introduction to quick books 2006 (for trainee)

8/6/2019 Introduction to Quick Books 2006 (for Trainee)

1/39

QuickBooks 2006Accounting Software for small Business

1


2/39

Headlines:

1. Create a new company;

2. Set up preferences;

3. Set up Chart of Accounts;

4. Functioning lists (Vendors,Customer Job, Class, Others)

5. Enter transactions;

6. Generate Reports;

7. Back up & Restore data;

8. Exercise.

2


3/39

On Menu Bar click FILE

Select New Company

Then click Skip Interviewsbutton (Figure 1)

Type appropriateinformation in each

provided box (Figure 2);

Then click Next button

3


4/39

Select (No Type); Then click Next Button

(Figure 3);

Select the folder/pathwhere you want to store

your QuickBooks file; Type file name in box;

Then click Save button(Figure 4);

4


5/39

Purpose:y

Through preferences, you can customize QuickBooks to suitthe needs of your business and your personal style of working.

How to select:y From the Edit menu, choose Preferences.y U

se the scroll box on the left to select a picture for the area ofQuickBooks you want to set preferences for.

Tabs:y MyPreferences: the area you select, enter the changes and

settings you want. The settings you enter on this tab onlyaffect your QuickBooks sessions, not those of other users.

y CompanyPreferences: the area you select and enter changesthat affect all users. Only the QuickBooks Administrator canenter changes on the CompanyPreferences tab.

5


6/39


7/39

ACCOUNTING

MyPreference (Fi ure 5):Autofill memo in general journal entry:

Cause the memo you enter on the first

line to appear automatically in

subsequent lines that you enter this

saves time if you have manyCompanyPreference (Fi ure 6):

Use account numbers: Give you the

ability to assign numbers to your

accounts.

Show lowest subaccount only: controlhow QBs displays subaccount when you

choose a subaccount in the Account

filed of a transaction.

7


8/39

ACCOUNTING (Fi ure 6) (cont)

Require accounts: prevents you from

recording a transaction unless you have

an account assigned.Use class tracking: let you categorizetransactions by assigning them to theclasses on your Class List

Prompt to assign classes: cause amessage to appear if class is notassigned in data entry transaction.Automatically assign general journalentry number: automatically assign anascending order number to a general

entry.

Warn when posting a transaction toRetained Earning: cause message to

appears for any transactions relate toRetained EarningClosing date: enter the date throughwhich you want your book to be closed.Set Password: allow you set passwordto prevent any change, delete on the

previous transaction after closing date.

8


9/39

CHECKING

MyPreference (Fi ure 7)Open theWrite Check: automaticallyQBs

select one of Bank type a/c when using

write Check command.

Open the Pay Bill: automatically QBs

select one of Bank type a/c when PayBill command.

Open the Pay Sales Tax: automatically

QBs select one of Sales Tax a/c when Pay

Sales Tax command.

Open the Make Deposits: automaticallyQBs select one of Bank Type a/c when

using Make Deposit command.

9


10/39

CHECKING (cont)

CompanyPreference (Fi ure 8)

Print account names on vouchers:

command QBs to print a/c name on

voucher.

Change check date when check is

printed: change the date on a check totodays date when you print the check.

Start with payee filed on check: position

the cursor on the payee field.

Warn about duplicate check numbers:

cause QBs to warn you try to record aCheck that has the same as previous

one.

Autofill payee account number in check

memo: if you set up payee to include

a bank a/c, QBs automatically displays

the last transaction.

Open the Create Paycheck: automatically

select one of Bank a/c type used for

paying check to employees.

Open the PayPayroll Liability: select the

one of Liability a/c used for recording

payable to unpaid employee.

10


11/39

DESKTOP IEW

MyPreference (Fi ure 9)OneWindow vs. Multiple Windows:

determine whether windows panel are

visible in the main QBs areas.

Save when closing company: displays

the desktop exactly as it was when you

last worked in the company file.

Save current desktop: displays the

desktop exactly as it is now

Dont save desktop: displays an empty

desktop (no window) when you return

to company file.Keep previously saved desktop:

displays the desktop that you save at

the previous time.

11

ShowHome page when opening

Company file: displays the CompanyNavigator as the topmost window whenyou open a company file.Color Schemes: change color of windowpanels.


12/39

DESKTOP IEW(cont)


Customers

Sales Receipts: displays sales receipt

when you first open your QBs file.

