QBO Cert Exam Module 5 - 6

QuickBooks
Online Certification
Preparation
Module 5 Supporting Your Small Business Clients
Module 6 Reporting
Presenter: Heather D. Satterley
Intuit Confidential and Proprietary

Heather D. Satterley
Intuit Advanced Certified ProAdvisor
2017 & 2019 Top QuickBooks Categorical ProAdvisor
Top 100 ProAdvisor 2014 - 2019
Member of the Intuit Trainer / Writer Network
Co-host of The QB ‘Appy Hour with Liz and Heather
Inaugural member of The Accounting Salon
Member – 2019 ADP Accountant Advisory Board
www.satterleyconsulting.com
Intuit Confidential and Proprietary 2 2

CPE Process
In order to receive CPE credit:

This course is eligible for up to 1.5 hours of CPE.
CPE certificates are emailed directly to you within 3 weeks of the training date
to the email address you used to register.
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Prepare for Today
Sign up for the free QuickBooks ProAdvisor Program:
Go to: bitly.com/pap_join or quickbooks.com and click on Accountants menu
Additional Resources
Accountant QuickBooks Training: Firm of the Future Blog: QuickBooks Online Blog:
qbtrainingevents.com firmofthefuture.com quickbooks.intuit.com/blog

Prepare for today
Sign up for the free QuickBooks ProAdvisor Program:

In order to take your exam, you must be enrolled in the QuickBooks ProAdvisor
Program, which is free! Go to:
http://bitly.com/pap_join Or QuickBooks.com/ProAdvisor

QuickBooks Online Certification
• 8 Sections
• Multiple choice, submit each section, then submit all sections for
grading; 80% or better each section to pass
• Only need to re-take sections not passed
• 3 Attempts to pass; 60-day lockout after 3 successive not pass

attempts

Accessing the exam

Accessing the exam

New to QuickBooks Online?
Sign up for the Introduction to QuickBooks Online Accountant course at

www.qbtrainingevents.com to learn the basics of QuickBooks Online.
• Recognize how to navigate QuickBooks Online Accountant to manage clients and

practice all in one place
• Learn how to extend QuickBooks Online’s functionality through apps and the ecosystem
• Perform basic money in transactions in your client’s QuickBooks Online company
• Perform basic money out transactions in your client’s QuickBooks Online company
• Describe the benefits of using bank feeds to clients

Agenda - Track 1 QuickBooks Online Certification
Session 1: Module 1: QuickBooks Solutions for Clients

Session 2: Module 2: Client Onboarding
Session 3: Module 3: Special Client Onboarding Tasks
Module 4: Managing Your Client Work
Session 4: Module 5: Supporting Your Small Business Clients
Module 6: Reporting
Session 5: Module 7: Banking and Tools
Module 8: Preparing Clients’ books

QuickBooks Online
Certification Training
MODULE 5:
Supporting Your Small Business Clients
LESSON 1:
Refresh Your Skills: Customer & Vendor
workflows

Refresh Your Skills: Customer & Vendor workflows
LEARNING OUTCOMES
Upon completion of this topic, you should

be able to:
Identify best practice customer and vendor workflows

The Sales Workflow
PAYMENT AT TIME OF SALE
Step 1 Step 2
Sales Receipt Deposit

Record sale and Group multiple
payment in a payments to a
single step single bank
deposit
Tools and slide deck: http://bit.ly/tour_qbo_intro Intuit Confidential and Proprietary 14

The Sales Workflow
PAYMENT ON ACCOUNT (A/R)
Step 1 Step 2 Step 3
Invoice Payment Deposit

Invoice from Apply payments Group multiple
estimates or to open invoices payments to a
create from manually or single bank
scratch automatically deposit

Expense & Vendor Workflows
PAYMENT AT TIME OF PURCHASE
Option 1 Option 2 Option 3
Expense Check Bank Feed

Record Record purchases Code expenses
purchases with and write/print with bank
debit or credit paper checks downloads
cards

