Lesson 1: Introducing

QuickBooks Pro
Lesson Objectives

After studying this lesson, you will be able to:

Discuss basic accounting concepts

Determine if QuickBooks is right for your business

Manage basic QuickBooks files

Open a portable company file

Work with the QuickBooks window

Back up a company file

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What Can QuickBooks Do For You?

Track customers, vendors, employees, etc.

Process sales transactions and cash receipts

Process purchase transactions and payments to vendors

Run payroll

Track and sell inventory

Track assets (what you own) and liabilities (what you owe)

Keep track of bank accounts

Can you think of any other uses for QuickBooks?

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Types of Tasks

Those that affect the accounting behind the scenes

Company setup

Activities

Those that do not affect the accounting behind the

scenes

Lists (databases)

Reports

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Debits and Credits:

The Double-Entry Accounting System

Debits must always equal credits!

Left
side (debits) must always equal right side (credits)
when entering accounting transactions

Tip! This is why the system is

referred to as double-entry.

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The Generally Accepted Accounting
Principles (GAAP)

Rules used to prepare, present, and report financial
statements

Created by the FASB (Financial Accounting
Standards Board)

Consists of eleven basic principles

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Understanding Basic Accounting

Introducing Behind the Scenes

Debits are
on the left
side of the T
account,
whereas
credits are
on the right.

In “Behind the Scenes,” you will see the accounting that

QuickBooks performs for you when you record a transaction.

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The Accounting Equation

Assets = Liabilities + Equity

Balance sheet

Financial statement that displays all asset, liability, and
equity accounts (collectively called the balance sheet
accounts)

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The Balance Sheet

Notice that the Total Assets =

Total Liabilities & Equity

9
The Income
Statement

Accounts found on the
Income Statement (a.k.a.
Profit & Loss report) are the
income and expense
accounts

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Main Account Types

Account Type Description

Assets Items/funds owned or owed to a company

Liabilities Funds owed to a company

Investments into the company and net income or

Equity
losses

Income Sales and fees earned

Expenses Expenditures that a company accrues

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The Trial Balance
Report

Prepared at the end of an
accounting cycle

Shows all accounts
affected during the
cycle

Balance of each account is
entered in the appropriate
column based on its normal
balance

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How to Use This Book & Student Files

Why is there a different
Do I have to complete the
company files for each lessons in the order
exercise? presented in the book?

What if I want to use one
Why do portable company
file that continues from files take so long to
lesson to lesson? restore? What to do while

Is this how I will work in waiting?
QuickBooks in “real life”?
How do I “print to PDF”?

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Introducing the Case Studies

Allows you to practice skills in real life scenarios

Salon and Spa

Café

Veterinarian

Contractor

Not-for-Profit

Date range will be fixed for each one

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Managing QuickBooks Files

Launching the program

Storing your exercise files

Ask your instructor about your file storage location or
see the book’s website

Opening and Restoring QuickBooks files

Decompresses a backed-up QuickBooks file
so you can use it again

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Types of QuickBooks Files

Note the difference in the size of company, backup
and portable company files!
Backup File

Company File
Network
Data File

Portable
Company File
Transaction
Log File

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The QuickBooks Window
Title Bar

Menu Bar

Icon Bar

Home Page
(notice the
workflow
diagram)

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Controlling the QuickBooks Desktop

Change whether the Open Window List or Icon Bar
appears in the QuickBooks window

View options accessed

via the Menu Bar

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Backing Up Your Data

Extremely important to avoid data loss!

Back up to a different location than where you store
your “master” company file

Backing up your QuickBooks files

Process of compressing data files, similar to using a
Space Bag and a vacuum!

Online options are available
Tip! QuickBooks compresses all data stored in a company
file during a back up. That’s why backup files are so small!

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