Statements and statement Charges:

Displays Statements and statement

charges when you first open your QBs

file.

endors

Enter Bills and Pay Bills: displays EnterBills and Pay Bills when you first open

Your QBs file.

12


13/39

GENERAL

MyPreference (Fi ure 11)

Pressing Enter moves between fields:

change how Enter Key behave in QBs.

If ticked when pressing Enter cursor

moves from one to other field.

Automatically open drop-down listswhen typing:Automatically arrowhead

pointing when typing.

Beep when recording a transaction: alert

sound when recording data into system.

Automatically place decimal point:automatically insert a decimal point

between 2nd and 3rd digit from right for

number entering.

Warn when editing a transaction:warns

when you change transaction and exit

without saving.

Warn when deleting a transaction or

unused items:warn you when you delete a

transaction or list entry not currently use.

13


14/39

GENERAL (cont)

MyPreference (Fi ure 11) (cont)

Bring back all one-time messages:

restore all one-time messages that you

have turned off. (One-time message

provides useful information on how to

use QB.When one of these messagesappears you can turn it off so that

it doesnt appear again).

Turn off pop-up messages for products

and services: QBs automatically

appearing temporarily message.Automatically recall last transaction

for this name:when you enter a name,

QB automatically completes the

transaction as exact as previous entry.

It works only with Bill, Check or Credit Card

Charges

Show ToolTips for clipped text:when

moving cursor over a field where the text is

too long to fit displays tooltips will show

full text.

Use todays date as default:

Use the last entered date as default:

14


15/39

GENERAL (cont)


Time format: set the display format

Always show year as 4 digits (1999): if

not, it show 2 digits.

Never update name information when

saving transaction:

15


16/39

REPORTS GRAPHS

MyPreference (Fi ure 13)Prompt me to modify report options

before opening a report: ??

Reports and Graphs

Prompt me to refresh:when data ischanged QB will alerts you to refresh.

Refresh Automatically: QB automatically

update data without alerting.

Dont refresh: QB will not refreshwhen

data is changed.

Graphsonly: determine how QBs draw

Graphs on screen.Draw graphs in 2D (faster): QBs ??

Use patterns: QBs automatically color in

black & white for separately of graph

types

16


17/39

REPORTS GRAPHS (cont)

CompanyPreference (Fi ure 14)Summary Report Basis:Accrual orCash.

AgingReport

Age from due date: sets the starting date

point for counting the of overdue dayson invoice, statement, bill.

Age from transaction date: sets the

starting date point for counting the of

overdue days on transactions.

17


18/39

TYPEOFACCOUNTS

* PROFIT LOSTACCOUNTSy INCOME

y EXPENSE

* BALANCESHEETACCOUNTS

y ASSETS

y LIIABILITYy EQUITY

Remember:

Dr: (+) Double Entry Rule Cr: (+)

Assets Liability

Expense Equity

Income

18

Others

Interest

Rent

Supplies

Utilities

Bank

A/R

Fund Rec

A/P

Sal Tax Pay

Retain. Ear

Cap. Inves

Open. Bal

Chart of AccountChart of Account

Accounting EquationAccounting Equation


19/39

YourOrganizations ChartofAccounts

When you keep books for a business, you want to track where your incomeComes from, where you put it, what your expenses are for, and how you pay

them.You track this flow of money through a list of Accounts called the Chart

ofAccounts.

Your QB Chart of Accounts can have:

1. Assets 2. Liabilitiesa) Bank a) Fund Rec. from Donors

b) Other current asset b) Account payable

c) Other asset c) Interest receive

3. Equity 4. Income

a) Retained earning a) Interest received5. Expenses b) Grants income

a) Office rental c) Program income

b) Salaries

c) Utilities

19


20/39

ChartofAccounts

Your Chart of Accounts include Balance Sheet Accounts (BS a/c) and Profit and

Loss Accounts (P&L a/c). This account tracks the following:BS a/c. type QBs a/c. type Use to track

Asset Whatyou have what people oweyou.

Bank Transactions in current, savings, and term

deposit bank accounts.You can also use this

type of account for Petty Cash/Cash on Hand.

Other current Assets that are likely to be converted to cash or

Asset used up within one year such as advances ... etc.

Other Asset Any asset that is neither a current assent nor a

fixed asset.

Liability Whatyou owes to other people

Other current Liabilities that are scheduled to be paid within

Liabilities one year such as funds rec. from donors etc.

20


21/39

BS a/c. type QBs a/c. type Use to track

Equity Net worth ofyour company

Equity A company builds equity from three sources:Retained earnings: net profits/Loss from

earlier periods.

