Quickbooks Training

Balakrishna Consulting LLP07th March 2015

Coverage

Contents Slide #

QBO Work flow (done)

Home Page

Set-up your Quickbooks Account (done)

Customer

Suppliers

Employees

Transaction

Reports

Taxes

Others

▪ Quickbooks is a ‘module based’ software with transactions split into various business modules, enhancing the clarity with which business is viewed.

▪ Every business has 2 basic limbs

▪ Where does the money come from? And

▪ Where does the money go?

QBO, by providing dedicated modules increases the focus on these two limbs.

▪ The basic workflow is depicted as below

Quickbooks Workflow

Set-up your company

Manage customers and

vendors

Manage transactions

• BankingReporting

Module 1Set-up your company▪ Company settings

▪ Managing users

▪ Set-up Chart of Accounts

▪ Currency Centre

▪ Importing Data

▪ Set-up taxes

▪ Products and service

▪ Set-up banking

▪ Option to add basic company information likename, logo, address, PAN and CIN

▪ Sales forms (i.e. invoices and estimates) can becustomized using the “Sales” tab

▪ Invoices & estimates are auto-numbered.However, you can manually number the formsas well by turning on “Custom transactionsnumber”

▪ You can add extra fields on sales forms byturning on “Custom Fields”. If you wish todisplay these fields on customer forms, makethe fields “Public”

▪ Customer forms can be sent directly throughQBO to customers and a default email messagecan be set-up here

▪ Expenses incurred on customer projects can betracked and subsequently billed by turning on“Track expenses” and “Make expenses billable”

▪ Advanced settings allow user to controlapplication of payments from customers againstinvoices, enabling account numbers againstledger names and closing book of accounts.

▪ Users can also track time (by customer /service)

Module 1Set-up your company

Company settings

▪ Option to track transactions

▪ QBO allows users to track transactions

▪ There are two ways of tracking data; through “Classes” and through“Locations”

▪ While tracking through “Locations” is transactions wise, “Classes” can beused to track each line item on a transaction

▪ To use this functionality, turn on “Classes” / “Locations” under CompanySettings

!

▪ Master Administrator, i.e. the user who sets-upthe QBO account can invite other users toaccess QBO

▪ Users are of 4 categories

▪ Regular users

▪ Company administrator

▪ Report access only, and

▪ Time tracking only

▪ Proposed users will get an email from QBOwhich they have to accept before using QBO

▪ Access rights of Regular users can be tweakedto give access either to “Customer and sales”module or “Suppliers and purchases”

▪ Company administrator has full access rights

▪ “Reports only” users can only access reports inQBO

▪ “Time tracking only” users can only track timethrough QBO

▪ QBO allows for a maximum of 5 normal users.“Reports only” and “Time tracking only” usersdo not count for the user limit.

Module 1Set-up your company

Manageusers

▪ Invite an accountant to access your QBO account

▪ QBO allows users to invite upto 2 accountant users

▪ Users can also locate “accountants” through the “Activities” option onhome page (depicted above)

▪ Accountants log-in is unique in its appearance and features. Amongstothers, it allows accountants to verify transactions, void incorrecttransactions and reclassify transactions into correct heads.

!

▪ The “Chart of accounts” is a list of all ledgeraccounts of your business. It can be accessedtwo ways

▪ Settings gear > Chart of accounts, or

▪ Transactions > Chart of accounts

▪ New ledger accounts can be added by usingthe “New” option on the top right corner.

▪ QBO allows users to categorize ledgers intoseveral categories spread across assets,liabilities, incomes and expenses (depictedbeside).

▪ Users can also create ‘parent ledgers’ andgroup sub-ledgers under this head. It should beensured that the ‘sub-ledger’ and the ‘parentledger’ are categorized under the same head inQBO.

▪ Users can edit names of ledgers at bulk byusing the “Batch edit” option

▪ Ledger accounts can be ‘deleted’ or ‘inactivated’upon which they will no longer appear on theChart of Accounts. Please note that ledgers withtransactions cannot be deleted.