Expense & Vendor Workflows
PAY BILLS LATER (A/P)
Step 1 Step 2
Bill Payment
Enter bill from Apply payments
Purchase Order to open bills with
or create from debit/credit cards
scratch or check

QuickBooks Online
MODULE 5:
LESSON 2:
Undeposited Funds

Undeposited Funds
LEARNING OUTCOMES

be able to:
Recognize how to utilize the features of Undeposited
funds

Undeposited Funds
Payment
“UNDEPOSITED”
Deposit

Record a Receive Payment

Create a Deposit

QuickBooks Online
MODULE 5:
LESSON 3:
Best practice workflows

Best practice workflows
LEARNING OUTCOMES

be able to:
Recognize the importance of workflows
Identify common client errors caused by poor workflow
List tools that help track activity in a client's
QuickBooks Online Company

What makes a great workflow?
QuickBooks Online is a super-flexible product and

there are several workflows that can get something
done.
Clients can also see the same information from
different angles
So, what’s the problem?
The way data is recorded in QuickBooks Online

affects the usefulness of reports

When workflows go bad…terminology
The case of the mis-posted

check
Client received a check from his

customer
To record the deposit, he clicks on
Check in the Vendor column

When workflows go bad…terminology
The case of the mis-posted

check
Effect on QuickBooks
• Bank account is decreased
• Payee field defaults to vendors
• Income will be debited
(reduced)

How can we help?
Teach your client to use the proper

customer and vendor workflows!
• Gear – settings and tools

• Create – transaction screens
• Centers – best practice
workflows!

When workflows go bad…not using form screens
The case of the transaction

entered via the bank register
Client always entered deposits

and checks into her register in her
old accounting program
She records a check to record a
sales tax payment in the register

When workflows go bad…not using form screens
The case of the transaction

entered via the bank register
Effect on QuickBooks
• Sales tax payment not applied
to correct month
• Sales tax center is wrong
• Sales tax reports are wrong

How can we help?
Teach client to use the proper

transaction screens in
QuickBooks, not the register!

workflows!

When workflows go bad…uncompleted workflow
The case of the uncompleted

accounts payable workflow
Client entered a Bill for an expense

He then created check transactions
for each Bill categorized to an
expense account

When workflows go bad…uncompleted workflow
The case of the uncompleted

accounts payable workflow
Effect on QuickBooks:
• Accounts payable is overstated
• Expenses are overstated
(duplicated)

How can we help?
Teach client to use Pay Bills!

workflows!

Tips on coaching best practice workflows
• Encourage them to use the centers in the Left Nav bar
• Teach them correct terminology
• Keep it simple
• Keep checking back in

Using QuickBooks tools and reports to identify issues
The Transaction Journal
• Displays the debits and credits behind each transaction
• Can help identify mis-postings and mapping errors
The Audit Log / Voided/Deleted Transactions tool
• A filtered version of the Audit log
• Available only to Accountant users via the Accountant /Toolbox.

Transaction Journal

Voided/Deleted Transactions / Audit log

DEMO
QuickBooks Online
MODULE 5:
LESSON 4:
Estimates & Purchase Orders

Estimates & Purchase Orders
LEARNING OUTCOMES

be able to:
Recognize how to utilize estimates
Recognize how to convert an Estimate to a Purchase
Order

Estimate/Purchase Order Workflow

Creating an Estimate

Using an Estimate to Create a Purchase Order

Add a Purchase Order to an Expense transaction

Converting an Estimate to an Invoice

DEMO
QuickBooks Online
MODULE 5:
LESSON 5:
Credit Memos & Customer Statements

Credit Memos & Customer Statements
LEARNING OUTCOMES

be able to:
Recognize how to utilize Credit memos

Why use Credit Memos
Why use a credit memo instead of just editing the transaction?

This can cause confusion and isn’t great recordkeeping.
If the Invoice is in a prior period, it will change prior period amounts.
Why not just bill for less on the next invoice?

