Software Application in

Business & Tech

Lecture 07: Account
Receivable, Staff Creation, Bank
Accounts and Opening Balance
Accounts receivable are created
when a customer purchases your
goods or services but does not pay
for them at the time of purchase. Department of Computer
Businesses with accounts Science
receivable typically issue invoices at Semester 9
a later date. Lecturer Yasir A. Mohamed
 accounts receivable
 QuickBooks helps you manage accounts receivable by tracking
invoices, payments, and identifying your delinquent accounts. In
just a few clicks you can send statement reminders to customers
that are late paying you.
 It’s important to set up a process for regularly invoicing your
customers and reviewing your accounts receivable (the amount of
money that customers owe you). You can speed up accounts
receivable by invoicing customers regularly, accepting payments
online through your invoice, and by using discounts to incentivize
early payments. QuickBooks makes it easy to customize and send
invoices, accept flexible online payment options, track incoming
payments for each invoice, and generate reports.
 Access reports
 Once an invoice is sent, your customer will typically pay within 30
days to 60 days.
 If you have too much money tied up in accounts receivable, you
may not have the cash you need to pay your bills today.
 QuickBooks makes it easy to run the A/R aging report to see which
customers are late with their payments, and to review your cash
flow statement to see how much cash you have on hand to pay
bills.
 Understand accounts receivable
 Accounts receivable is recorded on a business’s balance sheet as a
current asset, as it is a promise for payment for goods or services
that you provided your customer.
 The frequency at which you send invoices typically dictates the
frequency at which you will receive payment.
 It’s important to set up a process for regularly invoicing your
customers and reviewing your accounts receivable.
 In this QuickBooks training I’ll be using QuickBooks Premier
(Desktop) to show you how to look at your accounts receivable
aging report and your customer balance summary. This will let you
see who owes you money and how much they owe you.
 Quick Instructions:

A/R Aging Summary Report: In the top menu click Reports ->
Customers & Receivables -> A/R Aging Summary
A/R Aging Detail: In the top menu click Reports -> Customers &
Receivables -> A/R Aging Detail
Open Invoices Report: In the top menu click Reports -> Customers &
Receivables -> Open Invoices
Keep reading for full instructions with screenshots.
To get the aging summary from the top menu click Reports ->
Customers & Receivables -> A/R Aging Summary
 Staff Creation
 With QuickBooks, you can manage your company's employee list
and payroll information by keeping track of everything using the
Employee Center.

 QuickBooks makes it simple for you to add new employees to your

database and help keep track of multiple employees with the same
name. Much of the information you fill out for an employee, such
as his name and address, appears on his paychecks and W-2 form.
 To add an Employee in QuickBooks Payroll
QuickBooks keeps all the information about your employees. If you
want to add a new employee then follow the steps mentioned below-
 Firstly click on “Employees” onto your home screen so
that Employee center could open from the left navigation bar.
 Select “New Employee” on the top of the screen.
 Fill the employee’s applicable information in the area asked.
 Fill the employee’s name.
 Click on “Enter W-4 form“, and then enter the employee’s
withholding information.
 To add an Employee in QuickBooks Payroll
QuickBooks keeps all the information about your employees. If you
want to add a new employee then follow the steps mentioned below-
 Firstly click on “Employees” onto your home screen so
that Employee center could open from the left navigation bar.
 To add an Employee in QuickBooks Payroll
QuickBooks keeps all the information about your employees. If you
want to add a new employee then follow the steps mentioned below-
 Select “New Employee” on the top of the screen.
 To add an Employee in QuickBooks Payroll
QuickBooks keeps all the information about your employees. If you
want to add a new employee then follow the steps mentioned below-
 Fill the employee’s applicable information in the area asked.
 Fill the employee’s name.
 To add an Employee in QuickBooks Payroll
QuickBooks keeps all the information about your employees. If you
want to add a new employee then follow the steps mentioned below-
Fill the employee’s applicable information in the area asked.
 Finally, click on “OK” when you finished adding new employees to
save them in the QuickBooks.
 To add an Employee in QuickBooks Payroll