P&L a/c. type QBs a/c. type Use to track

Incomes Accounts trac the sourcesofyour incomes

Interest income Is a fees paid on borrowed capital.Grants income Is a money coming from donors for a specific

project.

Expenses Accounts trac the sourcesofyour expenses

Office rental Is a fees where a payment is made for the

temporary use of a building/office.Salary Is a form of periodic payment from an employer

to an employee, which may be specified in an

employment contract.

21


22/39

Illustration below is the samples on how

to create new account:1. From the menu Bar either click List

(Figure 15 )or Company(Figure 16)

2. Click Account Button (Figure 17)

3. Click News (Figure 18)

22

or


23/39

Then it will show (Figure 19)1. Type: Select account types

2. Number: Type number of a/c3. Name: Type name of a/c4. Sub-account of: tick box if it is a sub

a/c to other a/c and then select themain a/c in the next box

5. Description: Type description to thea/c (addition information about the

a/c)6. Bank Acct. No.: fill in bank accountthat help memorize bank account.(this section varies based on the typeof a/c you select)

7. Opening Balance: beginning amountof the a/c at the time of creation.(this section varies based on type of

a/c you select and for some type it isnot available)

23


24/39

CLASS: Tracking Income and Expense by Class

Do you need to track income and expense for separate parts of organization? Thefollowing table has example of what you can track by using class in QBs.Forexample you might use class to breakdown your company financial data bydepartmentdepartment, projectproject or locationlocation etcetc. you can define class for administration andprogram or branch (HO-PNP, BMC, KTH)

CUSTOMER & JOB (QBs allow only 4 digits):Who is CUSTOMER: a person/company that buy/receive products or servicefrom you.What is Job: in QBs, a job is a project done for a particular customers .You must always associate a job with a customer.Use job if you do (or expect todo) more than one job for the same customer. For us, donor is a CUSTOMER

and set budget line as job.

OTHERS: BesidesCustomers, QBs provides some commands having the exactfunctions such as VENDOR, EMPOLYEE AND OTHERS to record their contactdetails in its database.

24


25/39

CLASS:CLASS:

On Menu Bar select List

Click on Class List (Figure 2 )

At Class Button click and select New(Figure 2 )

Class Name: type of name of class

(Figure 21)

Subclass of: tick if its under main classand then tick main class

Then click OK button

25


26/39

CUSTOMER JOB:CUSTOMER JOB:

CreateCustomer: On Menu Bar selectLists

Select Customer: Job Lists (Figure 22)

Click Customer: Job Button

Select New (you will see right panel)

Address Info Tab: fill contact DetailInformation ofCustomer.(PACT)

Add JOB: after setting up Customer(Figure 23)

Right Click over a created Customer Select Add Job (you see right panel)

Type in Job Name as BudgetCode (P-1PERSONNEL)

26


27/39

OTHERNAMES:OTHERNAMES:

There are more items that functionsimilarly as customer job. This includes

y Vendor: a business entity that providesgoods or service to your organization.(Figure 24)

Go to: Vendor menu -> Vendor Center(See example in right picture)

y Employee: a person who is employed byorganization as human recourse.

(Figure 25)Go to: Employee menu -> EmployeeCenter (See example in right picture)

27


28/39

OTHERNAMESOTHERNAMES: (: (contcont))

y Other contact entity: an entity thathave business relation with yourorganization but (not vendor, employeeand customer). (Figure 26)

Go to: List menu -> Other Name List ->Click on Other Names Button -> Newand type name.(See example in right picture)

28


29/39

WriteChec : Use this winder to records

Money being paid out from bank a/c type

For transactions. (Figure 27)

Go to: Banking menu ->Write Check

y Pay to the Order of: Payee name

y No.: Reference number (voucher )

y Date: specify date on which transactionoccur.

y Amount: Transaction amount

y Address: contact detail of payee

y Memo: enter short note butunderstandable about transactions.

y Account:A/c numbers and its names

y Amount: amounts that matched to a/c

29

Customer:Job: Budget code

Class: classify transaction into its class


30/39


31/39

MAKE JOURNALENTRY: is foraccountants or people who prefer the

traditional system of accounting byentering transactions in a general journal .If you are familiar withhow todebit/credit a/c correctly, you onlydo needto use this form if Make Deposit or WriteCheck is not doable. (Figure 29)

Go to: Banking menu -> Make Journal Entry

y Date: specify date on which transactionoccur.

y Entry No.: Reference number (voucher )

y Account:A/c numbers and its namesy Debit: enter amount as for debit side

y Credit: enter amount as for credit side

y Memo: enter short note butunderstandable about transactions.

