of places where you save your memorized reports to find it again more easily. Click on the Memorized Report button at the bottom left of the page Select New Group Type in the name of your new group in the Name field. Click OK. The new Group will appear at the top of your Memorized Report List AND in the drop down menu of Save in Memorized Report Group when you Memorize any new reports. 2 Quick Books Help Finding a Report Filter.
Page15 To Sort the list aphabetically, Click on the Memorized report button and choose Resort List. Or You can put your cursor on the little diamond in front of each entry on the list until you get the four headed arrow, hold your left mouse button down and click and drag the entry to the place on the list where you want it to display. To Further Manage Report Groups: Click The Memorized Report Button at the bottom left corner of the page Select Edit Memorized Report Click the Save in Memorized Report Group checkbox and then choose the group that you want to move a report to from the drop down list. Click OK. Delete a Memorized Report: Click on Edit Memorized List on the top of the Report Center once you have click on the Memorized tab. All of your reports appear on the screen in list view. Right click on the report that you want to delete and select Delete Memorized Report. Or- Click on Edit in the Menu Bar and select Delete Memorized Report. Or Click on the Memorized Report button at the bottom left of the page and select Delete Memorized Report or Ctrl D from the menu. Be VERY careful when deleting to make sure that you don t accidentally delete a report that you want to save. Processing Reports in Groups Once you have organized your reports into groups as your need requires you can batch process them making creating these reports a one step process. Click on the Reports Button in the Menu Bar. Double Click on Memorized Report List Your reports appear in list view
Page16 Double click on the category that you have created. The Process Multiple Reports window opens. Remove checkmarks from any reports in the group that you do not want to see. Click Display to review your reports before printing. Click Print to print them. When finished, click on Window in the Menu Bar and choose Close all. Exporting Reports to Excel Exporting reports to Excel allows you to change a report s appearance or modify the content in ways that might not be available using QuickBooks. Since these reports are exported out of QuickBooks, you don t have to worry about altering any of your data within QuickBooks itself and you are free to customize as needed. This functionality works with Excel 2000 and above. Go to the Report Center Choose the report that you want to export Click on the Modify button to modify it as needed. Click OK. The report opens in QuickBooks Click on the Export Button in the Button Bar of the report. The export window appears with two tab, Basic and Advanced. Make sure that a new Excel Workbook is selected on the Basic tab On the Advanced tab, choose the options that you would like. E.g. choosing the Auto Filtering option allows you to filter your results in Excel. Click Export. QuickBooks starts Excel and the report opens in a new spreadsheet. To filter that report in Excel: Note the drop down menu arrows next to the column headers in Excel.
Page17 Click on them to see available options for filtering/sorting. The top of the list of the drop down contains the sorting options, while the bottom contains the number filtering options. Choose the option you would like Click OK and the report displays in filtered format. Save and close the report as desired. Close out of the report In QuickBooks. Graphing Your Data for a Company Snapshot Many of us are visual learners and the best way to display your company data is with a graph. Two types of graphs are available within QuickBooks pie charts and Bar graphs. Data that can be graphed includes: Income and Expenses Sales Accounts Receivable Accounts Payable Net Worth Budget vs. Actual To view a graph of your
Page18 company s data from within QuickBooks: Go to Reports on the Menu bar Choose a report area from the drop down menu, for example, Company & Financial. The graphs that are available for that reporting area will display in the menu as separate entries. For example, in the Company and Financial area there are two graphs the Income & Expense Graph and the Net Worth Graph. [You can also see available graphs from within the Report Center under the headings where they are available.] Graph Features Note that in the case of the Income and Expense Graph that there are two graphs displaying: the Bar Graph and a legend on the top and a pie chart and legend on the bottom. This is a feature of most of the graphs. The bar graph on the top usually shows totals. The pie chart shows a breakdown of the information that is in the bar graph above it. All of the reports also have legends which explain what each piece of data on the graph represents. There are also Button Bars across the top of each graph which are context sensitive and they allow you to modify the display of the data in the chart. In the case of the Income and Expense chart above, you can modify by Date, by Account, by Customer, By Class Each chart can only display 10 accounts at one time.