 To change your bank info or select another way to pay your

employee, click the pencil icon under “How do you want to pay
this employee?“

 Finally, click on “OK” when you finished adding new employees to

save them in the QuickBooks.
How to Set Up Chart of Accounts in QuickBooks
 QuickBooks is, beyond any doubt, one of the best accounting
software available in contemporary times.
 It is considered a boon for small and medium-sized businesses
as this software helps in managing their finances and accounting
tasks, thereby streamlining their business operations.
 QuickBooks has various features, and every year when Intuit
launches a new version of the application, it comes with new
and improved features.
 In this Lecture, we will discuss about QuickBooks Chart of
Accounts and it’s uses.
How to Set Up Chart of Accounts in QuickBooks
 The QuickBooks Chart of Accounts (COA) is a list of accounts that assist in
categorizing assets, owner’s equity amount, liabilities, and income. In
simple words, it is basically a list of balances and accounts of the
company.
 This basically helps in understanding how much money the firm has, how
much it owns, how much it owes etc., by providing a full-proof financial
report.
 The organized chart of accounts gives an insight into how the organization
is performing. In fact, it is considered a very crucial aspect of the
accounting system. So, it is important to know the procedure to set up a
chart of accounts in QuickBooks.
 Thus, make sure to read this post till the end, or get in touch with our
QuickBooks support team anytime. Help is available 24/7.
What is Chart Of Accounts (COA)?
 The Chart of Accounts is basically a list of account numbers and
names that are relevant to the company.
 In general, the chart of accounts will have four categories. The
four groups in a standard chart of accounts are as follows:

 Asset accounts
 Liability accounts
 Income accounts
 Expense accounts
What is Chart Of Accounts (COA)?
 These were the four basic categories, and within each of the
categories, the line items will distinguish the specific accounts.
 Each line item represents an account within each category. A
few charts of accounts might also display the equity accounts,
which is a representation of anything that remains after
accounting for all operating expenses and revenue accounts.
Type of Chart of Accounts
 There are four types of Chart of Accounts that helps in business
accounting error and hassle-free:

1. Asset Accounts
 Asset accounts basically contain everything that has some value,
such as buildings, vehicles, land, inventory, valuables, etc. So,
this type of Chart of Accounts helps in tracking how much the
user paid for a property and also other factors like depreciation.
Items that are in liquid forms, like cheques and other bank
accounts, are also included in this Chart of Accounts.
Type of Chart of Accounts
2. Liability Accounts
 The Liability Accounts consist of things like mortgages, payroll
taxes, promissory notes, credit card balances, bank loans,
personal loans, and income tax payables. When users add a loan
to this account, do ensure that users have also added the sum of
the loan.
 Users will have to log just the principal amount and forgo the
interest owed. When one reaches each monthly payment and
enter the payment in the account system, users will split the
payment into an amount subtracted from what is owed and an
amount of interest paid, which will go into an expense account
Type of Chart of Accounts
3. Income Accounts
 Income Accounts mostly encompass expenses, revenues,
additional incomes or expenses, and cost of sales. Some of the
accounts are the same for all businesses, while some accounts
are definite to a particular business type. Few of the types of
income are simple and economical to generate, while few others
require time, expenses, and effort.
Type of Chart of Accounts

4. Expense Accounts
This account keeps users informed about the amount of money
that they have spent. In fact, it allows them to track the cash that is
not with them. It is always suggested to break up the expenses into
separate accounts, and users even get the opportunity to create
sub-categories for their expenses.
 Easy Steps to Set up a Chart of Accounts in
QuickBooks
Below are the steps to set up the Chart of Accounts that will help in
making business health better:
Step 1: Select the Lists – Charts of Accounts Command
QuickBooks displays the Charts of Accounts window on the computer
screen.
 Easy Steps to Set up a Chart of Accounts in
QuickBooks
Below are the steps to set up the Chart of Accounts that will help in
making business health better:
Step 2: Click on Bank and Continue
 Easy Steps to Set up a Chart of Accounts in
QuickBooks
Below are the steps to set up the Chart of Accounts that will help in
making business health better:
Step 3: Check the Sub-account
 Easy Steps to Set up a Chart of Accounts in
QuickBooks
Below are the steps to set up the Chart of Accounts that will help in
making business health better:
Step 3: Account Opening Balance
Thanks!
Any questions?

You can find me at:

yaasiraliboss65@gmail.com
sunriseacademy@outlook.com
www.sunriseacademy.com