QuickBooks Online: How to Track Money Like a Professional | Brendan McCoy | Skillshare

QuickBooks Online: How to Track Money Like a Professional

Brendan McCoy, QuickBooks Pro Adviser

Play Speed
  • 0.5x
  • 1x (Normal)
  • 1.25x
  • 1.5x
  • 2x
10 Lessons (1h 51m)
    • 1. Welcome and Intro!

      3:21
    • 2. Setting Up and Personalize

      17:04
    • 3. Let's Get the Info

      9:31
    • 4. Let's Organize the Checking Account

      7:32
    • 5. Let's Organize the Credit Card Account

      3:43
    • 6. Why QuickBooks Online

      1:21
    • 7. Comparing to Chart of Accounts

      10:38
    • 8. Importing

      39:00
    • 9. Reconciling

      18:01
    • 10. Closing and Thank You!!

      1:00

About This Class

Understand how to properly track your finances using QuickBooks Online.

I will start with raw data, which are bank statements, credit card statements, loan statements and other information and show you how to organize this data and import one time into QuickBooks Online.

From there, I will take you through 6 months worth of data and show you how I helped a client of mine TRACK HIS MONEY.  In the end, I want YOU to be YOUR OWN Accountant.

Through the course, I will use a real client of mine and show you how was able get him back on track utilizing QuickBooks Online. In this case he is a freelancer, however, this can be for both personal and business use.

In the end, you will be able to provide a accurate and useful set of reports including the following:

Profit and Loss-What you made vs what you lost and where you spent it

Balance Sheet-What you own vs what you owe

This course is useful for individuals and households as well as:

1. Entrepreneurs

2. Small Business Owners

3. Freelancers

4. Bookkeepers

5. Do you make or lose money? Then you too

Transcripts

1. Welcome and Intro!: Hi, everyone. My name is Brenda McCoy. In this course, I'm going to show you how you can use a free trial QuickBooks online to better and more effectively track your money and your finances. I have individuals, families and small businesses all across the country with their accounting, bookkeeping and QuickBooks. The one thing I've noticed while helping people across the country is that no one has any idea what accounting will keep. QuickBooks means most people are too busy or it's boring or they just don't really care about their money, which is all well defined for them. However, you do want to track this information for yourself because you can hire someone like myself and hopefully, you know they work out for you. But I get hired a lot to clean up other goalkeepers messes. So the reason I wanted to do this is I want you to know how to do it yourself so that you are totally informed of what's going on in your individual life, your family life or your small business life. So over the next hour, I'm going to show you how to access a free trial QuickBooks online to finally jump start your understanding of where everything goes. So whether you're a freelancer, your small business owner, your head of a household, here's an individual that's looking for a little bit better system to track your money. This course will guide you through the exact steps that I took to actually assess so much financial native. This course is based entirely on a real life client of mine. So this client is from the Philadelphia area. He hired me in July of 2018. The reason hired me because he wanted to know what happened for the 1st 6 months of 2018. Where did he get all his money? Go. That was me. Question. So from there, you know, he wanted to make some adjustments and some assessments, which is totally on him. However, to kind of make those assessments, we know where we were. So in this course, I'm going to walk you through exactly how I did this, to provide him with accurate and up today financial information. So again, this course of structure so you can follow along with me in real time as I do this. So the first thing that we're going to do is we're gonna get a free trial QuickBooks online from there, I'm going to give you his banking information, and I do not mean his user name or password. Unfortunately, what I mean is, I'm going to give you his excel downloads, which you can download from any major bank. And then you were able to organize this information and then imported directly into QuickBooks online. One time from there, I'm going to take the information. And, QuickBooks, I'm going to reconcile against the bank account. Reconcile against the bank account means that I'm not missing anything. That basically whatever happened in the bank is happening in QuickBooks. And now it's all in place. So I'm gonna reconcile to account over the next hour. I hope you're able learn that you're not alone in the bookkeeping world. There are people that will help you out. The world, people that will help you understand. You know what's going on each month, whether or not you're a bookkeeper, your accountant or yourself does that already. So please follow along. This is one of my first training, so please feel free to leave plenty of comments and plant here. Reviews on how we can do better. Other things that may or may not want to know if something doesn't make sense. You know, at the very end of this, I'm gonna leave my cell phone number email address. Feel free to reach out text or call me if you have questions on your specific QuickBooks or your bookkeeping or something about the training. You know, something doesn't make sense. You know, Feel free to reach out. Definitely be able to help you. So I appreciate you guys joining and I'll see in the next section. Thanks. 2. Setting Up and Personalize : hi, everyone. So in this section, I'm going to show you how to set up a free trial QuickBooks online to start tracking some of our financial information for our freelance marketer in Philadelphia. Now the first step is we want to go to quickbooks dot into it dot com. There is also a link in a resource below. Once we're here, we want to set up a 30 day free trial. Now, in this green, it's going to give you a lot of different options and a lot of different plans For us, the best plan is the simple start. In my opinion, this is the best system for a newcomer to accounting to accounting systems, to bookkeeping, to finances. It allows you to do pretty much everything that you're gonna be need need to be able to dio . If you own a small business, I do suggest getting the essentials or even the plus. I would never suggest getting this self employed for for different reasons. The main is that you cannot reconcile. We'll get into reconciliations and why it's important to reconcile it later on. But for this case, we want to use the simple start now If you do want to buy it now, you will be able to save 50% for three months. You'd be able to get it for $12 a month for three months if you want to. If you don't want to buy it yet, and you just want to follow along, I would select this free trial for 30 days and go down here to try it free. Now there's no credit card information required. You really don't even need a really email or a real name. Now, what I talk normally do to avoid getting spam is going to a fake email generator. Now this one is email fake dot com. It automatically generate you with a random email that who knows what it's from. So what I'm gonna do is copy this information, come back over here and say, OK, I'm going to use this now. I'm going to confirm now I'm going to put in my cell phone number and feel free to give me a call whenever, and I'm also going to create a password that I will remember now. Hopefully, I was easy enough. Um, you want to again get a fake email address that you don't get spammed if you plan on buying it. And you don't really care about spam, you can use your own email. Just know that once the email is registered, your free trial goes away. Now, let's go down here to sign up with email. Okay, so now it's going to text me code 709054 Okay, so I'm going to hit continue. So again, they want me to start the trial now, which is okay with me. I