QuickBooks 2006

Accounting Software for small Business

Headlines: 1. Create a new company; 2. Set up preferences; 3. Set up Chart of Accounts; 4. Functioning lists (Vendors, Customer Job, Class, Others) 5. Enter transactions; 6. Generate Reports; 7. Back up & Restore data; 8. Exercise.

  

On Menu Bar click FILE Select New Company Then click Skip Interviews button (Figure 1)

Type appropriate information in each provided box (Figure 2); Then click Next button

 

Select (No Type); Then click Next Button (Figure 3);

 

Select the folder/path where you want to store your QuickBooks file; Type file name in box; Then click Save button (Figure 4);
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Purpose: y Through preferences, you can customize QuickBooks to suit the needs of your business and your personal style of working. How to select: y From the Edit menu, choose Preferences. y Use the scroll box on the left to select a picture for the area of QuickBooks you want to set preferences for. Tabs: y My Preferences: the area you select, enter the changes and settings you want. The settings you enter on this tab only affect your QuickBooks sessions, not those of other users. y Company Preferences: the area you select and enter changes that affect all users. Only the QuickBooks Administrator can enter changes on the Company Preferences tab.
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There are 18 secti s st e setti ef re si ic s ic s e vir e ts, 200 . ll secti s se t activate the hat y ee a t ee . These secti s are: 1- Acco ti g 10- e i ers 2- Checki g 11- Reports & Gr phs 3- Desktop View 12- ales C st ers - Fi a ce Char e 13- ales Tax 5- Gener l 14- e F r s - I te rate licati s 15- ervice C ecti 7- J s Esti ates 16- elli 8- Payr ll E l yees 17- Tax: 1099 9- P rchases e rs 18- Ti e Trac i te: f r G , ly secti #1, 2, 3, 5, 11 are releva t t their ti j s. acc
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ACCOUNTING My Preference (Fi ure 5): Autofill memo in general journal entry: Cause the memo you enter on the first line to appear automatically in subsequent lines that you enter this saves time if you have many Company Preference (Fi ure 6): Use account numbers: Give you the ability to assign numbers to your accounts. Show lowest subaccount only: control how QBs displays subaccount when you choose a subaccount in the Account filed of a transaction.

ACCOUNTING (Fi ure 6) (con t) Require accounts: prevents you from recording a transaction unless you have an account assigned. Use class tracking: let you categorize transactions by assigning them to the classes on your Class List Prompt to assign classes: cause a message to appear if class is not assigned in data entry transaction. Automatically assign general journal entry number: automatically assign an ascending order number to a general entry.

Warn when posting a transaction to Retained Earning: cause message to appears for any transactions relate to Retained Earning Closing date: enter the date through which you want your book to be closed. Set Password: allow you set password to prevent any change, delete on the previous transaction after closing date.

CHECKING My Preference (Fi ure 7) Open the Write Check: automatically QBs select one of Bank type a/c when using write Check command. Open the Pay Bill: automatically QBs select one of Bank type a/c when Pay Bill command. Open the Pay Sales Tax: automatically QBs select one of Sales Tax a/c when Pay Sales Tax command. Open the Make Deposits: automatically QBs select one of Bank Type a/c when using Make Deposit command.

CHECKING (con t) Company Preference (Fi ure 8) Print account names on vouchers: command QBs to print a/c name on voucher. Change check date when check is printed: change the date on a check to today s date when you print the check. Start with payee filed on check: position the cursor on the payee field. Warn about duplicate check numbers: cause QBs to warn you try to record a Check that has the same as previous one. Autofill payee account number in check memo: if you set up payee to include

a bank a/c, QBs automatically displays the last transaction. Open the Create Paycheck: automatically select one of Bank a/c type used for paying check to employees. Open the Pay Payroll Liability: select the one of Liability a/c used for recording payable to unpaid employee.

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DESKTOP IEW My Preference (Fi ure 9) One Window vs. Multiple Windows: determine whether windows panel are visible in the main QBs areas. Save when closing company: displays the desktop exactly as it was when you last worked in the company file. Save current desktop: displays the desktop exactly as it is now Don t save desktop: displays an empty desktop (no window) when you return to company file. Keep previously saved desktop: displays the desktop that you save at the previous time.

Show Home page when opening Company file: displays the Company Navigator as the topmost window when you open a company file. Color Schemes: change color of window panels.