Page19 Clicking the Next Group will allow you to see more accounts. If you hover with your mouse cursor over an area of the graph you will notice the magnifying glass with the Z in it (the quick zoom feature). This allows you to double click on that piece of the chart to see the data behind it. This can go several layers deep. You can also choose to change how your graphs display (change from the default 3D to 2D) in order to load your display faster. To change: o Click on Edit in the Menu Bar. o Select Preferences o Choose Reports and Graphs o Click Draw graphs in 2D (faster) o Click OK. X Purchase Orders QuickBooks allows you to keep track of the number of units of any product or part that you sell that you have on hand or on order. In addition to making it easier to sell your items more easily without having to run to the shelves to see if you actually have any stock, this functionality also allows you to have a more complete picture of your company s assets. This feature needs to be turned on it does not turn on automatically. You can turn it on during the interview setup or after the fact as follows: Click on Edit in the Menu Bar Click on Preferences Click on Items and Inventory Click the Company Preferences tab. Click Inventory and purchase orders are active Click OK. *Note that this functionality can only be turned on by an individual with Administrator privileges. Enter your inventory To use this functionality you must first enter every item that you sell into QuickBooks as an inventory part. Once it is entered it can be tracked. To enter: Click on either Vendors in the Menu Bar Click on Item List.
Page20 Click on Item in the Item List menu bar at the bottom of the screen Choose New Or Ctrl +N The New Item form appears. Choose the type of item/product that you are entering from the drop down list. The form is context sensitive and changes additional options depending upon the type of item that you are entering. Fill out the Item Name/Number data. Fill out the Sub-item of if offered. Fill out the manufacturer s part number if you have it to make reordering easier. Filling out the Description on Sales/Purchase Transactions will fill in the item description in an invoice or PO. Fill in the cost. Fill in the Preferred Vendor Fill in Sales Price You can assign a different tax code if it needs one. Choose the account which is credited when you sell or use the item. Type in a reorder point so that QuickBooks will tell you when it is time to reorder. Fill in the number on hand. Click OK to save and close. Ordering new Inventory To purchase new items from a vendor you must create a PO (purchase order). When you do so, QuickBooks will automatically calculate the next purchase order number, item cost and total cost. To create a PO: From the Vendors Menu on the home page, click on Purchase Orders. The Create Purchase Orders Window displays. Type in the Name in the Vendor field. If you have already entered the Vendor s information it will automatically prefill as you start to type it. The Vendor name and address displays in the Vendor box. Click in the Item column and select an item from your inventory. Note that it both this field and in the vendor field, there is the option to <Add a New> item or vendor on the fly. If you are selecting an item from your existing inventory list, the rate per item will display in the Rate column. Type in the Quantity. The total amount for the number of items purchased will automatically be calculated. Type in a message to the vendor, if desired. Click Save and close to record the PO. Reports on your POs To get a list in date order of all of your purchase orders:
Page21 Click on Lists in the Menu Bar Choose Chart of Accounts Choose Purchase Orders (this is at the bottom of the list because it is a non posting account. A non posting transaction is one that does not affect income, expense, or balance sheet accounts. Examples are sales orders, purchase orders, estimates, and pending invoices. You can choose to make some transactions, such as payroll adjustments, posting or non-posting. 3 Most recent POs display at the bottom of the list. Close all windows. Receiving Inventory When you receive new merchandise you can check it in with or without a bill. Go to the Vendors Menu on the Home page. Click on Receive Inventory. (You will have an option there to receive it with or without your bill). To receive without a bill: Choose Receive Inventory without a Bill. The Create Item Receipts window opens. Type the name of the vendor in the vendor field. Press tab. Click yes when the popup window appears that says that open orders exist for this vendor. Do you want to receive against one or more of these orders? Open POs for your vendor appear in a new window. Click on the last PO that we just entered in the example above to select it. The Create Item Receipts window is now populated with the information just selected. Click save and close to check in the materials. This will add the items on the receipt to your inventory. Next, you will want to record the amount due in Accounts Payable even if the bill hasn t arrived yet so that your Accounts Payable tracking can be up-to-date. You can pay the bill just as you would any other when it comes. To enter the bill: o Click on Vendors in the Menu Bar o Click on Enter Bill for Received Items o The Select Item Receipt displays. o Select the vendor in the Vendor drop down menu. o Items with bills to follow appear in the window. o Choose the correct item receipt from the list and click OK. o The Enter Bills screen now displays. o Click Save and Close. o Click Yes to record the transactions. 3 QuickBooks help menu none posting transaction.
