QuickBooks Desktop Online Student Guide

QuickBooks
Online Training
Student Guide to
QuickBooks Online
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QuickBooks Online Client Training Guide Table of Contents
Table of Contents
About the Presenter .................................................................................................................................. 4
QuickBooks Online Test Drive ................................................................................................................. 5
Introduction to QuickBooks Online ......................................................................................................... 6

Product Overview..................................................................................................................................................... 6
QuickBooks Online Subscription Levels .............................................................................................................. 7
Navigating QuickBooks Online ................................................................................................................ 9

Logging into QuickBooks Online ........................................................................................................................... 9
Setting up a New QuickBooks Online File ........................................................................................................... 9
Gear Icon .................................................................................................................................................................. 9
Account and Settings (under Gear Icon) ............................................................................................................ 11
Manage Users (Accessed via the Gear Icon under Your Company)............................................................. 14
Lists .......................................................................................................................................................................... 15
Top Navigation Bar ................................................................................................................................................ 20
Quick Create ........................................................................................................................................................... 20
Left Navigation Bar ................................................................................................................................................ 21
Chart of Accounts .................................................................................................................................... 37
Products and Services ............................................................................................................................ 42
Suppliers and Expense / Purchase Transactions ................................................................................ 45

Creating a Supplier in the Supplier Centre ........................................................................................................ 45
Creating A Supplier “on the fly” in a Transaction .............................................................................................. 46
Creating Expense / Purchase Transactions ...................................................................................................... 48
Paying bills .............................................................................................................................................................. 53
Purchase Orders .................................................................................................................................................... 54
Recent Transactions ............................................................................................................................................. 58
Time Tracking for Employees & Subcontractors................................................................................. 59
Customers and Sales Transactions ...................................................................................................... 61
Student Guide to QuickBooks Online 1

Creating Customers in the customer centre ...................................................................................................... 61

Creating a Customer “on the fly” in a Transaction ............................................................................................ 62
Creating Sales Transactions ................................................................................................................................ 65
Invoices ................................................................................................................................................................... 66
Receive Payment ................................................................................................................................................... 68
Sales Receipts ....................................................................................................................................................... 70
Credit Memos and Refund Receipts ................................................................................................................... 71
Delayed Charges and Delayed Credits .............................................................................................................. 73
Using the Drawer to Bring in Billable Time and Costs ..................................................................................... 74
Bank Deposits ........................................................................................................................................................ 75
Statements .............................................................................................................................................................. 77
Estimates ................................................................................................................................................................ 78
Payroll ....................................................................................................................................................... 79
Setting up and Running QuickBooks Online Payroll ........................................................................................ 79
Adding Employees After Setting up QuickBooks Online Payroll .................................................................... 85
Entering Previously Remitted Source Deductions ............................................................................................ 92
Running Payroll in QuickBooks Online Payroll ................................................................................................. 95
Payroll Reports ....................................................................................................................................................... 99
Bank and Credit Card Accounts .......................................................................................................... 100

Bank Feeds ........................................................................................................................................................... 100
Working with the Data in the Bank Feeds ........................................................................................................ 104
Troubleshooting Bank Feed Transactions ....................................................................................................... 110
Bank Rules in Bank Feeds ................................................................................................................................. 113
Using Batch Actions in the Bank Feeds ........................................................................................................... 115
Reconciling Bank, Credit Card and Other Accounts ...................................................................................... 116
Extra Information on Transactions ...................................................................................................... 122

Attaching Documents .......................................................................................................................................... 122
Search Box and Recent Transactions .............................................................................................................. 123
Reports .................................................................................................................................................... 125

Navigating the Report Centre ............................................................................................................................ 126
Favourites ............................................................................................................................................................. 126

Business Overview Reports ............................................................................................................................... 127

Other Report Sub-Groups ................................................................................................................................. 128
Who Owes You (Accounts Receivable Reports) ............................................................................................ 129
What You Owe (Accounts Payable Reports) .................................................................................................. 129
Customizing Reports – List, Summary, Detail, and Specialized Reports ................................................... 130
Saving Customizations ....................................................................................................................................... 132
Working with Report Groups .............................................................................................................................. 132
Printing, Emailing and Exporting Reports ........................................................................................................ 134
Expanded Functionality in the Office and On the Go ........................................................................ 140

QuickBooks Labs ................................................................................................................................................. 140
Best Practices with Browsers............................................................................................................................. 140
Support ................................................................................................................................................... 142

Using the Help Function ..................................................................................................................................... 142
QuickBooks Resources ..................................................................................................................................... 143

QuickBooks Online Client Training Guide QuickBooks Online Test Drive
About the Presenter
Jennette Wiebe
Partner/Senior Accountant
Experience & Accolades
• Certified QuickBooks Online expert

• Certified QuickBooks Desktop expert
• 19 years in the accounting industry
jennette@wiebes.com
(204) 937-4500

QuickBooks Online Client Training Guide QuickBooks Online Test Drive
QuickBooks Online Test Drive
Most of the screen shots included in this guide were taken using a sample company, AAA Demolition
Company, which has the most up to date QuickBooks Online user interface as of the date of the writing
of this guide.
You may wish to practice these steps on your own. If you do, we recommend using the QuickBooks
Online Canadian “test drive” file. The test drive file uses another sample company called Long for
Success — Event Planning. You can access it through the following link, which you should bookmark
for future practice:
https://qbo.intuit.com/redir/testdrive_ca
You don’t have to create an account or sign in to access the test drive file; just complete the security
validation to prove you’re not a robot (if prompted) and click Continue.
This test drive file is designed for you to explore and try out new things without worrying that you will
break something or make a mistake. It is not designed to retain any changes you make. Once you
close this QuickBooks Online test drive company, it is completely refreshed — so once you log out of it,
the changes you have made to the file are erased.
You may find that the test drive company’s QuickBooks Online user interface differs slightly from the
screen shots you see here, as the test drive company does not always have the most up-to-date user
interface.

QuickBooks Online Client Training Guide Navigating QuickBooks Online
Introduction to QuickBooks Online

PRODUCT OVERVIEW
QuickBooks Online (“QBO”) has many features and advantages that QuickBooks Desktop does not
offer. Once you make the change to QuickBooks Online, it is important to understand the features
available in the cloud and the features that are based on your subscription level. Some advantages that
QuickBooks Online offers are:
• You can easily access data across multiple platforms (PC or Mac, mobile)
• There is no need to transfer data files since everyone logs in to the same account to access
live data
• All data is hosted, backed up and secured by Intuit’s servers

• Attaching supporting documents allows for greater collaboration and centralization
of information
• You can automatically create invoices and send them to clients, including delayed customer
charges for unbilled time and costs
• Logins, third-party activity, and list changes can be monitored using the Audit Log
• Reports can be emailed automatically to anyone (including those who are not using QuickBooks
Online) using a scheduled frequency
• You can further organize data with both Class and Location tracking
• Bank and credit card transactions are automatically downloaded if you connect your bank or credit
card account using online banking credentials
• Third-party apps sync to QuickBooks Online behind the scenes (i.e., without you having to actually
open QuickBooks Online) since the apps sync to Intuit’s always-accessible server
• Post to multiple Accounts Receivable and Accounts Payable lines in a single journal entry
• Track inventory using the first in first out (FIFO) method. The only desktop edition that offers FIFO
is QuickBooks Enterprise with Advanced Inventory
• QuickBooks Online developers are always releasing new functionality within the software. This list
of features will continue to grow!

QUICKBOOKS ONLINE SUBSCRIPTION LEVELS

QuickBooks Online is a great solution for many different types of businesses. Every company must
assess their needs to find a financial accounting solution appropriate for their business. Use the
QuickBooks Online subscription matrix to understand the features included with each of the three
QuickBooks Online subscription levels:
http://quickbooks.intuit.ca/accounting-software/quickbooks-online-accounting/buy-quickbooks-sale/
You can upgrade your QuickBooks Online subscription level at any time to accommodate changes in
your business.
FEATURE EASYSTART ESSENTIALS PLUS
Track your income and expenses ✓ ✓ ✓
Send unlimited estimates and invoices on the go ✓ ✓ ✓
Download transactions from your bank and credit

✓ ✓ ✓
card accounts
Print cheques and record transactions ✓ ✓ ✓
Import data from Excel® or QuickBooks Desktop ✓ ✓ ✓
Back up your data online automatically ✓ ✓ ✓
Same security and encryption as banks ✓ ✓ ✓
Access your data from a tablet or smartphone ✓ ✓ ✓
Invite up to two accounting professionals (or their

✓ ✓ ✓
firms) to access your data
Integrate with available applications ✓ ✓ ✓
Set up invoices to automatically bill on a recurring

✓ ✓
schedule

FEATURE EASYSTART ESSENTIALS PLUS
Manage and pay bills from suppliers ✓ ✓
Enter bills and schedule payments for later ✓ ✓
Control what your users can access ✓ ✓
Give employees and subcontractors limited

✓ ✓
access to enter time worked
Track billable hours by customer ✓ ✓
Create and send purchase orders ✓
Track inventory ✓
Create budgets to estimate future income and

✓
expenses
Categorize your income and expenses using class

✓
tracking
Track sales and profitability for each of your

✓
locations or divisions
Number of users who can access QuickBooks

1 3 5
Online (in addition to the Accountant users)
Number of built-in business reports 20+ 40+ 65+
Pay employees and file source deductions Payroll: additional monthly fee
Accept online and mobile payments QuickBooks Online Payments: pay per use

Navigating QuickBooks Online
LOGGING INTO QUICKBOOKS ONLINE

To access QuickBooks Online (i.e., a real company file, and not the “test drive” file), go to qbo.ca click on
Sign in, and then enter your Intuit user ID and password. This applies only if you already have an existing
Intuit user ID; if you are new to QuickBooks Online, at the bottom of the page, click on Create an
account. For easy access, bookmark the login page on your browser. We recommend using Google
Chrome when using QuickBooks Online, but you can use other browsers to access it as well.
SETTING UP A NEW QUICKBOOKS ONLINE FILE

When you first set up your QuickBooks Online file, you’ll have the option to use the Setup Wizard (go
this route if you are starting a brand-new company file from scratch), or you can opt to import an
existing QuickBooks Desktop file. If you are going to be importing an existing QuickBooks Desktop file
as your starting point, we highly recommend contacting a ProAdvisor to do this for you.
GEAR ICON
The Gear icon, located in the upper right-hand corner of QuickBooks Online, contains four sections, all
of which help you manage your QuickBooks Online file:
• Your Company
• Lists
• Tools
• Your Profile
HOME PAGE AND GEAR ICON

The Your Company section contains:
• Account and Settings

• Manage Users
• Custom Form Styles
• Chart of Accounts (we’ll address this section later in this guide)
• Payroll Settings
• QuickBooks Labs (we’ll address this section later in this guide)

ACCOUNT AND SETTINGS (UNDER GEAR ICON)

When you click on the Account and Settings option, you’ll be taken to a screen that contains six
sections:
ACCOUNT AND SETTINGS
• Company – You can customize your QuickBooks Online file with key information, like your
company name, logo, address, email address, website, phone number, and CRA Business
Number.
• Billing & Subscription – Information about the QuickBooks Online company, including its unique
Company ID, the QBO subscription plan and details, the payment method, and information about
the payroll plan, if any.
• Sales – You can manage how sales transactions are displayed on sales forms, customize online
delivery of sales forms, and customize the look and feel of sales forms
⚫ In the Customize subsection of Sales, click on the button called Customize look and feel. In
the Custom Form Styles window that appears, click on New style in the top right corner. Then,
choose whether you’re creating a new style of Invoice, Estimate, or Sales Receipt form. Once
you choose to create a new form, you’ll see several areas you can customize:
• Design – Pick your design and add your logo here. You can choose your font and you can
change the colour of the shading, margins, and the size and placement of your logo
• Content – Edit various text sections of your forms and add fields such as terms, due date,
shipping information and payment method, to the header, footer and activity table. You can
change the order and width of columns, billable time, and insert pre-defined, custom text
You can edit the Sales form content to define the default information that will appear on
your sales forms

• Preferred invoice terms and delivery method
• Turn on shipping fields
• Set up custom fields (up to 3)
• Custom transactions numbers (that you can see and edit rather than let QuickBooks
Online assign them for you behind the scenes on sales forms and you cannot see or
edit them on those forms)
• Add service date field
• Turn on Discount & Deposit fields
• Emails – Lets you choose the standard email subject lines and messages that accompany
Invoices, Estimates, and Sales Receipts (they can all have different subject lines and
messages), and a reminder email can be separately set up for outstanding Invoices
• Payments – This is not a functioning tab in the test drive company; however, if you set up
QuickBooks Payments to allow customers to pay you directly online by credit card, in an
actual company, here you would see that QuickBooks Payments is activated
⚫ The Products and services subsection activates the quantity and price fields on the sales form.
This is also where the inventory feature is turned on in QuickBooks Online by selecting Track
inventory quantity on hand. The inventory feature is available only in QuickBooks Online Plus,
and it is FIFO inventory costing (as opposed to Average Cost or LIFO).
⚫ In the Messages, Reminders, Online delivery, and Statements subsections, you can modify the
messages that appear with and on sent sales forms, change the email options, and enable an
aging table on the bottom of your customer statements
• Expenses – You can change how QuickBooks Online manages your expenses. Settings include:
⚫ Show Items table on expense and purchase forms
⚫ Track expenses and items by customer
⚫ Make expenses and items billable (QBO Plus only)
⚫ Default bill payment terms
⚫ Use purchase orders (QBO Plus only)
⚫ Default email message sent with purchase orders (QBO Plus only)
• Payments – This section is for setting up QuickBooks Payments for a company. QuickBooks
Payments allows the company to accept credit card payments through QuickBooks and emailed
invoices. It automatically updates QuickBooks when you’ve been paid. The pricing is simple and
clear.

• Advanced – Includes various accounting, automation, and time-tracking settings along with
features that can enhance your internal controls. Settings include:
⚫ First month of fiscal and income tax year
⚫ Accounting method
⚫ Close the books and set a password
⚫ Default tax rate selection
⚫ Company type / tax form
⚫ Enable account numbers for the Chart of Accounts
⚫ How QuickBooks Online handles discounts, markups, and billable expenses
⚫ Track classes
⚫ Track locations
⚫ Automation features such as
• Pre-fill forms with previously entered content
• Automatically apply credits
• Automatically invoice unbilled activity
• Copy estimates to invoices
• Automatically apply bill payments
⚫ Projects
⚫ Time tracking
⚫ Language
⚫ Currency
⚫ Date and number formats
⚫ Warn if duplicate cheque number is used
⚫ Warn if duplicate bill number is used
⚫ Duration of inactivity before the user is automatically logged out of QuickBooks Online

MANAGE USERS (ACCESSED VIA THE GEAR ICON UNDER YOUR COMPANY)
To set up users in QuickBooks Online, click on the Gear icon and find Manage Users under the Your
Company column.
MANAGE USERS
To add a user, click the blue New button. You must allow pop ups in your browser in order to add a
new user. QuickBooks Online requires that pop-up blockers be disabled for the QuickBooks Online
website, because many of the tasks in QBO are performed in pop-up windows.
Once the New User window appears, choose the type of user you would like to add. You can choose
from the following types:
• Regular or custom user – You control which areas the user can access
⚫ You can choose from all, none, or limited access to
• Customers and Sales, and/or
• Suppliers and Purchases
⚫ You can choose the user’s administrative rights. You can give them user management rights,
the ability to view or edit company information, and choose whether they have access to your
subscription and billing info.
• Company administrator – Access to all areas of the program, including settings and full access
rights to all other services to which the QuickBooks Online company subscribes, such as Payroll
and QuickBooks Online Payments
• Reports only user – This user logs into a special version of QuickBooks Online that gives them
access to almost all reports, except payroll and list reports that include contact information. You
can have unlimited “Reports only” users with your QuickBooks Online Plus subscription. This user
type is available only in QuickBooks Online Plus.