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DESKTOP IEW (con t) Company Preference (Fi ure 10) Customers Sales Receipts: displays sales receipt when you first open your QBs file. Statements and statement Charges: Displays Statements and statement charges when you first open your QBs file. endors Enter Bills and Pay Bills: displays Enter Bills and Pay Bills when you first open Your QBs file.

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GENERAL Warn when editing a transaction: warns My Preference (Fi ure 11) Pressing Enter moves between fields: when you change transaction and exit change how Enter Key behave in QBs. without saving. Warn when deleting a transaction or If ticked when pressing Enter cursor unused items: warn you when you delete a moves from one to other field. transaction or list entry not currently use. Automatically open drop-down lists when typing: Automatically arrowhead pointing when typing. Beep when recording a transaction: alert sound when recording data into system. Automatically place decimal point: automatically insert a decimal point between 2nd and 3rd digit from right for number entering.

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GENERAL (con t) My Preference (Fi ure 11) (con t) Bring back all one-time messages: restore all one-time messages that you have turned off. (One-time message provides useful information on how to use QB. When one of these messages appears you can turn it off so that it doesn t appear again). Turn off pop-up messages for products and services: QBs automatically appearing temporarily message. Automatically recall last transaction for this name: when you enter a name, QB automatically completes the transaction as exact as previous entry.

It works only with Bill, Check or Credit Card Charges Show ToolTips for clipped text: when moving cursor over a field where the text is too long to fit displays tooltips will show full text. Use today s date as default: Use the last entered date as default:

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GENERAL (con t) Company Preference (Fi ure 12) Time format: set the display format Always show year as 4 digits (1999): if not, it show 2 digits. Never update name information when saving transaction:

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REPORTS GRAPHS My Preference (Fi ure 13) Prompt me to modify report options before opening a report: ?? Reports and Graphs Prompt me to refresh: when data is changed QB will alerts you to refresh. Refresh Automatically: QB automatically update data without alerting. Don t refresh: QB will not refresh when data is changed.

Graphs only: determine how QBs draw Graphs on screen. Draw graphs in 2D (faster): QBs ?? Use patterns: QBs automatically color in black & white for separately of graph types

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REPORTS GRAPHS (con t) Company Preference (Fi ure 14) Summary Report Basis: Accrual or Cash. Aging Report Age from due date: sets the starting date point for counting the of overdue days on invoice, statement, bill. Age from transaction date: sets the starting date point for counting the of overdue days on transactions.

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TYPE OF ACCOUNTS Chart of Account * PROFIT LOST ACCOUNTS y INCOME y EXPENSE Supplies Bank * BALANCE SHEET ACCOUNTS Interest Others Rent A/R y ASSETS Utilities y LIIABILITY y EQUITY Accounting Equation Remember: Dr: (+) Double Entry Rule Cr: (+) Assets Liability Expense Equity Income

Fund Rec A/P Sal Tax Pay

Retain. Ear Cap. Inves Open. Bal

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Your Organization s Chart of Accounts When you keep books for a business, you want to track where your income Comes from, where you put it, what your expenses are for, and how you pay them. You track this flow of money through a list of Accounts called the Chart of Accounts. Your QB Chart of Accounts can have: 1. Assets 2. Liabilities a) Bank a) Fund Rec. from Donors b) Other current asset b) Account payable c) Other asset c) Interest receive 3. Equity 4. Income a) Retained earning a) Interest received 5. Expenses b) Grants income a) Office rental c) Program income b) Salaries c) Utilities
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Chart of Accounts Your Chart of Accounts include Balance Sheet Accounts (BS a/c) and Profit and Loss Accounts (P&L a/c). This account tracks the following: BS a/c. type QBs a/c. type Use to track Asset What you have what people owe you. Bank Transactions in current, savings, and term deposit bank accounts. You can also use this type of account for Petty Cash/Cash on Hand. Assets that are likely to be converted to cash or used up within one year such as advances ... etc. Any asset that is neither a current assent nor a fixed asset. What you owes to other people Liabilities that are scheduled to be paid within one year such as funds rec. from donors etc.