It is important to create a new transaction for each exchange between the supplier and the customer.
Inventory quantities on hand can become out of sync for a period.
Why not just refund in cash? And not record?

It’s important to capture all transactions, paid in cash or not, to ensure clients’ records are complete.
Credit memo settings

Create a Credit Memo

Manually apply a Credit Memo to an Invoice

Refund Receipts

DEMO
Customer Statement Types
Statement Type Description
This customer statement type shows a list of invoices and

BALANCE payments with opening and ending balance, for date range
FORWARD selected.
This customer statement type shows a list of all open and/or

OPEN ITEM unpaid invoices.
This customer statement type shows a list of transactions

TRANSACTION
between two set dates.
Customer Statements

Customer Statements

QuickBooks Online
MODULE 5:
LESSON 6:
Vendor Credits

Vendor Credits
LEARNING OUTCOMES

be able to:
Recognize how to utilize Vendor Credits

Vendor Credit Workflow
• Decreases Accounts Payable balances

• Can be applied to an existing open bill
• Can be held to apply to a future bill
• Can be automatically applied if setting
is selected (similar to Credit Memo)

Create a Vendor Credit

Apply a Bill Credit to a Bill

DEMO
QuickBooks Online
MODULE 5:
LESSON 7:
Deposit transactions

Deposit transactions
LEARNING OUTCOMES

be able to:
Recognize how to use and view deposit transactions

When to use Add Other Funds on the Deposit screen
When a company receives funds from:

✓ Loan proceeds or contributions from owners
✓ A vendor refund posted directly to an expense account
✓ A customer and they don’t record income using the sales transaction screens
✓ An employee who reimburses the company for an employee loan receivable
✓ A tax refund. This screen is where you record it to the Tax Refunds account

Create a Deposit to record proceeds from a loan

DEMO
QuickBooks Online
MODULE 5:
LESSON 8:
QuickBooks Online Payments

QuickBooks Online Payments
LEARNING OUTCOMES

be able to:
Recognize how to utilize the features of Online
Payments

Payments via Invoices and Sales Receipts

How QuickBooks Online Payments work

Invoice status is updated in the Invoices tab

Customer can enter their payment details and pay electronically

Payment notification and updates

Recurring Payments

QuickBooks Online
MODULE 5:
LESSON 9:
Journal Entries

Journal Entries
LEARNING OUTCOMES

be able to:
Recognize how to utilize Journal Entries

When to use Journal entries
Journal Entry Rules
• Total debits must equal total credits in order to save the journal
entry
• You cannot use Products and Services items in a journal entry
• When posting to Accounts Receivable, you must specify a
customer
• When posting to Accounts Payable you must specify a vendor
• You may use multiple Accounts Receivable and/or Accounts
Payable accounts on the same journal entry
• You can’t mark an amount as billable to a customer

When to use an Adjusting Journal entry
Common scenarios where journal entries are usually marked as adjusting
• Accrued expenses
• Deferred expenses
• Accrued revenues
• Deferred revenues
• Non-cash transactions

Record an adjusting Journal entry

DEMO
QuickBooks Online
MODULE 5:
LESSON 10:
Transfers

Transfers
LEARNING OUTCOMES

be able to:
Recognize when and how to use transfers

What is a Transfer
Summary of the transfer functionality:
• The transfer screen is used to move funds between two balance sheet accounts
• The transfer screen is not used to record income or expense
• There are no customers, vendors, employees, or Products and Services items
involved. These fields are not available on the transfer screen
• You don’t use the Transfer feature to transfer from your bank account to your
vendor’s bank account

Create a Transfer

DEMO
QuickBooks Online
MODULE 6:
Reporting
LESSON 1:
Refresh Your Skills: Basic Reports

Refresh Your Skills: Basic Reports
LEARNING OUTCOMES

be able to:
Recognize how to navigate the Reports Center and
run basic reports
Recognize the difference between cash-basis and
accrual-basis reporting