• Time tracking only user – The user logs into a special version of QuickBooks Online that only
has time sheets. The user can fill out and change their own time sheets, but does not have access
to other users’ timesheets. You can have unlimited “Time tracking only” users with your
QuickBooks Online Essentials or Plus subscription. This user type is available only in QuickBooks
Online Essentials or Plus.
Once you have followed the steps to set up the type of user you want, you invite the user by entering
their email address and name. Once users are added, they will receive an invitation email with
instructions to create a new user account and log in.
If a user ever forgets their user ID or password, direct them to qbo.ca, and tell them to click on the link
Sign in, and then click on I forgot my user ID or Password and follow the prompts.
Back in the Manage Users window, to add your accountant as an Accountant user for your QuickBooks
Online company, use the green Invite Accountant button located in the Accounting Firms portion of
the Manage Users screen. Follow the prompts to send an invitation to your accountant. You can add up
to two Accountant (i.e. accounting or bookkeeping firms) users. (You do not see the green Invite
Accountant button in the screen capture above; as there are already two accounting firms that have
accepted the Accountant invitations. One would have to be deleted for the green button to appear.)
LISTS
The foundation of QuickBooks Online is the lists that the program uses to store information about the
accounts, customers, suppliers, employees and products and services used by your company. When
these lists are set up and coded properly, the program is easy to use and provides accurate financial
information to the user.
The following lists are accessible under the Gear icon by clicking on All Lists in the Lists section (some
lists may not be visible, depending on the subscription level being used and the settings of the
company chosen):
• Chart of Accounts
• Recurring Transactions
• Products and Services
• Product Categories
• Custom Form Styles
• Payment Methods
• Terms
• Classes
• Locations
• Attachments
• Currencies
LISTS (UNDER GEAR ICON)
The Customer, Supplier and Employee Centres (and therefore, their lists) can be found by clicking on
the Sales, Expenses, and Employees tabs respectively on the Left Navigation Bar. Below is an
example of accessing the Customer list by first clicking on Sales in the Left Navigation Bar and then
clicking on the Customers tab. Similarly, you would click on Expenses in the Left Navigation Bar, and
then click on Suppliers to access the Supplier list. With Employees, you can click on Employees and
then choose to click on set up payroll or add an employee without setting up payroll.

CLICK ON SALES AND THEN THE CUSTOMERS TAB TO ACCESS THE CUSTOMER CENTRE
From each centre (Customer, Supplier, or Employee), you can add, edit, or delete list items. You can
also have sub-customers in the Customer Centre. For example, if you have a customer with multiple
locations, you can have a parent customer — perhaps the corporate office, and sub-customers for each
location to which you sell. You can choose whether to bill the sub-customer’s transactions to the parent
or the sub.
By the way, along the same lines, you can also have sub-accounts in your chart of accounts. This is a
great way to create subtotals on your financial statements and keep track of additional details.
Over time and with varied usage styles by different people in QBO, you can end up with list names,
which in reality are duplicates (but vary somewhat in spelling such as: John Smith and J. Smith). These
duplicates create confusion and inefficiencies in workflow and reports. You can easily merge the two list
names together to clean up your lists. To merge a list name, click on the name you wish to eliminate,
click on the Customer Details tab, and then click the Edit button. Change the Display Name to match
exactly the name of the list name you want to keep, then click Save. When you see the following
screen pop up, click Yes:

It is important to note that the merged name becomes inactive and not actually deleted. Deleted list
names are never really deleted from QuickBooks Online. If a name is merged with another, all the
transactions that were assigned to the merged name are reassigned to the remaining one. You can
delete any list name in QuickBooks Online, even if it’s been used in a transaction, and it will no longer
appear in the list menu. However, the deleted name may still appear on reports if it has been used in a
transaction during the reporting period.
If you need to reactivate a deleted list name:
1. Go to the List centre of choice (Suppliers as in the case below by clicking on Expenses in the left
navigation bar and then clicking on the Suppliers tab).
2. Click on the small grid gear icon at the top right of the list and check the box Include inactive
(see the following screen shot).

GRID GEAR ICON AND INCLUDING INACTIVE LIST ITEMS
3. Click on the name to be restored (it has the word “deleted” in brackets next to it), then click Make Active
in the far right Action column.

TOP NAVIGATION BAR

The top right quadrant in QuickBooks Online is home to several menus and features, namely:
• Quick Create
• Search Box
• Gear Icon
• QB Assistant (in beta and only available if turned on from QuickBooks Labs)
• Help menu
QUICK CREATE
Clicking on the Quick Create button (identified by the plus (+) sign; see the image above) displays a
menu list of different transaction-based screens, including Invoice, Cheque, and Weekly Timesheet.
Transactions available in Quick Create are grouped by the type (Customers, Suppliers, Employees and
Other) of each transaction. The Other transactions include Bank Deposit, Transfer, Journal Entry,
Statement, and Inventory Quantity Adjustment.

LEFT NAVIGATION BAR

In a real company file, the Left Navigation Bar is divided into up to twelve tabs plus a link to “Get Paid
Faster” and accept QuickBooks Payments if it is not enabled already (the test drive company will not
necessarily have all these tabs, and will certainly not have the Apps tab).
LEFT NAVIGATION BAR

• Dashboard (clicking this returns you to the dashboard screen that opens when you first login to a
QuickBooks Online file)
• Banking
• Sales
• Expenses
• Projects (if they’ve been turned on in the Account and Settings)
• Employees
• Reports
• Taxes
• Accounting
• My Accountant
• Print Cheques
• Apps
Banking
Clicking on Banking opens the Banking Centre in QuickBooks Online.
You will find two horizontally arranged tabs: Banking and Bank Rules.
• Banking Tab
In the Banking tab, you’ll find the bank (and credit card) feeds you have set up in QuickBooks Online.
You can set up a bank feed (for bank or credit card accounts) so you can add and match your account
transactions to your QuickBooks Online data.

BANKING CENTRE
Bank Rules Tab
In the Bank Rules tab, you’ll find the rules that have been set up (if any) for bank (and credit card)
transactions that are read by the bank feeds to be automatically categorized (and possibly entered
automatically as well) into QuickBooks Online. You can create new rules, export existing ones, and
import rules into a company that you’ve exported from another company.
BANK RULES

Sales
Clicking on Sales in the Left Navigation Bar opens the Sales Centre in QuickBooks Online. You will see
the colourful revenue Money Bar near the top of this screen.
REVENUE MONEY BAR
Inside this Sales Centre, there are horizontally arranged tabs for All Sales, Invoices, Customers, and
Products and Services to take you to those specific areas.
HORIZONTALLY ARRANGED TABS IN SALES CENTRE
• All Sales Tab

Clicking on the All Sales tab will display a listing of recent transactions of all types related to sales. You
can take action on open transactions, or drill down to see the details of a transaction by clicking on it.
You can also Filter the displayed list or perform Batch actions if you click on the appropriate button at
the top left section of the displayed list. As with so many other grid-like lists in QBO, you can change
the order of displayed items in the list by clicking on the column headers to sort by that column’s
parameter (click once to sort in that parameter’s order; click twice to sort in reverse order by that
parameter). Clicking on the appropriate colour block in the Money Bar will also filter the list of
transactions in the report below. Additionally, you can print or export the report by clicking on the
appropriate icon at the top right section of the list, or you can click on the grid gear icon and change
the columns in the list.
FILTER, BATCH ACTIONS AT TOP LEFT; PRINT, EXPORT, CHANGE COLUMNS AT TOP RIGHT

You can also launch new transactions related to sales in this section by clicking on the green New
transaction button in the top right section.
LAUNCH NEW SALES TRANSACTIONS FROM NEW TRANSACTION BUTTON IN SALES CENTRE
• Invoices Tab
Clicking on the Invoices tab will display a listing of recent invoices only (as opposed to other sales-
related transactions). You can take action on open transactions, or drill down to see the details of a
transaction by clicking on it. At the top of the list, you’ll see two colourful bars: an orange one for unpaid
invoices (indicating which portion are overdue) and paid invoices (indicating which portion have not yet
been deposited yet). Clicking on a portion of the colourful bars will filter the list in the report below.
Clicking on the column headers will change the sort order of the list.
UNPAID AND PAID INVOICES AT TOP OF LIST
You can perform Batch actions (to print or send invoices checked) on multiple invoices if you click on
that button at the top left section of the displayed list of invoices.
Additionally, you can click on the green New invoice button above the displayed list of invoices to
launch a new invoice transaction.
• Customers Tab
Clicking on the Customers tab will take you to the Customer Centre. The same Money Bar you saw at
the top of the All Sales section is visible at the top of this section as well. From here, you can add or

edit customers, use the colourful Money Bar at the top to view the status of your receivables, and
create and view transactions. To view the details behind the numbers on the Money Bar, just click on
the colour block you want to see, and transactions will appear in the grid below. Clicking on the
column headers will change the sort order of the list. From this list, you can take action for each item
listed. In that list below, click on the customer name, and a two-tab display will appear. The two tabs
are the Transaction List for that customer and the Customer Details (such as contact information and
attachments).
CUSTOMER CENTRE
The Transaction List shows recent transactions for the customer, or you can click the Customer
Details tab to edit the customer contact information or add notes. You can record a new transaction by
clicking the green New Transaction drop down (Invoice, Payment, Estimate, Sales Receipt, Credit
Memo, Delayed Charge, Time Activity, or Statement) at the top right of the screen.
TRANSACTION LIST FOR A CHOSEN CUSTOMER

The Projects tab is displayed only if Projects have been turned on in the Account and Settings for this
company. In this tab, you can view the Projects for this customer, edit a project or change its status, or
add or delete a project.
PROJECT TAB FOR A CHOSEN CUSTOMER
CUSTOMER DETAILS FOR A CHOSEN CUSTOMER
• Products and Services Tab

Clicking the Products and Services tab will take you to the Products and Services List, which contains
the items that will appear on your purchase and sales transactions. Each item you create must be
mapped to an account in the Chart of Accounts (we’ll cover the Chart of Accounts in the Accounting
section of the Left Navigation Bar, later in this training). Each time an item is used in a transaction, an
accounting entry is made behind the scenes using the mapping information associated with the item.

PRODUCTS AND SERVICES LIST
(Another way to access the Products and Services list is to use the Gear icon in the Top Navigation
Bar. You’ll find it under Lists and then you’ll click on Products and Services.)
To create a new item:
1. Click the green New button at the top right of your Products and Services list.
2. Select which type of item you are creating:
• Inventory Item – Items you buy and/or sell and of which you track quantities
• Non-Inventory Item – Items you buy and/or sell, but don’t need to (or can’t) track quantity
• Service – Services that you provide to customers
• Bundle – A collection of products and/or services that you sell together

CREATION OF AN ITEM WINDOW
3. Choose a Name for your item.
4. Enter the SKU if you have one for this item.
5. If applicable, choose a Category (or create one) under which this item is to appear in the Products
and Services list.

6. If applicable, select a picture for this item. To attach a picture to the item listing, click the pencil
icon under the picture icon (or click the picture icon itself) and browse to select the picture file. The
selected picture will appear next to the item name in the Products and Services list.
7. If you are going to sell this product or service, check the box next to I sell this product/service to
my customers.
8. Enter the Sales information (the default description for this item that will appear on sales forms),
Sales price/rate, and choose the appropriate Income account. Specify whether the price is
inclusive of sales tax. Click on the drop-down under Tax to select a sales tax code if the item is
subject to sales tax.
9. Notice that there are two sections to consider when creating an item: one for Sales Information and
one for Purchasing Information. If you purchase this product or service from a supplier, check the
box next to I purchase this product/service from a supplier. (Check both the Sales and
Purchasing boxes if you want to track profitability of your items.) Once you check the box I
purchase this product/service from a supplier, a description box appears for purchases along
with fields for the cost, expense account, whether the cost is inclusive of purchase tax, and
purchase tax code. This “two-sided” item feature is available in the Plus subscription only.
NOTE: You can create two-sided items in QBO Plus subscriptions that are mapped to both income and
expense accounts, so that you can use one item name for both purchases and sales. This method
results in a much cleaner and concise item list and allows for more robust reporting capabilities.
NOTE: you can have Categories for Products and Services in QuickBooks Online. Categories serve two
really great purposes:
• All items of the same category are totaled on your reports

• Using categories makes data entry easier. If you choose a general name for the category (for
example “Candles”), then add items for each type of candle you sell, you can choose the
general item in the sales form and the category’s items will be listed in a pop-up window. You
can see how this can make finding items faster, especially if you have a lot of them!
NOTE: To activate inventory tracking in QuickBooks Online Plus, you must enable it under Account
and Settings → Sales → Products and Services → Track inventory quantity on hand. You will
also want to make sure that Track quantity and price/rate is activated so that they appear on forms.
QuickBooks Online values inventory using the first-in-first-out, or FIFO, method. (This is different from
QuickBooks Desktop, which uses the Average Cost method of inventory valuation. The exception is
QuickBooks Enterprise Solutions with Advanced Inventory, which allows for either Average Cost or
FIFO).

Expenses
Clicking on Expenses in the left navigation bar takes you to the Expense Centre, and there are two
horizontally arranged tabs there: Expenses and Suppliers.
HORIZONTALLY ARRANGED TABS IN EXPENSE CENTRE
• Expenses Tab
Clicking on the Expenses tab takes you to a list of recent Expense transactions. Just like the Sales tab
in the Sales Centre, you can take action or drill down to see the details or edit the transaction by
clicking on it. You can also Filter the list or perform Batch actions by clicking on the appropriate button
in the top left, and you can print or export the list by clicking the appropriate icon in the top right. You
can also click on the grid gear icon at the top right to change the columns that display. As with other
grid-type lists, you can click on the column headers to re-sort the lists.
By clicking the green New transaction button in the top right, you can launch new transactions related
to purchases: Bills, Expenses, Cheques, Purchase Orders, and Supplier Credits.
EXPENSES TAB
Clicking the button to the left of the green New transaction button will launch (depending on what was
used last) either the Pay Bills or the Print Cheques function, so you can click on the drop-down next to
the displayed option to choose the other option.

