May 20, 2009

Living the Dream- Living the Dream- LiveLiveE-Seminar / Conference Call

Saving Time and Money With Good Saving Time and Money With Good Bookkeeping Skills, QuickBooks Tutorial Bookkeeping Skills, QuickBooks Tutorial

and Moreand MoreHosts:

Mat Sorensen, Attorney at Law

Special Guests:Dustyn Johnson, CPA, NumberWon Accountants, LLC

Elaine Madsen, Quickbooks Certified Trainer, Kohler & Eyre CPAs, LLP

www.kkolawyers.com

Telephone 435.586.9366

Facsimile 435.586.9491

© KKO Lawyers, LLP 2009

www.kohlereyrecpas.com

Telephone 435.865.5866

Facsimile 435.586.9491

© Kohler & Eyre CPAs, LLC 2009

www.numberwonaccountants.com

Telephone 435.865-7820

Facsimile 435.586.7702

© NumberWon Accountants, LLC 2009

OutlineOutline

• QuickBooks ProductsQuickBooks Products• Chart of AccountsChart of Accounts• Making it a HabitMaking it a Habit• ReconcilingReconciling• ReportsReports

All the Accounting You Need All the Accounting You Need to Knowto KnowAbout the Chart of AccountsAbout the Chart of Accounts• Chart of AccountsChart of Accounts

– The chart of accounts is a complete list of your business’ The chart of accounts is a complete list of your business’ accounts and their balances.accounts and their balances.

• When you keep books for a company, you want to When you keep books for a company, you want to track:track:– Where your income comes fromWhere your income comes from– Where you put itWhere you put it– What your expenses areWhat your expenses are– And what you use to pay themAnd what you use to pay them

• You track this flow of money through the chart of You track this flow of money through the chart of accounts.accounts.

All the Accounting You Need All the Accounting You Need to Knowto KnowAbout assets, liabilities, and equityAbout assets, liabilities, and equity• AssetsAssets

– Includes what you have and what people owe Includes what you have and what people owe you.you.

• LiabilitiesLiabilities– What your company owes to other people.What your company owes to other people.

• EquityEquity– Equity is the difference between what you have Equity is the difference between what you have

and what you owe.and what you owe.– Equity = Assets – LiabilitiesEquity = Assets – Liabilities

All the Accounting You Need All the Accounting You Need to Knowto KnowCash vs. Accrual bookkeepingCash vs. Accrual bookkeeping• Cash basisCash basis

– Income is recorded when money from sales is Income is recorded when money from sales is received and expenses when bills are paid.received and expenses when bills are paid.

• Accrual basisAccrual basis– Income is recorded at the time of the sale and Income is recorded at the time of the sale and

expenses when you receive the bill.expenses when you receive the bill.

Important: Important: When you create reports in QuickBooks, you can switch When you create reports in QuickBooks, you can switch between cash and accrual reports at any time, regardless of which between cash and accrual reports at any time, regardless of which bookkeeping method you have chosen for tax purposes.bookkeeping method you have chosen for tax purposes.

Creating a New CompanyCreating a New Company

Use the EasyStep Use the EasyStep Interview to setup your Interview to setup your company properly. This company properly. This will walk you through will walk you through setting up your company setting up your company by asking you a series of by asking you a series of questions about your questions about your company. By the company. By the selections you make, you selections you make, you will setup your chart of will setup your chart of accounts and have your accounts and have your company ready to go. company ready to go.

QuickBooks and Your QuickBooks and Your IndustryIndustry

QuickBooks can be QuickBooks can be customized to your customized to your particular industry .particular industry .

By telling QuickBooks By telling QuickBooks what type of industry you what type of industry you are in, it makes are in, it makes suggestions of accounts suggestions of accounts and features that are and features that are typically used for your typically used for your that industry. If you don’t that industry. If you don’t find your specific type, find your specific type, just select the most just select the most similar.similar.

Finishing the Interview and Finishing the Interview and Completing the Company Completing the Company SetupSetupAs you go through the Easy As you go through the Easy Step Interview, you are asked Step Interview, you are asked many questions about your many questions about your business and by answering business and by answering these questions, QuickBooks these questions, QuickBooks will customize your company will customize your company file for you.file for you.A preset list of income and A preset list of income and expense accounts is created expense accounts is created from the industry selection from the industry selection you made earlier in the you made earlier in the interview. You can add to or interview. You can add to or delete from the delete from the recommended accounts by recommended accounts by checking the box in front of checking the box in front of the Account Name.the Account Name.

Learning how to use Learning how to use Additional Features of Additional Features of QuickBooksQuickBooks

Make it a HabitMake it a Habit• RoutineRoutine• Don’t get behindDon’t get behind• FamiliarizeFamiliarize• Take some time Take some time

each week after you each week after you have input income have input income and expense to look at different tools in and expense to look at different tools in QuickBooks.QuickBooks.

Reconciling Bank AccountsReconciling Bank AccountsTo reconcile your bank To reconcile your bank

accountaccount• Select correct bank Select correct bank

accountaccount• Enter current Enter current

statement ending statement ending datedate

• Match “Beginning Match “Beginning Balance” with bank Balance” with bank statement beginning statement beginning balance.balance.

• Enter the “Ending Enter the “Ending Balance” from bank Balance” from bank statementstatement

• Enter services charges Enter services charges or interest earned or interest earned from bank statementfrom bank statement

• Click continueClick continue

Reconciling Bank AccountsReconciling Bank Accounts• In the “Checks and In the “Checks and

Payments” section, Payments” section, click to make a click to make a checkmark to clear checkmark to clear each check and each check and payment listed on your payment listed on your bank statement.bank statement.

• In the “Deposits and In the “Deposits and Other Credits” section, Other Credits” section, repeat as above by repeat as above by selecting those selecting those transactions that have transactions that have cleared your bank. cleared your bank.

• Edit or add additional Edit or add additional transactions as needed.transactions as needed.After you have cleared each transaction, your difference to make the statement balance

will be shown in the lower right hand corner. Once you have the “Difference” at zero. then select “Reconcile Now”. DO NOT SELECT “RECONCILE NOW” UNTIL THE DIFFERENCE IS ZERO. Go back and check each transaction above and match amounts to the statement until the reconciliation balances. If you have to finish later, select “Leave” and you can come back and try again when you are in a better mood.

ReportsReports