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Quickbooks Notes: Setup and Bookkeeping
Quickbooks Desktop and Online versions are easy to use and helpful for small businesses to keep updated bookkeeping and accounting records. It is helpful to have a good starting Chart of Accounts (COA) setup to begin the bookkeeping in an organized fashion. There can be a balance between having the right number of accounts, (not too few or too many) and the right type of accounts as well. Quickbooks has a very user friendly interface for transactions and can track accounts with reports using cash or accrual basis. Our firm is happy to help our clients get setup with a great starting Quickbooks company file setup. Here are some helpful notes in setting up and using Quickbooks for bookkeeping for your small business. These Quickbooks notes are based on using the software and may help with some of the Quickbooks questions you may encounter.
Quickbooks entries are saved automatically to the company file when entered.
Restore: loads the backup file into Quickbooks as the current Company File & saves it as such.
Backup saves: saves the active company Quickbooks program as a regular backup file, or a Portable Company (condensed ) Backup file. All backup files need to be restored as regular Quickbooks company files in order to use them.
Entries/Transactions: Use memorized transactions for easy saving of General Journal, other detailed, or frequently recurring entries. Use the memorized reports (“control M”) to save report settings for frequently used reports such as monthly financial statements. Memorize your customized version of the report with date set to the current fiscal year and showing the previous year amounts also.
Data Entry: Double check the accounts & amounts of all entries keyed in, paying particular attention to the correct dates as they are entered. Debits & credits must balance for each Journal entry entered. Include proper description in memo field.
Checks and deposits in Quickbooks : Enter all checks & deposits for each month to proper account with sufficient details for checks & deposits. You may specify under a specific Customer/Job for each entry.
Adjust report settings: column width, margins & page layout of reports as needed, and save these custom settings by memorizing the report. Print reports 1) Balance Sheet, 2) Profit and Loss, and 3)General Ledger.
Source Documents: File all source documents by month/date. Attach paper checks and deposit slips to the bank statement. Make a list of any missing statements, checks, deposit slips or other missing info., Print reports to paper or to pdf format to file for the company records. It is easy to make changes in Quickbooks, so it is good to keep paper or pdf reports for each period, in case an entry need to be corrected later.
Quickbooks Weekly Entries
Quickbooks Monthly and Year End Entries
Quickbooks Financial Statements: -These can be customized and saved to memorized reports.
Keep a copy for your records. Print the General Ledger YTD.
Cash Receipts - enter into Quickbooks as regular Deposits daily (if not using the Receive Payments function) Enter regular deposits as “deposit” function in Quickbooks, if in the cash basis, and if you are not using Quickbooks invoices or statements to track in accounts receivable.
Receive Payments: use if you are wish to apply payments to specific statements or invoices in Quickbooks using accounts receivable (A/R). Allocate payments received to specific statements. Check off the A/R entry being paid with each payment. Quickbooks may be set to automatically apply payments to the oldest statement.
Petty Cash: Keep receipt for expense reimbursements. Restore the total amount to petty cash when the balance is low. Update an excel summary schedule of all expense reimbursements equal the amount of check.
Log checks: and any voided checks in the checkbook or register. (Checks debit expense and credit cash account if entered as a Journal entry.) Enter check info into Quickbooks in checkbook or check register.
Void Checks: Select void box under check view in Quickbooks. If the check was from an earlier month, you may need an AJE (adjusting journal entry) to reverse the check entry in the current period,
Enter & Print Checks: Load checks into tray, making sure that the checks are facing the right way and in order. Quickbooks prompts for the ck. no. Keep copies of signed checks. Mail checks with invoice copy/ stub.
Reconcile Bank Statements in Quickbooks: Use Reconciliation function. Reconcile deposits and checks with the bank statement by checking off each matching entry. Make sure the totals equal the bank statement. Review any outstanding or un-cleared checks or deposits.
Print the Quickbooks Reconciliation report, in detail (paper or pdf) to show outstanding checks for the current month & save the report with the bank statement. Reconcile each separate bank account or credit card account. Attach the bank reconciliation report with the bank statement and cleared checks.
These are some of the common issues you may come across with Quickbooks. If you have any questions about entries or setup in Quickbooks Desktop and Online versions, please contact us.