PAY BILLS / PRINT CHEQUES IN EXPENSE CENTRE
• Suppliers Tab
Clicking on the Suppliers tab opens the Supplier Centre, which looks identical to the Customer Centre,
(and works very similarly,) except that it shows details and transactions related to purchases and
accounts payable.
SUPPLIER CENTRE
Employees
Clicking on Employees opens the Employee Centre, which is where you can sign up for QuickBooks
Online Payroll and keep track of employee information. You can add a payroll subscription to any level
of QuickBooks Online.
Reports
If you click on Reports, you will find a listing of all the reports available in QuickBooks Online. They are
divided into five sections, shown by five horizontally arranged tabs:
• Recommended
• Frequently Run
• My Custom Reports
• Management Reports
• All Reports
To run a report, just click on the report’s name and the report opens. The report can then be
customized as needed. If desired, the customizations can be saved and then that custom report will be
available under My Custom Reports.
Taxes
(When you turn on Payroll for the first time, the Sales Tax tab in the Left Navigation Bar is renamed
Taxes.) Clicking on Taxes in the Left Navigation Bar yields two horizontally arranged tabs: Sales Tax,
where you can set up and manage your sales tax settings and payments, and Payroll Tax, where you
can pay source deductions and file forms such as T4’s.
SALES TAX AND PAYROLL TAX IN TAXES
Accounting
Clicking on Accounting in the left navigation bar displays functions related to the Chart of Accounts
and reconciling accounts. In fact, there are two horizontally arranged tabs named just that: Chart of
Accounts and Reconcile.
CHART OF ACCOUNTS AND RECONCILE TABS IN ACCOUNTING
• Chart of Accounts Tab

Clicking on the Chart of Accounts tab takes you to the Chart of Accounts in QuickBooks Online.

CHART OF ACCOUNTS
• Reconcile Tab
We will be covering bank and credit card reconciliations later in this course, but for now, just be aware
that this is another access point for reconciling your accounts and for viewing and printing previous
reconciliation reports.
RECONCILE AN ACCOUNT FROM THE RECONCILE TAB IN ACCOUNTING
My Accountant
Clicking on My Accountant (in a real company only; My Accountant is not available in the test drive
company) takes you a portal where documents are shared between you and your accountant, and the
accountant can make requests. In fact, there are two horizontally arranged tabs in My Accountant:

Requests and Shared documents. Remember, you will be communicating with someone who has been
given Accountant user rights to your QuickBooks Online company file.
REQUESTS AND SHARED DOCUMENTS IN MY ACCOUNTANT
Print Cheques
This is one of several access points for printing cheques.
Apps
Clicking on Apps takes you to the App Centre. (You will not see Apps in the test drive company.) This
centre gives you access to a list of apps available that integrate with QuickBooks online. There are
countless apps to choose from that address many different business needs. Using this tab, you can
search for an app, or launch an app to which you already subscribe.
You will see two horizontally arranged tabs: Find Apps and My Apps. Find Apps will let you browse for
apps based on name or category, and you can find ratings and recommendations. My apps will show
you what apps are currently linked to this company file already, if any.
APPS ACCESSED WITHIN A QBO COMPANY

You can also get to the App Centre without being in a QBO company by visiting https://apps.intuit.com/.
Be sure to click on the drop-down in the top right section to choose the Canadian flag if it is not already
displayed there.
APP CENTRE ACCESSED AT HTTPS://APPS.INTUIT.COM

QuickBooks Online Client Training Guide Chart of Accounts
Chart of Accounts
When properly set up, the Chart of Accounts is essential for producing useful, meaningful reports in
QuickBooks Online.
When you first set up your QuickBooks company, QuickBooks Online will create a Chart of Accounts
based on the industry that you choose (unless you import an existing QuickBooks Desktop company
file, in which case your Chart of Accounts will be almost exactly same one you used in your
QuickBooks Desktop file).
Below is an example of what happens when we click on the Chart of Accounts tab in Accounting on
the Left Navigation Bar for the first time (it can also be accessed by clicking on the Gear icon and
clicking on Chart of Accounts under Your Company):
SEE YOUR CHART OF ACCOUNTS FOR THE FIRST TIME

We then click on See your Chart of Accounts.
CHART OF ACCOUNTS
As you set up your own Chart of Accounts in your own company, follow these steps to get started:
1. Decide if you will need account numbers. If so, turn them on using the Advanced tab in Account
and Settings (under the Gear icon); you’ll select Enable account numbers. Click Save, and then
click Done.
2. Open the Chart of Accounts by clicking on the Accounting in the Left Navigation Bar, then
selecting the Chart of Accounts tab (or click on the Gear icon and find Chart of Accounts under
Your Company). If prompted, click on the green See your Chart of Accounts button.
3. Click New to open the Account window.
4. Choose the Category Type. The category type is the general account type (e.g.: bank, accounts
receivable, long-term assets, equity, income, or expenses).
5. Choose the Detail Type. The detail type is important if you are planning to use export your
QuickBooks data to an Intuit tax product such as ProFile, as it references line items on the tax
return. Selecting a Detail Type also prefills the Name field, but you can edit that prefilled name.
6. Enter/edit an appropriate name for the account you are creating, assign it an account number (if
you have chosen to use account numbers in Account and Settings), and give it a description if
desired (filling out the Description field is not required).
7. If you want the account to be a sub-account of another account, check the box next to “Is sub-
account,” and choose the appropriate parent account using the drop-down box.

8. (If this is an expense account, and, depending on how billable expenses have been enabled in
Account and Settings, you might see a checkbox to use this account for billable expenses and if it
should be related to an income account when it is invoiced.)
9. The Default Tax Code for this account can be chosen here, if you have set up sales taxes. It is not
mandatory to enter a default tax code.
10. The Balance box, if it appears, should not be used in most cases. When you put an amount in this
box, an offsetting debit or credit is made to Opening Balance Equity — and this can cause major
issues when you go to reconcile the account later! Consult a ProAdvisor to discuss balances.
11. When you are finished, click Save and Close (or Save and New to continue creating accounts).
EDITING AN ACCOUNT FROM THE CHART OF ACCOUNTS
If you need to edit the number or name of an account in your Chart of Accounts, you can easily do so
by opening the Chart of Accounts and clicking the pencil icon at the top right of the list. This opens a

grid format batch edit function that allows you to change the name and/or account number for one or
more accounts without opening the edit screen for each account.
PENCIL ICON ON CHART OF ACCOUNTS
To modify which columns are displayed on the Chart of Accounts, click the small grid gear icon to the
top right of the list.
GRID GEAR ICON USED TO CUSTOMIZE HOW THE CHART OF ACCOUNTS IS DISPLAYED

Every balance sheet account in the Chart of Accounts (except Retained Earnings) has a register. Click
on Account history or double-click anywhere on the row in the Chart of Accounts in which the balance
sheet account appears to see the transactions in that account.
You can quickly print the Chart of Accounts by clicking the printer icon (also on the top right of the list).
PRINTER ICON ON CHART OF ACCOUNTS
You can also display the Chart of Accounts in printable report format by clicking the Run Report button
in the top-right corner of the Chart of Accounts screen. This creates the Account List report.
CLICK THIS BUTTON TO PRINT THE CHART OF ACCOUNTS
Once the Account List report displays on the screen, you may send it to a printer by clicking on the
printer icon in the top right of the screen.
You can also export the report to Excel or to a PDF by clicking on the drop-down next to the export
icon.
CLICK THIS DROP-DOWN TO EXPORT THE CHART OF ACCOUNTS TO EXCEL OR PDF

QuickBooks Online Client Training Guide Suppliers and Expense / Purchase Transactions
Products and Services
The Products and Services list contains the items that will appear on your purchase and sales
transactions. Each item you create must be mapped to an account in the Chart of Accounts. Each time
an item is used in a transaction, an accounting entry is made behind the scenes using the mapping
information associated with the item.
Clicking the Sales tab in the Left Navigation Bar and then the Products and Services sub-tab will take
you to the Products and Services list.
PRODUCTS AND SERVICES LIST
(Another way to access the Products and Services list is to use the Gear icon in the Top Navigation
Bar. You’ll find it under Lists and then you’ll click on Products and Services. It is also available by
clicking on All Lists under Lists as well.)
To create a new item:
1. Click the green New button at the top right of your Products and Services list.
2. Select which type of item you are creating:

• Inventory Item – Items you buy and/or sell and of which you track quantities
• Non-Inventory Item – Items you buy and/or sell, but don’t need to (or can’t) track quantity
• Service – Services that you provide to customers
• Bundle – A collection of products and/or services that you sell together

CREATION OF AN ITEM WINDOW
3. Choose a Name for your item.
4. Enter the SKU if you have one for this item.
5. If applicable, choose a Category (or create one) under which this item is to appear in the Products
and Services list.

6. If applicable, select a picture for this item. To attach a picture to the item listing, click the pencil
icon under the picture icon (or click the picture icon itself) and browse to select the picture file. The
selected picture will appear next to the item name in the Products and Services list.
7. If you are going to sell this product or service, check the box next to I sell this product/service to
my customers.
8. Enter the Sales information (the default description for this item that will appear on sales forms),
Sales price/rate, and choose the appropriate Income account. Specify whether the price is
inclusive of sales tax. Click on the drop-down under Tax to select a sales tax code if the item is
subject to sales tax.
9. Notice that there are two sections to consider when creating an item: one for Sales Information and
one for Purchasing Information. If you purchase this product or service from a supplier, check the
box next to I purchase this product/service from a supplier. (Check both the Sales and
Purchasing boxes if you want to track profitability of your items.) Once you check the box I
purchase this product/service from a supplier, a description box appears for purchases along
with fields for the cost, expense account, whether the cost is inclusive of purchase tax, and
purchase tax code. This “two-sided” item feature is available in the Plus subscription only.
NOTE: You can create two-sided items in QBO Plus subscriptions that are mapped to both income and
expense accounts, so that you can use one item name for both purchases and sales; this method
results in a much cleaner and concise item list, and also allows for more robust reporting capabilities.
NOTE: You can have Categories for Products and Services in QuickBooks Online. Categories serve two
really great purposes:
• All items of the same category are totaled on your reports

• Using categories makes data entry easier. If you choose a general name for the category (for
example “Candles”), then add items for each type of candle you sell, you can choose the
general item in the sales form and the category’s items will be listed in a pop-up window. You
can see how this can make finding items faster, especially if you have a lot of them!
NOTE: To activate inventory tracking in QuickBooks Online Plus, you must enable it under Account
and Settings → Sales → Products and Services → Track inventory quantity on hand. You will
also want to make sure that Track quantity and price/rate is activated so that they appear on forms.
QuickBooks Online values inventory using the first-in-first-out, or FIFO, method. (This is different from
QuickBooks Desktop, which uses the Average Cost method of inventory valuation. The exception is
QuickBooks Enterprise Solutions with Advanced Inventory, which allows for either Average Cost or
FIFO).

Suppliers and Expense / Purchase Transactions
CREATING A SUPPLIER IN THE SUPPLIER CENTRE

Navigate to the Supplier Centre (click on Expenses → Suppliers on the Left Navigation Bar). Click the
green New Supplier button at the top right of the screen, and enter the required information about your
supplier, such as name, address and other contact information. If you are tracking billable time, you can
enter the Billing rate here.
CREATION OF A SUPPLIER

CREATING A SUPPLIER “ON THE FLY” IN A TRANSACTION

Suppliers can also be created “on the fly,” which means that you can create a new supplier during the
process of creating a transaction in which you realize that the Supplier name you need does not yet
exist.
To do this, select Add New from the drop-down box in the Supplier Name field of a transaction. Or, you
can simply type the name of the new supplier in the Supplier Name field, click on the green Add plus
sign, and then follow the prompts below the Supplier Name field to set it up. You’ll have the choice to
add the name of the Supplier only and click Save, or you can click on Details and add as many of the
informational fields as you can per the section above and then click Save.
CREATING A NEW SUPPLIER “ON THE FLY” IN A TRANSACTION

ADDING A SUPPLIER “ON THE FLY”: DECIDING WHETHER TO ADD THE NAME ONLY OR MORE DETAILS
The Supplier information window pops up, with the name already populated.

WHEN ADDING A SUPPLIER “ON THE FLY” AND CHOOSING TO ADD MORE DETAILS: THE SUPPLIER NAME IS
ALREADY POPULATED
CREATING EXPENSE / PURCHASE TRANSACTIONS

There are seven types of expense/purchase transactions available to use in QuickBooks Online:
• Expense
• Cheque
• Bill
• Pay Bills
• Purchase Order
• Supplier Credit
• Credit Card Credit

The three main ways to create these transactions are to:
• Use Quick Create in the Top Navigation Bar

• Open the Supplier Centre and select one of the Action types available in the far right column of
the each supplier’s listing
• Open the Supplier Centre, open a supplier profile, and select the green New transaction button
in the top right of the screen
QUICK CREATE TO LAUNCE EXPENSE/PURCHASE TRANSACTIONS

HOW TO CREATE A TRANSACTION USING THE SUPPLIER CENTRE
HOW TO CREATE A TRANSACTION FROM WITHIN A SUPPLIER'S PROFILE

When creating an Expense, Cheque, or Bill transaction, follow these steps:
1. Enter or select a Payee (Supplier) if one has not pre-filled for you. (You may create a new supplier
name by typing the new name into the Payee field.)
2. (If it’s an Expense or Cheque transaction, select the appropriate Account the transaction is
affecting; this is typically a chequing or credit card account.
3. Enter the appropriate Date for the transaction.

⚫ The default date is the last date used on the previous transaction using this window
⚫ If you are entering an Expense transaction, it is most common to use the date the expense
appeared on your chequing or credit card account statement
⚫ If you are entering a Cheque transaction, use the date written on the cheque
⚫ If you are entering a Bill, use the date on the actual supplier bill, even if you plan to pay it at a
later date. Bill transactions also have fields for entering the Terms and Due Date
4. Enter a Reference number for the transaction if appropriate (e.g., Cheque no., Ref. no. on an
Expense transaction, or supplier Bill no.).
5. If you have already set up and make use of Products and Services within your QuickBooks Online
file, you can use the Item details section (i.e., the lower section) of the transaction screen to
record the remaining details (note these are available in the test drive company, which uses a
QBO Plus subscription and options that might not be available in other subscription levels of QBO):
⚫ Product/Service item (required)
⚫ Description (optional)
⚫ Quantity (optional; if left blank, it will assume a quantity of 1)
⚫ Rate (optional)
⚫ Amount (this is pre-tax; it is required but will self-populate if you’ve entered the Quantity and
Rate)
⚫ Sales Tax
⚫ Billable (if this is billable to a customer, and this setting has been activated and is appropriate)
⚫ Markup % (if this is being billed to a customer and will be marked up; this will cause the Sales
Amount field to self-populate with the total price that customer will be invoiced)
⚫ Customer/Project (if using the Billable field)
⚫ Class (if you’re tracking classes and you’ve chosen to have one for each row in a transaction,
this will appear, but it is optional)

6. If you are not using a Product/Service item to record the transaction, use the Account details
section (i.e., the top section) to record the remaining details (note these are available in the test
drive company, which uses a QBO Plus subscription and options that might not be available in
other subscription levels of QBO):
⚫ Account (required)
⚫ Amount (This is pre-tax)
⚫ Sales Tax
⚫ Billable (if this is billable to a customer, and this setting has been activated and is appropriate)
⚫ Markup % (if this is being billed to a customer and will be marked up; this will cause the Sales
Amount field to self-populate with the total price that customer will be invoiced)
⚫ Customer/Project (if using the Billable field)
⚫ Class (if you’re tracking classes and you’ve chosen to have one for each row in a transaction,
this will appear but it is optional)
ENTERING AN EXPENSE TRANSACTION
NOTE: You may use the Account details section, the Items details section, or both sections in an
Expense transaction, a Cheque, or a Bill.