Page22 Behind the scenes QuickBooks changes the item receipt to a bill which is entered in the Accounts Payable account and also lists the bill in the Pay Bill window. Always enter your item receipts before entering sales. To receive with a bill: Go to the Vendors Menu on the Home page. Click on Receive Items and Enter Bills. Enter the Vendor name Select the PO number from the Open Purchase Orders Window and click OK possibly twice Click the Items tab in the Enter Bills window and verify that the number of items shown equals the number of items received. If necessary, edit the quantities to match the shipment. Verify that the costs on the Item tab match the costs on the bill. If necessary, edit the costs to match the bill. To enter shipping charges or taxes not associated with any one item, click the Expenses tab. In the detail area, enter each charge and associate it with its correct expense account. Verify that the Amount Due field matches the amount of the bill. (Optional) Change the date of the bill. Complete the Ref. No., Terms, and Memo fields as needed. Save the bill. Part XI Sales Tax Use QuickBooks to manage and collect sales tax. Once set up, it automatically applies sales tax where applicable and keeps track of it. *Specifically, use QuickBooks to set up tax rates you will charge, and agencies to whom you must pay the taxes collected; indicated who and what gets taxed; apply tax to each sale; find out what you owe so you can pay; and then pay that tax bill. Setting up your tax rates and agencies to whom you pay the taxes To set up a new sales tax do the following: Click on Lists in the Menu Bar Select Item List. Click on the Item menu button at the bottom of the page. Choose New or Ctrl+N In Type field, choose Sales Tax item. Type the Names in the Sales Tax Name field Type a description in the Description field Type in the % rate in the Tax Rate field. Type the Name of the Agency in the Tax Agency field. Click OK. You can choose Quick Add to add your new tax agency to the Vendors List. Your Item List will now display the new tax name, account and rate.
Page23 Grouping Taxes You can group multiple taxes that you collect together to make your sales receipts less confusing for your customers. To create a Sales Tax Group: Click on Lists in the Menu Bar Select Item List. Click on the Item menu button at the bottom of the page. Choose New or Ctrl+N In Type field, choose Sales Tax Group Name the new tax in the Group Name/Number field. Type a description in the description filed. Click in the Tax Item box. Select the first tax item Click in the next space in the Tax Item box. Select the next tax. Your group rate is totaled. Click OK to save. You will now see the new sales tax group displaying in the Item List. Setting up your Default Sales Tax
Page24 In order for QuickBooks to automatically apply sales tax to your invoices and sales receipts, you have to set up a default sales tax, or tax that you use most often. Once that is done, that default sales tax is automatically applied at point of purchase unless you select otherwise. To set up the Default Sales Tax: Go to Edit in the Menu Bar Click on Preferences Select Sales Tax in the left menu Click on the Company Tab Choose the default sales tax in the Set up Sales Tax Item category. Next - Who and what gets taxed Defining Taxable Items When you add your inventory items in the Item List [Lists in the Menu Bar > Item List >Add a new or edit an existing item] you should indicate whether or not the item is taxable. Select the item from Item Lists Click the Item Menu button at the bottom left Choose Edit Item The Tax Code field tells QuickBooks whether the item is taxable (click on the drop down menu to change options). The default sales tax is automatically applied if Tax is selected. Click OK to save any changes. Close the Item List. Defining How Customer Get Taxed You can indicate whether a customer is subject to a different tax in the Customer record so that that customer automatically has that sales tax applied to their purchases. Click on the Customer Center in the Icon Bar Choose your customer from the list on the left Click on Edit Customer button top right.