just want the free trial. Now there is something called payroll which we do not need to worry about unless you own a small business. If you're a small business, reach out to me and I will be able to say you with payroll. Now, let's go to the continue with trial. Okay? Instantly see our profits. That's exactly what we're looking for. So forgive me for the lag time here. Okay? So now this is the first thing you're going to see. This is our setting up my quickbooks. So for this case, I'm going to call it my favorite marketer. What would I describe him as a marketer? Marketing advertising. Now, if you have been using QuickBooks desktop. You are able to bring in your data over from that For this case. That is way beyond what we're doing here, where it's going to click next. Okay, so now that we're here, what do we really want? Teoh? Well, we're not too worried about sending and tracking invoices. We don't have any inventory. Were not wearing about retail sales. We definitely want to track our bills. We definitely want to organize our expenses. So most lefties too Come down here I am. All set. Okay, So here is my home screen of QuickBooks online now, as you can see, Yes. Let's go. As you can see, there's gonna be a 1,000,000 pop ups you're gonna get. No matter when you use QuickBooks, there's always gonna be a 1,000,000 pop ups. Yes, that sounds great. Thank you so much. No. Now that we're here, this is our dashboard. Now, this is going to be your snapshot into what's going on now. This screen while it's, you know, nice to look at it. It's not the most helpful screen for us. We can't really get anywhere from here. Especially when we have no data in here yet. Now, with that being said, as we get data in here, you will see these numbers start to change. You will see expenses for last month. You see your net income for September, maybe will link a bank account that's, you know, something that we can kind of get into. But for now, we're going to just kind of poke around and see what's going on. So we're not really gonna send invoices. We don't have any sales, even put any data in Yeah, this is kind of just our overall layout now, now that we're here. So from here, now that we looked at the dashboard, there's really only four or five things that are really important to us, particularly those are the banking screen, the report screen, the accounting screen. And finally, once we get there, are reconcile screen. Now, for now, let's first start with our county screen. Now this screen is your backbone of what is actually going on. This is called your chart of accounts, your chart of accounts or what your profit and loss is going to say which we went over already. And it's also what your balance sheet is going to say. Now, let's go in here and see what is going on there. Chart of accounts. Okay, so now that we're here, hopefully remember some of these terms assets, equity, income expenses. These types are where your data is going to go. So, for example, if we remember assets minus liabilities, equal equity Excuse me? All that information is gonna show up on your balance sheet. So, for example, if you're putting in an expense and you want to say you spend $1000 on rent it is not an asset, It is not a liability. And it is not a equity account. Now, from here, this again is going to be the most important section of your QuickBooks. And you can see it comes with a pre filled, um, detail of what they want to call things. For example, you'll have your advertising and marketing expenses. You'll have your bank charges, your car and truck payments. Maybe you pay some contractors insurance, etcetera. Now this is all fully customizable. However you want to call it now, what you can do is there's two ways to customize this. So, for example, if I want to make a category and I want to call it, Let's say, uh, fun. These are all the fun payments I have, whether it's going to the movies or going out to e. You know, whatever it is. So if this is for the movies and this is an expense, and this is something that we expend our money on, you want to go appear to our account type. The account type is where it's going to lie. Is it going to lie on the balance sheet, or is it going to lie on the profit and loss now, like we went over before? There are assets, liabilities and equity, which lie on the balance sheet. There is also your income and expenses, which lie on your profit and loss statement. Not for this case. I want to call going to the movies a particular expense so that I can track how much money I'm spending at the movies each weekend. So in this case that will show up on our profit and loss. We want to go down here to our expenses. Now we have this detail type. While this isn't the most important thing ever, it does help for your own sanity. now we called in entertainment. And now the name of here. I want to call this movies now. Every time I go to the movie and every time I tag something to this movie category, it will show up in this account in this detail type by this name. Now, from here, all I'm going to do is hit, save and close. This now adds the movie account to my chart of accounts, as we can see right here. Now, there is another quick away that I personally maneuver with the chart of accounts and have sometimes just re naming things. For example, this is a marketer. He will not have this asking my accountant expense. Now, what I would want to do is go over here to the right click on the drop down arrow click edit, and I want to call this. Let's say I want to call this, um, aleck trick payments. Now he has utilities. He has multiple utilities for his house. Now we want to say, OK, this is an expense utility. And now we want to say it's electric payment. So when we drilled down, we'll be able to know how much we're spending on electricity each month. Now, this description, we're just going to remove this. So I'm going to hit same clothes. Now the next area is going to be This is going to be our income section. So in this case, we don't want to call it Selves. He doesn't really like the word sales. He wants to call it marketing income. Now we can do what we just did. Much is going over here. I'm saying, OK, we're going to edit and call this marketing income. Okay, so now I'm going to hit save close Now I have his income. What? He wants to call it as an income category. Again. The most important thing in the