PAYING BILLS
If you create a Bill transaction, you must eventually relieve that bill by using a Bill Payment transaction.
Here’s the Bill Payment screen for a previously entered bill:
PAYING A BILL
The most important thing to remember about bills is that if you create one, you must record a Bill
Payment transaction to record the payment of that bill. Do not use a cheque or expense transaction to
record payment of a bill you recorded in QuickBooks Online. If you do, you’ll end up with an overstated
accounts payable balance on your balance sheet and overstated expenses on your income statement.
(However, if you start to create a cheque or expense transaction for a supplier with one or more bills
outstanding, QuickBooks Online will prompt you with a “drawer” opening up on the right side of the
transaction for you to choose to pay any bill(s) outstanding with that transaction.)
The three ways to pay a bill are to:
• Use Quick Create in the Top Navigation Bar

• Open the Supplier Centre and select the Make Payment option available in the far right column
of the each supplier’s listing
• Open the Supplier Centre, open a supplier profile, locate an open (unpaid) bill, and select the
Make Payment option available in the far right column of that bill

PURCHASE ORDERS
To activate the Purchase Orders function in a QuickBooks Online Plus file, click on the Gear icon →
Account and Settings → Expenses → Use purchase orders.
Purchase orders should be created if a supplier asks you to submit a purchase order, or if you want to
keep track of orders you have placed which will be billed to you on a future date.
The three ways to create a purchase order are to:
• Use Quick Create in the top navigation bar

• Open the Supplier Centre and select the Create Purchase Order option available in the far right
column of the each supplier’s listing. Open the Supplier Centre, open a supplier profile, and select
the green New Transaction button in the top right, and then select the Purchase Order option
CREATING A PURCHASE ORDER FROM WITHIN A SUPPLIER'S PROFILE

Like Cheques, Bills, and Expense transactions, on Purchase Orders you may also choose between
using the Account details or Item details sections to record the transaction. (And yes, you may use both
sections on Purchase Orders as well.)
CREATING A PURCHASE ORDER
Creating a Purchase Order does not result in the creation of an accounting transaction. Once
products/services on the Purchase Order are received by your company (or you receive the bill related
to the purchase order from the supplier), open the supplier’s profile, locate the open Purchase Order,
then use the Action column to Copy to bill. This opens a Bill screen pre-populated with the details from
the Purchase Order you created. (Alternately, you can also open the Purchase Order and click the
Copy to Bill button in the top right corner.)
CONVERTING A PURCHASE ORDER TO A BILL

Supplier Credits and Credit Card Credits

Use a Supplier Credit to record refunds/credits received from suppliers.
The two ways to create a supplier credit are to:

• Open the Supplier Centre, open a supplier profile, and select the New Transaction button in the
top right, and then select the Supplier Credit option
CREATING A SUPPLIER CREDIT FROM WITHIN THE SUPPLIER’S PROFILE

After recording a Supplier Credit, you will need to apply it to a Bill to “use” the credit and pay the rest of
the bill. To do so, open the Bill to which you want to apply the credit, and click on the Make Payment in
the top right corner. In paying the Bill, you can select the Supplier Credit to apply to the Bill. The
amount due for the Bill will then decrease by the amount of the Supplier Credit applied.
APPLYING A SUPPLIER CREDIT TO AN OPEN BILL
• Use a Credit Card Credit to record returns/credits processed per your credit card statement
• To create a Credit Card Credit, use Quick Create in the top navigation bar
For both types of credit transactions (Supplier Credits and Credit Card Credits), you get to choose
between using the Account details and the Item details sections to record the credit. (And again, you
may choose to use both sections.)

RECENT TRANSACTIONS
When you are in the Supplier Centre (or anywhere else in the program), you can click on the Search
(the magnifying glass) button in the Top Navigation Bar to search for a specific transaction, or to scroll
through a list of recent expense/purchase transactions. You can then click on one of the transactions in
the list to open that transaction’s screen to view or edit it. You can also search for a particular term in
the Search bar, or click on Advanced Search to look for something using a combination of search
terms.
CLICKING RECENT TRANSACTIONS IN SUPPLIER CENTRE

QuickBooks Online Client Training Guide Payroll
Time Tracking for Employees

& Subcontractors
Time can be tracked for employees and subcontractors (set up as suppliers) within QuickBooks Online.
Tracked time can be used to invoice customers and run payroll.
There are two types of time tracking forms that employees and subcontractors can use: Single Time
Activity and Weekly Timesheet. Both forms are available using the Quick Create button in the top
navigation.
When tracking time, the user must enter a Name (Employee or Supplier), Date, and Time at a
minimum. (If the Advanced setting “Add Service field to timesheets” has been selected in the Account
and Settings, you’ll fill in that field as well.)
• The description box will pre-populate once a Service is selected, although the user can override
that description or append additional description details
• Ifcheck
tracking billable time is desired, the user should also enter the appropriate Customer Name and
the Bill at box
• Time can be entered as a figure (number of hours), or the Enter Start and End Times box can be
checked, which alters the form screen to display start and end time boxes as well as a box to
record time spent on break

SINGLE TIME ACTIVITY SCREEN
The Weekly Timesheet works the same way as the Single Time Activity form, but it allows a user to
enter time for multiple days, services, and/or customers. The user can change the week by using the
drop-down box next to the Name field.
WEEKLY TIMESHEET SCREEN

Customers and Sales Transactions
CREATING CUSTOMERS IN THE CUSTOMER CENTRE

Navigate to the Customer Centre (click on Sales → Customers on the Left Navigation Bar).
To create a new customer, click the green New Customer button at the top right of the screen. In the
next screen, you will enter information about your new customer, such as the name, address and other
contact information. You can create sub-customers by checking the Is sub-customer box and
selecting a parent customer. You can also indicate whether to bill the sub-customer directly or bill it with
the parent customer.
The use of sub-customers is how job costing is facilitated within QuickBooks Online.
It is a good idea to enter as much information as you can when you initially set up a name on a list
(such as a customer) so that you can fully utilize the power of the QuickBooks Online database when
creating reports and working with your list data. It may save time up front to skip fields, but you may
regret it later when you realize that your lists aren’t complete!
There are five tabs at the bottom left of the Customer Information screen:
• Address – Populate the customer’s billing and shipping addresses.

• Notes – Enter notes about your customer, such as product specifications or shipping account info.
• Tax info – Enter the customer’s Tax Reg. No (CRA Business Number) here. In addition, you can
specify whether you wish to assign a default sales tax code to this customer by checking the
Assign default tax code box. Once you check that box, you can assign the Default tax code from
the drop-down list below it.
• Payment and billing – Enter the customer’s preferred payment and delivery methods and
payment terms. This is also the place where you enter the currency for this customer in the This
customer pays me with field, if you’re using multiple currencies. This information is used as the
default for this customer when you create a sales transaction for them. All this default preferred
information can be changed on an individual transaction, except for the currency in which the
customer transacts. There is also a field for the Opening Balance as a certain date. In the vast
majority of situations, leave these fields alone! (If you are setting up a new customer, the balance
will be zero so leave so ignore these fields. If you are setting up QBO for an existing company that
has balances, and you have to set up all customers and their opening balances, consult a
QuickBooks ProAdvisor to help you with the proper setup.)
• Attachments – Drag and drop files, or click on the Attachments field or the paper clip icon in
this tab to attach one or more pictures or documents to this customer.

Once you have populated all the fields for your new customer, click the Save button and your customer
has been added.
CREATING A NEW CUSTOMER
CREATING A CUSTOMER “ON THE FLY” IN A TRANSACTION

Customers can also be created “on the fly,” which means that you can create a new customer during
the process of creating a transaction in which you realize that the Customer name you need does not
yet exist.
To do this, select Add New from the drop-down box in the Customer Name field of a transaction. Or,
you can simply type the name of the new customer in the Customer Name field, click on the green Add
plus sign, and then follow the prompts below the Customer Name field to set it up. You’ll have the
choice to add the name of the Customer only and click Save, or you can click on Details and add as
many of the informational fields as you can per the section above and then click Save.

CREATING A NEW CUSTOMER “ON THE FLY” IN A TRANSACTION
ADDING A CUSTOMER “ON THE FLY”: DECIDING WHETHER TO ADD THE NAME ONLY OR MORE DETAILS
The Customer information window pops up, with the name already populated.

WHEN ADDING A CUSTOMER “ON THE FLY” AND CHOOSING TO ADD MORE DETAILS: THE CUSTOMER NAME IS
ALREADY POPULATED

CREATING SALES TRANSACTIONS

There are eight types of sales transactions available to use in QuickBooks Online:
• Invoice
• Receive Payment (against an Invoice)
• Estimate
• Credit Memo
• Sales Receipt
• Refund Receipt
• Delayed Credit
• Delayed Charge
The three main ways to create these transactions are to:
QUICK CREATE BUTTON
• Open the Customer Centre and select one of the Actions available in the far right column of the
each customer’s listing by clicking on the drop-down

CREATING A SALES TRANSACTION FROM THE CUSTOMER CENTRE
• Open the Customer Centre, open a customer profile, and select the New transaction button
CREATING A SALE TRANSACTION FROM WITHIN A CUSTOMER'S PROFILE
INVOICES
Invoices should be used if you need to invoice a customer for a product/service because you have not
yet received payment for the sale. When creating an Invoice, follow these steps:
1. Select a customer or create one “on the fly.”

2. Enter an email address for the customer if one did not pre-populate when you selected the
customer (this step is only necessary if you plan to email the invoice to the customer). Note that
you can also click on the blue Cc/Bcc hyperlink to select additional recipients other than the
customer(s).
3. Enter the appropriate Terms, Invoice Date, and Due Date (if the Due Date isn’t pre-populated due
to the Terms entered) for the transaction. If you have completed the Terms section in the
customer’s profile, then the Terms and Due Date will pre-fill for you. If Custom transaction
numbers have been enabled in the Sales section of Account and Settings, you’ll see an Invoice
Number field to complete as well.
4. Note that the following instructions are for the default sales tax setting in the sample company and
the test drive company, wherein the amounts are “Exclusive of Tax.”
AMOUNTS ARE EXCLUSIVE OF TAX ON THIS INVOICE
Select the appropriate Product/Service items within your QuickBooks Online file and record the
remaining details in the fields provided:
⚫ Quantity (optional)
⚫ Rate (optional)
⚫ Amount (this is pre-tax per the sales tax setting of “Exclusive of Tax” and this amount is
required, but it will self-populate if you’ve entered the Quantity and Rate)
⚫ Sales Tax (choose the correct code regarding if the product/service you have selected is subject
to sales tax
⚫ Class (if you’re tracking classes in QBO Plus, and if you’ve chosen to have one for each row in
a transaction, this will appear, but it is optional)

⚫ Discount (percent or value; apply if appropriate)

5. Select either Save, Save and share link (to create a URL to copy and paste through email or
SMS), Save and send (this will email the invoice to the customer), Save and new (if you plan to
create additional invoices), or Save and close.
HOW TO CREATE AN INVOICE
RECEIVE PAYMENT
Once you have received the funds for an outstanding invoice, you need to apply the funds to the open
invoice in order to close the invoice in QuickBooks Online.
NOTE: It is very important to use the Receive Payment transaction when receiving funds from a
customer if at least one invoice is outstanding from that customer. When you receive funds from a
customer and don’t use a Receive Payment transaction against one or more invoices (but record a
Deposit or Sales Receipt transaction instead), you will end up overstating your accounts receivable on
your balance sheet and overstating your revenue on your income statement.
Once you have populated the Customer field on a Receive Payment transaction, a list of all that
customer’s open (i.e. unpaid) invoices will appear on the Receive Payment screen. You can make use
of the Email field and the Cc/Bcc hyperlink (as in the case of an Invoice) to send a record of this
transaction to the customer and other recipients.
To complete the Receive Payment transaction:

1. Make sure the correct date has pre-filled in the Date field.
2. Enter the Payment method (such as a cheque) and Reference no. (such as a cheque number).
3. In the Deposit to field, select Undeposited Funds if you plan to deposit this payment along with
other payments received, or select the appropriate bank account if this payment is being deposited
by itself.
4. Enter the amount of payment you are receiving into the Amount received field.
5. In the Outstanding Transactions section, ensure that the invoices for which the payment is
intended are checked. (If there is a long list of invoices for this customer, you can find an invoice
by entering an invoice number in the Find Invoice No. field. You can also click on the Find by
invoice no. box at the top left next to the Email field. You can also select the drop-down next to
Filter and pare down the list by date range or if the invoice is overdue.) If any of the invoices are
being paid partially, ensure that the partial payment amount is indicated in the Payment field in the
far right for that invoice.
6. Press Save and close, Save and new, or Save and send. If you choose to Save and send this
invoice, you will be taken to a Send email screen, which will first offer you the option to customize
the subject line and body of the email before you choose to send it.
HOW TO RECEIVE PAYMENT AGAINST ONE OR MORE INVOICES

SALES RECEIPTS
Sales Receipt transactions should be used if you have sold a product/service to a customer and have
also received the payment for the sale at the same time. A Sales Receipt essentially combines an
Invoice and Receive Payment transaction into a single sales transaction without ever affecting
Accounts Receivable. I tell people that if they bought a pack of gum at a convenience store that ran
QuickBooks, they would give the money to the cashier and get the gum as well as a Sales Receipt.
When creating a Sales Receipt, follow these steps:
1. Select a customer or create one “on the fly.”
2. Enter an email address for the customer if one did not pre-populate when you selected the
customer (this step is only necessary if you plan to email the Sales Receipt to the customer). Note
that you can also click on the blue Cc/Bcc hyperlink to select additional recipients other than the
customer(s).
3. Enter the appropriate Sales Receipt Date. If Custom transaction numbers have been enabled in
the Sales section of Account and Settings, you’ll see an Invoice Number field to complete as well.
4. In the Deposit to field, select Undeposited Funds if you plan to deposit this payment along with
other payments received, or select the appropriate bank account if this payment is being deposited
by itself.
5. Note that (as with the instructions for an Invoice) the following instructions are for the default sales
tax setting in the sample company and the test drive company, wherein the amounts are
“Exclusive of Tax.”
Select the appropriate Product/Service items within your QuickBooks Online file and record the
remaining details in the fields provided:
⚫ Quantity (optional)
⚫ Rate (optional)
⚫ Pre-tax amount (required but will self-populate if you’ve entered the Quantity and Rate)
⚫ Sales Tax (choose the correct code regarding if the product/service you have selected is subject
to sales tax)
⚫ Class (if you’re tracking classes in QBO Plus, and if you’ve chosen to have one for each row in
a transaction, this will appear, but it is optional)
⚫ Discount (percent or value; apply if appropriate)
6. Select Save, Save and send (this will email the Sales Receipt to the customer), Save and new (if
you plan to create additional sales receipts), or Save and close.

HOW TO CREATE A SALES RECEIPT
CREDIT MEMOS AND REFUND RECEIPTS

Use a Credit Memo transaction to record credits you give to customers that will effectively lower the
balance due on an existing or future invoice.
Use Refund Receipt transactions to record refunds you plan to actually pay out to customers now.
When creating a Credit Memo or Refund Receipt:
1. Select a Customer.
2. Use an appropriate Date for the Credit Memo or Refund Receipt (sometimes the default date that
prefills for you isn’t the one you should use).
3. Enter the Credit no. or Refund Receipt no.
4. Select the appropriate Product / Service for which you are providing a refund or giving a credit.
The following instructions are for the default sales tax setting in the test drive company, wherein
the amounts are “Exclusive of Tax.”
⚫ Record the Description, Quantity, Rate, pre-tax Amount (required but will self-populate if
you’ve entered the Quantity and Rate), and Sales Tax fields as appropriate.

