QuickBooks Training Clint A. Summers, CPA

Transcription

1 QuickBooks Training

2 Introduction & Professional Background EDUCATION: MERCER UNIVERSITY, Atlanta, GA Masters of Business Administration in Finance, 4.0 GPA - October 2002 KENNESAW STATE UNIVERSITY, Kennesaw, GA Bachelor of Business Administration in Accounting - March 1997 ACHIEVEMENTS: Certified Public Accountant-June 2002 (Georgia License # CPA ) MEMBERSHIPS: Member of AICPA professional association EXPERIENCE: Clint A. Summers, CPA (Public Accounting Firm), Hiram, GA Develop/Implement QuickBooks training for all new franchisees for a national franchise corporation. Develop standard chart of accounts for two separate franchise brands of a national franchise corporation. Prepared & presented material as an expert speaker on QuickBooks/Acctg at nat l franchise conference. Oversee & perform accounting/bookkeeping for small business clients across the country. Oversee & prepare payroll, payroll taxes, W2s, 1099s, etc. for small business clients across the country. Oversee & prepare annual tax returns for individuals, small businesses, & corporations. Manage & oversee the daily operational aspects of the public accounting firm. 15 years of experience in accounting and finance.

3 Agenda 1. Accounting Basics 2. QuickBooks Set-Up Interview Importing Chart of Accounts 3. Payroll Options 4. QuickBooks Basics Initial Investments Record Deposits Flow of a Sale Online Banking Write/Print Checks Reconcile Bank Account Credit Card transactions Journal Entries 5. Reports Profit & Loss Balance Sheet 6. QuickBooks Back-up files 7. Working on the business and not in the business

4 Accounting Basics Customers Business Vendors Revenue Expense

5 Accounting Basics Revenue Expense = Net Income 1. Net Income is also known as: a. Profit & Loss b. Bottom Line 2. Net Income is reported on the Profit & Loss statement in QuickBooks (a.k.a. Income Statement). A Profit & Loss Statement is important to the business because it provides information to: Your banker (for a loan application) Your accountant (for tax advice) You as the business owner (to adjust your business model)

6 Accounting Basics Bank Accounts & Cash Loans & Credit Net Income & Investment LOAN = Assets Liabilities Equity +

7 Accounting Basics Assets = Liabilities + Owner s Equity Assets Liabilities Equity A Balance Sheet is important to the business because: Provides quick view of the net worth of your business Your banker will also be interested in this report when considering you for a loan.

8 Accounting Basics Income Statement Balance Sheet Income Expense Assets Liabilities Equity Sales Payroll Utilities Materials Bank Accts Receivables Major Equip Credit Card Loans Payables Investment Net Income Retained Earnings

9 QuickBooks Set-Up

10 QuickBooks Set-Up - Interview After you load QuickBooks on your PC and open it for the first time, you will be given an option to choose Express Start, Advanced Setup, or Other Options Choose Advanced Setup to begin the set-up process

11 QuickBooks Set-Up - Interview You will need to enter your d/b/a name, Legal Name, Tax ID #, address, , and web-site on the screen below and then click Next

12 QuickBooks Set-Up - Interview Under the Select your industry question, be sure to choose General Service-based Business Choose your property entity based on how you set-up your company. If you have used retirement accounts (401k, IRA, etc.) to purchase your franchise, be sure to choose Corporation

13 QuickBooks Set-Up - Interview Next you will: Select the first month of your Fiscal Year (January) Set-up an administrator password Choose the location on your PC to save your QuickBooks company file Now you are ready to customize QuickBooks for your Business. This includes: Selecting what you sell (both products & services) Do you sell products online (No) Do you charge sales tax (No) Do you want to create estimates (No) Do you want to use Sales receipts (No) Do you want to use Statements (No) Do you want to use invoices (No) Do you use progress invoices (No) Do you want to manage bills you owe (YES) Do you want to track inventory (No)

14 QuickBooks Set-Up - Interview You will not need to track time in QuickBooks. If you plan on doing your own payroll, then choose YES to Do you have employees? SBI recommends that you outsource payroll in order for you to ensure that it is handled properly. We will cover some of your payroll options once we complete the QuickBooks Set-Up Interview.

15 QuickBooks Set-Up - Interview The next screen will indicate that a chart of accounts needs to be set-up. Then you will be prompted to choose the beginning of your fiscal year. You will choose January 1 st of the current year. On the Review income and expense accounts screen, be sure to uncheck all accounts. You will have to scroll down to uncheck them all. You will import your brand-specific chart of accounts later. This is important because QuickBooks may not allow a new chart of accounts to be imported if any of these accounts are checked. Click on Go to Set-Up once complete.

16 QuickBooks Set-Up - Interview The next steps of adding vendors, products, and bank accounts is optional during the set-up process and is recommended that you do these later as you begin using QuickBooks There is no need to add a bank account since these are included in the standard chart of accounts To skip these steps, simply click on Start Working to complete the interview.

17 QuickBooks Set-Up Home Page

18 QuickBooks Set-Up Import Chart of Accts Now you will need to import your Chart of Accounts Click on the File menu. Click on Utilities Click on Import Click on IIF Files Locate your.iif file in C:/Program Files/Intuit/QuickBooks Pro/Your SBI Brand or on your brands software installations CDROM in the QuickBooks folder

19 QuickBooks Set-Up Chart of Accounts You can access your Chart of Accounts from the Home page by clicking on the Chart of Accounts icon in the top right of the Home page. Notice the account types are similar to the ones we discussed in the Accounting Basics section.

20 QuickBooks Set-Up Add/Edit an Account To add a new account, click on Account at the bottom of the Chart of Accounts screen Click on New to add an account (or Edit Account to change the name of an account) Choose the type of account Name the account and select if it is a sub-account for an existing account Add a description of the new account Click on Save & Close

21 Payroll Options

22 Payroll Options This price is approximately 50% below the full service competition & no set-up fee ($100 savings) SBI encourages the outsourcing of payroll

23 QuickBooks Basics

24 QuickBooks Basics Initial Investments To record your initial investment in the business, choose Record Deposits from the Home Page. Choose the Owner s Investment account (Equity account) This can also be coded as a liability (Owner Payable) if you intend to reimburse yourself for this investment Put in a note indicating this is your Initial Investment Record the amount of the investment Click Save & Close If you start typing the account, QuickBooks will begin to autopopulate the account you are searching for or you can use the drop-down menu

25 QuickBooks Basics Initial Investments Notice that the deposit appears in the Account Balances on your Home Page. Notice that the deposit also appears in your Check Register as a Deposit.

26 QuickBooks Basics - Record Deposit When you are ready to make a deposit, choose Record Deposits from the Home Page Be sure to record the deposit in your Checking Account Choose the date that matches the date you will make the deposit at your bank. Be sure to leave the Received From field blank.

27 QuickBooks Basics - Record Deposit Choose the proper Revenue account Enter a memo for the transaction (this is optional) Record the payment method (cash, check, charge) Enter the amount of the transaction Click on Save & Close to record the transaction in your Profit & Loss report and in your checking account

28 QuickBooks Basics Sales Flow

29 QuickBooks Basics Online Banking To initiate an interface to download transactions from your bank or credit card account, start by clicking on the Chart of Accounts icon on the home page Then find the account in the chart of accounts list and click to highlight it. Next, right click on it and choose Edit Account Once on the account edit screen, click on Set-Up Online Services to begin the process

30 QuickBooks Basics Online Banking Choose you bank from the list and click Next. Choose Direct Connect as the option to pull info right into QuickBooks Select Yes that your account has been activated for QuickBooks Online services if you have online banking access to you account currently. Enter your online banking username and password and click Sign In. Once in the bank web-site, be sure to choose the appropriate account and choose Finish to complete the set-up

31 QuickBooks Basics Online Banking The lightning bolt will appear beside your account in the chart of accounts once complete. The process works the same for credit card accounts as well. After the set-up is complete, go to the Online Banking Center to download your account activity and assign the proper coding to the transactions.

32 QuickBooks Basics Write Checks One method for entering reductions to your checking account is to choose Write Checks from the Home Page Choose Checking Account from the drop down menu Choose the appropriate vendor or add a new one. Enter the amount of the transaction. Notice that the To be printed box is checked Select the proper expense account Enter the amount of the transaction again Enter any comments and click on Save & Close

33 QuickBooks Basics Print Checks If the To be printed box was selected, choose Print Checks from the Home Page. You will then Select Checks to Print by putting a check mark beside each item that you wish to print, click on OK Choose your printer, choose your type of checks, click on Print to begin printing your checks.

34 QuickBooks Basics Reconcile Bank Acct To reconcile your bank account, choose Reconcile from the Banking menu. Choose Checking Account when prompted for the Account, enter the statement date and the ending balance from the statement and click Continue. Place a check mark by all the transactions that match those on your statement. Once the Difference is $0.00, then click on Reconcile Now

35 QuickBooks Basics Credit Cards To manually enter credit card charges, choose Enter Credit Card Charges from the Banking Menu. Choose Purchase/Charge Select the vendor where the charge was made (you may have to add a vendor). Enter the amount of the transaction. Choose the proper Account from the Chart of Accounts Enter a Memo to describe the transaction. Click Save & Close to save the transaction Using Online Banking downloads for your credit card transactions will save you some data entry time.

36 QuickBooks Basics Credit Cards The Credit Card transactions will appear on your Balance Sheet as a liability until paid. It will also appear on your Income Statement as an expense once entered Lastly, it will show under the Account Balances section of your Home Page.

37 QuickBooks Basics Credit Cards To pay your credit card bill, choose Reconcile from the Banking menu. Choose Company Credit Card when prompted for the Account, enter the statement date and the ending balance from the statement and click Continue. Place a check mark by all the transactions that match those on your statement. Once the Difference is $0.00, then click on Reconcile Now Choose either Write a check for payment now or Enter a bill for payment later, then click on OK. Paying later puts the bill into your bill payment queue.

38 QuickBooks Basics Journal Entries Journal Entries are generally used to enter transactions that you did before you had a business checking account, for recording investments in your business, or sometimes for depreciation of assets. The transaction we will show is for recording expenses before you had a business checking account. To enter a Journal Entry, choose Make General Journal Entries from the Company menu. Then be sure to choose the correct date for the journal entry (before your checking account was opened). Enter expenses as Debits using the proper account from the Chart of Accounts. Enter the sum of the expenses as a Credit to the Owner s Investment account. Be sure Debits are equal to the Credits and save the Journal Entry.

39 Reports

40 QuickBooks Reports Profit & Loss To generate a Profit & Loss report, choose Company & Financial from the Reports menu. Then choose Profit & Loss Standard from the sub-menu. The report will generate automatically for the current fiscal year.

41 QuickBooks Reports Profit & Loss To add the % of Income to your Profit & Loss Statement, choose Modify Report Be sure you are on the Display tab and then check the % of Income box Click on OK and your Profit & Loss report will update with the % of Income

42 QuickBooks Reports Balance Sheet To generate a Balance Sheet report, choose Company & Financial from the Reports menu. Then choose Balance Sheet Standard from the sub-menu. The report will generate automatically for the current day (Balance Sheets are for a single point in time).

43 QuickBooks Back-Up Files Another important step is to back-up your data in case you have computer issues. You will be prompted to do this periodically by QuickBooks as you log-off. I recommend backing-up your data about every 2 or 3 days on a external hard-drive, a CD-ROM, or other alternatives that are not on your C Drive.

44 Working on the Business not in the Business

45 Working on the Business not in the Business 1. What does this mean? You spend time growing and developing your business through marketing, selling, and customer service while letting the administrative tasks (i.e. accounting/payroll) be handled by someone else. 2. What are your options? Small Business Accounting: includes a basic review of financials, phone/ support for accounting questions, meetings as needed, year end prep, and more ($160/month). Online Payroll: A payroll solution that is 50-75% less than competitors, free direct deposit, payroll tax filings, W-2 prep, all for only $60/month for up to 3 employees/contractors ($3.50 for each employee/contractor above 3). Virtual Bookkeeping: includes a fully outsourced bookkeeping solution designed especially for SBI franchisees ($65/hour). Merchant Services: Includes the ability to sign up with a credit card processing vendor that will educate you and your employees how to get the lowest available rates for credit card services. QuickBooks Help: Set-up ($92/hr), One-on-One Training ($92/hr), or a QuickBooks Tune-Up ($92/hr). ~ 95% of my clients are managed remotely

46 Contact Info 784 Blackberry Run Trail Dallas, GA