chart of accounts is the account type up here. Now he again has a mortgage, and he has a car payment. Now, if we're found along earlier, we know that those are liabilities. Those air, something that he owes Now, the easiest way to keep track and to show you where it will show up on the balance sheet is to set this up right now. And I will tell you exactly how much he owes on the core and on the mortgage so the first thing I want to do is set up a long term liability. I want to call it a note payable. You can also call it another long term liability. Not so much a shareholder note, basically a long term. The difference in a long term liability and a short term liability is a year. Typically, after a year, it becomes a long term liability. So unless you plan on paying your car off in the next year or your mortgage off that next year, it is considered a long term liability. So in this case, I'm going to say no payable from the moment over here and say Mortgage payable. Now I'm going to say that this had an unpaid balance of 201 23 $200,000 as off. Now the dates are very important as well go through as Ah, 01010 2018 was $200,000. Now, in the next section, I will actually give you the data that we're going to use. We're going to start on January 1st, 2018. So the best way to do this is a set of the initial mortgage balance on January 1st, 2018. Now we have the mortgage recorded, and I'll show you right after this where it lies on the balance sheet. So I'm going to hit saving new because I want to set up the car more. Are the car loan as well, Some to go back down here, and I'm going to say Okay, we have our other current liabilities or a long term. Now, the car still hasn't time to pay off. Something going on here. You know, payable. I'm gonna go over here and say car and on one more in 2018 I'm gonna take this one. You say that we had 20 $1000 left as of 11 2018. So if you look at your car statement or your mortgage statement and there is a day that day will give you the balance on that day. Now you're doing this by yourself. Follow along with your own mortgage or car statements. You'll be able to look at this statement and I will tell you exactly how much you owe as of any given day. Now, if you start QuickBooks on that day, use that balance. So I'm gonna hit saving close. And now I'm going to show you what just happened because of that. Now, as you can see, I have a balance here. Now, I have $20,000 here. I have $200,000 here, and I now have this equity account. That's $220,000. So let's go here now. The next area, we're gonna go to a zit reports. So I'm going to go down here now. We will go further into reports later on. However, for the sake of this, I'm going to show you the balance sheet right now. So with those two entries, you can now see that I owe $220,000. That means I am in the hole in my total equity is $220,000. I do not own anything right now. We have no other data in here except for the amount that's left on his mortgage in the amount that's left on this car as we go through, the section will show you how to input all that information and get you to have some assets and some more liabilities. Now let's move on to the banking section. QuickBooks online. Now, I'm not going to show you how to connect your account automatically right now. I will say that for a later training. For now, we're going to upload transactions manually. Now, the most important way to do this is to do the following. We want to get your information from your bank. Now, for this case already have the information from his bank account for you. And the next session, we'll show you how to obtain it, how to organize it and how to get it ready to just upload it simply right here. Now, the banking future again. It's something that you will want to utilize. If you're using this full term, you will actually want to connect your bank account to QuickBooks. It will make your life way easier to have your transactions automatically feeding into your QuickBooks as opposed to what we're going to do now. Now what we're gonna do now is not that much more difficult. However, I don't know everyone's bank account password to set it up. So let's move on to the next section. Okay, so the final section of this area is gonna be my reports now, we kind of briefly went over this a little bit. However, I'm going to go into the report screen here Now, As you can see, the two reports that I talked about that were the most important are the balance sheet in the profit and loss. Now there are Aton of reports on here. I'm not going to go into all of them. However, you can kind of scroll through here at your own leisure and figure out you know what makes the most sense for you? If you own a small business, it may not be a bad idea to start tracking some of the bills that you owe to people some of the money that's owed to you so that you have a better clear understanding of what's going on since we're doing this retroactively, the only two reports that really matter to us or the balance sheet and profit and loss. Now we went to the balance sheet a little bit, but if you go into the profit and loss will see that nothing happened yet and you'll see this as we go further. I'm going to hit next on all this. Get rid of it Does it really annoys me now, had you see, there's nothing here yet. Now, what will be here is going to be the data that we're putting in and again, what feeds into the profit and loss of what feeds into the balance sheet is this chart of accounts. Now, in the next section, I'm going to give you his banking information and we're going to play with the chart of accounts a little bit more. Then we're going to upload this information, categorize it and produce a profit and loss and bounce. She see you in the next section. 