5. Decide whether you want to choose Save and close, Save and new or Save and send to save
the Credit Memo or Refund Receipt and/or send it to the customer (and that depends on whether
you want to notify the customer that a Credit Memo or Refund Receipt has been created).
CREATING A CREDIT MEMO
After recording a Credit Memo, QuickBooks Online will automatically apply it to the oldest balance due
for that customer (if the Account and Settings in the Advanced area are such that credits are
automatically applied). If the Account and Settings automatically applied the Credit Memo in this way
and you don’t want the credit memo to be applied in this manner, you’ll have to:
1. Navigate to the customer’s profile.
2. Open the $0.00 Payment transaction in which the Credit Memo was automatically applied. (When
QuickBooks Online automatically applied the Credit Memo, it created this transaction for you.) You
can also get to this by opening the Credit Memo and clicking on the blue Payment link in the upper
right-hand corner of the Credit Memo screen under the word PAID and then clicking on the
hyperlink date of next to the amount that was applied.
3. Delete the Payment transaction (by clicking on More at the bottom and then choosing Delete). The
Credit Memo is no longer linked to that Invoice (or those Invoices if there is more than one Invoice
that was paid by this Credit Memo).
4. If you want to apply this Credit Memo to another Invoice, navigate back to the customer’s profile.

5. Open the Invoice (or Invoices) against which you want to apply the Credit Memo.
6. Choose the action to Receive Payment against the invoice (you can click on the Receive
payment button in the top right corner of the Invoice).
7. Check the box next to the appropriate Credit Memo at the bottom of the Receive Payment screen
to apply it against this Invoice.
8. (If this is merely applying the amount of the credit memo to this invoice without receiving any
additional money, change the amount of the payment on invoice to the amount of the credit memo
so that the total Amount received is $0.00.)
APPLYING THE CREDIT MEMO TO ONE OR MORE OPEN INVOICES
DELAYED CHARGES AND DELAYED CREDITS

You can create a Delayed Charge transaction if you want to create a billable charge for a customer to
be added to an invoice at a later date. A Delayed Charge is basically a reminder to create an invoice
(i.e., creating a Delayed Charge doesn’t actually create an accounting transaction in QuickBooks
Online; it is a non-posting transaction). You can use these to keep track of services you provided to
customers so you remember to create invoices at a later date.

Delayed Credits are also non-posting. Delayed Credits can be created if you are expecting returns or
credits from customers. Once the return is received from the customer, the Delayed Credit can be
converted to a Credit Memo or included as a (negative) line on an Invoice.
USING THE DRAWER TO BRING IN BILLABLE TIME AND COSTS

If billable time and/or costs have been entered for a customer but not yet added to an invoice, these
unbilled time and costs will appear on the right-hand side of the invoice screen once you populate the
customer’s name field. The appearance of these unbilled charges on the right-hand side of the invoice
screen is called the Drawer. Over time, the Drawer may get very full, especially if you’re behind on
invoicing for billable time and costs. Therefore, you can filter the drawer for various date ranges to
simplify your choices as to what to add to the invoice.
Simply click on the Add button in the drawer to add an individual unbilled charge to the invoice, or
select Open if you want to open the unbilled charge to make changes to it or confirm whether or not
you want to add it to the invoice you are creating. You can also click on More for each charge to get
more information about the charge without actually opening it before deciding. Select Add all if there
are several unbilled charges and you want to add all of them.
USING THE DRAWER TO ADD BILLABLE EXPENSES TO INVOICES
You can also specifically create invoices for billable time and costs by going to the Customer Centre
and clicking on the portion of the Money Bar called Unbilled Activity. A list of customers with unbilled

time and costs will display (each customer with unbilled activities will appear no more than once in this
listing, regardless of how many unbilled activities that customer has), and you can click on Start
Invoice in the Action column to create an invoice for that customer.
BANK DEPOSITS
When you send Sales Receipt and/or Receive Payment transactions to Undeposited Funds (a holding
account of sorts), they sit in this account until you create a Deposit transaction. To create a Bank
Deposit transaction, use the Quick Create button and select Bank Deposit.
HOW TO CREATE A BANK DEPOSIT
When creating a deposit, be certain you select the correct bank account at the top of the Bank Deposit
transaction screen. To complete the Bank Deposit transaction:
1. Select the Account which this deposit will be made.
2. Populate the Date field with the date you make the deposit.
3. Check the Payments that will be included in the deposit from the list provided under Select the
payments included in this deposit (those are monies sitting in Undeposited Funds).

4. Add any other deposit items in the Add other funds to this deposit section below the list of
payments. These should be funds that are unrelated to sales, such as a shareholder loans or
insurance premium refunds. Be careful when entering deposit items in the Add other funds to this
deposit section; don’t enter sales transactions here because you will diminish the quality and
accuracy of the reports that use Products/Services. Further to that, if you enter funds received from
customers in this section without going through a Receive Payment transaction first, you will also
be overstating revenues and receivables. In addition, transactions entered here won’t be reflected
in the Sales Tax Centre.
5. If you took any cash back from the deposit, such as for petty cash, enter that information in the
footer of the Bank Deposit form.
6. Confirm that the total amount of the deposit equals the amount you took (or plan to take to the
bank), then click Save and close or Save and new to save the Bank Deposit.
7. You can click on Print at the bottom centre of the form to print either the deposit slip and summary
or the deposit summary only. You can also access the setup and alignment screen if you plan on
printing out on printable deposit slips.
HOW TO CREATE A DEPOSIT

STATEMENTS
Simply put, a statement is the status of a customer's account at a particular point in time. A statement is
not a transaction; it’s more of a report that you send to your customers.
Each line item on a statement represents sales transactions, credits, and payments for the time period
of the statement. A statement doesn't offer as much detail about each individual sales transaction as an
invoice or sales receipt would. Statements are often sent out on a regular basis to let your customers
know where they stand and if they still owe you any money.
You can create a balance forward, open item, or transaction statement in QuickBooks Online.
1. Go to the Customer Centre by clicking on Sales → Customers on the Left Navigation Bar.
2. Scroll to find the customer(s) for whom you wish to create a statement, then check the box next to
their name(s).
3. Click the Batch Actions → Create Statements.
4. Choose the Balance Forward, Open Item, or Transaction Statement option, and select the
Date(s) as indicated to specify the date range that the statement will cover.
5. Use the Print or Preview button in the middle of the bottom navigation panel to make sure the
statements are being generated the way you want to see them. If the statements don’t look right,
try using one of the other two statement types or adjusting the date range used to make the
statements look the way they should. By moving your mouse pointer to the top of the preview
screen, you’ll see icons to download the statements as a PDF or print them. Or, you can click on
the Print button in the bottom right corner to print them.
6. If you don’t want to go into Print or Preview and you wish to email them instead, click Save and
send. Change the wording of the subject line or body of the email that accompanies the statement
in the Send Statement preview screen if needed. Here, again, you can move your mouse pointer to
the top of the preview screen, and you’ll see icons to download as a PDF or print the statements.
Or, just click Send to email the statements to the customers.

ESTIMATES
Create an estimate when you want to give your customer a quote, bid, or proposal for work you plan to
do. Estimates are non-posting transactions.
The Estimate form is completed in the same manner as an invoice. In fact, it looks very much like an
invoice, but its purpose is to help you begin negotiations with your customer — not to record a sale.
You can find open Estimates in the Customer Centre by looking at the Money Bar: open Estimates
have their own colour bar, and you can click on that bar to get a list of open Estimates.
CLICKING ON OPEN ESTIMATES SECTION OF THE MONEY BAR TO GET A LIST OF OPEN ESTIMATES
Later, once the work is done and/or you're ready to invoice your customer, you can convert the
estimate into an invoice by opening the customer’s profile in the Customer Centre, then selecting Start
Invoice in the Action column next to the estimate.
If the work you included on an estimate doesn’t end up happening, you can change the status of the
Estimate manually. There are four statuses available for estimates:
• Pending (this is the status automatically assigned to an estimate when you create it)
• Accepted
• Closed (this is the status that is automatically assigned to an estimate after it has been converted
to an invoice)
• Rejected
UPDATING THE STATUS OF AN ESTIMATE
Payroll
SETTING UP AND RUNNING QUICKBOOKS ONLINE PAYROLL

QuickBooks Online Payroll is an integrated payroll solution which can be added to any subscription
level of QuickBooks Online. You can choose between two QuickBooks Online Payroll options:
QuickBooks Online Standard Payroll and QuickBooks Online Advanced Payroll (powered by
Wagepoint). They both have different feature sets and different pricing models.
With either option of QuickBooks Online Payroll, you can:
• Run payroll seamlessly inside QuickBooks Online

• Ifcreate
you have a QuickBooks Online Essentials or Plus subscription, you can use timesheet data to
paycheques
• Choose to pay employees using direct deposit or by printing a cheque

Both options of QuickBooks Online Payroll calculate paycheques, and offer direct deposit. But you can
decide how “do it yourself” you want to be and how much you want to pay for your QBO integrated
payroll solution.
For example, in QuickBooks Online Standard Payroll, you are responsible for making all required
source deductions. With QuickBooks Online Standard Payroll, you prepare payroll forms, and you must
review and submit them on time. Intuit does not handle any source deductions notices, and does not
assume responsibility. However, Intuit does send you a reminder email for when your payroll, source
deduction forms and remittances are coming due. With QuickBooks Online Advanced Payroll, however,
payroll taxes are filed and remitted for you automatically every time they’re due.

There are other differences as well. You can look at the two QuickBooks Online Payroll options side-by-
side by clicking here: https://quickbooks.intuit.com/ca/payroll-online/ .
To sign up for either of the two options of QuickBooks Online Payroll, click on the Employees tab on
the Left Navigation Bar, then click Set up payroll.
(In the Employees, tab, you can add employees and track them without being ready to set up
QuickBooks Online Payroll by clicking on Add an employee instead of Set up payroll.)
SET UP PAYROLL OR ADD AN EMPLOYEE
Once you click that first button to start setting up QuickBooks Online Payroll for your company, you will
be asked to click on the icons representing payroll features that are important to you, and how often
you will be running payroll. By doing that, you will help QBO recommend which payroll service (QBO

Standard Payroll or QBO Advanced Payroll) you should choose, as well as display what the cost will be
to you.
CHOOSING WHICH PAYROLL SERVICE USE

After that, click on the payroll service of your choice. You may have to follow the prompts to agree to
any Terms of Use and Privacy Policy, and then click on connect or Turn on Payroll Now.
TURN ON PAYROLL NOW
Once you have turned on the payroll subscription of your choice, you will be in the Employees area of
your company in QBO. Click on Get started with payroll.
AFTER CHOOSING THE PAYROLL OPTION: GET STARTED WITH PAYROLL
You will need the following information to complete the payroll setup:
• Company information – Legal name, business address and bank routing and account numbers (if
you’re paying employees by direct deposit), as well as CRA payroll account number
• Compensation
deductions
and benefits types for each employee – Salary, hourly, retirement, other

• Employee information – Completed TD1’s, pay rates, deductions, benefit info, and, if applicable,
calendar year-to-date payroll (so that each employee’s T4 for the year will be correct) before
starting with QuickBooks Online Payroll
• Direct deposit information – Employees’ bank account and routing numbers
TELLING QUICKBOOKS ONLINE PAYROLL ABOUT YOUR COMPANY

SETTING UP YEAR TO DATE PAYROLL, IF APPLICABLE
ADD EMPLOYEES AFTER SETTING UP THE COMPANY AS THE EMPLOYER

ADDING EMPLOYEES AFTER SETTING UP QUICKBOOKS ONLINE PAYROLL

You don’t have to add all your employees immediately upon setting up the company as the employer as
shown in the previous section. You can add the employees later. Or, if new employees starts working at
the company, here is how you add them once they start working. Open the Employee Centre by
clicking on Employees in the Left Navigation Bar.
Start adding a new employee by clicking on Add an Employee.
ADD AN EMPLOYEE
To set up the new employee, fill out the fields under Get Ready for Payroll, which will include
information about the employee, their pay arrangements, their deductions, and when they were hired.
Enter the employee name and other information:
1. Enter TD1 information.
2. Enter a pay schedule. This is where you determine the pay week ending date and cheque date.
You can set the new payroll schedule as a default here, too.
3. Enter the pay type and rate.
4. Enter the vacation policy for this employee as well as the employee’s current vacation pay
balance.
5. Enter any deductions. Examples of deductions include retirement or health insurance contributions
the employee has chosen to deduct from their paycheque.
6. Determine payment method. You can choose either paper cheque, direct deposit, direct
deposit to two accounts, or direct deposit with balance as a cheque. If you choose any option
involving direct deposit, you’ll be required to fill out the employee’s banking information.
7. If you specified earlier that you’ve paid T4 employees already during this year, enter any calendar
year-to-date payroll and employer contributions you’ve already paid to this employee or on their

behalf. (Obviously, any new employees that start working for the company after you’ve started
using QBO payroll would not have year-to-date payroll figures.)
You will repeat that process to set up each employee.
GET READY FOR PAYROLL: ADD 1ST EMPLOYEE DETAILS, PRIOR TO 2018 PRIOR PAY DETAILS

1ST EMPLOYEE WAS NOT PAID THIS YEAR PRIOR TO USING QBO PAYROLL

GET READY FOR PAYROLL: 1ST EMPLOYEE DETAILS; NO 2018 PRIOR PAY DETAILS WERE SPECIFIED

1ST EMPLOYEE IS NOW LISTED
1ST EMPLOYEE IS NOW LISTED

2ND EMPLOYEE WAS PAID THIS YEAR PRIOR TO USING QBO PAYROLL

GET READY FOR PAYROLL: 2ND EMPLOYEE DETAILS; 2018 PRIOR PAY DETAILS WERE SPECIFIED

1ST AND 2ND EMPLOYEE ARE NOW LISTED
EMPLOYEES ARE SET UP: CAN RUN PAYROLL NOW OR LATER
ENTERING PREVIOUSLY REMITTED SOURCE DEDUCTIONS

After all your employees are entered, you’ll want to make sure that you complete the payroll tax setup,
including any source deductions (e.g. Federal income tax, Canada Pension Plan, Employment
Insurance) payments that have been made to the Receiver General for this payroll year, even before
QuickBooks Online Payroll was started. That way, your remittance records in QBO will match those of
the CRA when it comes time to submit your employees’ T4’s and your company’s T4 Summary.
Click on Taxes in the Left Navigation Bar and then click on the Payroll Tax tab. You’ll be in the Payroll
Tax Centre. You will see a list of your employees, and you may be required to enter their hire dates.

