QuickBooks 2012 In Depth

Introduction?1

How This Book Is Organized?1

Conventions Used in This Book?3

Menu Commands?3

Web Pages and Manufacturer Information?3

Special Elements?4

Text Conventions?4

Introducing QuickBooks 2012: What's New?5

Get New Insights?5

Calendar View?5

Excel Integration Refresh?5

User-Contributed Reports?7

Get More Organized?7

Lead Center?7

Document Center?7

Inventory Center?9

Edit No Company Open?9

QuickBooks 1099/1096 Wizard?9

Get Time Back and Save Steps?11

Express Start?11

Batch Timesheets?11

Integrated Help/Search?12

Transaction Tab?12

QuickBooks Enterprise Solutions?13

Enhanced Inventory Receiving?13

First In First Out (FIFO) Inventory Costing?14

Inventory Auto Cost, Sales Price, Markup?15

Inventory Lot/Serial Number Tracking?15

For the Accounting Professional?17

Accountant Center?17

Starter Copy?18

Period/Archive Copy?18

QuickBooks Statement Writer?19

1 Getting Started with QuickBooks?21

Understanding QuickBooks?21

Using QuickBooks Sample Data?23

Creating a New QuickBooks File?24

Express Start?25

Advanced Setup Using EasyStep Interview?29

Creating a New File from an Existing Company File?33

Converting from Other Accounting Software?34

Converting from Quicken to QuickBooks?35

Converting from Peachtree, Small Business Accounting, or Office Accounting to QuickBooks?36