31

Name: Job: Budget code Class: classify transaction into its class


32/39

QuickBooks windows used for daily recording and vouchers to be prepared:

32

Quic Books window What are to be recorded oucher to be usedMake deposits(Banking menu)

- All receipts of funds from donors;- Settlement of advance (expenses lessthan advance).

Deposit Voucher

WriteCheck (Bankingmenu) - Used for cash transfer from bankaccount to another accounts;- All expenditures or/and cash-flow out(advance);

- Settle of advance (expenses more thanadvance)

Payment Voucher

Make Journal Entry(Accountant orCompany menu)

- Use for opening balance;- Reconciliation of advance (advance &

expenses are equally);- Month/year end closing reports.

General JournalVoucher


33/39

Recording reminder:

y All entries must follow Generally Accepted Accounting Principles (GAAP).

y Consistency: if one method is used them this method is used all throughoutof your recording task, specifically with making your MEMO;

y Transactions/activities must happen first before any recording is made;

y Objectively: accounting record must be true and verifiable, that is supportingdocuments (invoices, receipts, vouchers, etc) are competed with thenecessary signatures.

y Establish passwords, controls, and back up procedures as appropriate;

y Enter by transaction, not per invoice;

y All entries must be done as it happens, you cannot make changes to the past

records.When this happens, then a correcting or an adjusting entryhas to bemade in the present period.

33


34/39

Whyreport and purpose?

Financial Reports show the activity in your accounts over specific period oftime. For each account in yourChart of Accounts, the report shows all the

transactions that occurred in that account. The report covers the currentmonth

to data.

After entering records into QBs throughMake Deposit,WriteChecks andMake Journal Entry, it stores such data in its database from which QBssystematically extract back what you want to see in different formats. This iscalled reporting process.

Basically, there are certain reports we need to produce for financial

accounting job: @General Journal: when dealing withwhether accountant have entered data

correctly we need to be able to see the evolution of each transaction insideeach entry. SoGeneral Journal will detail how individual transaction wasentered. (date, ref , amount, debit/credit of a/c, memo)

34


35/39

@Profit & Lost Statement: donor always requires to report them how muchweve spent for a specific period. that refer to P&L Statement that show usincome and expense weve made during a period.Given a specificcircumstance that we have more than 1 donor, we have produceGlobal P&LStatement and Separate P&L Statement by donor.For our work, we willcreate.

y Profit and Loss.

y Expenses by Account classified by Branch.

y Transaction Detailed by Budget-code.

y Expenses by Budget-code columned by Branch.

y @Balance Sheet: Part ofFinancial Reports, donor also want to know how

much asset you hold in organization. Balance Sheet reflect financial position(how muchmoney in you bank, account, petty cash on hand and othercurrent asset such as advance).

35


36/39

y Balance Sheet.

y PACT Fund Reconciliation

y How toCreate report

y @General Journal:

y Report menu->Accountant & Taxes ->Journal

y @Balance Sheet:

y

Report menu -> Company & Financial -> Balance Sheety @Profit & Lost Statement:

y Report menu -> Company & Financial -> Profit & Lost Statement

We can create Balance Sheet and Profit and Lost Statement in different way.

Report menu ->y Custom Summary Report: List down a total amount of each a/c.

y Custom Transaction Detail Report: list down detail transaction under eachheadline.

36


37/39

WhyBackup? (Figure30)

Your data is valuable! No recovery technique can repair all possible file damageor protect against theft or natural disasters. Make regular backup copies of yourQuickBooks company (Weekly or Monthly).

You must be in single-user mode to backupyour com.

Go to: File menu -> Back up or you can find the right site icon fromCustomize

Icon Bar

File name: Name of your back up fileLocation: The location of your back up file

37


38/39

WhyRestore data? (Figure 31)

If your need to restore your backup file, use the Restore command. BecauseQuickBooks backup file is compressed, simply copying the backup file to yourQuickBooksdirectory will not give you to access toyour data.

Go to: File menu -> Restore

GetCo

mpanyBack

up fro

m:File name: Name of your back up file

Location: The location of your back up file

RestoreCompanyBackup to:

File name: The original fileLocation: The location of your file storing

38


39/39

Thanks for your attention!

Good Luck!

Exercise

39

introduction to quick books 2006 (for trainee)

Documents