You’ll also see, under Tax Setup, a place to enter your CRA Payroll Number. There is also room there
for the payroll frequency and the SIN of the owner(s).
PAYROLL TAX SETUP OVERVIEW: COMPANY FEDERAL TAX INFORMATION
If you don’t enter it at first, you can always click on Taxes →Payroll Tax → Edit your tax setup
→Federal Tax Information and then enter the CRA Payroll Number and click OK.
You can also edit your company’s Filing Name and Address by clicking on Taxes →Payroll Tax →
Edit your tax setup →Company General Tax Information; then enter the company Filing Name and
address if they need editing and click OK.
PAYROLL TAX SETUP OVERVIEW: COMPANY GENERAL TAX INFORMATION

Also, in the Payroll Tax Centre, you must click on Enter prior tax history in order to record each
source deductions filing and remittance for the current year’s payroll.
PAYROLL TAX CENTRE: ENTER PRIOR TAX HISTORY
PAYROLL TAX CENTRE: ENTER PRIOR TAX HISTORY BY PAYMENTS
PAYROLL TAX CENTRE: CREATE PRIOR TAX PAYMENT DETAIL

Payroll is now set up for the company, and your employees are also set up. You are now ready to run
payroll.
RUNNING PAYROLL IN QUICKBOOKS ONLINE PAYROLL

To run a payroll in QuickBooks Online Payroll, click on the Employees tab in the Left Navigation Bar,
then click Run Payroll.
STARTING THE RUN PAYROLL PROCESS
Verify the Bank account and Pay period and the Pay date, check the boxes next to the employees to be
paid, and enter the employee hours, then Preview payroll. If you are using timesheets in a
QuickBooks Online Essentials or Plus subscription, the timesheet data entered will populate the hours
displayed here.
You can even add an employee directly from this screen.

ENTERING EMPLOYEE PAY DETAILS
If you need to edit a cheque, click on the pencil icon at the far right to re-open the paycheque screen.
You can print your paycheques or paystubs on the next screen. When you’re done, click Submit
Payroll.

PREVIEWING PAYROLL
PAYROLL COMPLETION SCREEN

You can print the pay stubs from this last screen. In this example, we were using manual cheques, not
direct deposit and not cheques to be printed, so this screen allows us manually enter cheque numbers.
At the bottom of the screen, you can click on View payroll reports. Clicking on this will send these
reports to Excel by clicking on Export to Excel in the next screen:
PAYROLL REPORTS TO EXPORT TO EXCEL

PAYROLL REPORTS
Payroll reports can also be found in the Report Centre, which is accessed by clicking on Reports on
the Left Navigation Bar. Three common payroll reports (among many) that you can use to review
payroll are found under Reports → Payroll:
• Payroll Summary – Shows information about a single payroll or date range. To change the dates
displayed on the report, click on Date Range. You can choose from many date range options such
as last pay date, last month, this year, or a custom period. You can also filter by employees. To
share, print or export your report to Excel, click the drop-down menu next to the Share button.
• Payroll Details – Shows a breakdown of the employee and employer share of taxes as well as
any deductions from the employees’ gross wages. You can change the date range and filter by
employees here, too.
• Payroll Tax Liability – Shows the amount of payroll taxes withheld, paid, and owed. You can filter
this report by Date Range.
PAYROLL REPORTS IN QBO

QuickBooks Online Client Training Guide Extra Information on Transactions
Bank and Credit Card Accounts
BANK FEEDS
The Bank Feeds function in QuickBooks Online is one of the most dynamic features in the program. It
links your online bank and credit card accounts, and feeds the transactions automatically and directly
into the Banking Centre without any ongoing maintenance from you. When the transactions are pulled
in, they are non-posting until you match them to previously recorded transactions or use them to add
new transactions to your registers. (When Bank Rules are used, however, you can, if you wish, arrange
to have the bank-fed transactions automatically posted to QuickBooks Online; you’ll see more about
that in a later section.) This process simplifies data entry and can really help businesses get a handle
on their balances!
When you use Bank Feeds to enter your transactions, those bank and credit card accounts become
self-reconciling, meaning that because each transaction is matched to the bank as they are entered,
they are already marked as cleared in the reconciliation screen. A transaction that has been matched or
was created from a Bank Feed has the letter C next to it in that bank or credit card account’s register or
account history. A transaction that has been marked as cleared in the reconciliation screen will have
the letter R next to it in that account’s register or account history.
Thousands of financial institutions globally allow their customers to link their accounts to QuickBooks
Online. If a financial institution does not participate, you can still upload bank feeds to QuickBooks
Online if the transactions can be exported from the banking website to .CSV, .QFX, .QBO or OFX
formats. If you are unable to export your banking information to any of these formats, there are at least
two apps available that can convert a PDF statement to *.QBO format.
When you first open the Banking Centre (accessed by clicking Banking in the Left Navigation Bar), you
will be prompted to connect an account; you will click on the green Connect button in the middle of the
unpopulated Banking Centre. (As you might expect from the previous paragraph, there is also the
option to click on Upload transactions manually, for accounts that cannot be connected to the
Banking Centre.)
When you want to connect a bank or credit card account, start to enter the name of the financial
institution whose account you want to connect, and you’ll likely find it to select as the list of thousands
of financial institutions filters down to a “clickable” list.

ADDING AN ACCOUNT FOR BANK FEEDS
Then, once you’ve chosen your institution, enter the Online ID and Passcode (your credentials that you
would use to sign into your financial institution’s online banking page). You might have to prove that
you’re not a robot next. QuickBooks then displays the accounts associated with the login ID of that
financial institution.
Next, you’ll choose, via a drop-down for each account, how to connect those actual accounts to their
Chart of Accounts counterparts in QuickBooks. You will also be offered an initial number of days of
transactions (perhaps 60 or 90 days) to import; you can select a different time period; click Connect.
CONNECTING BANK OR CREDIT CARD ACCOUNTS TO QBO
When the correct bank or credit card account on your Chart of Accounts is connected to the Bank
Feed, you’ll see a confirmation that you’re ready to go.
After the first account is added, you can add another bank or credit card account by clicking on Add
Account inside the Banking Centre.

TIP: By default, QuickBooks Online will import 90 days of transactions during your first import.
You can choose to import a different number of days if you can get download files from your
banking institution’s online banking page (.CSV, .QFX, .QBO or OFX formats or PDF formats
as described above), and then upload the file(s) manually into QuickBooks Online by clicking
on File Upload in the top right corner of the Banking Centre.
THE BANKING CENTRE
If, for some reason, you don’t want to do an actual automatic ongoing bank feed (or cannot arrange
one), you’ll want to upload transactions from your bank using a supported file type (.CSV, .QFX, .QBO
or OFX formats). To do that, follow these steps:
1. Click on File Upload in the Banking Center. (If there are other bank or credit card accounts that do
feed automatically into this QuickBooks Online company, you’ll need to click on the drop-down
next to Update to choose File Upload. That’s because you’ll see the Update option on that button
instead of File Upload, and you’ll have to click on the drop-down to view the File Upload option.)
2. Click Browse to locate the file you wish to upload and click Next.

BROWSE TO UPLOAD A FILE OF BANK TRANSACTIONS
3. Choose the QuickBooks bank or credit card account that you want to link, then Next (you can also
add a new account here).
4. If you are asked to map the fields in the upload file to the fields in QuickBooks Online, follow the
instructions.
5. Click Next to import your data.
6. After you see an Import completed confirmation that the data has been imported, click on Let’s go!

TIP: If your .csv import file has headers, click First row in .csv file is header row and your
headers will appear in the drop-down menu. This makes mapping a whole lot easier!
WORKING WITH THE DATA IN THE BANK FEEDS

Now that you have imported transactions, you can start working with them in the Banking Centre. Here
is a tour of the Banking Centre:
• The top section of the Banking Centre shows the accounts that are enabled to use Bank Feeds.
• The top portion of each account box will show the bank balance as of the date of the last sync.
• The bottom portion of each bank or credit card account box displays the current balance in the
QuickBooks Online register and the number of transactions displayed in the For Review tab for
that account below.The buttons at the top right of the Banking Centre are action buttons you can
use to add a new account, begin an upload, or update a linked account.
Remember that when transactions are imported from a Bank Feed, they come into QuickBooks as non-
posting transactions (unless they are added automatically by Bank Rules, covered next). They are not
added to the register until you take action. Bank Feed transactions are organized nicely into three tabs:
• For Review – Displays as-yet unposted transactions from the Bank Feed
• IntheQuickBooks
register
– Displays Bank Feed transactions that have been matched or added to
• Excluded – Displays transactions that have been removed from the For Review tab by the user
TABS USED IN BANKING CENTRE
There is a little gear icon to the top right of the transaction grid list in the Banking Centre. You can use
this grid gear icon to add or remove the columns that are displayed on the Bank Feed and change the
number of transactions included on each page. Columns you can add are:
• Cheque no. – Useful when you add cheques directly from the bank feed
• Payee
• Editable date field – If you are using bank feeds to enter transactions initiated in a different period
you will need to enable this column
• Copy bank detail to memo – Retains a record of the bank text in the transaction, essential if you
forget to add a name to the Payee field
• Show bank details – displays a column with the additional detailed information that would appear
in a bank statement or online banking report
OPTIONS UNDER GRID GEAR ICON IN BANKING CENTRE
TIP: You can sort transactions by a column’s contents by clicking on the column name.
Clicking on the column name a second time will reverse the sort order.
Begin your Bank Feed workflow in the For Review tab. Transactions in the For Review tab are listed
under two additional sub-tab headings:
• All
• Recognized
If QuickBooks recognizes a transaction that is already recorded in the register, it will display a Match
tag next to the transaction in the Action column and will add it to the Recognized tab. (If you click on
that Match button, it will add it to the In QuickBooks tab.)
If you see a View tag next to a transaction in the Action column, this means that QuickBooks Online
found more than one possibility for a match. You’ll see the number of possible matches for that
transaction under the Category or Match column for that transaction.
CLICK ON MATCH TO ADD A MATCHED TRANSACTION; CLICK ON VIEW TO DECIDE WHICH RESULTS TO MATCH
FOR A TRANSACTION WITH MORE THAN ONE POSSIBLE MATCH
If you click on the View button for that transaction with more than one possible match, you can decide
which is the right match, click on the correct radio button, and click on Match. That will add that newly
matched transaction to the In QuickBooks tab as well.
AFTER CLICKING ON VIEW, CLICK ON THE RADIO BUTTON FOR THE CORRECT MATCH, THEN CLICK MATCH

If you click on a transaction with which the suggested general ledger account you don’t agree, you can
change the account and the tax code. In fact, you can make all kinds of edits to the transaction with the
aim of adding it to the account register from the Bank Feed:
• Payee
• Category (G/L account)
• If needed, mark as Billable and assign to a Customer.
• Tax code
• Class or Location (if applicable)
• Description/Memo
• Add an Attachment
• Ifappropriate
you wish to split the transaction among multiple categories, click the Split button, enter the
details into the pop-up window, then click Add.
CLICK ON A TRANSACTION FROM THE BANK FEED IN THE “FOR REVIEW – ALL” TAB TO EDIT IT AND ADD IT TO
THE “IN QUICKBOOKS” TAB AND THE ACCOUNT REGISTER
QuickBooks can also recognize common supplier names. It will make suggestions regarding the
general ledger account to which it should be coded. If you accept the suggested account (and ensure
that the Tax Code field is populated), QuickBooks will change the account for all transactions of that
same name and the colour of the text will be changed to green.
In the example below, let’s click on the first transaction in the For Review – All tab for Supplies Depot.
(All the Supplies Depot transactions are listed there as Uncategorized Expense with no GST/HST tax
code.)

THE FOR REVIEW – ALL TAB
We’ve edited this transaction to give it a different general ledger account and GST/HST tax code. Once
you’ve set the tax code for this transaction, you might be asked (especially if this is the beginning of
your use of QuickBooks) if you would like to set this tax code as the default for this category (the
general ledger account you chose for this transaction). Regardless of whether you select Yes or No,
let’s click on Add.
EDITING ONE TRANSACTION FOR A SUPPLIER FROM THE “FOR REVIEW” TAB
Notice that now, all the remaining transactions in the For Review tab (in the All sub-tab) for the same
supplier have the same category (Office expenses) and GST/HST tax code and they’re marked in
green. If you want to add them all to the In QuickBooks tab, you can click a checkmark in the box to the
left of each of these, click on Batch Actions, and click on Accept Selected.
ALL THE TRANSACTIONS FOR THE SAME SUPPLIER TURN TO GREEN WITH THE SAME ACCOUNT AND TAX CODE:
BATCH ACTION TO ACCEPT SELECTED

In fact, you could have made this step a little simpler by first clicking on the column header Description
so that all the remaining transactions would be listed in alphabetical order by the contents of the
Description field, so that all the Supplies Depot transactions would be together. That would have made
checking the boxes to the left of them easier to do, as they would all be consecutive, and then you
could click on Batch Actions → Accept Selected.
Here are some more things to know about matching a transaction to the register from the Bank Feed:
• If,register
for some reason, QuickBooks doesn’t recognize a transaction that is already recorded in the
(it appears in the Category or Match column as “uncategorized”), you can match it to the
correct transaction manually by clicking on the transaction line (as if to edit it), and then by clicking
on the radio button next to Find match. A list of possible matches is displayed in the Match
Transactions pop up screen. Place a checkmark next to the appropriate matching transaction(s),
and click Save. If the Bank Feed transaction is made up of multiple transactions in the register, you
can check multiple lines in this screen to resolve the difference in amounts.
• You can also match Bank Feed transactions to unpaid bills, open invoices, sales receipts and
customer payments. If there are open items in any of these categories, they will be displayed in the
Match Transactions pop up screen. (An example would be that a customer owed you $1,000 for
three invoices and paid you by cheque, which you deposited into your bank account, but you didn’t
record this in QuickBooks. QuickBooks will see those invoices outstanding and suggest that
perhaps this mystery deposit was related to those outstanding invoices.) You can match multiple
transactions to the Bank Feed, which means you can group multiple customer payments or sales
receipts into a single deposit and multiple bills into a single bill payment.

TROUBLESHOOTING BANK FEED TRANSACTIONS

Sometimes during your workflow, you will find that a transaction has already been matched or added,
but it was matched to the wrong transaction in the register. This can happen for a number of reasons,
but it usually happens because the register transactions are of the same amount and fall within the
same date range. To fix this type of error:
1. Click on the In QuickBooks tab.
2. Find the transaction that was incorrectly matched.
3. Click Undo under the Action column on the far right.
UNDO FUNCTION WITHIN THE BANKING CENTRE
This returns the Bank Feed transaction to the For Review tab so that it can be matched to the correct
transaction.
Another issue you may encounter occurs when a Bank Feed transaction is imported and the matching
transaction has already been reconciled using the Reconcile tool in QuickBooks. In this case, the
transaction can’t be matched in the Bank Feed Centre, and you will need to exclude the transaction or it
will remain in the Bank Feed area indefinitely. To exclude the transaction:
1. Check the box next to the transaction(s) you want to exclude in the For Review tab.
2. Click Batch actions → Exclude Selected.
This moves the transaction to the Excluded tab, where it remains until you delete it permanently from
your workflow. If you exclude a transaction by mistake, click on the Excluded tab, and then click Undo
in the far right under the Action column. This will move the transaction back to the For Review tab,
where it can be properly added or matched to the register.