3. Let's Get the Info : Hi, everyone. Now that we have QuickBooks set up a little bit now that we have our free trial active, we want to start getting some of this information in the QuickBooks online itself. So how did I do this? Well, the first thing I did was I logged into his bank account, and I exported all of his information into a CS The Excel file. Now he has a it's called Key Bank, which is a bank on the East Coast in Pennsylvania. He also has an American Express credit card that we want to keep track off. Okay, so this is exactly what was downloaded from KeyBank when I got it. Now, a couple things As you can see, the date is here. The amount Here there are negatives amounts, and there are positive amounts. So determining those, it's going to be very important. The next is my description. So this is exactly what the bank said as it was coming through. Finally, we have our running balance over here, so he started off the year with $5000 in his bank account. Okay, so the next thing that I would dio is go to his credit card account. Now, I did the same exact thing here I will logged into his American Express. I exported all of his data for the 1st 6 months of 2018 directly into an Excel CSB file. Now, both of these files, the original file and the completed file are going to be in your resource section if you need to refer to it. So the first thing that I want to dio Okay, So the first thing that I want to do here, as I want to start to organize both the checking and the credit card amount accounts Excuse me. And what I mean by organizing is I want to call things what I want to call them. I want to know what's going on. So the easiest way to do this would be this. I typically get this in excel, and then I filter over here, right? Gok filter, And then I'm going to sort by the description. Now, the reason I swear by the description is I can start to call everything the same name as you can see. I've already started to do that little now. I have his accurate payments of these areas car payments. I have the American ex payments. Now these are the actual transfers from the checking account, paying the credit card now transfers or something that you're going to definitely want to keep an eye on. Now, in my experience, if people call me to clean up their QuickBooks, it always has to deal with transfers. Now it's a different story, however, the at the end of the day, we have to realize that the money is going from one account into another, so it's simply a transfer. We don't actually pick up any of the expense Now. What you can typically see sometimes is when I'm going through adding this $2000.3000 dollars payment to American Express. Some people call it a $3000 expense to American Express. Now what I want to do here before I organized is I want to set up his checking account, and I want to set up his credit card account as to chart of accounts items. So now I'm going to go back into QuickBooks online. So now that I'm back and QuickBooks online, the first thing I want to do is set up his checking account and his credit card account as to chart of accounts items. So I'm going to go over here to my counting section. It will give me to the chart of accounts. Once I'm here, I'm going to go into new And before you saw that, we did an expense and we did a liability, and we did some income, so we did all three of those. Now, what we're gonna do here is create an asset. And as we talked about before, an asset is what you have on hand what you own. So in this case, I want to set up a bank. Now the bank is exactly that is his checking account. It is how much money he has in his checking account. You'll see some other detail types in here. Now, for this case, I'm gonna call checking and just for the sake of convenience and want to call it is checking account. Thank excuse me. Thank checking account that my So now we want to again gaining of the year. As you can see over here, he had Wow, he had a $5000 balance, right? This is his balance. So this was on 12 31 2000 17. Right, So now all of this, as you can see, you follow it. Pretty simply. He has 5000 on 12. 31. The first thing he did on January 2nd, 2008 teams took $100 out of the team. So that brings my balance out of 4900 right? You have to follow along with this so that we can reconcile. However, for the sake of time here, we're gonna go back into here and say he had $5000. Oh, oh, on a wan 2018. So I'm going to hit save? No. So one also set up his American Express credit card. I'm going down. Go down here. And now that we just did the bank, right? So this is not a bank account. This is a credit card account. A credit card is a liability, as we talked about before. So we set up the bank account, which is the asset, and now we stop the credit card, which is liability. The liability is what he owes on that credit card. So if you look at your balance on your credit card and it says $10,000 then your credit card balance on QuickBooks and on your balance sheet should say $10,000. It is not a bank account. It is a credit card. It's a liability. Now, for sick of this, I'm going to call this his American Express. Now again, This had a balance on 11 2000 and 18 to go on a 1 2018 I'm gonna go back to my excel here. And it had a $6000 balance on 12. 31 2017. So as you can see you here now, I'll go into this a little bit more as we go to organize. But as you can see, he had to 6000. He went to Bed Bath and Beyond. On January 3rd, 2018 he spent 100 $48. So now my running balance for my American Express is now at $6148.39. But adding in this Excuse me, this charge here now, when we get back over here and say Okay, this had a $6000 balance as of 11 2018. It's him close now. I'm back in my chart of accounts now. It were found along. We should know that my balance sheet should now have an asset of $5000. We haven't again. We haven't put any information yet, so just starting off. We already have balances in here. You need a balance to start, right? Whether that's a zero balance or whatever it is, it does need to agree to what's actually going on in the bank account. Now, we haven't entered any income. We haven't entered any expenses, but without even entering data. We already have information and are QuickBooks. And now this is why the balance is so important. Because it will show you right now where we are. So right now we have $5000. This is how much we have. This is how much we own, right? We owe $6000. The American Express credit card. We owe $20,000 of the car and we owe $200,000 to the mortgage. At the end of the day, we are $221,000 in the hole. And again we get this number from subtracting my assets minus my liabilities, and this gives in my total equity of $221,000. This is how much we're behind, right? So now, without again without even entering anything, we already have information on our balance sheet. You have the balances that that are starting off on January 1st 2018 for your own personal use. If you're going forward without this, I would say Go and