The Benefits of Creating Reports
Your clients need to have a clear snapshot of how they are doing.
QuickBooks Online reports 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
Information about customers, vendors, and employees

Cash and Accrual Reporting
Cash basis reports – displays income when cash is received

Displays income as of the date a customer payment is received
Displays expenses as of the date a vendor is paid
Accrual basis reports – displays income when it is earned

Displays income as of the date of the invoice
Displays expenses as of the date of the bill

Reports Center

Reports Center

Reporting restrictions
Why some reports may be missing:
Edit and review the user’s permissions.
Verify the feature is available in the client’s

QBO subscription.
Check to see if the feature is turned on in

Account and Settings.

DEMO
Running an A/R Aging Summary report
Accounts Receivable (or A/R) reports in QuickBooks Online allow you or your clients
to see who owes the business money and how much they owe.
The A/R Aging Summary report lists each customer with an open balance

Running an A/R Aging Summary report

Accounts Payable reports
Accounts Payable (or A/P) reports in QuickBooks Online allow you and your clients
to see what the business owes and when the payments are due.
The A/P Aging Summary

This report summarizes the status of unpaid bills and unapplied vendor credits. It serves
as a quick glance at which vendors are most overdue.

Running an A/P Aging Summary report

Profit & Loss and Balance Sheet reports

Profit & Loss and Balance Sheet reports

QuickBooks Online
MODULE 6:
Reporting
LESSON 2:
The value of reports

The value of reports
LEARNING OUTCOMES

be able to:
Describe the value of the reports to clients

Analyzing the Profit and Loss Report

Analyzing the Profit and Loss – Key Metrics to Consider
Income:
Does their total income look about right?
Which income streams brought in more revenue?
Is all their income categorized?
Expenses:
Are there any expense items in Ask my Accountant?
Point out expenses that were different than prior
periods and ask why
Review key areas like revenue, gross profit and net
profit

Analyzing the Balance Sheet

Analyzing the Balance Sheet – Key Metrics to Consider
When analyzing the Balance Sheet, the key

areas to focus on are:
Has each account been reconciled?
Review Accounts Receivable (compare to revenue)
Review any new asset purchases
Review any prepaids or accruals and confirm they were
accurately categorized
Review owner transactions in the equity section
Does Opening Balance Equity have a balance?
Verify that Net Income from the P & L matches the Balance
Sheet
Verify that prior year Net Income matches current year Retained
Earnings
Validating the Balance Sheet
Balance Sheet Account Subsidiary Report that “proves” to balance

Cash, checking Bank Reconciliation report
Accounts Receivable A/R Aging or Open Invoices
Inventory Asset Inventory Valuation Summary (or Detail)
Fixed Assets Transaction Detail Report filtered for Account
Other Assets Transaction Detail Report or Reconciliation report
Accounts Payable A/P Aging or Open Bills
Credit card accounts Reconciliation report
Liability accounts Transaction Detail Report or Reconciliation report
Sales tax payable Sales tax liability report
Payroll taxes payable Payroll tax liability report
Equity Transaction Detail Report or Reconciliation report

QuickBooks Online
MODULE 6:
Reporting
LESSON 3:
Creating reports to answer common
business questions

Creating reports to answer common business questions
LEARNING OUTCOMES

be able to:
State the impact of best practice workflows on reports
List reports that answer client’s common business
questions
Describe the value of sales and expense reports and
how to run them

Start with the end in mind – transactions determine reporting options
Income Expense Purchase

Sales Reports
Reports Reports Reports
• Invoice • Invoice • Bills* • Bills
• Sales • Sales • Checks* • Checks
Receipt Receipt • Expenses* • Expenses
• Credit Memo • Credit Memo
• Refund • Refund
Receipt Receipt
• Deposit*
*Income and Expense reports may show amounts from sales and purchase transactions, but sales and purchase
reports will only show amounts from sales and expense transactions that use product/service items.