You may see a red error message in the Banking Centre indicating that QuickBooks was unable to
connect to the online banking for an account. If this occurs, it usually means that your online banking
credentials have been changed and need to be updated in QuickBooks Online. To update the online
banking credentials:
1. Click the pencil icon at the top right of the blue account box.
2. Click Edit sign-in info.
3. Fill out the form with your updated online banking login credentials and confirm that you’re not a
robot.
4. Click Update.
UPDATING ONLINE BANKING CREDENTIALS
What happens if you accidentally import a Bank Feed twice and create duplicate entries?
• Duplicates in New Transaction List – If the duplicates are in the For Review list, you can fix this
easily by selecting the duplicate transactions (i.e., place a checkmark next to them), and then by
clicking Batch Actions → Exclude Selected
• Duplicates already added to the Register – If the duplicate transactions have already been
added to the register, click the In QuickBooks tab → place a checkmark next to each duplicate
transaction and then by clicking Batch Actions → Undo. Once the duplicates have been moved

to the For Review list, you will need to select all of them again, and then click Batch Actions to
exclude them as above.
If you can’t find a matching transaction (it appears as “Uncategorized”) that you know is recorded in the
register (perhaps because a supplier held a cheque for more than 90 days, or the date of the
transaction was entered incorrectly in the register), you may need to expand the date range in the
Match transactions screen. Once you’ve clicked on the transaction in the For Review column and
selected Find match, simply change the date range that appears and QuickBooks will show
transactions for the dates specified.
CLICK ON FIND MATCH
THEN EXPAND YOUR DATE RANGE
Place a checkmark next to the matching transaction that you’ve found in the expanded date range and
click Save in the bottom right corner. (Alternately, if you know the matching transaction is already
recorded properly in the register, you can simply Exclude the transaction (using the Batch Actions
feature as described above, but for one transaction only) in the For Review tab that you’re having
trouble matching.)

BANK RULES IN BANK FEEDS

You can further automate data entry via Bank Feeds using Bank Rules and reduce the amount of time
it takes to code and record transactions.
To create a Bank Rule:
1. In the Banking Centre, click on the downward arrow next to the Update (or File Upload) button,
and then click on Manage Rules.
2. Click on New rule.
3. Give your rule a name and choose whether the rule applies to Money in or Money out.
4. Choose whether the rule applies to all bank accounts (including credit card accounts) or only
specific ones.
5. Set the criteria for the rule. You can add multiple criteria (by selecting Add line) and specify
whether “all” or “any” of the criteria have to be met in order for this rule to be applied.
6. Set the type of transaction you want to create with the rule, and add the details of the transactions,
such as Payee, Category, and Tax code. You can also code Class and Location here if you have
them enabled in a QBO Plus subscription company.
7. Click Split if there is more than one pre-tax line to the transaction you want to create automatically
via this rule. You can specify whether the “split” is to be applied by a percentage or by dollar
amount.
8. Check the box next to Automatically add to my books if you want QuickBooks to accept
transactions that meet these conditions automatically and move them to the In QuickBooks tab
without any additional user action.
9. When you’re done setting up a rule, click Save.

ADDING A BANK RULE
QuickBooks will use the criteria entered in your Bank Rules to pre-fill your bank feed transactions with
the required information.
All of your previously-created Bank Rules will be listed in the Rules list. They can be edited, copied, and
modified, to create new rules, or deleted by clicking on the buttons under the Actions column. You can
also export bank rules from one QuickBooks Online company and import them into another QuickBooks
Online company by clicking on the drop-down next to New rule in the Rules screen.

USING BATCH ACTIONS IN THE BANK FEEDS

The Batch Actions feature can be a real time saver. You already know that you can use it to remove
duplicate transactions from your workflow. Did you know that you can also code and add multiple
transactions at the same time? To do this:
1. Select the transactions in the For Review tab of Bank Feeds that you want to code.
2. Click the Batch Actions drop-down arrow → Modify Selected.
3. Enter the Payee, Category, and Tax Code, and then click Apply. All the selected transactions will
be coded to the payee and category and correct tax code.
4. Click Batch Actions again → Accept Selected.
USING BATCH ACTIONS IN THE BANK FEEDS

RECONCILING BANK, CREDIT CARD AND OTHER ACCOUNTS

Although the Bank Feeds function in QuickBooks Online matches your entries to the bank, it is a best
practice to reconcile the accounts monthly using the Reconcile feature. The reconcile process can help
to find errors and omissions between QuickBooks and the bank. It also changes the Reconcile tag on
transactions in your bank or credit card register from C to R, which gives you another way to filter
reports that can help troubleshoot issues with your Bank Feeds.
To open the Reconcile screen in QuickBooks Online:
• Click on the Gear icon →Reconcile under the Tools menu.
ACCESSING THE RECONCILIATION FUNCTION FROM THE GEAR ICON
Or, you can click on Accounting in the Left Navigation Bar and click on the Reconcile tab.
ACCESSING THE RECONCILIATION FUNCTION FROM THE LEFT NAVIGATION BAR

TIP: A third access point for the Reconcile screen is from an account’s register or history – just
click on the green Reconcile button at the top right of the register.
THIRD ACCESS POINT FOR RECONCILE: FROM THE REGISTER OR ACCOUNT HISTORY SCREEN
• If you encounter the Reconcile like a pro screen, click on Let’s do it.
CLICK ON LET’S DO IT

• The Reconcile an account screen opens. Choose the account you want to reconcile from the
drop-down menu, confirm the Beginning balance, enter the statement’s Ending balance and
statement’s Ending date, then click Start reconciling.
STARTING THE RECONCILIATION PROCESS FOR AN ACCOUNT
You can view the Reconcile screen in QuickBooks by clicking on:
⚫ Payments (to isolate money coming out of the bank only)

⚫ Deposits (to isolate money going into the bank only)
⚫ All (to see all transactions of all types in one screen)
Some people would prefer to see just Payments, and reconcile those, then see just Deposits, and
reconcile just those, so that they can concentrate on just one side of the statement at a time. It’s a
personal preference and depends solely on how an individual likes to work.

CHOOSING WHICH TRANSACTIONS YOU WISH TO SEE IN ONE SCREEN
RECONCILING AN ACCOUNT

The statement ending date is displayed at the top left of the screen, and the reconciliation summary
box can be found in the top header.
Transactions after the statement’s end date have been hidden by default so you don’t accidentally
clear post-dated transactions that happen to have the same amounts as transactions on the
statement. This is really important if you are using Bank Feeds, because Bank Feed transactions
are automatically marked cleared when you add or match them to the register.
You can change column widths by dragging the divider to the right of the column header; and, you
can sort the transactions that are listed by a column’s parameter by clicking on that column’s
header. You’ll see a black triangle pointing up next to the column header, indicating that the
transactions are being sorted by that column. Clicking on the column’s header a second time will
sort those transactions in reverse order by that column’s parameter, and the black triangle will be
pointing down.
• To mark a transaction as cleared, click the checkbox to the right of the transaction. As you
clear transactions, QuickBooks tallies the cleared debits and credits in the summary box and
displays the difference between your records and the bank.
NOTE: If you find you have entered the wrong information for the ending balance or statement date,
you can click on Edit info in the top right corner next to Finish now. You can always click Save for
Later (in the drop-down next to Finish now) to save your progress and complete your reconciliation
at a later time. If you want to start over and not save any of your checkmarks, you can click on
Close without saving in the drop-down next to Finish now.
SUMMARY BOX ON RECONCILIATION SCREEN
• Once you have verified and checked all the cleared transactions in QuickBooks, the amount in
the Difference field should be zero. When you are finished (i.e., when the Difference field
displays zero), click Finish Now. This will close the screen.
• Once you have finished reconciling, you will see a Success! Window. You can then click View
report to view the Reconciliation Report, or you can click on Done and choose to view the
report later.

SUCCESS! YOU RECONCILED YOUR ACCOUNT
Here are some common roadblocks you might run into while reconciling an account in QuickBooks
Online:
• Transaction on the Bank Statement is not in QuickBooks – If you need to add a transaction
that has not been recorded in QuickBooks but appears on the bank statement, click the Quick
Create button to open the appropriate transaction screen and record the transaction. Then go back
to the Reconcile screen, and you will be able to mark the new transaction as cleared.
• Discrepancies: you made the error – If you find a discrepancy in one of your entries, you can
click on the transaction from the Reconcile screen to edit it. Save and close the transaction and
resume the reconciliation process.
• Discrepancies: bank made the error – If the bank made an error, you should record a new
transaction to adjust your balance. After you resolve the error with your bank, reverse the
transaction (but do not delete it). You will mark the reversing entry cleared during the reconciliation
of the period in which the bank’s correction appears on your statement.
• Printing the Reconciliation Report – The reconciliation report can be printed as soon as you
finish reconciling by clicking on View report in the Success! screen. It can also be viewed by
clicking on the statement link in the Reconciliation summary screen. You access this screen by
clicking on Accounting in the Left Navigation Bar → Reconcile tab → History by account. Then
choose the account and the Report period (the default is Since 365 Days Ago). Then click on the
statement link. It is important to note that any changes made to the register or a cleared
transaction after the reconciliation is completed will not be included on your reconciliation report.
However, any changes will appear in the Changes column of the History by account in the
Reconciliation report listing.

A CLEARED TRANSACTION’S AMOUNT WAS CHANGED BY $250 SO IT APPEARED IN THE CHANGES COLUMN
Extra Information on Transactions
ATTACHING DOCUMENTS
You can attach documents to transactions in QuickBooks Online, whether you are logged in via your
browser or from your mobile device using the Mobile app.
To add a document from within your browser, open the transaction to which you want to add the
document, and either drag the file to the box at the bottom of the screen or click on the paperclip icon
and browse to the file you want to attach.
ATTACHMENT TOOL LOCATED AT THE BOTTOM OF TRANSACTION SCREENS
You can also attach documents using the QuickBooks App for iPhone and Android devices. First,
download the app from the Apple Store or Play Store. Once you have the app installed, log in and
create a new transaction or open an existing one, click on the camera icon and you can either take a
new photo of a receipt or upload an existing picture.
You can also attach files to Customers or Suppliers in QuickBooks Online, when you are logged in via
your browser. For customers, click Sales → Customers → select a customer → Customer Details.
For suppliers, click Expenses → Suppliers → select a supplier → Supplier Details. Then, either drag

the file to the box at the bottom of the screen or click on the paperclip icon and browse to the file you
want to attach.
You can view all your documents in QuickBooks Online company by clicking on Attachments in the
Gear icon menu.
SEARCH BOX AND RECENT TRANSACTIONS

The Search feature (accessible by clicking on the magnifying glass icon in the Top Navigation Bar) in
QuickBooks Online is very dynamic. Clicking on it opens a screen with a search bar and a list of recent
transactions, each of which is a hyperlink to the actual transaction you may want to open, review, and
edit. If what you’re looking for isn’t visible in the list of recent transactions (and you can click on View
More to expand the list), just type what you are looking for into the search bar, (such as an amount,
name, or document number,) and QuickBooks Online will return all list items and transactions that
match the criteria that you entered. If you need to filter further, click on Advanced search and you will
be able to search based on a number of parameters. When QuickBooks Online displays the initial
results of a search, and you can add a filter.
SEARCH BOX AND RECENT TRANSACTIONS ACCESSED USING MAGNIFYING GLASS ICON
When you open a transaction window such as an invoice, you’ll see a Recent Transactions icon
(showing a clock with a counterclockwise arrow) in the top left corner. You can click on this to find
recent transactions for this transaction type. You can click on View More at the bottom of the list of
recent transactions here too, and the resulting list can be filtered and searched using a combination of
search terms.

RECENT TRANSACTIONS OF A PARTICULAR TYPE

QuickBooks Online Client Training Guide Reports
Reports
One of the greatest benefits of using QuickBooks Online to manage a business is the reporting
capability of the program. The setup, recording of financial entries, and reconciliation of accounts
results in the ability to create reports that provide:
• Valuable insights into the financial position of a business

• The results of operations for a specific time period
• Statistical information, such as the best-selling item or gross profit margin
The reports available in QuickBooks Online vary by subscription level:
• QuickBooks Online EasyStart – EasyStart, the most basic version, allows for basic data entry to
track your money in and money out as well as customer tracking and invoicing. The reports follow
these same features and include over 20 basic financial and customer reports.
• QuickBooks Online Essentials – Essentials includes more features than EasyStart, including
suppliers and accounts payable functionality. It includes all the reports included in EasyStart, plus
reports related to accounts payable, time tracking, products and services — along with the
Business Snapshot. The number of reports included in Essentials is over 40.
• QuickBooks Online Plus – QuickBooks Online Plus includes over 65 reports including the reports
available in the Essentials subscription. It also includes reports related to the full functionality of
QuickBooks Online, including classes and locations, inventory, and budgets — just to name a few.

NAVIGATING THE REPORT CENTRE

To access the Report Centre, click on Reports in the Left Navigation Bar. Reports are organized into
three groupings: All, Custom Reports, and Management Reports.
ALL REPORTS
Under All, you’ll see several sub-groupings. The sub-groupings you see here and the reports they
include will depend on which subscription level you are using and the Account and Settings for the
company. Each sub-grouping name is preceded by a chevron, and you can click on the chevron to
collapse the sub-grouping. You can click on the collapsed chevron to expand the sub-grouping again.
Here is an image of all the sub-groupings under All with their chevrons collapsed:
ALL REPORTS SUB-GROUPINGS
FAVOURITES
This grouping lists includes any reports from elsewhere in the Report Centre that you have marked with
a solid green star. In the example below, Balance Sheet Summary, Balance Sheet and Profit and Loss
are all marked as Favourites from another section by clicking on the empty green star and making it
solid, and they then appear in the Favourites section.

REPORT FAVOURITES
BUSINESS OVERVIEW REPORTS

This grouping lists reports that tell you how your business is doing. This group includes the following
and more:
• Audit Log – Use this report to find transactions or actions taken in QuickBooks Online, including
who did what and when.
• Balance Sheet – The Balance Sheet is another summary report that shows the balance among
assets, liabilities, and equity in your company. Put more simply, it lists what you own, what your
debts are, and what you have invested in you company. Here, you can also see the way the
QuickBooks Online presents subaccounts. You can hide subaccounts and view only the parent
totals by clicking on the Collapse button on the report toolbar.
• Balance Sheet Comparison – This is a Balance Sheet report that shows a year-over-year
comparison of assets, liabilities, and equity.
• Balance Sheet Detail – This shows a more detailed version of the standard Balance Sheet.
• Balance Sheet Summary – This report summarizes what you own (assets), what your debts are
(liabilities), and what you’ve invested in your company (equity).
• Business Snapshot – Includes a visual representation of some of the company’s key financial
indicators: income, expenses, current to prior year comparisons along with customer and supplier
balances. You can print each graph by clicking on the printer icon at the top right of each graph.
• Profit and Loss – The Profit and Loss is a summary report that shows us a summary of our
income and expenses by category. Here, you can see the way the QuickBooks Online presents
subaccounts. You can hide subaccounts and view only the parent totals by clicking on the
Collapse button on the report toolbar.