Setting Up Users and Permissions?38

External Accountant?38

Other QuickBooks Users?40

2 Getting Around QuickBooks?43

Home Page and Navigation?43

Title Bar?43

Menu Bar?44

Icon Bar?45

Home Page?47

Open Windows List?50

Tutorials?50

Preferences?51

Accounting-Company Preferences?51

Desktop View-My Preferences?52

General-My Preferences?52

Spelling-My Preferences?53

Help Options?53

Selecting a Company File to Open?54

Opening Your Data for the First Time?54

Choosing from a List of Multiple Data Files?55

3 Accounting 101?57

Basic Principles of Accounting?57

The Matching Principle?57

Accrual Versus Cash Basis Reporting?59

Basic Financial Reports?60

Balance Sheet?60

Income Statement?61

Statement of Cash Flows?61

Other Accounting Reports?62

Accounting Checklist to Help You Manage Your Financials?62

Setting Up a QuickBooks Data File for Accrual or Cash Basis Reporting?63

Cash or Accrual Basis Startup Transactions: Accounts Receivable?65

Cash or Accrual Basis Startup Transactions: Accounts Payable?69

Cash or Accrual Basis Startup Transactions: Bank Account Statement Balance?73

Cash or Accrual Basis Startup Transactions: Recording Uncleared Bank Checks?74

4 Understanding QuickBooks Lists?77

Chart of Accounts?77

Account Types?78

Adding a New Account?80

Items?82

Adding an Item?82

Understanding Items?84

Item Types?85

Class?86

Customer Type?88

Managing Lists?89

Chart of Account Preferences?89

Add/Edit Multiple List Entries?90

Importing an Intuit Interchange Format File (IIF)?92

Reporting on Lists?94

Finding and Fixing Chart of Account Errors?94

QuickBooks Required Accounts?95

Making an Account Inactive?95

Merging Duplicated Accounts?96

Modifying an Account in the Chart of Accounts?97

Assigning or Removing a Subaccount Relationship?98

Finding and Fixing Item List Errors?100

Reviewing the Item List on the Computer Screen?100

Item Listing Report?102

Profit & Loss Standard Report?102

Correcting One-Sided Items?105

Making an Item Inactive?108

Merging Items?109

Creating Items as Subitems?110

5 Setting Up Inventory?111

Overview of Accounting for Inventory?111

Inventory Features by QuickBooks Edition?112

QuickBooks Pro 2012?112

QuickBooks Premier 2012?113

QuickBooks Enterprise Solutions 12.0?114

Enabling Inventory Preferences?115

Inventory Item Type Descriptions?118

Inventory Part?119

Non-inventory Part?119

Group Items and Inventory Assemblies?119

Adding or Editing Inventory Items?121

Adding or Editing Individual Items?121

Using Add/Edit Multiple List Entries?125

Importing an Intuit Interchange Format File (IIF)?127

Changing Item Prices?128

Creating Inventory Assemblies?131

Creating Group Items?133

Setting Up Multiple Unit of Measurement?134

Proper Inventory Processes?137

Purchasing, Receiving, and Entering the Vendor Bill?139

Paying for Inventory?146

Selling Inventory?148

Working with Group Items?149

Working with Assemblies?150

Handling Inventory Backorders?152

Handling Customer Inventory Returns?155

Handling Vendor Inventory Returns?158

6 Managing Inventory?159

Adjusting Inventory?159

Performing a Physical Inventory Count?160

Quantity Adjustments?161

Value Adjustments?162

Inventory Reporting?165

Inventory Center?165

Report Center?166

Inventory Valuation and Your Financials?168

Reviewing the Recorded Average Cost Valuation?170

Reviewing Aged Item Receipts?173

Reviewing Aged Accounts Payable?176

How QuickBooks Handles Negative Inventory?177

When Inventory Has an Average Cost from Prior Purchase Transactions?178

When Inventory Does Not Have a Prior Average Cost?180

7 Setting Up Vendors?185

Customizing Your Home Page for Vendor Activities?185

Preferences That Affect Accounts Payable?186

Accounting?186

Bills?188

Checking?188

General?190

Reminders?191

Reports and Graphs?191

Tax:1099?192

Working with the Vendor Center?193

Adding or Modifying Vendors?194

Finding Vendor Transactions?198

The Accounts Payable Process?200

Accounts Payable Forms?200

Accounts Payable Workflow?202

Entering a Purchase Order?204

Recording Vendor Bills?205

Creating a Vendor Credit?207

Paying Vendor Bills?209

Applying Vendor Credits?211

Taking Discounts on Vendor Bills?213

8 Managing Vendors?215

Accounts Payable Reporting?215

Reconciling Balance Sheet Accounts Payable Balance to A/P Aging Summary Report Total?215

Reviewing the Unpaid Bills Detail Report?216

Reviewing Aged Open Item Receipts?218

Reviewing Item Setup?221

Accounts Payable Balance on Cash Basis Balance Sheet?222

Tracking and Reporting Vendor 1099-MISC Payments?226

Correcting Accounts Payable Errors?235

Open Vendor Bills Paid with a Write Checks Transaction?236

Misapplied Vendor Credit?238

Removing Aged Open Item Receipts or Vendor Bills?239

Making General Journal Adjustments to Accounts Payable?241

Handling Unique Accounts Payable Transactions?243

Bartering Services with Your Vendors?244

Recording Vendor Prepayments?245

Entering Mid-Year 1099 Balances?248

Memorizing Recurring Transactions?249

Depositing a Vendor Refund?250

Paying and Recording a Credit Card Bill?251

9 Setting Up Customers?253

Introduction?253

Customizing Home Page Customer Activities?254

Preferences That Affect Accounts Receivable?254

Payments?255

Sales & Customers?257

Checking?257

Finance Charge?258

Jobs & Estimates?259

Reminders?259

Reports & Graphs?260

Sales Tax?262

Send Forms?263

Spelling?264

Time & Expenses?265

Working with the Customer Center?266

Adding or Modifying Customers and Jobs?267

Finding Customer Transactions?270

Working with Prospects in the Lead Center?272

Setting Up Sales Tax?274

Creating Sales Tax Items?274

Creating Sales Tax Group Items?275

Creating Sales Tax Codes?276

Assigning Sales Tax Codes to Products or Services?278

Assigning Sales Tax Codes and Sales Tax Items to Customers?279

Creating Price Level Lists?280

Creating Payment Terms?281

Customizing QuickBooks Forms?282

Using the Customize My Forms Wizard?282

Using the Customize Data Layout Tool?285

Accounts Receivable Process?289

Using QuickBooks Estimates?290

Using QuickBooks Sales Orders?292

Creating Customer Invoices?292

Recording a Sales Receipt?306

Recording a Statement Charge?307

Recording the Customer Payment?308

Making the Bank Deposit?311

Recording and Applying a Customer Credit Memo?315

Refunding a Customer's Overpayment?317

10 Managing Customers?319

Accounts Receivable Reporting?319

Reviewing A/R Aging Summary and Detail Reports?319

Reviewing the Open Invoices Report?321

Reconciling Balance Sheet Accounts Receivable Amount to A/R Aging Summary Total?322

Viewing the Accounts Receivable Balance on a Cash Basis Balance Sheet?324

Using the Collections Center?326

Generating the Missing Customer Invoices Report?328

Sales Tax Payable Reports?329

Reviewing Customer Lists for Tax Code and Tax Item Assigned?329

Reviewing the Item List for Tax Code Assigned?330

Reconciling Total Sales to Total Income?331

Reconciling Sales Tax Liability to Balance Sheet Sales Tax Payable?332

When a Check or Bill Was Used to Pay Sales Tax?334

Paying Sales Tax?334

Paying Sales Tax Without an Adjustment?334

Paying Sales Tax with an Adjustment?336

Correcting Accounts Receivable Errors?338

Removing an Open Balance from a Customer Invoice?338

Correcting Customer Payments?342

When a Credit Memo Is Applied to the Wrong Customer Invoice?346

When Deposits Were Made Incorrectly?347

Eliminating the Print Queue for Customer Invoices Marked to Print?353

Correcting Sales Tax Errors?354

When a Check or Bill Was Used to Pay the Sales Tax?354

When the Sales Tax Liability Report Shows Past Sales Tax Due?356

When Total Sales Does Not Equal Total Income?358

Correcting Undeposited Funds Account Errors?361

Reviewing the Balance in the Undeposited Funds Account?361

Removing Old Dated Payments in the Undeposited Funds Account?364

Unique Customer Transactions?366

Recording Your Accountant's Year-End Adjusting Journal Entry to Accounts Receivable?366