picking day that best suit you If you want to start, it's already October 2019. It may not be a bad idea to start on January 1st 2019. Now, if you have a mortgage, look at your mortgage statement on January 1st 2019. If you have a car, look at your car balance on January 1st 8 4019 Excuse me. If you have a credit card, look at your balance on January 1st 2019. What is the balance now? Final thing? Go to your checking savings or whatever asset account you have. Look at the balance on January 1st 2019. Follow alone safe steps. I just used an import. Your opening balances now importing roping balances is easily the most forgot thing to Dio for people that are trying to do this. Most people come to me and their bank balances that have negative $50,000. Well, that's because they import all their information and they never said that it started with 100,000 so automatically there, behind automatically, they're screwed up. You need to pick a day, stick to that day and start from there and use those balances. 4. Let's Organize the Checking Account : hi, everyone. And welcome to the Let's organize the data section. So the previous section gathered the client's information from directly from his bank account. We went into his checking account, logged on. We went to his credit card account, logged on in both separate accounts. For the 1st 6 months of 2018 I exported a spreadsheet directly from the bank account. Now, once exported, it looked exactly like this. Now, the next step after we gather the information is going to be to organize this were all data and get it into a format that we can easily understand easily digest and most importantly, import into QuickBooks online. So I'm going to start with his checking account. So please refer to the resource section for this spreadsheet, which is called raw data checking. You'll be able to follow along and look at exactly what I'm doing here. Now, once you have this open, the first thing we want to do is to create a copy of this worksheet, which I'm going to do by right clicking. I'm going to go to move or copy. I'm going to move it to the end, and I'm going to create a copy. Now the next step is to create a new knee. Now we want to create a new name so that we know our original file over here and are manipulated file over here or import file over here. This is what we're actually going to import once we're done organizing. So I'm going to rename this and call this checking account import. Okay, so now that we're here, the first thing I'm going to do in this new checking account import tab is I'm going to delete column. Teoh. The reason I'm deleting column two is I will now have a better sort and filter option to manipulate this spreadsheet toe. How I wanted to look. OK, so all this information, like I said, came directly from the client's bank account. Right? Com a county. Come see Conde. What I want to do now is I want to create a new section in column D and call it a category . This new category is what I'm going to call the what? But what is simply what I'm going to call this information. For example, if you look at column C and you see the TM withdrawal, I want to name all a team with Charles a certain category. Now, the key here is that we want to make this as simple and as personal to you as possible. We want to do this in order to really know what each of our descriptions say instead of having an A t m which are all a US insurance Dr Rose 18 which are all Maple Glen as separate categories. I want too long and categorise certain descriptions into certain categories. So the next step that I want to do here is I want to add a filter to row one and sort by the description. So I'm over here in row one. I'm going to copy all of these Are Nazis not copy. Highlight. All these go over here to sort and filter, and I'm going down here to this filter option. Now the reason that we do this is that we'll be able to copy and paste the same category for every single transaction that we need. For example, let's sort by the description right now, these are all sorted alphabetically. Let's take a look at column to where? Says Acura Pain. The first thing I want to do here as I want to go in the column day. I want to right click in column day. I want to insert a new tab. I'm going to call this the category tap. Now I'm going to have the filter on here. All right, so this description says accurate pain. Now I know that the accurate payment for him is simply his car payment each month. So column D. I'm going to call the accurate payment a car pain. Now, if you remember correctly from earlier, this category called car Payment is going to show up on either my profit and loss or my balance sheet, depending on the account type. So now that I know I want to call accurate payments car payments, I can simply copy and paste this all the way. I'm going to repeat this process for every single transaction on the stretchy again. This is just an example for this particular client. You may want to call certain descriptions certain categories, or you may want to know in some more detail, but for the sake of time here, I categorize this entire excel based on his needs and have a final product also located in a resource section. I'm now going to bring up the final product. So as you can see here, here is my final product. I went through and categorized each and every description to call it what it is to call what we want to analyze it as so let me just go through a couple of these as examples. We already won over the car payment. Now let's go over some other ones here is in a Nets window cleaning. So the set of calling the category and the Nets window cleaning, I'm just simply going to call it when No cleaning. Now we have another one called E T M. Literal. So for him, this is really is walking around spending money. And as you can see, I went through and categorized everything. Here's some utility payments. Here's some eating out. Here's some more utility payments. Commonwealth membership fees, deposits. I'm calling income Now. This is really a process for you to follow. Whatever you wanna call it again, the category and column D is where is going to show up on a profit and loss or a balance sheet. Okay, so you might be thinking, Why can't I just You've calm sea asthma category now. Sometimes it makes sense to do that. But in most cases you're really going to have a huge profit and