Page25 Click on the Additional Info tab. Applying Sales Tax Automatically Now that you have set up your tax items, your customer tax rates, and default tax rates, QuickBooks will automatically apply sales tax to each sale. Click Create Invoices on the Home page screen. Choose the Customer / Job in the Customer: Job drop down menu Choose the invoice type in the Template field in the in the top right corner of the screen. Click in the Item column and select item(s) for purchase from your inventory. Add quantities for each in the Quantity field. DON T FORGET TO PRESS TAB TO NAVIGATE FROM FIELD TO FIELD. The default tax for the customer and item appears on the form. You can select a Tax from the list if you want to change it manually. Click Save and close when done. Making Your Tax Payments Once you have collected sales tax from your customers, you are then responsible for paying those dollars to the appropriate tax collection agency. There are three ways to determine how much you need to pay: 1. The Sales Tax Liability report 2. The Sales Tax Payable register 3. The Pay Sales Tax window. The Sales Tax Liability Report This gives you a complete report of your sales tax obligations for a given time period. Go to Reports in the Menu Bar. Click on Vendors and Payables Choose Sales Tax Liability. The report can be modified to show amounts owed from specific dates. Go to the Dates field below the Button menu and select your date. Your liabilities will display. The Sales Tax Payable Register
Page26 Every time a tax is assessed in a sales receipt or invoice, QuickBooks keeps track of it in the sales tax payable register. To see each and every individual sales tax transaction: Click on Chart of Accounts on the Home page Click once on Sales Tax Payable Click on the down arrow in the Activities button (bottom left on the screen) Choose Use Register (Ctrl+R) The register with individual tax transactions displays Paying Tax Agencies To make your tax payments to the tax agencies: Click on Manage Sales Tax on the Home page. The Manage Sales Tax window opens. Click on Pay Sales Tax The Pay Sales Tax window opens. Click the to be printed checkbox. Chose the date through which the sales tax is due Then press Tab. All of your tax liabilities display below in the item window. To pay all, click on Pay All Tax. This puts a checkmark next to each tax agency in the list to which a payment is owed. Click OK. To print the checks, go to Print Checks button on the Home page.
Page27 Part XII - Payroll QuickBooks calculates each employee s gross pay, as well as the taxes and deductions that result in net pay. QuickBooks also allows you to write paychecks, keep track of all tax liabilities and then pay them. Because QuickBooks can handle all of the tax deductions involved in calculating payroll withholding, you need to get the tax tables with your own company data file. This comes as a subscription service from QuickBooks. See below: Payroll is not automatically included in QuickBooks. It is offered as a subscription service in order to enable you to get the latest payroll tax updates as they become available by simply downloading the information when you get updates from the service. You must sign up for one of the QuickBooks Payroll services to automatically calculate payroll tax deductions and prepare tax forms. Intuit offers a variety of solutions to meet your payroll needs whether you prefer to do things yourself, or you want us to assist you: QuickBooks Basic Payroll QuickBooks Enhanced Payroll QuickBooks Enhanced Payroll for Accountants QuickBooks Assisted Payroll 4 Typical paycheck deductions include the following: Federal and state income taxes Social Security taxes (FICA) Medicare taxes State unemployment insurance Other possible deductions might include: 401(K) plan and other savings plans Health and dental insurance contributions Pension contributions Payroll Calculations require the following information: 1. Company info Federal Tax ID number, 2. Employee info salary or hourly rate of pay, filing status, number of exemptions, extra deductions, and company contributions, SSN, address and other personal information 3. Other payroll items company expenses related to payroll. 4. Tax Tables for state, federal, and local tax withholdings. 4 QuickBooks online help subject Payroll.
Page28 Payroll Setup The QuickBooks payroll service is turned on by default. Payroll Items This item list is a list of all of the items/expenses that affect payroll the Payroll Item List. This includes salary, sick salary, vacation salary, overtime pay, regular pay, sick hours, vacation hours, bonus, mileage reimbursement health insurance and much more. Each item on it has a name and type. To see the Payroll Item List go to Lists in the Menu Bar > Payroll Item List, or go to Employees in the Menu Bar > Manage Payroll Items > View/Edit Payroll Item List. Some items on the list are automatically added by QuickBooks, others can be added as needed. To Add a Payroll Item Go to Employees in the Menu Bar Manage Payroll Items View/Edit Payroll Item List Select Payroll Item from the button bar at the bottom and choose New. The Add New Payroll Item Wizard begins. Leave EZ Setup selected and click Next. Select the type of payroll item you want to add and click Next Follow the onscreen directions thru to completion and click Finish when done. Close the Payroll Item List. Consultation with your tax advisor is recommended.