Answering Common Client Questions with Reports

Customizing Reports

DEMO
Next Steps

QuickBooks Online Certification
• 8 Sections
• Multiple choice; submit each section then
submit all sections for grading
• 80% to pass each section
Only need to re-take sections not passed
3 Attempts to pass (each section)
60-day lockout

Accessing the exam

Accessing the exam

After You Pass Your Exam
• Download your new Certified ProAdvisor Badge from the same
button you clicked to take the exam.
• Use your badge on for your website, biz cards, etc.
• Create or Update your ProAdvisor Profile in the Find-a-ProAdvisor

Referral Database. Best Practices:
― Include a picture not your logo

― Include a short bio about the services you offer
― Select the certifications you have complete

Recertification and leveling up
• Once certified, you can also continue your journey with a range of additional courses
that will add to your knowledge and impress clients.
― ProAdvisor additional courses: Visit www.qbtrainingevents.com
― ProAdvisor certification badges
• Recertify every year between March to July 31 on what’s new in QuickBooks Online
to maintain certification status for another year.
― Certified between March 1, 2019 to February 28, 2020 – recertify in 2020

QBO Cert Exam Module 5 - 6

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QuickBooks

Intuit Confidential and Proprietary

Intuit Confidential and Proprietary 2 2

In order to receive CPE credit:

Intuit Confidential and Proprietary 3

Intuit Confidential and Proprietary 5

Sign up for the free QuickBooks ProAdvisor Program:

Intuit Confidential and Proprietary 6

• 3 Attempts to pass; 60-day lockout after 3 successive not pass

Intuit Confidential and Proprietary 7

Intuit Confidential and Proprietary 8

Intuit Confidential and Proprietary 9

Sign up for the Introduction to QuickBooks Online Accountant course at

• Recognize how to navigate QuickBooks Online Accountant to manage clients and

Intuit Confidential and Proprietary 10

Session 1: Module 1: QuickBooks Solutions for Clients

Intuit Confidential and Proprietary 11

Intuit Confidential and Proprietary

Upon completion of this topic, you should

Intuit Confidential and Proprietary 13

PAYMENT AT TIME OF SALE

Sales Receipt Deposit

Tools and slide deck: http://bit.ly/tour_qbo_intro Intuit Confidential and Proprietary 14

PAYMENT ON ACCOUNT (A/R)

Step 1 Step 2 Step 3

Invoice Payment Deposit

Intuit Confidential and Proprietary 15

PAYMENT AT TIME OF PURCHASE

Option 1 Option 2 Option 3

Expense Check Bank Feed

Tools and slide deck: http://bit.ly/tour_qbo_intro Intuit Confidential and Proprietary 16

PAY BILLS LATER (A/P)

Tools and slide deck: http://bit.ly/tour_qbo_intro Intuit Confidential and Proprietary 17

Intuit Confidential and Proprietary

Upon completion of this topic, you should

Intuit Confidential and Proprietary 19

Tools and slide deck: http://bit.ly/tour_qbo_intro Intuit Confidential and Proprietary 20

Intuit Confidential and Proprietary 21

Intuit Confidential and Proprietary 22

Intuit Confidential and Proprietary

Upon completion of this topic, you should

Intuit Confidential and Proprietary 24

QuickBooks Online is a super-flexible product and

So, what’s the problem?

The way data is recorded in QuickBooks Online

Intuit Confidential and Proprietary 25

The case of the mis-posted

Client received a check from his

Intuit Confidential and Proprietary 26

The case of the mis-posted

Intuit Confidential and Proprietary 27

Teach your client to use the proper

• Gear – settings and tools

Intuit Confidential and Proprietary 28

The case of the transaction

Client always entered deposits

Intuit Confidential and Proprietary 29

The case of the transaction

Intuit Confidential and Proprietary 30

Teach client to use the proper

• Gear – settings and tools

Intuit Confidential and Proprietary 31

The case of the uncompleted