When a Customer Is Also a Vendor?366

Recording a Customer's Bounced Check?368

Tracking Customer Deposits in QuickBooks?370

Unique Sales Tax Transactions?371

When Your State Imposes a Maximum Sales Tax?371

Multiple Sales Tax Rates on One Invoice?373

Issuing Credit Memos When Sales Tax Should Not Have Been Charged?374

11 Setting Up Payroll?377

Getting Started?377

Payroll Process Overview?377

Selecting and Activating a Payroll Service Subscription?379

Updating Payroll Tax Tables?381

Employer Resources?382

Creating Payroll Accounts in the Chart of Accounts?384

Setting Up Payroll Tax Vendors?385

Payroll Preferences?387

Using the Payroll Setup Interview?390

Using the Run Payroll Checkup Diagnostic Tool?397

Managing Employees?401

Using the Employee Center?401

Adding or Editing Employee Information?402

Finding Payroll Transactions?404

Managing Payroll Items?406

Adding or Editing Payroll Items?406

Reporting About Payroll Items?409

Paying Employees?410

Payroll Home Page Workflow?410

Entering Employee Time?411

Preparing Employee Paychecks?413

Printing Paychecks or Paystubs?415

Preparing Payroll Liability Payments?415

Paying Scheduled Liabilities?416

Adjusting Payroll Liabilities?417

12 Managing Payroll?419

Payroll Reporting?419

Report Center Payroll Reports?419

Excel Reports?420

Tax Forms and Filings?421

Preparing and Printing Tax Forms?422

E-Filing Tax Payments and Forms?423

Troubleshooting Payroll?424

Comparing Payroll Liability Balances to the Balance Sheet?424

Comparing Payroll Summary to Filed Payroll Returns?426

Reconciling Payroll Reports to Business Financials?427

Recording Unique Payroll Transactions?427

Employee Loan Payment and Repayment?427

Reprinting a Lost Paycheck?431

Paying a Taxable Bonus?433

Adjusting an Employee Paycheck?434

Depositing a Refund of Payroll Liabilities?435

13 Working with Bank and Credit Card Accounts?437

Importance of Bank and Credit Card Balances?437

Preferences that Affect Banking and Credit Card Management?437

Working with Write Check Transactions?438

Using the Expenses Tab and Items Tab?439

Writing a Check?440

Printing Checks?443

Entering a Bank Debit Charge?445

Entering Credit Card Charges?446

Paying the Credit Card Bill?447

Transferring Funds Between Bank Accounts?448

Online Banking Center?449

Choosing an Online Banking Mode Preference?449

Activating Online Services with Your Financial Institution?449

Retrieving Online Transactions?450

Adding Downloaded Transactions to QuickBooks?452

Renaming Rules in Online Banking?453

Other Online Banking Features?454

Reconciling the Bank or Credit Card Account?458

Troubleshooting Reconciliations?461

Determining If the Account Has Been Reconciled?461

Verifying That All Account Transactions Have Been Entered?463

Identifying All Uncleared Transactions?464

Completing the Multiyear or Multimonth Bank Reconciliation?465

Reviewing Uncleared Transactions?465

Reviewing Previous Bank Reconciliation Reports?468

Locating Bank Account Reconciliation Discrepancies?468

Reviewing the Voided/Deleted Transactions Reports?469

Restarting a Previously Completed Bank Reconciliation?470

Undoing a Previous Bank Reconciliation?470

Reconciling with an Adjustment?471

14 Reporting in QuickBooks?473

Using the Company Snapshot?473

Customizing the Company Snapshot?473

Defaulting the Company Snapshot as Home Page?476

Report Center?476

Reports & Graphs Preferences?479

My Preferences?479

Company Preferences?479

Modifying Reports?482

Modifying Options Available on the Report Window?482

Customizing Reports?484

Report Groups?485

Creating Report Groups?485

Using Report Groups?485

Managing Report Groups?487

Memorized Reports?488

Exporting and Importing Report Templates?489

Exporting a Report or Report Group Template?489

Importing a Report or Report Group Template?490

Exporting Reports to a .CSV File or to Excel?490

Emailing Reports?493

15 Reviewing Your Data?495

Importance of Reviewing Your Data?495

Reviewing the Balance Sheet?495

Account Types?497

Prior Year Balances?497

Bank Account Balance(s)?498

Accounts Receivable?498

Undeposited Funds?499

Inventory?500

Other Current Assets?501

Fixed Assets?502

Accounts Payable?503

Credit Cards?503

Payroll Liabilities?503

Sales Tax Payable?504

Other Current Liabilities and Long-Term Liabilities?505

Equity?505

Reviewing the Profit & Loss Report?505

Other Reviews?506

Tracking Changes to Closed Accounting Periods?506

Using the Audit Trail Report?507

Using the Credit Card Audit Trail Report?508

Reporting on Voided/Deleted Transactions?510

Viewing the Transactions List by Date Report?511

Troubleshooting Open Balance Equity Account?512

16 Sharing QuickBooks Data with Your Accountant?517

Overview?517

Benefits for the Business Owner?517

Benefits for the Accountant?518

QuickBooks File Types?518

Choosing a Method to Share Data?520

Data Sharing for the Business Owner?522

Reviewing Your QuickBooks Data?523

Creating an Accountant's Copy of Your Data?523

What the Business Owner Can and Cannot Do?529

Importing Your Accountant's Changes?530

Canceling an Accountant's Copy?536

Data Sharing for the Accountant?537

Creating an External Accountant User Type?538

Preparing Your Client for Data Exchange?538

Receiving an Accountant's Copy File?539

What the Accountant Can Do?542

What the Accountant Cannot Do?545

Returning the Accountant's Copy Change File to the Client?545

What to Request from the Client When the Import Is Complete?549

Converting the Accountant's Copy to a Regular Company File?549

17 Managing Your QuickBooks Database?551

The QuickBooks Database?551

System Requirements?552

Installing QuickBooks for Single-User Mode?554

Installing QuickBooks for Multi-User Mode?554

The QuickBooks Database Server Manager?555

Windows Permissions Required for QuickBooks?557

Using the QuickBooks Connection Diagnostic Tool?558

Keeping Your Software Current?559

Upgrading Your QuickBooks Version?559

Installing a QuickBooks Maintenance Release?560

Protecting Your QuickBooks Database?561

Creating a QuickBooks Backup?561

Protecting the QuickBooks Operating Environment?564

Using Intuit Data Protect Online Backup Service?567

Monitoring Your QuickBooks Database?567

The Product Information Dialog Box?567

Using the Verify Data Utility?569

QuickBooks Database Corruption?570

Common Causes of Corruption?570

Signs of Data Corruption?570

The QBWin.log File?571

Repairing List Corruptions?574

Reducing Database File Fragments?575

Rebuilding Your Company File?576

Using the QuickBooks Company File Diagnostic Tool?577

Resolving QuickBooks Program File Corruption Issues?579

18 Using Other Planning and Management Tools?581

Planning and Budgeting?581

Create a Budget?581

Edit a Budget?584

Print Budget Reports?585

Delete a Budget?587

QuickBooks Loan Manager?587

Information to Collect?587

Getting QuickBooks Ready?587

Setting Up a New Loan?588

Setting Up a Loan Payment?589

Using the Year-End Guide?591

Synchronizing QuickBooks Lists with Microsoft Outlook?592

Using the QuickBooks Timer?596

Installing the QuickBooks Timer?596

Preparing the Timer for Activities?597

Tracking Time with the Timer?597

Exporting Timer Activities?598

Importing Timer Activities into QuickBooks?599

A Client Data Review?601

B QuickBooks Statement Writer?657

C QuickBooks Shortcuts?687

TOC, 9870789749185, 7/19/2012