Page29 Setting up Employee payroll information To see all of the information about your employees: Go to the Employee Center on the Icon Bar. Click on an employee name Click on the Edit Employee button (top right). The Edit Employee window opens. The Change Tabs field at the top of the window allows you to switch from personal payroll and compensation info and employment info. Each subject area has its own unique fields. The Payroll tab stores the specific information about employee salary or hourly compensation, deductions, company contributions, taxes and more. Click the Taxes button wo see where the federal, state and other tax information from the W-4 form. Employee Defaults You can set up default settings that most of your employees have in common to make adding new employees easier. Go to the Employee Center on the Icon Bar. Go to the Manage Employee Information button and choose Change New Employee Default Settings. The Employee Defaults window opens. Adding a health insurance deduction for all employees would be done as follows: Click the Use time data to create paychecks checkbox. In the Additions, Deductions, and Company Contributions field, click in the Item name field and select Health Insurance from the drop down. Tab to the Amount field and enter the amount to be deducted. If you click on the Taxes button you will see the taxes that should be withheld automatically. Click the Sick and Vacation button to set up those defaults.
Page30 Setting up Payroll Schedules You can use QuickBooks to automatically schedule your payroll(s) so that you can pay your employees on time. There is also an Unscheduled Payroll option in the Payroll Center. To set up payroll schedule(s): Go to Employees on the Menu Bar Choose Add or Edit Pay Schedules. Click on the Payroll Schedule button (bottom left) Choose New. The New Payroll Schedule window opens. Name your schedule in the What do you want to name this payroll schedule? box Don t forget to use the Tab key to navigate to the fields following. Choose the Pay frequency in the next field. Choose the end date of the pay period Choose the date that appears on the paycheck. This should be the date that affects the balance in your bank account. This is the date that the paycheck date falls on for the month Click OK. This new pay schedule now appears in the Payroll Schedule List. Assign Employees to Payroll Schedules Go to the Employee Center on the Icon Bar Click on an employee name. Choose Edit Employee Choose the Payroll and Compensation Info from the Change tabs drop down menu. Choose a payroll schedule from the drop down list. The Pay Frequency automatically changes. Click OK. Repeat for all employees. Adding New Employees Go to the Employee Center in the Icon Bar. Click on New Employee The Personal Info tab displays
Page31 Type in the employee personal information in the personal tab. Click on the Address and Contact tab and type in all of the address info. Click on Employment info in the Change tabs box to add the date of hire. Click on Payroll and Compensation in the Change tabs box to add all of the data about withholding. Click OK to save. Once you have added all of your employees and set up a payroll schedule you are ready to run a payroll schedule. Running a Payroll Schedule Click on the Payroll Center in the Employees section of the Home page. Click on the Payroll tab in the left menu. In the Pay Employees section on the right, click on Start Scheduled Payroll The Enter Payroll Information window opens. Choose a schedule Note that the Pay Period date and the Check date fields are automatically populated. Enter the hours worked in the Regular Pay field and click Continue.
Page32 The Review and Create Paychecks window opens where each employee s pay and deductions are listed. To review an individual s deductions, etc., click on the underlined name in the Employee column. The Previous Paycheck window opens displaying all of the regular pay and deductions from the paycheck. Click save and close to return to the Review and Create Paychecks window. Click Create Paycheck button at the bottom right corner of the window. The Confirmation and Next Steps window opens confirming that a check was written for employees for printing and indicating the next steps to finish payroll Printing paychecks and distributing them. You can view these paychecks in your account register. Go to Chart of Accounts on the Home page. Double click on Checking. The employee checks appear at the bottom of the page. Click on an employee name and then click on the Edit Transaction button on the top menu to see the details. Click Save and Close. Close the Paycheck register. Printing Paychecks and Paystubs Leave the Chart of Accounts open. Go to File Click on Print Forms Select Paychecks The Select Paychecks to Print window opens with checkmarks next to all employees in that Pay Schedule Click on the first name and type in the first check number available. Click Print
Page33 Payroll Tax Liabilities Your payroll consists of two parts, expenses and liabilities. Expenses include employee gross pay and all payroll taxes (federal, state, ) These are tracked in the Payroll Expenses account. Whenever you run your payroll QuickBooks keeps track of both the monies that you pay out and the monies that you will pay to the government on their behalf. The Payroll Liabilities account tracks those monies. To see a list of your payroll expenses: Click on Chart of Accounts Click on Payroll Expenses Click on QuickReport:Payroll Expenses from the Report button menu at the bottom of the page or Ctrl+Q. Choose the current month by going to the Dates menu at the top of the screen and choosing This Month from the drop down menu. The report will display all of the payroll expenses for all of your employees for the current month. Double clicking on any entry and then choosing Paycheck Detail will display the deductions in full detail. Close the report when finished.
