Chapter Summary: Cash-Oriented Business Activities

Recording Cash-Oriented Financing Activities

1. Start Quickbooks Accountant program.

2. Restore file that you downloaded and open it.
3. Click the Record Deposits icon from the Banking section of the home page. The Make Deposits
Window will appear. Note that Quickbooks Accountant has automatically inserted today’s date.
4. Enter the information for purchase of stock and the name of the one that purchased. Also enter
name on correct date and employee list.
5. Click Save & New to record deposit. Do not close the Make Deposits window.

How to Record Long-Term Loan:

1. Select the bank account and input on Deposit To account.
2. Type deposit date.
3. Type name of bank in the received from text box and then press [Tab].
4. Click Quick Add in the Name Not Found window.
5. Click Other in the Select Name Type window and then click OK.
6. Select account Loan Payable as the From account.
7. Type the amount, click Save & Close.

Recording Cash-Oriented Investing Activities

To Create a New Ledger Account and Record the Purchase of Money Market Funds:

1. Click Write Checks icon from the Banking section of the home page. The Write Checks window
appears.
2. Uncheck the Print Later check box if it is checked.
3. Type 1001 in the No. text box.
4. Type the date.
5. Fill the Pay to the Order section of the check and then click [Tab].
6. Click Quick Add in the Name Not Found window.
7. Select Other in the Select Name Type window and then click OK.
8. Type check amount and press [Tab].
9. In the Expenses tab, select <Add New> from the drop- down arrow list of accounts. An Add New
account: Choose Account Type window should appear.
10. Select bank as the account type, click continue.
11. Type Short- term Investments as the Account Name.
12. Click Save & Close to record this new general ledger account.

To Record Purchase of Furniture and Equipment:

1. Type check number.

2. Type date of purchase.
 3. Fill in the Pay to the Order of section of the check, and then press [Tab].
4. Click Quick Add in the Name Not Found window.
5. Select Vendor in the Select Name Type window then click OK.
6. Type check amount, press [Tab] three times or until cursor is in the account section of the check.
7. In the Expenses Tab, select Furniture and Equipment from the drop- down arrow list of
accounts.
8. Click Save & New to enter another purchase.
9. Type check number if it is not already there.
10. Type the date of purchase in the Write Checks window.
11. Fill in the Pay to the Order of section of the check and then press [Tab].
12. Click Quick Add in the Name Not Found window.
13. Select Vendor in the Select Name Type window and then click OK.
14. Type check amount, press [Tab] three times or until the cursor is in the account section of the
check.
15. In the Expenses tab, select Furniture and Equipment from the drop- down arrow list of accounts
and then press [Tab] twice.
16. Click Save & Close to complete this process.

Points to Remember:

o An accountant version of Quickbooks have access to Quickbooks Fixed Asset Manager

application which runs separate from QB Accountant.
o When the Fixed Asset Manager is started from within Quickbooks Accountant, it can extract
information about fixed assets from company file.
o Depreciation is recorded on fixed assets in the end of the accounting period.

Recording Cash- Oriented operating Activities

To Create a Purchase Order:

1. Click the Purchas4e Orders icon from the Vendors section of the home page to open the Create
Purchase Orders window.
2. Select Vendor name from the Vendor drop- down list.
3. Type date. Type P.O. number.
4. Type item code, enter quantity and select customer for which the order will come from.
5. Click Hide History arrow to hide this information and then click Save & New.
6. Add store name to Vendor drop- down list in the new purchase order form.
7. Type date if it not already there.
8. Type P.O. number if it is not already there.
9. Select <Add New> from the drop-down item list to display the New Item window.
10. Select Inventory Part from the drop- down Type list.
11. Type item name and number. Type Cost.
12. Leave Cost of Goods Sold as the COGS amount.
13. Select preferred vendor and type sales price.
 14. Leave Tax as Tax Code.
15. Add the item Sales as a new Income Account.
16. Add inventory as the Asset account. Click OK to accept new item.
17. Type quantity.
18. Select <Add New> from the drop- down customer list to display the New Customer window.
19. Type customer name and company and address.
20. Click Copy >> to copy the Bill To address section. Click OK to accept.
21. Click Save & Close to add the new purchase order.

To Record the Receipt of Deposits on Future Sales.

1. Click the Receive Payments icon located in the Customers section of the home page.
2. Select customer from which the deposit is received.
3. Type amount received.
4. Type the date.
5. Select Check as the payment method.
6. Type Check number in the text box.
7. Click Save & New to record another deposit.
8. Click OK to save the credit on the customer’s account and not print a credit memo.
9. Record another deposit if there is any.
10. Click Save & Close to exit and then click OK to leave this credit balance for the customer.

To Record Cash Collected on Account:

1. Click Receive Payments icon in the Customers section of the home page.
2. Select customer name.
3. Type amount received and date.
4. Select the Check as the payment method and type check number.
5. Click Save & Close to complete this transaction.

To Record Cash Sales:

1. Click Create Sales Receipts icon in the Customers section of the home page.
2. Select <Add New> from the Customer Job drop- down list.
3. Type customer name and company.
4. Type customer’s Bill To address. Click OK to accept the new customer.
5. Type date and sale number.
6. Type check number and select Check as the payment method.
7. Select item code and type quantity.
8. Select State Tax from drop- down list.
9. Make Sure the Print Later check box is unchecked.
10. Click Hide history arrow and click Save & New to record another sales receipt. Click Yes if asked
to have the new tax item appear next time.
To Record Cash Deposits Made to Banks:

1. Click Record Deposits icon in the Banking section of the home page.
2. Click next to the two dates to place a check next to each other, click OK.
3. Type date of deposit.
4. Click Save & New.
5. Click next to the dates to place a check next to each other, click OK.
6. Type date of deposit.
7. Click Dave & Close.

To Record Receipt and Payment of Inventory:

1. Click the Write Checks icon located in the Banking section of the home page.
2. Select name from Pay to the order of drop- down list. An Open POs Exist window should appear.
3. Click Yes, An Open Purchase Orders window should appear.
4. Click next to the date to place a check mark on the purchase order, click OK.
5. Type check number if not present and check date.
6. Click Save & Close.

To Record Sales of Inventory, Application of Advanced Deposits Received, and Receipt of Payment for
the Balance Due.

1. Click the Create Inventories icon located in the Customers section of the home page.
2. Select customer from Customer Job drop-down list. A Billable Time/ Costs should appear.
3. Click Save this as preference check box.
4. Click Items tab to reveal the information.
5. Click OK.
6. Type invoice date and invoice number.
7. Click Hide history arrow, uncheck the Print Later and Email Later check boxes, complete invoice
by adding Tax Code, Bill TO address and Ship to address.
8. Click Apply credits button.
9. Click Yes two times to accept the changes made.
10. Click Save & New to record invoice.
11. Record invoice if there is additional.
12. Click Save & Close, and then click Yes twice as before.

To Record Payment and Deposit of Funds from Sales: