QuickBooks 2009 Solutions Guide for Business Owners and Accountants [NOOK Book]

Overview

QuickBooks 2009 Solutions Guide

This is the definitive, must-have reference for every business owner, entrepreneur, accountant, and bookkeeper who relies on QuickBooks 2009. Not a beginner’s guide, it’s a high-productivity resource for solving the problems that intermediate-to-advanced QuickBooks users encounter most often.

Author Laura Madeira is superbly qualified to write this book: she has twenty years ...

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QuickBooks 2009 Solutions Guide for Business Owners and Accountants

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Overview

QuickBooks 2009 Solutions Guide

This is the definitive, must-have reference for every business owner, entrepreneur, accountant, and bookkeeper who relies on QuickBooks 2009. Not a beginner’s guide, it’s a high-productivity resource for solving the problems that intermediate-to-advanced QuickBooks users encounter most often.

Author Laura Madeira is superbly qualified to write this book: she has twenty years experience training professionals on Intuit products and has been selected by

Intuit to introduce its new releases to accountants and entrepreneurs. Here, she offers real solutions for every QuickBooks accounting module, helping readers achieve their true goal for QuickBooks: a clear, up-to-date understanding of where the business stands, and where it’s headed.

Thoroughly updated for QuickBooks 2009, this book brings together indispensable, start-to-finish techniques for troubleshooting QuickBooks data files and fixing QuickBooks mistakes wherever they occur. Drawing on her unsurpassed experience, Madeira offers expert advice on every facet of QuickBooks accounting: data files, banking, A/R, undeposited funds, employee advances, inventory, A/P, sales tax, payroll, reporting, sharing data

with accountants, and much more.

This book will help you :

• Quickly set up accurate charts of accounts — or improve existing ones

• Use QuickBooks reports to understand the most important trends in your business

• Correct data errors in any balance sheet account, from A/R and A/P to taxes and inventory

• How to use the New for 2009! Client Data Review feature for accountants.

• Properly review your payroll data and avoid expensive mistakes

• Efficiently share business data with your accountant

• Troubleshoot beginning balance differences, reconciliation errors, and many other problems

• Learn to use the Intuit Statement Writer tool, New for 2009!

Laura Madeira is founder of ACS, Inc., located in the greater Dallas, Texas area and an Intuit Solutions Provider that specializes in on-site and Internet-assisted accounting software implementation, set-up, training and troubleshooting. She has over twenty years of experience helping companies maintain accurate and timely accounting and financial information through one-on-one consulting, group classes, and web-based training.

Madeira currently writes technical documentation and presentations for the QuickBooks product line as a member of the Intuit Accounting Professionals Trainer/Writer Network. She has also served on Intuit’s Accountant and Customer Advisory Council and was a guest speaker for the QuickBooks Developer Network. Her “QuickBooks at Year-End” document has been distributed by Intuit at several national events and is one of Intuit’s most requested training and presentation documents.

Her expertise with QuickBooks and other Intuit software has been featured nationally in an Advisor Spotlight and widely-distributed promotional literature. She holds Intuit's Advanced Certified, Point of Sale Certified designations, as well as a bachelor of science in accounting from Florida Atlantic University.

Category Business Finance

Covers QuickBooks 2009

User Level Intermediate—Advanced

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Product Details

  • ISBN-13: 9780768687378
  • Publisher: Pearson Education
  • Publication date: 1/5/2009
  • Sold by: Barnes & Noble
  • Format: eBook
  • Edition number: 1
  • Pages: 600
  • File size: 32 MB
  • Note: This product may take a few minutes to download.

Meet the Author


Laura Madeira is the owner of American Computer Staffing, Inc., a software sales and consulting firm located in the greater Dallas, TX area. Her affiliations with Intuit includes being a member of the Intuit Trainer/Writer Network, Advanced Certified QuickBooks ProAdvisor, Certified QuickBooks Point of Sale ProAdvisor, and Enterprise Solutions Provider. Laura has been teaching companies how to use Intuit’s products beginning with Quicken in 1985 and then advancing to QuickBooks since its first version. Laura has instructed more than 10,000 individuals. She presents QuickBooks training to audiences that are comprised of accountants, consultants, and end users, representing Intuit as a select presenter for its yearly national multicity New Product Tour Launch seminars and QuickBooks Advanced Certification Training seminars. Laura continues to be a guest speaker for Intuit at national CPA trade shows. Laura has been an advocate for the QuickBooks product line for more than 15 years and has been featured in several marketing articles on Intuit, QuickBooks, and in particular, the QuickBooks Certified ProAdvisor program. In addition to the numerous speaking engagements, Laura also served on the first two Intuit Customer Advisory Councils from 2002–2005. This gave Laura an opportunity to meet Intuit executives and help influence changes in

Intuit’s relationship with accountants. Laura also is a skilled technical writer and has provided Intuit with technical training and public presentation materials over the years. Her “QuickBooks at Year-End” document has been distributed by Intuit at several national events and is one of Intuit’s most requested training and presentation documents. Laura resides with her husband and two teenage sons outside Dallas, Texas. She graduated from Florida Atlantic University, May 2003, with her bachelor of science, majoring in accounting. Her hobbies include photography, art (watercolor), scrapbook making, and training two Cocker Spaniel dogs. Contact Laura at info@quick-training.com and quick-training.com.

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Table of Contents

Introduction

How This Book Is Organized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Conventions Used in This Book . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

Menu Commands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

Web Pages and Manufacturer Information . . . . . . . . . . . . . . . . . . . . . . . .4

Special Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

1 Creating a New QuickBooks Data File . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

EasyStep Interview—Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Select a Start Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

Enter Bank Account Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Review Income and Expense Accounts . . . . . . . . . . . . . . . . . . . . . . . . . .14

Converting from Other Accounting Software to QuickBooks . . . . . . . . . . . .15

Converting from Quicken to QuickBooks . . . . . . . . . . . . . . . . . . . . . . . .16

Converting from Peachtree, Small Business Accounting, or

Office Accounting to QuickBooks . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

Converting from QuickBooks for Windows to QuickBooks

Online Edition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Converting from QuickBooks for Mac to QuickBooks for Windows . . . .21

Converting from QuickBooks for Windows to QuickBooks for Mac . . . . .21

Setting Up a QuickBooks Data File for Accrual or Cash Basis Reporting . . . .22

Cash or Accrual Basis Startup Transactions: Accounts Receivable . . . . . .24

Cash or Accrual Basis Startup Transactions: Accounts Payable . . . . . . . . .29

Cash or Accrual Basis Startup Transactions: Bank Account

Statement Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34

Cash or Accrual Basis Startup Transactions: Checking

Uncleared Bank Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35

2 Reviewing the QuickBooks Chart of Accounts . . . . . . . . . . . . . . . . . . . . .37

Understanding the Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38

Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38

Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39

Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39

Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39

Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39

Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40

Importing a Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40

Importing from an Excel File Format . . . . . . . . . . . . . . . . . . . . . . . . . . . .40

Importing from an Intuit Interchange Format (IIF) File . . . . . . . . . . . . . .46

Preferences That Affect the Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . .48

Accounts That QuickBooks Creates Automatically . . . . . . . . . . . . . . . . . . . .50

Methods to Troubleshoot and Correct Chart of Account Issues . . . . . . . . . .51

Removing Duplicated Accounts by Marking an Account Inactive . . . . . .52

Merging Duplicated Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53

Wrong Account Type Assigned to a Chart of Accounts Listing . . . . . . . .55

Assigning or Removing a Subaccount Relationship . . . . . . . . . . . . . . . . .57

3 Reviewing and Correcting Item List Errors . . . . . . . . . . . . . . . . . . . . . . . .61

Differences Between the Chart of Accounts, Items, Classes, and Customer Types . . .62

Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62

Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63

Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63

Customer Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65

Using Item Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66

Finding Item Errors in QuickBooks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69

Reviewing Accounts Assigned to Items . . . . . . . . . . . . . . . . . . . . . . . . . .69

Item Listing Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70

Profit & Loss Summary Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72

Fixing Item Errors in QuickBooks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74

Correcting One-Sided Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74

Making an Item Inactive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78

Merging Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79

Creating Items as Subitems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80

4 Easily Review Your QuickBooks Data . . . . . . . . . . . . . . . . . . . . . . . . . . . .83

Client Data Review—New for 2009! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84

Choosing a Reporting Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85

Reviewing the Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .86

Account Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87

Prior Year Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87

Bank Account Balance(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89

Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89

Undeposited Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .90

Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91

Other Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92

Fixed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93

Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93

Credit Cards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94

Payroll Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94

Sales Tax Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95

Other Current Liabilities and Long-Term Liabilities . . . . . . . . . . . . . . . . .96

Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96

Additional Data Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96

Payroll Summary Total and Payroll Expense Total . . . . . . . . . . . . . . . . . .96

Sales by Item Summary Compared to Total Income . . . . . . . . . . . . . . . .97

Net Income or (Loss) Agrees with Balance Sheet . . . . . . . . . . . . . . . . . .98

Reconcile Discrepancies Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98

Cash Basis Balance Sheet Has Accounts Receivable or Payable . . . . . . . .98

5 Power Reports for Correcting Beginning Balance Differences . .101

How Can These Power Reports Help Me? . . . . . . . . . . . . . . . . . . . . . . . . .102

Troubleshoot Account Balances—New for QuickBooks 2009! . . . . . . . . . .103

The Working Trial Balance Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103

Tracking Changes to Closed Accounting Periods . . . . . . . . . . . . . . . . . . . .105

Setting a Closing Date and Password . . . . . . . . . . . . . . . . . . . . . . . . . .106

Setting User-Specific Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107

Creating the Closing Date Exception Report . . . . . . . . . . . . . . . . . . . . .109

Using the Audit Trail Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .110

Using the Credit Card Audit Trail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111

Using the Voided/Deleted Transactions Summary or Detail Report . . . . . .114

Creating the Retained Earnings QuickReport . . . . . . . . . . . . . . . . . . . . . . .115

Using the Ctrl+Y Keyboard Shortcut . . . . . . . . . . . . . . . . . . . . . . . . . . . . .117

Running the Transaction List by Date Report . . . . . . . . . . . . . . . . . . . . . . .118

Documenting Changes Made to a Data File . . . . . . . . . . . . . . . . . . . . . . .120

6 Bank Account Balance or Reconciliation Errors . . . . . . . . .123

The Importance of Correct Bank Balances in Your QuickBooks Data . . . . .124

Reconciling a Bank Account for the First Time . . . . . . . . . . . . . . . . . . . . . .124

Verify That the Bank Account Has Not Been Reconciled . . . . . . . . . . . .125

Verifying That All Bank-Related Transactions Have Been Entered . . . . .125

Identifying All Uncleared Transactions . . . . . . . . . . . . . . . . . . . . . . . . . .127

Completing the Multiple-Year or Month Bank Reconciliation . . . . . . . .128

Troubleshooting an Incorrectly Reconciled Bank Account . . . . . . . . . . . . .130

Reviewing Uncleared Bank Transactions . . . . . . . . . . . . . . . . . . . . . . . .131

Reviewing Previous Bank Reconciliation Reports . . . . . . . . . . . . . . . . . .134

Locating Bank Account Reconciliation Discrepancies . . . . . . . . . . . . . . .135

Reviewing the Voided/Deleted Report . . . . . . . . . . . . . . . . . . . . . . . . . .136

Restarting a Previously Completed Bank Reconciliation . . . . . . . . . . . . .137

Undoing a Previous Bank Reconciliation . . . . . . . . . . . . . . . . . . . . . . . .137

Reconciling with an Adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139

7 Reviewing and Correcting Accounts Receivable Errors . . . . . . . . . . . . .141

Accounts Receivable Forms and Workflow . . . . . . . . . . . . . . . . . . . . . . . . .142

Preferences That Affect Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . .144

Sales & Customers Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145

Checking Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .148

Finance Charge Preference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149

Jobs & Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150

Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150

Reports & Graphs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150

Sales Tax Preference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153

Send Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154

Spelling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154

Time and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .155

Reports to Review When Troubleshooting Accounts Receivable Errors . . . .157

Reconcile Balance Sheet Accounts Receivable Amount to A/R Aging Summary Total . . . . . . . . .157

Review Open Invoices Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159

Generate a Missing Customer Invoices Report . . . . . . . . . . . . . . . . . . .160

When an Accounts Receivable Balance Appears on a Cash Basis Balance Sheet. . . . . .162

Correcting Accounts Receivable Errors . . . . . . . . . . . . . . . . . . . . . . . . . . . .165

Removing an Open Balance from a Customer Invoice . . . . . . . . . . . . .165

Correcting Customer Payments Applied to the Incorrect

Invoice, Customer, or Job . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172

When a Credit Memo Is Applied to the Wrong Customer Invoice . . . . .176

When Deposits Were Made Without Using the Receive

Payment Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179

Grouping Deposited Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182

Eliminating the Print Queue for Customer Invoices Marked to Print . .185

Unique Customer Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .186

Recording Your Accountant’s Year-End Adjusting Journal Entry

to Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .186

When a Customer Is Also a Vendor . . . . . . . . . . . . . . . . . . . . . . . . . . . .187

Recording Customer’s Bounced Check . . . . . . . . . . . . . . . . . . . . . . . . .190

8 Reviewing and Correcting Errors with the Undeposited

Funds Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .193

The Purpose of the Undeposited Funds Account . . . . . . . . . . . . . . . . . . . .194

Preference Settings that Affect Undeposited Funds . . . . . . . . . . . . . . . . . .194

Reviewing the Balance in the Undeposited Funds Account . . . . . . . . . . . .197

Creating an Undeposited Funds Detail Report . . . . . . . . . . . . . . . . . . .197

Creating a General Ledger Report of the Undeposited

Funds Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .199

Reviewing the Open Invoices Report . . . . . . . . . . . . . . . . . . . . . . . . . .200

Viewing Deposits in the Bank Register . . . . . . . . . . . . . . . . . . . . . . . . .202

Viewing the Deposit Detail Report . . . . . . . . . . . . . . . . . . . . . . . . . . . .203

Fixing Errors with the Undeposited Funds Account . . . . . . . . . . . . . . . . . .205

Clear Up Undeposited Funds Account—New for QuickBooks 2009! . . .205

Removing Old Dated Payments in the Undeposited Funds Account . . .205

Reconciling Your Bank Register with the Bank Statement’s Deposits . . .208

9 Handling Current Asset Accounts Correctly . . . . . . . . . . . . . . . . . . . . . .213

Defining an Other Current Asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .214

Reviewing and Troubleshooting the Other Current Asset Accounts . . . . . .214

Matching Other Current Asset Balances to an Outside Document . . . .215

Creating a Custom Transaction Detail Report . . . . . . . . . . . . . . . . . . .215

Reconciling Other Current Asset Accounts . . . . . . . . . . . . . . . . . . . . . .217

Troubleshooting and Creating Unique Other Current Asset

Account Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .219

Correcting Balance Errors in Your Other Current Asset Accounts . . . . . .219

Deducting Employee Loan Payments from the Employee’s

Payroll Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .221

Recording Prepaid Expenses in QuickBooks . . . . . . . . . . . . . . . . . . . . .224

Tracking Customer Retainage in QuickBooks . . . . . . . . . . . . . . . . . . . .225

10 Reviewing and Correcting Inventory Errors . . . . . . . . . . . . . . . . . . . . . .229

Overview of the Accounting for Inventory . . . . . . . . . . . . . . . . . . . . . . . . .230

Preferences That Affect Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .232

Inventory Processes and Forms and Their Effect on Accounting . . . . . . . . .236

Reviewing and Troubleshooting Inventory Balances . . . . . . . . . . . . . . . . . .238

Perform a Physical Inventory Count . . . . . . . . . . . . . . . . . . . . . . . . . . .238

Reconciling the Inventory Valuation Summary Report

with the Balance Sheet Inventory Balance . . . . . . . . . . . . . . . . . . . .239

Reviewing the Recorded Average Cost Valuation . . . . . . . . . . . . . . . . . .242

Reviewing Aged Open Item Receipts . . . . . . . . . . . . . . . . . . . . . . . . . .243

Reviewing Aged Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . .248

Correcting Inventory Errors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .250

Creating an Inventory Quantity Adjustment . . . . . . . . . . . . . . . . . . . . .250

Creating an Inventory Value Adjustment . . . . . . . . . . . . . . . . . . . . . . . .251

How QuickBooks Handles Negative Inventory . . . . . . . . . . . . . . . . . . . . . .254

When Inventory Has an Average Cost from Prior

Purchase Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .254

When Inventory Does Not Have a Prior Average Cost . . . . . . . . . . . . .256

11 Reviewing and Correcting Accounts Payable Errors . . . . . . . . . . . . . . . .261

Accounts Payable Forms and Workflow . . . . . . . . . . . . . . . . . . . . . . . . . . .262

Accounts Payable Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .262

Accounts Payable Workflow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .265

Preferences That Affect Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . .268

Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .269

Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .270

Checking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .271

General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .272

Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .273

Reports and Graphs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .274

Tax:1099 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .274

Reports to Review When Troubleshooting Accounts Payable Errors . . . . . .275

Reconcile Balance Sheet Report Accounts Payable

Balance to A/P Aging Summary Report Total . . . . . . . . . . . . . . . . . .276

Review the Unpaid Bills Detail Report . . . . . . . . . . . . . . . . . . . . . . . . . .278

Reviewing Aged Open Item Receipts . . . . . . . . . . . . . . . . . . . . . . . . . .279

Reviewing Item Setup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .281

When an Accounts Payable Balance Appears on a Cash

Basis Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .283

Reviewing and Printing Year-End Vendor Tax Forms . . . . . . . . . . . . . . .287

Correcting Accounts Payable Errors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .290

When a Vendor Was Paid with a Check . . . . . . . . . . . . . . . . . . . . . . . .290

Misapplied Vendor Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .295

Removing Aged Open Item Receipts or Vendor Bills . . . . . . . . . . . . . . .296

General Journal Adjustments to Accounts Payable . . . . . . . . . . . . . . . .298

Unique Accounts Payable Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . .301

When Your Vendor Is Also Your Customer . . . . . . . . . . . . . . . . . . . . . . .301

Recording Vendor Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .303

Entering Mid-Year 1099 Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . .305

Taking Discounts on Vendor Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . .306

Memorizing Recurring Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . .308

Depositing a Vendor Refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .309

Paying and Recording a Credit Card Bill . . . . . . . . . . . . . . . . . . . . . . . .310

12 Reviewing and Correcting Sales Tax Errors . . . . . . . . . . . . . . . . . . . . . . .313

Preferences That Affect Sales Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .314

Sales Tax Items, Groups, and Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .318

Creating and Using Sales Tax Items . . . . . . . . . . . . . . . . . . . . . . . . . . .318

Creating and Using Sales Tax Group Items . . . . . . . . . . . . . . . . . . . . . .319

Creating and Using Sales Tax Codes . . . . . . . . . . . . . . . . . . . . . . . . . . .320

Assigning Sales Tax Codes to Products or Services . . . . . . . . . . . . . . . . . . .322

Assigning Sales Tax Codes and Items to Customers . . . . . . . . . . . . . . . . . .323

Reports to Review When Troubleshooting Sales Tax Errors . . . . . . . . . . . . .324

Reviewing Customer Lists for Tax Code and Tax Item Assigned . . . . . .325

Reviewing the Item List for Tax Code Assigned . . . . . . . . . . . . . . . . . . .326

Reconciling Total Sales to Total Income . . . . . . . . . . . . . . . . . . . . . . . .327

Reconciling Sales Tax Liability to Balance Sheet Sales Tax Payable . . . . .329

When a Check or Bill Form Is Used to Pay Sales Tax . . . . . . . . . . . . . . .330

Properly Paying Sales Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .331

Paying Sales Tax Without an Adjustment . . . . . . . . . . . . . . . . . . . . . . .331

Paying Sales Tax with an Adjustment . . . . . . . . . . . . . . . . . . . . . . . . . .333

Correcting Sales Tax Errors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .335

When a Check or Bill Form Was Used to Pay the Sales Tax . . . . . . . . . .335

When the Sales Tax Liability Report Shows Past Sales Tax Due . . . . . . .337

When Total Sales Does Not Equal Total Income . . . . . . . . . . . . . . . . . .340

Unique Sales Tax Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .341

Tracking and Collecting Multiple Sales Tax Rates . . . . . . . . . . . . . . . . .341

When Your State Imposes a Maximum Sales Tax . . . . . . . . . . . . . . . . .341

Multiple Sales Tax Rates on One Invoice . . . . . . . . . . . . . . . . . . . . . . . .343

Issuing Credit Memos When Sales Tax Should Not

Have Been Charged . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .345

13 Reviewing and Correcting the Opening Balance Equity Account . . . . .347

Purpose of the Opening Bal Equity Account . . . . . . . . . . . . . . . . . . . . . . .348

Transactions in the Opening Bal Equity Account . . . . . . . . . . . . . . . . . . . .348

Bank Statement Ending Balance Entered in the EasyStep Interview . . . .350

Opening Balance in the Add New Account Dialog . . . . . . . . . . . . . . . .351

Entering a Total Value for a New Inventory Item . . . . . . . . . . . . . . . . . .354

Bank Reconciliation Adjustments (QuickBooks 2005 or Older) . . . . . . .356

Accrual Basis Startup Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .357

Reports to Review and Troubleshoot the Opening Bal Equity Account . . . .358

Closing Opening Bal Equity into Retained Earnings . . . . . . . . . . . . . . . . . .360

Setting a Closing Date and Password . . . . . . . . . . . . . . . . . . . . . . . . . . . .363

14 Reviewing and Correcting Payroll Errors . . . . . . . . . . . . . . . . . . . . . . . .365

Payroll Service Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .366

Payroll and Employees Preference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .368

Payroll Forms and Workflow in QuickBooks . . . . . . . . . . . . . . . . . . . . . . . .370

Payroll Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .370

Payroll Workflow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .371

Using the Payroll Setup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .373

Using the Run Payroll Checkup Diagnostic Tool . . . . . . . . . . . . . . . . . . . .375

Reports to Review When Troubleshooting Payroll . . . . . . . . . . . . . . . . . . .382

Payroll Item Listing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .383

Comparing Payroll Liabilities Balances to the Balance Sheet . . . . . . . . .384

Compare Payroll Summary to Filed Payroll Returns . . . . . . . . . . . . . . . .388

Adjusting Payroll Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .389

Unique Payroll Transactions and Processes . . . . . . . . . . . . . . . . . . . . . . . . .393

Scheduled Payroll and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .394

Deposit a Refund of Payroll Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . .395

Reprint a Lost Payroll Check . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .396

Setting Up Payroll Mid-Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .398

Paying a Taxable Bonus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .402

Employee Loan Payment and Repayment . . . . . . . . . . . . . . . . . . . . . . .403

Adjusting an Employee Paycheck . . . . . . . . . . . . . . . . . . . . . . . . . . . . .409

15 Sharing Data with Your Accountant or Your Client . . . . . . . . . . . . . . . . .411

Sharing QuickBooks Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .412

Benefits for the Business Owner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .412

Benefits for the Accountant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .413

QuickBooks File Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .413

Choosing a Method to Share Data . . . . . . . . . . . . . . . . . . . . . . . . . . . .416

Data Sharing for the Business Owner . . . . . . . . . . . . . . . . . . . . . . . . . . . .418

Reviewing Your QuickBooks Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . .420

Using the Accountant’s Copy Feature . . . . . . . . . . . . . . . . . . . . . . . . . .420

What the Business Owner Can and Cannot Do . . . . . . . . . . . . . . . . . . .425

Importing Your Accountant’s Changes . . . . . . . . . . . . . . . . . . . . . . . . .427

Canceling an Accountant’s Copy . . . . . . . . . . . . . . . . . . . . . . . . . . . . .431

Data Sharing for the Accountant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .432

Creating an External Accountant User Type . . . . . . . . . . . . . . . . . . . . .433

Preparing Your Client for the Data Exchange . . . . . . . . . . . . . . . . . . . .434

Working with an Accountant’s Copy File . . . . . . . . . . . . . . . . . . . . . . . .435

What the Accountant Cannot Do . . . . . . . . . . . . . . . . . . . . . . . . . . . . .442

Returning the Accountant’s Copy Change File to the Client . . . . . . . . .443

What to Request from the Client When the Import Is Complete . . . . . .446

Converting the Accountant’s Copy to a Regular Company File . . . . . . .447

16 Reporting Tips and Tricks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .449

Intuit Statement Writer—New for 2009! . . . . . . . . . . . . . . . . . . . . . . . . . .450

Benefits of Using the Intuit Statement Writer . . . . . . . . . . . . . . . . . . . .451

Functions of the Intuit Statement Writer . . . . . . . . . . . . . . . . . . . . . . . .451

How to Use the Intuit Statement Writer . . . . . . . . . . . . . . . . . . . . . . . .456

Creating Supporting Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . .472

Company Snapshot—New for 2009! . . . . . . . . . . . . . . . . . . . . . . . . . . . . .478

Income and Expense Trend Graph . . . . . . . . . . . . . . . . . . . . . . . . . . . .479

Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .480

Account Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .480

Customers Who Owe Money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .480

Vendors to Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .481

Defaulting the Company Snapshot as Home Page . . . . . . . . . . . . . . . .481

Using the Report Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .482

Reporting Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .484

My Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .485

Company Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .485

Modifying Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .488

Modifying Options Available on the Report Window . . . . . . . . . . . . . .488

Modify Report Button . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .489

Report Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .490

Creating Report Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .490

Using Report Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .491

Managing Report Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .493

Memorized Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .494

Exporting and Importing Report Templates . . . . . . . . . . . . . . . . . . . . . . . .495

Exporting a Report or Report Group Template . . . . . . . . . . . . . . . . . . .495

Importing a Report or Report Group Template . . . . . . . . . . . . . . . . . . .496

Exporting Reports to a .CSV File or to Excel . . . . . . . . . . . . . . . . . . . . . . .497

Emailing Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .499

About Financial Statement Designer . . . . . . . . . . . . . . . . . . . . . . . . . . . . .501

17 New for 2009! Detecting and Correcting with the

Client Data Review Feature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .503

Introduction: Features and Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .504

Starting a Client Data Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .506

Customizing the Client Data Review Center . . . . . . . . . . . . . . . . . . . . . . .507

Modifying the Review Date and Basis . . . . . . . . . . . . . . . . . . . . . . . . . .509

Changing the Task Display . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .509

Hiding and Showing Task Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . .511

Assigning Status and Notes to Review Tasks . . . . . . . . . . . . . . . . . . . . .512

Account Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .513

Troubleshooting Account Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . .514

Opening the Working Trial Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . .518

Review List Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .519

Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .520

Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .521

Fixed Asset Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .522

Payroll Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .523

Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .524

Vendors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .524

Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .524

Fixing Unapplied Customer Payments and Credits . . . . . . . . . . . . . . . .525

Clearing Up Undeposited Funds Account . . . . . . . . . . . . . . . . . . . . . . .527

Reviewing the AR Aging Detail Report . . . . . . . . . . . . . . . . . . . . . . . . .529

Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .531

Fixing Unapplied Vendors Payments and Credits . . . . . . . . . . . . . . . . .531

Evaluating and Correcting the 1099 Account Mapping . . . . . . . . . . . .533

Reviewing the AP Aging Detail Report . . . . . . . . . . . . . . . . . . . . . . . . .534

Sales Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .534

Finding Incorrectly Paid Sales Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . .535

Adjusting Sales Tax Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .537

Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .538

Adjusting Inventory Quantity/Value on Hand . . . . . . . . . . . . . . . . . . . .539

Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .542

Finding Incorrectly Paid Payroll Liabilities . . . . . . . . . . . . . . . . . . . . . . .543

Run Payroll Checkup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .545

Reviewing Employee Default Settings . . . . . . . . . . . . . . . . . . . . . . . . . .550

Entering After-The-Fact Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .551

Bank Reconciliation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .553

Reconciling Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .553

Locating Discrepancies in Bank Reconciliation . . . . . . . . . . . . . . . . . . .554

Reviewing Missing Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .556

Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .556

Setting the Closing Date and Password . . . . . . . . . . . . . . . . . . . . . . . .557

Reviewing Quickbooks Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . .559

Finishing a Client Data Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .561

Saving the Review as a PDF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .561

Marking Review Complete . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .561

Reopening a Client Data Reviw . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .563

Reporting on Review Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .563

Creating an External Accountant User . . . . . . . . . . . . . . . . . . . . . . . . . . .566

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .569


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