Page34 To see the Payroll Liabilities check register: Open the Chart of accounts on the home page Double click on the Payroll Liabilities account. The register opens with a separate line item for each deduction on an individual s paycheck. There is a running balance of the total liability in the far right column. To exit, close the register and the Chart of Accounts. Paying Payroll Taxes Once again, please remember that you can use QuickBooks to calculate the amount you (and each employee) owe as long as you have a valid subscription to Intuit Payroll Services. This allows you to use currently in use tax tables to calculate the liabilities. Writing the Check Click on Employees in the Menu Bar Click on Payroll Taxes and Liabilities. Choose Create Custom Liability Payments. Now choose the date range for the liabilities that you want to pay by filling out the From and the Through calendar options. Click OK. The Pay Liabilities window opens. Click in front of the federal government items you want to pay on the list. If you click on Federal Withholding a checkmark is also placed in front of Advance Earned Income Credit. If you click on one Medicare entry, the other is also selected, as is the same with Social Security. Make sure that the Review Liability check to enter expenses/penalties radio button is checked at the top of the screen. Click Create. The Liability Check Checking screen opens with a check made out to the appropriate account and for the appropriate amount. You should use a separate check for each type of deposit coupon. (e.g. 940 or 941). Enter line item memos to clarify for your recordkeeping. To record the check click Save and close Answer Yes to save the changes to the transaction. Part XIII Customizing QuickBooks Forms QuickBooks comes with generic forms for invoices, sales receipts, credit memos, statements, purchase orders, estimates, sales orders and letters that you will be creating for your company. However, you do have the option to customize these forms to meet your specific requirements. You can create a custom layout for your form and use that version of the form instead of the default QuickBooks version.
Page35 Perhaps you would like to add your company logo or other fields and columns, what you want to call them and where you want them on the form. These are all things that can be changed or added. Once you have set up a form to your liking you can save it as a template for future use. Customizing Invoices You can either modify an existing form in QuickBooks or create an entirely new invoice form. Use the Layout Designer to create new or Customize Forms to modify existing forms. One note - these modifications only affect the printed form, not the onscreen version of the form. Creating New Go to Lists in the Menu Bar. Click on Templates In the Templates button on the bottom of the screen choose New or Ctrl+N. Choose the type of template you will be creating from the Select Template Type window. Click OK. The Basic Customization window opens. Click the Manage Templates button to name your new template. Type the Name in the name field and click OK. Your new template name now appears on the Basic Customization form. Click next to Use Logo in order to activate the Select Logo button where you can browse to the file where your company logo is stored. Note the options to change the color scheme and font following on the window. Choose any changes from the drop down menus and then click Apply Color Scheme/Change Font. Select which company and transaction information fields you want to display on the form using the checkboxes. Once you select additional fields to display, you will get a message about changing the layout. Click OK. Changing the Layout will be done later after you have made your selections.
Page36 Click the Additional Customizations button to see all of the fields on the form by area, header info, columns, prog columns, footer, and print. Formatting options appear for each entry. For example, under the Header tab, you can select whether you want a field to display on both the screen and/or the printed version with the checkboxes. You can also rename any given field in the Title section by highlighting the current name and typing the new name over it. As you make your changes in the window QuickBooks immediately displays them in the Preview window on the right. In addition to changing which fields display you can also change the order in which the fields display on the form by clicking the Columns tab. The order in which the columns display displays under Order. Double click in a given entry to select and then then type in the display order (Left to right). If you have selected a number which has already been used, then entry that has that number should automatically change. If not, type in the new desired column order manually. The Prog Cols tab is used to display job progress made in an invoice or sales order. The Footer tab has information that is usually displayed at the bottom of the form such at subtotals, taxes, totals, balance due etc. You also have a free text field to type your tag line, any additional terms and conditions, etc. The Print tab allows you to associate various printing options with your new template instead of the defaults. You can choose to print in landscape orientation or with legal or custom sized paper. You can choose whether or not to include page numbers on long documents.