Other current Asset Other Asset Liability Other current Liabilities

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BS a/c. type Equity

P&L a/c. type Incomes

Expenses

Use to track Net worth of your company Equity A company builds equity from three sources: Retained earnings: net profits/Loss from earlier periods. QBs a/c. type Use to track Accounts trac the sources of your incomes Interest income Is a fees paid on borrowed capital. Grants income Is a money coming from donors for a specific project. Accounts trac the sources of your expenses Office rental Is a fees where a payment is made for the temporary use of a building/office. Salary Is a form of periodic payment from an employer to an employee, which may be specified in an employment contract.

QBs a/c. type

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Illustration below is the samples on how to create new account: 1. From the menu Bar either click List (Figure 15 )or Company (Figure 16) 2. Click Account Button (Figure 17) 3. Click News (Figure 18)

or

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Then it will show (Figure 19) 1. Type: Select account types 2. Number: Type number of a/c 3. Name: Type name of a/c 4. Sub-account of: tick box if it is a sub a/c to other a/c and then select the main a/c in the next box 5. Description: Type description to the a/c (addition information about the a/c) 6. Bank Acct. No.: fill in bank account that help memorize bank account. (this section varies based on the type of a/c you select) 7. Opening Balance: beginning amount of the a/c at the time of creation. (this section varies based on type of a/c you select and for some type it is not available)

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 CLASS: Tracking Income and Expense by Class

Do you need to track income and expense for separate parts of organization? The following table has example of what you can track by using class in QBs. For example you might use class to breakdown your company financial data by etc. department, department project or location etc you can define class for administration and program or branch (HO-PNP, BMC, KTH )
CUSTOMER & JOB (QBs allow only 4 digits):

Who is CUSTOMER: a person/company that buy/receive products or service from you. What is Job: in QBs, a job is a project done for a particular customers. You must always associate a job with a customer. Use job if you do (or expect to do) more than one job for the same customer. For us, donor is a CUSTOMER and set budget line as job.
OTHERS: Besides Customers, QBs provides some commands having the exact

functions such as VENDOR, EMPOLYEE AND OTHERS to record their contact details in its database.
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CLASS: On Menu Bar select List Click on Class List (Figure 2 ) At Class Button click and select New (Figure 2 ) Class Name: type of name of class (Figure 21) Subclass of: tick if it s under main class and then tick main class Then click OK button

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CUSTOMER Lists

JOB:

Create Customer: On Menu Bar select

Select Customer: Job Lists (Figure 22) Click Customer: Job Button Select New (you will see right panel) Address Info Tab: fill contact Detail Information of Customer. (PACT)
Add JOB: after setting up Customer

(Figure 23) Right Click over a created Customer Select Add Job (you see right panel) Type in Job Name as Budget Code (P-1 PERSONNEL)

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OTHER NAMES: There are more items that function similarly as customer job. This includes
y Vendor: a business entity that provides

goods or service to your organization. (Figure 24) Go to: Vendor menu -> Vendor Center
(See example in right picture)

y Employee: a person who is employed by

organization as human recourse. (Figure 25) Go to: Employee menu -> Employee Center (See example in right picture)

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OTHER NAMES: (con t) NAMES: (con t)

y Other contact entity: an entity that

have business relation with your organization but (not vendor, employee and customer). (Figure 26)

Go to: List menu -> Other Name List -> Click on Other Names Button -> New and type name. (See example in right picture)

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Write Chec : Use this winder to records Customer: Job: Budget code Money being paid out from bank a/c type Class: classify transaction into its class For transactions. (Figure 27) Go to: Banking menu -> Write Check
y Pay to the Order of: Payee name y No.: Reference number (voucher ) y Date: specify date on which transaction

occur.
y Amount: Transaction amount y Address: contact detail of payee y Memo: enter short note but

understandable about transactions.

y Account: A/c numbers and its names y Amount: amounts that matched to a/c
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MAKE DEPOSITS: Use this i e a f r a sit f receive fr t( a Payer t ty e a/c). riate acc

Chk no.: Check Pmt Meth: Payment means (check, transfer ) Class: classify transaction into its class Amount: transaction amount.

le e try r le: e it acc cre it a ai st a/c (Fi i e t e e G t : a

t receivi re 28) sit site t

a e e

y De sit t : f ( e it)

y Date: s ecify ate

hich tra sacti

cc r.

y Me

: e ter short ote t ersta a le a out tra sactions.

y Receive from: Payer name (just a

name)
y From account: account that ma e

ayment from.