▪ Users can run account reports directly from theChart of Accounts link

Module 1Set-up your company

Chart ofaccounts

▪ QBO allows users to account for transactions inmultiple currency

▪ At the first instance, the user will have toactivate this option by accessing ‘Currencycenter’ under settings gear and clicking “Set-upcurrencies”

▪ 3 foreign currencies (USD, EURO and GBP)are by default activated. New currencies can beadded by clicking “Add new”

▪ With this feature activated, users can now

▪ Account for transactions in foreign currency

▪ Set up customers who pay in foreign currency(see illustration alongside)

▪ Set up vendors whom we have to pay in foreigncurrency

▪ Kindly note, unless customers and vendors areproperly set up with respect to foreign currency,exports and imports cannot be correctlyaccounted.

Module 1Set-up your company

Currencycenter

▪ Data can be imported into QBO by accessing“Import Data” under Settings gear > Tools

▪ The following data can be imported

▪ Customer list

▪ Supplier list

▪ Chart of accounts

▪ Trial balance as on a particular date

▪ Products / service list

▪ For importing data, the user should firstdownload a ‘sample file’, fill the necessaryinformation and upload the same

▪ Data proposed to be imported can be reviewedin QBO itself and change changes can beappropriately made

▪ On confirmation, the data is imported into QBO

Module 1Set-up your company

Importdata

▪ Given the Indian scenario, Setting up taxes isas important as setting up your chart ofaccounts.

▪ QBO follows a specific workflow to set-up &account for tax dues and payments

▪ At the first instance, the user will have to click“Taxes” on the Navigation Pane and click “Setup taxes”

▪ Currently, QBO allows for setting up two indirecttaxes, VAT and Service tax.

▪ VAT rates are by default set at 14%, 4% and5%.

▪ Service tax rate by default is set at 12%.

▪ Users can add new taxes or add rates byclicking “New tax”. For example, CST can beset-up as new tax and the Karnataka VAT canbe set-up as new VAT rate

▪ Where the assessee is providing services whichfall within ‘abatement’, the user should

▪ Enter abatement % at the time of setting up theservice, and

▪ Create new service tax rate by accessing ‘new tax’

Module 1Set-up your company

Set-uptaxes

▪ Where the user provides multiple services ortransactions in multiple stock, there would be aneed to track sales and purchases (in case ofgoods) item wise.

▪ In this case, the user can access “Products andservices” under Settings gear > Lists

▪ A new product / service can be added byclicking ‘New’ and the necessary informationwill have to be provided. It is advisable to set-uptaxes before setting up the product / service list.

▪ Invoices, bills and other forms can now beprepared with the product / service itemsappearing as a drop-down in the ‘Product /service” column

▪ In the case of services that enjoy abatement,the abatement % can be entered at the time ofcreating the service and the abated service taxrate should be selected as the ‘tax rate’

▪ In the case of service tax payable on reversecharge basis, the applicable reverse charge %can be entered accordingly. This is used fortracking only.

Module 1Set-up your company

Products& service

▪ QBO has exciting features to manage yourbanking.

▪ QBO allows users to link their bank to theiraccounts by way of which, transactions aredownloaded into QBO without having to enterthem.

▪ QBO also has sophisticated transactionrecognition features by way of which the systemrecognizes patterns in downloaded transactionsand passes entries automatically. Users canalso set rules to recognize and post entries.

▪ Transactions imported into QBO will appearunder the head ‘New Transactions’. Thetransaction can be accounted under a particularincome / expense or customer / supplier head.

▪ When QBO recognizes a transactions on thebasis of transaction history, it will appear under“New transactions” > “Recognized”. On clicking“Match” the transaction will be posted to QBO

▪ QBO always shows the bank balance asappearing in the bank against the balanceappearing in books.

▪ Users can reconcile the accounts by clicking“Go to Account History” > “Reconcile” (bottomleft corner)

Module 1Set-up your company

Set-upbanking

▪ On linking bank accounts with QBO, transactions upto past 90 days can bedownloaded. If the user wishes to import transactions beyond 90 days or ifthe bank is not listed on QBO, the user can alternatively import bankstatements that are in CSV format.

!