Page37 Click OK to record. And OK again to exit the form editing. To retrieve the form for use Go to Customers in the Menu Bar and select Create Invoices. In the top right corner of the form (2 nd line down) use the drop down arrow to select the form that you just created. To change the layout of the form: Click on Customize in the button bar now that you have the form open. The Customize your QuickBooks forms window appears. Choose the Customize Data Layout button. The Additional Customization window appears. Choose Layout Designer button at the bottom of the window. The Layout Designer window opens. Note the Zoom buttons at the top right to get a better look at parts of your form. Click on one field. It appears highlighted with the boxes in the corners. To select an additional field at the same time press the Shift key and click on an additional field. Both fields are now selected. Once your cursor hovers over the selected fields, the four headed arrows appear. Click and drag with your mouse to move both fields simultaneously. To reduce the size allotted to a given field on the form, select it and then drag up or in one of the edges. o You can also click and drag fields from one part of the form to another. o You can also click and drag fields from one part of the form to another.
Page38 Changing Field Widths You can also change the width of fields within the form to grant some fields more and other fields less room depending upon your needs. To change independent fields such as a phone number above, click on the field. The box appears highlighted. Hover with your mouse over the field until you see a double headed arrow above it. Hold your left mouse button down and drag the edge of the field over until the box is as big as you think you will need. Release the left mouse button when done. To change a column that is adjacent to others. Click on the line that separates two columns to select it. A two directional arrow appears. Hold the left mouse button down and click and drag to move the column line as desired. Not the rulers at the top and left size of the editor to help you with resizing. Release the mouse button. Your field now has less room and that space has been allotted to the column to its right. Changing Fonts, Borders and Colors You can use the Properties button on the form field to change these attributes on your form. Click on a field to select it. Click the Properties button at the top of the form. The Properties window displays with tabs for Text, Border and Background to choose from for editing. The text tab is where you set the justification properties of your field. Select both Horizontal and Vertical justification for your text. Click on the Font button. A list of commonly installed Windows fonts appears in the dialog box with additional options for Style (bold, italic ) and size. Choose your effects and click OK. Click on the Color box to select the font color for your field. Click OK to save any change. You can also similarly select new options for display in the Border and Background areas. When finished all editing click OK.
Page39 The Toolbar at the top of the editing Form Note the possibilities in the toolbar at the top of the editing form. Some of them will be inaccessible, or grayed out, if you have not selected one or more fields. Clicking on the Ad button allows you to add a data field, an image, or a text box. Also note that there are very handy Undo and Redo buttons in case you change your mind about an action. When finished all editing on the form click OK twice to save and close. To see how the printed version of the form will look click the Print Preview button in the top right corner of the screen when you have the form open in Create Invoices. Click Close button when finished. Brand/Change design for Multiple forms You can redesign multiple forms in one action if you want to add things like a logo or tag line Go to the Create Invoices from the home page. Click on the Customize button in the top form menu. Click Create New design (this connects to the Intuits QuickBooks Forms Customization page and may take a moment.) This page is a wizard which walks you through the customization. First you can choose a background and add a logo. Click next to advance through the wizard and work your way through Colors & fonts, Grid Style, and Confirm and Apply. The Apply Design window opens where you will choose the forms to which you want your new customizations applied. Click Apply Click OK.
Page40 Standardized Form Letters QuickBooks has a variety of standardized form letters on collections, news, and announcements that you can send to customers, vendors, employees etc. These are easily editable and directed at individuals in your QuickBooks database. In order to use this you need to have Microsoft Word 2000 or higher. To access them, go to Company in the Menu Bar, scroll down to Prepare Letters with Envelopes and then select the type. Collection letters Select type Collection letters following the instructions just above. The Letters and Envelopes window opens that allows you to select (1) customers, (2) whether to create a letter per customer or customer job, and (3) a time frame to select the past due payments. Click Next. A list of customers who meet the requirements appears in the screen. Make sure that the customers in the list that you want are selected (checkmark in the left column) Click Next. Choose the type of collection letter that you want to send. Click Next. Enter the name and title of the individual from whom the Collection letter will be coming form. Click Next to open the letter in Microsoft Word. In the meantime, the wizard continues with options for Printing Letters and Envelopes. If you want to Print Envelopes, click Next. To print the collection letter itself, click the print button in Microsoft Word. You can edit the individual letter in Word and print it or you can make global changes to your Collection (or any other) letter and save them. Global Changes Go to Company in the Menu Bar Choose Prepare Letters with Envelopes Choose Customize Letter Templates A Letters and Envelopes wizard opens with options for editing. Choose View or Edit Existing Letter Templates. Click Next. Choose the type of letter you want to edit.