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MAKE JOURNAL ENTRY: is for

accountants or people who prefer the traditional system of accounting by entering transactions in a general journal . If you are familiar with how to debit/credit a/c correctly, you only do need to use this form if Make Deposit or Write Check is not doable. (Figure 29) Go to: Banking menu -> Make Journal Entry
y Date: specify date on which transaction y y y y y

Name: Job: Budget code Class: classify transaction into its class

occur. Entry No.: Reference number (voucher ) Account: A/c numbers and its names Debit: enter amount as for debit side Credit: enter amount as for credit side Memo: enter short note but understandable about transactions.
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QuickBooks windows used for daily recording and vouchers to be prepared: Quic Books window Make deposits (Banking menu) What are to be recorded - All receipts of funds from donors; - Settlement of advance (expenses less than advance). - Used for cash transfer from bank account to another accounts; - All expenditures or/and cash-flow out (advance); - Settle of advance (expenses more than advance) - Use for opening balance; - Reconciliation of advance (advance & expenses are equally); - Month/year end closing reports. oucher to be used Deposit Voucher

Write Check (Banking menu)

Payment Voucher

Make Journal Entry (Accountant or Company menu)

General Journal Voucher

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Recording reminder:
y All entries must follow Generally Accepted Accounting Principles (GAAP).
y Consistency: if one method is used them this method is used all throughout

of your recording task, specifically with making your MEMO ; y Transactions/activities must happen first before any recording is made; y Objectively: accounting record must be true and verifiable, that is supporting documents (invoices, receipts, vouchers, etc) are competed with the necessary signatures. y Establish passwords, controls, and back up procedures as appropriate; y Enter by transaction, not per invoice; y All entries must be done as it happens, you cannot make changes to the past records. When this happens, then a correcting or an adjusting entry has to be made in the present period.

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Why report and purpose? Financial Reports show the activity in your accounts over specific period of time. For each account in your Chart of Accounts, the report shows all the transactions that occurred in that account. The report covers the current month to data. After entering records into QBs through Make Deposit, Write Checks and Make Journal Entry, it stores such data in its database from which QBs systematically extract back what you want to see in different formats. This is called reporting process.
Basically, there are certain reports we need to produce for financial

accounting job: @General Journal: when dealing with whether accountant have entered data correctly we need to be able to see the evolution of each transaction inside each entry. So General Journal will detail how individual transaction was entered. (date, ref , amount, debit/credit of a/c, memo )
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@Profit & Lost Statement: donor always requires to report them how much we ve spent for a specific period. that refer to P&L Statement that show us income and expense we ve made during a period. Given a specific circumstance that we have more than 1 donor, we have produce Global P&L Statement and Separate P&L Statement by donor. For our work, we will create.
y Profit and Loss. y Expenses by Account classified by Branch. y Transaction Detailed by Budget-code. y Expenses by Budget-code columned by Branch. y @Balance Sheet: Part of Financial Reports, donor also want to know how

much asset you hold in organization. Balance Sheet reflect financial position (how much money in you bank, account, petty cash on hand and other current asset such as advance).

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y Balance Sheet. y PACT Fund Reconciliation y y y y y y y

How to Create report @General Journal: Report menu->Accountant & Taxes ->Journal @Balance Sheet: Report menu -> Company & Financial -> Balance Sheet @Profit & Lost Statement: Report menu -> Company & Financial -> Profit & Lost Statement

We can create Balance Sheet and Profit and Lost Statement in different way. Report menu -> y Custom Summary Report: List down a total amount of each a/c. y Custom Transaction Detail Report: list down detail transaction under each headline.

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Why Back up? (Figure 30) Your data is valuable! No recovery technique can repair all possible file damage or protect against theft or natural disasters. Make regular backup copies of your QuickBooks company (Weekly or Monthly). You must be in single-user mode to backup your com. Go to: File menu -> Back up or you can find the right site icon from Customize Icon Bar

File name: Name of your back up file Location: The location of your back up file

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Why Restore data? (Figure 31) If your need to restore your backup file, use the Restore command. Because QuickBooks backup file is compressed, simply copying the backup file to your QuickBooks directory will not give you to access to your data. Go to: File menu -> Restore Get Company Backup from: File name: Name of your back up file Location: The location of your back up file Restore Company Backup to: File name: The original file Location: The location of your file storing

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Thanks for your attention! Good Luck! Exercise

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