• Profit and Loss as % of Total Income – This Profit and Loss report displays your expenses as a
percentage of total income so you can identify what share of your total income is going to each
expense for the period you choose.
• Profit and Loss by Class – This Profit and Loss report has separate columns for each class.
• Profit and Loss by Customer – This Profit and Loss report has separate columns for each
customer so you can see how much you are making or losing for each customer.
• Profit and Loss Comparison – This Profit and Loss report shows a year-over-year comparison of
income and expenses.
• Profit and Loss Detail – This is a Profit and Loss report that lists the transactions that make up a
category total for the reporting period.
• Statement of Cash Flows – This shows the cash generated (or used) by the business and cash in
or out from investments or financing for the reporting period.
OTHER REPORT SUB-GROUPS

Other report groups are determined by both the subscription level of the QuickBooks Online company
and the features that have been enabled:
• Sales and Customers

• Expenses and Suppliers
• Sales Tax
• Employees
• For my Accountant

WHO OWES YOU (ACCOUNTS RECEIVABLE REPORTS)

This grouping lists reports that tell you what customers owe you money and provides you with
information regarding the age of your receivables. It includes the following reports:
• Accounts
due.
Receivable Aging Detail – Lists all unpaid invoices, grouped by number of days past
• Accounts Receivable Aging Summary – Gives a listing of your customers along with their open
balances displayed by 30, 60 and over 90 days aging columns.
• Collections
information.
Report – Displays overdue invoices by customer along with customer contact
• Customer Balance Detail – Lists unpaid invoices for each customer.

• Customer Balance Summary – Shows each customer’s total open balances.
• Invoice List – Shows a chronological list of all your invoices for a selected date rage.
• Open Invoices – Lists unpaid invoices and statement charges, grouped and subtotaled by
customer.
• Statement List – Provides a log of statements that have been sent to customers, including the
number and date of the statement.
WHAT YOU OWE (ACCOUNTS PAYABLE REPORTS)

This grouping lists reports that tell you what suppliers you owe money and provides you with
information regarding the age of your payables:
• Accounts Payable Aging Detail – Lists all your open bills sorted by their aging current, over 30,
over 60 and over 90 days.
• Accounts Payable Aging Summary – Shows unpaid bills for the current period and for the last
30, 60, and 90+ days so you can see how long they’ve been outstanding.
• Bill Payment List – A listing of your bills paid during a specific time period.
• Unpaid Bills– Lists your open bills sorted by supplier.
• Supplier Balance Detail – Lists all the bills that make up the total amount you owe each supplier.
• Supplier Balance Summary – Shows the total amount you owe each supplier.

CUSTOMIZING REPORTS – LIST, SUMMARY, DETAIL, AND SPECIALIZED REPORTS

There are essentially four types of reports in QuickBooks Online:
• List Reports – Include information about the lists, such as customers, suppliers, products/services
or transactions such as Invoices and bills
• Summary Reports – Contain summary information listed by name or account. Examples of

summary reports are Profit & Loss Summary, Balance Sheet Summary, Sales by Customer
Summary or Sales by Product/Service Summary.
• Detail Reports – Contain transaction detail about a name or account. Examples include Profit &
Loss Detail, Balance Sheet Detail and A/P Aging Detail
• Specialized Reports – Reports in QuickBooks Online that are not list, summary, or detail. These
types of reports combine information from different sources to create the report. Examples of
specialized reports are Statement of Cash Flows, Audit Log and Payroll Liability Report.
At the top of many reports, you can change the report period and specify how columns appear, and
how to display columns with no balance or no activity. You can also add a comparison period and
select a different accounting method.
You can do a deep dive and customize existing reports by changing the settings and filtering for
specific list items or changing the name of a report. Click on Customize in the top right corner of a
displayed report to begin this process.

CUSTOMIZATION OPTIONS ON REPORTS
• General Settings – Include the report dates and accounting method. You can choose from Cash
or Accrual basis at any time by clicking on the appropriate radio button. This section also includes
the chosen number format and how to display negative numbers and zero amounts.
• Rows/Columns Settings – Allow you to choose which columns are displayed in a report by
clicking on the Columns drop-down in summary reports and by clicking on the Change Columns
button in a detail report. You can change the column order in detail reports. You can also add Sub-
columns for Comparison in summary reports such as Previous Period or % of Income.
• Filter Settings – Use the Filter drop-downs to filter the data that you want to see on the report. For
example, if you wanted to run a Profit and Loss report for a particular class, you can filter the report
to show only that one class. Different reports have different lists that you can filter based the type
of report you are customizing.
• Header/Footer Settings – Allows you to change the header or footer text and alignment
• Collapse/Expand, Sort, Add Notes and Edit Header – These are functions you can perform
without clicking on Customize. These appear at the top of the displayed report, allowing you to
make quick tweaks such as collapsing sub-accounts and sub-items (or expanding again), sorting
the report in ascending or descending order, add or edit notes, and change the header (by clicking
on the header itself or the pencil icon next to it).

COLLAPSE/EXPAND, SORT, ADD NOTES, AND EDIT HEADER
SAVING CUSTOMIZATIONS
Once you customize a report to your satisfaction, you can save your customizations so that you don’t
have to spend the time to customize the report again the next time you want to run it with updated data.
To do this, click the Save Customization button at the top of your report, and give your report a name.
You can also add your report to a group and share the report with all company users. Once you save a
report, you can find it again in the Custom Reports tab in the Report Centre.
CUSTOM REPORTS
Reports that you customize and then save will be listed in the Custom Reports tab of the Report
Centre. To save a report that you have customized to Custom Reports, click Save Customizations at
the top of the report. When saving the customization, you can elect to share these custom reports with
other Company users if you wish.
WORKING WITH REPORT GROUPS

Grouped reports are found in the Custom Reports tab in the Report Centre. To create a group, open a
report and click on Save Customization. You will be given the option to name this custom report, but
you’ll also have the option to add it to a group. Click on Add new group and name your new group,
then click on Add. Specify if you want to share this group with other users. Then click on Save.
Once a report group is saved, you will find it in the Custom Reports tab with any reports belonging to it
listed under it. You can remove a report from a group or move it to another group in this screen.
Report Groups are very useful. You can export a custom report to PDF or Excel format by clicking on
the dropdown menu next to the Edit button in the Custom Reports tab.

Another cool feature is that you can set an email schedule for report groups. To set a schedule:
1. 1. Click Edit next to the group name.
2. Flip the Set email schedule switch to ON. This opens the scheduling box in the Report Group
Settings.
3. Set the recurrence schedule by selecting from the options that appear: choose from Daily, Weekly,
Monthly or Twice a month. You can also choose the days and frequency — there are so many
options!
4. Once you have set the recurrence schedule, enter the email information of the recipients (who do
not have to be QBO users), a subject line and message.
5. You can also select the box next to Attach the report as an Excel file. If you don’t attach as an
Excel file, the email arrives as an HTML attachment for each report.
6. Click Save or Save and close.
Grouped Reports are an amazing tool that can help businesses to streamline their business processes.
By using scheduled reports, you can remind users to complete tasks such as billing for unbilled time
and expenses by sending them reports at regular intervals.

PRINTING, EMAILING AND EXPORTING REPORTS

To print a report in QuickBooks Online, click the Printer icon at the top right of the report. Then select
the orientation (Portrait or Landscape), and then click on Print.
PRINT A REPORT

CHOOSE YOUR ORIENTATION AND CLICK PRINT
After you click on Print, you can also specify the Paper size, Scale, and Options to make sure the
report fits correctly on the page when you select the printer, the pages to print and the number of
copies.

CHOOSE YOUR OPTIONS AND YOUR PRINTER
TIP: When printing wide or long reports, if some of the columns and/or rows in your report
don’t print the way you want them to (i.e., all on one page), try changing the scale, eliminating
columns before printing, or exporting to Excel to perform additional formatting — then print the
report from Excel.
To email a report, just click on the Email (envelope) icon at the top right of the report, choose your
orientation, and click on Email. Then, fill in the required information (“To” email addresses, “CC” email
addresses, Subject, and Body of message), and then click Send.

EMAIL A REPORT

SETTING UP THE BODY OF THE EMAIL THAT ACCOMPANIES THE REPORT
TIP: Include your email in the CC: field so you have a copy of the email!
You can export reports from QuickBooks Online to Excel or PDF by clicking on the Export button at the
top right of the report, and then choosing either Export to Excel or Export to PDF.

EXPORT THE REPORT TO PDF OR EXCEL
MANAGEMENT REPORTS
QuickBooks Online includes Management Reports which allow you to create beautiful report packages
that contain cover pages and custom free-form pages for content (like an executive summary or
financial notes). You can include a variety of reports and reporting periods in Management Reports and
use custom headers and footers. QuickBooks Online has three template reports that you can use as a
reference or as a starter to create your own packages. You can create, view, and send these reports,
as well as export to Word® and PDF. These templates can be saved for future use.
MANAGEMENT REPORTS

Supplemental Guide Support
Expanded Functionality in the Office

and On the Go
QUICKBOOKS LABS
QuickBooks Labs is a place in QuickBooks Online where you can try out new tools and features without
any commitment. Intuit launches plug-ins created by Intuit and third-party suppliers from this menu,
which can be found in the Gear icon menu under Your Company. Two of the current offerings in
QuickBooks Labs are Easier-to-navigate reports and QB Assistant. The great thing about QuickBooks
labs is you can try a feature and turn it off if it isn’t for you. Sometimes these features are discontinued
and other times, they graduate and become permanent features in QuickBooks Online. It’s a good idea
to check into QuickBooks Labs frequently to see what’s new.
BEST PRACTICES WITH BROWSERS

Because QuickBooks Online is web-based, you must use a browser to access it (Chrome is
recommended). Here are some best practices and tips that will make your experience with QuickBooks
Online amazing:
1. Create a QuickBooks Online Chrome user – Chrome allows you to create multiple users that
can be customized with different bookmarks and preferences. To create a new user in Chrome,
click on Customize (the three vertically stacked dots in the top right of Chrome) → Settings →
People → Manage other People. Click Add person, choose an icon and give the new user a
name (maybe something like QBO-user). You can opt to create a desktop shortcut for this new
person that you can use exclusively for QuickBooks Online.
2. Working with two QuickBooks Online Companies at the same time – If you want to have two
QuickBooks Online companies open at the same time, you can set up two new people in Chrome,
or you can open one company in Chrome and open another company using a second browser,
such as Mozilla Firefox. In both cases, you must have two different browser accounts open at the
same time. If you want to open three companies, you’ll create a third person in Chrome (or two
users and one in Incognito mode) or use three different browsers.

3. Customize the Bookmark bar – Customizing your browser’s Bookmark bar can really enhance
your experience using QuickBooks Online. You can add bookmarks for the screens that you use
the most and even organize them into lists by using folders. These bookmarks will work,
regardless of which QuickBooks Online company you are currently accessing in that browser using
that Chrome user. To enable the Bookmark bar in your newly created Chrome user account, click
Customize → Bookmarks → Show Bookmark bar. You can add bookmarks by clicking on the
star at the top right of the address bar. To rename a bookmark, right click it and click Edit. You
can organize your bookmarks by creating folders on your bar and grouping them by the type of
screen, client workflow, or by another system meaningful to you.
4. Duplicate – You can duplicate your window by right-clicking on the tab you have open and then
duplicate. This opens a new screen of QuickBooks Online.
5. Dragging a link to make a new tab – If you want to open a function in a new tab, click on that
function (such as Reports in the Left Navigation Bar), and, keeping your mouse depressed, drag
your mouse pointer to the top of your browser and only release it when your pointer is at an empty
space where you’d like a new tab to appear. When you release the mouse button, a new tab opens
up with the function you chose (the Reports window in this case).
6. Working with multiple monitors – If you use multiple display monitors, you can pull a tab out of
the window and move it to your other monitor. This keeps you logged into the same company but
allows you to view two windows at the same time. You can also tile windows on the same monitor
by restoring down, resizing your windows and arranging them.
7. Right-click the back arrow – This displays a list of screens you recently had open. Left-click the
one you want to open and resume working.
8. Clear browsing data – If you receive errors or you are getting unexpected results while working in
QuickBooks Online, you may need to clear your cache and cookies. To do this click Customize →
History → History →Clear browsing data.

Support
USING THE HELP FUNCTION

The Help menu in QuickBooks Online includes a search box where users can search for answers to
common issues. It also shows common help topics related to the screen the user currently has open.
HELP MENU

QUICKBOOKS RESOURCES
The QuickBooks Small Business Centre (https://quickbooks.intuit.com/ca/resources/) and QuickBooks
Support Communities (https://community.intuit.com/products/quickbooks-help-en-ca) are excellent
resources for running your business. These pages are quite useful and are updated constantly; so
check them often to make sure you are staying on top of the latest and greatest!

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The publications distributed by Intuit Inc. are intended to assist accounting

Intuit Canada ULC

About the Presenter .................................................................................................................................. 4

QuickBooks Online Test Drive ................................................................................................................. 5

Introduction to QuickBooks Online ......................................................................................................... 6

Navigating QuickBooks Online ................................................................................................................ 9

Chart of Accounts .................................................................................................................................... 37

Products and Services ............................................................................................................................ 42

Suppliers and Expense / Purchase Transactions ................................................................................ 45

Time Tracking for Employees & Subcontractors................................................................................. 59

Customers and Sales Transactions ...................................................................................................... 61

Student Guide to QuickBooks Online 1

Creating Customers in the customer centre ...................................................................................................... 61

Bank and Credit Card Accounts .......................................................................................................... 100

Extra Information on Transactions ...................................................................................................... 122

Reports .................................................................................................................................................... 125

Student Guide to QuickBooks Online 2

Business Overview Reports ............................................................................................................................... 127

Expanded Functionality in the Office and On the Go ........................................................................ 140

Support ................................................................................................................................................... 142

Student Guide to QuickBooks Online 3

About the Presenter

Experience & Accolades

• Certified QuickBooks Online expert

Student Guide to QuickBooks Online 4

QuickBooks Online Test Drive

Student Guide to QuickBooks Online 5

Introduction to QuickBooks Online

• All data is hosted, backed up and secured by Intuit’s servers

Student Guide to QuickBooks Online 6

QUICKBOOKS ONLINE SUBSCRIPTION LEVELS

FEATURE EASYSTART ESSENTIALS PLUS

Track your income and expenses ✓ ✓ ✓

Send unlimited estimates and invoices on the go ✓ ✓ ✓

Download transactions from your bank and credit

Print cheques and record transactions ✓ ✓ ✓

Import data from Excel® or QuickBooks Desktop ✓ ✓ ✓

Back up your data online automatically ✓ ✓ ✓

Same security and encryption as banks ✓ ✓ ✓

Access your data from a tablet or smartphone ✓ ✓ ✓

Invite up to two accounting professionals (or their

Integrate with available applications ✓ ✓ ✓

Set up invoices to automatically bill on a recurring

Student Guide to QuickBooks Online 7

FEATURE EASYSTART ESSENTIALS PLUS

Manage and pay bills from suppliers ✓ ✓

Enter bills and schedule payments for later ✓ ✓

Control what your users can access ✓ ✓

Give employees and subcontractors limited

Track billable hours by customer ✓ ✓

Create and send purchase orders ✓

Create budgets to estimate future income and

Categorize your income and expenses using class

Track sales and profitability for each of your

Number of users who can access QuickBooks

Number of built-in business reports 20+ 40+ 65+

Student Guide to QuickBooks Online 8

Navigating QuickBooks Online

LOGGING INTO QUICKBOOKS ONLINE

SETTING UP A NEW QUICKBOOKS ONLINE FILE

HOME PAGE AND GEAR ICON

Student Guide to QuickBooks Online 9

The Your Company section contains: