Items in QuickBooks

Using items in QuickBooks is one of the major places that new users have trouble with.   Just today there was a post:

I entered my invoice, applied my payment, made my deposit and my checking account did not increase!  What is wrong?

It is probably due to an item being used in an invoice that is pointing directly to the checking account.

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What happens when you do this is that you make a direct deposit to your bank by using the item on an invoice.  Then when you enter the payment to clear the invoice and record the deposit, this happens:

 

It creates a deposit (by entering the invoice) and then when you enter the customer payment and deposit it, it creates a payment and it zero's out the entire transaction.  

The proper setup of an item for use in an invoice is for the item to point to your income account:

 

This will put the transaction in the proper place, in your income account.  Now when you record the  customer payment, it will clear the invoice and be deposited into the bank account, which will increase the balance and record it as a deposit:

And that is it.  The proper set up of an item used in invoicing. Items are "behind the scenes" transactions so it is important to have them set up properly.



Lynda 

Check out my website www.artesanibookkeeping.com

Sample company files

A wonderful resource to use in QuickBooks is the sample company files.   But how do you get to them?

Open QuickBooks as you normally would.  When this screen comes up, click cancel:

When you see the no company open screen, click to open the sample company files on the right side.  I use Premier version, which has many sample files. Pro has fewer.

Since sample files are portable files at first, you will see this screen to open it:

What is really nice about sample files is that you can look at the proper set up of records and you can make entries and not really hurt anything since it is just a sample file and not a real data file.


Lynda
Check out my website www.artesanibookkeeping.com

Accountant's Copy - Opening the Changed file from the Accountant & Merging it with your current data file - Step Four

Last, but not least, is for the client to open and import any changes the accountant made in the change file into the current data file.  Many of these changes can be from just changing how a transaction is categorized to entering the journal entries for depreciation.

To import these changes:

1. In QuickBooks, open the company file that this Accountant's Copy came from.
2. Click on File
3. In the menu bar, click Accountant's Copy
4. Import Accountant's Changes from Web or from file that was downloaded from an email and saved to your desktop.   
5. Review the list of changes from the pdf file sent from your accountant.
6. Click the button Incorporate Accountant's Changes

Your accountant will be notified after you incorporate the changes.

Here is a screen shot of the email when your Accountant sends you back a change file:

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And that is the last step in creating, sending, changing, and sending back an Accountant's copy in QuickBooks.

Lynda 

Check out my website www.artesanibookkeeping.com

Accountant's Copy - Sending the File back to the Client - Step Three

So you, as the accountant or ProAdvisor, have made corrections or audited your clients books.  Now you have to send the file back to the client.  Here are the steps:

1. To send the change file back, go to file, accountant's copy, view and export changes for client.
2. Next,  I always save my changes as a pdf file.
3. Then, I select "Send changes to Client".
4. Then next screen should pretty much be filled out for you.  Add any notes to your client and click "send".

Here are the screen shots:

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And that is it to sending the changed Accountant's copy back to the client. 

Next post will be for your client and the instructions on how to open and merge your changes back into the current data file.

Lynda
Check out my website www.artesanibookkeeping.com

Accountant's Copy - The Accountant Opens Your File - Step Two

So, now you are the accountant.  You requested an accountant's copy from your client and receive this email:

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So, you click download on the email and save the file to your desktop.  Now you open QuickBooks and go to fie, Accountant's copy, Open and Convert transfer file.  Browse to your file on your desktop and select it.  Next select the file location where you would like to store this temporary data file (I use a file folder called Client Files).  Enter the password on the account.  Here are the screens you should see:

(Side note:  For all of my client's, I create a user in their data file that is called an External Accountant user.  This user is mine to use while I work in their file.  This way, any changes I create will be logged in as the External Accountant user, which is a separate user on the Audit Trail from the Admin user, which is my client.)  

Now, in this file, I am free to work and fix or make change in my client's file.  The main restriction is that I have to work in any date from 12/31/10 or earlier and I am not allowed to make or change any payroll transactions.

That is it on how easy it is to open and work in an Accountant's file sent to you by your client.

The next post will describe how to upload and sent the changes back to the client.

Lynda

Check out my website www.artesanibookkeeping.com

Accountant's Copy - Sending the Accountant the file - Step One

It is getting close to that time of year when your accountant asks you to send him/her an accountant's copy of your data file in QuickBooks.  An Accountant's Copy is a version of your company file that your accountant can use to make changes while you continue to work. When your accountant is done, he or she will send you a file that you import into your company file.

This sometimes is confusing for the new user.   This post will describe the steps involved in creating a file to send to your accountant.  

(On a side note, new to QuickBooks 2011, there is a charge to use this feature.  The Accountant's Copy File Transfer Service (which allows you to export the changes and the client to import them directly from the web) is $9.95/year but it is included in your ProAdvisor Membership.   If you have QuickBooks 2011, your accountant will need to be using QuickBooks 2011 to open your accountant's copy.)

You can choose to save and send an accountant's copy via regular email or use a usb stick or send through Intuit's secure servers.  I prefer the latter:

1. From the File menu, Accountant's Copy, and then select Send to Accountant

   (Note: In QuickBooks Premier Accountant Edition and QuickBooks Enterprise Solutions Accountant Edition, select the File menu and then Client Activities to send to the accountant.)

2. Click Next to confirm the accountant's copy.
3. Set the dividing date (Be sure to coordinate with your accountant before choosing this date) and click Next
4. Enter in the Accountant's E-mail address.
5. Reenter the accountant's e-mail address
6. Enter your name.
7. Enter you e-mail address.
8. Click Next.
9. Create the file transfer password to encrypt file for security
10. Reenter the password.
11. Enter any notes to your accountant.
12. Click Send. 

Here are the screen shots:

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It is that simple to create.  Then you can call your accountant and tell him/her the strong password, so that he/she can open the email and the file. 

The next post will give you the steps for your accountant on how to open this file.

Lynda

Check out my website www.artesanibookkeeping.com

Vendor Refund

I received a call from a client the other day.   "How do you enter a refund from a vendor?"  This client had just been audited by their worker's compensation insurance carrier and was overcharged based on the numbers used from the prior year.  So, she received a refund check.  

Here is how you would enter that check (or any refund from a vendor, just use the account you would normally use for the vendor):

On your home page, select "record deposit" and enter the name of the vendor in the "received from" box, the insurance expense for the "account from" box and the amount.  I always make a note on the memo line describing why a vendor is refunding me.  

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And that is it.  This refund will lower your expense, but that is just what a refund check does.  It is a very simple transaction to enter.

Lynda

Check out my website www.artesanibookkeeping.com