loss. And what I mean by that is kind of let's let's sort by this and show you. So I'm going to come up here and I'm going to sort by column D, which is my category. And let's signature, Let's say eating out, for example. Now, when I go to analyze, I can analyze every dollar expended Burger King every dollar spent on Michael Dunn pizza. Every dollar spent a Panera bread in every dollar spent at subs. Instead of looking at that as each particular line item, we can call Burger King heating out, we can call Mabel done pizza eating out, and we can call Panera Bread eating out. So when you go to run a profit and loss, it will say that you're eating out will be the sum of all four of these vendors. Now it makes sense to do it this way for kind of your own sanity. Now again, when you're going to run a report unless you want to report that, says Burger King Maple Gun Pizza. Panera BREAD SUBS You can have all of these descriptions into one category. You can have a total for your eating out for the month. 5. Let's Organize the Credit Card Account : Okay, so now that we have the checking account organized, let's move to the credit card account. Now again, I did this by myself. For the sake of time, I categorized everything for you already again. If you're doing this on your own, call the description in column C wherever you want. The category to be in column D Now the reason I'm showing you the credit card and not just automatically assuming that we're going to do it together is this one major important thing to know? Is this four credit card accounts? Sometimes that download from the bank will give you positive numbers in the download I have . It is saying that all of his charges air positive numbers, which makes sense, right, because the more he spends, the more positive his credit card balance is. But in terms of importing, which you're going to get to next and analyzing, we want our expenses or we want our purchases to be negative. Now watch how I do this. I'm going to go over here. I'm going to right click on column C. I'm going to insert I'm going to say equals a negative Now. The reason when equal negatives were gonna make all of these numbers and negative number. So, as you can see, I now made this a negative. One of 6.95 I'm going to go to the bottom right here where this plus sign is and dragged us all the way down. All right, go here. Now I'm going to right click on all of this. I'm going to go to copy trying to bring back up here. I'm going to click left like here, and I'm going to Right click. I'm going to paste Special. Going to pace just the values. Now, what this does is it now gives me negatives over here with no formula at the top. As you see over here, I have a formula. It's now in reverse right now. If this doesn't make sense for you again, please feel food. Feel free to reach out. And I can explain how to do this more. However, let me repeat this process. I'm going to back, back, back now I insert an extra column. All of my credit cards are positive. I want them to be negative. Someone come over here to add an extra column. I'm going to say equals a negative equals negative. I'm going to come over here. Click on this. So this now equals a negative B two or a negative 106.95 I'm going to click. Enter, I now having negative 106.95 I'm going to drag this formula all the way down. Now that we have all negatives here, I'm going to Right click Copy would come back up here. I'm going to click into this. Calm. I'm going to Right Click paste. 123 This would not give me Onley values, which are the negative values that we want. Now I can simply just delete this column. Get it out now again, the painting on a bank account you have the numbers will come out positive or negative. What you think about it like this? All imports into QuickBooks for anything that is a negative number. Anything that you're purchasing, it is deducting from your bank account or its deducting your credit card. Right? So this six pack support for $106.95 on his credit card. He spent 106.95 Now it's all about the presentation at this point in order to present it in QuickBooks, we need to say that this is a negative number or is an expense. Again, this is a very important note tohave. 6. Why QuickBooks Online : Okay, so now that we have to final products and so we can certainly stop here and we can just analyze it in Excel, which I'm sure a lot of you are thinking, but that will open us up to question whether or not we have everything. Right now we can go over that more detail in the following section. However, very simply, we need to reconcile this information. We need to know that what we're putting in actually agrees to what's happening now. The easiest way to reconcile I recommended lease is doing this in quick post online. This will ensure accuracy not only will ensure accuracy QuickBooks on lines a little bit easier on the eyes and is a little bit easier to navigate than an Excel spreadsheet. Okay, so now that we have this organized, we have the final products. We know why we need to get into QuickBooks online. The final step before reimport is we need to compare our column date. These categories toe what are categories are on the chart of accounts in QuickBooks online . Now, if you remember correctly, the chart of accounts is our backbone and is what we want to call things in our counting system. Please follow along as I add and compare several changes to categories in QuickBooks online and just a final note. It took me about 20 to 30 minutes to organize this data on my own outside of this course. 7. Comparing to Chart of Accounts: Okay, So now that we've categorized and organize the Excel for both the checking account in the credit card account, the final step before we can import all this information into QuickBooks online is you want to compare the categories that we made in column D for bro. Spreadsheets toe what is in our chart of accounts in QuickBooks online. Now, the easiest way to do this is to do the following. We want to go into each separate excel copy and paste the categories and make them a pivot table. What this does is it will reduce the amount of items we need to look at and compared. Now follow along as I do this. So the first step is I'm going to go into my checking account. I'm going to copy and paste who she's going to copy all the categories that I have down here just by simply throwing down. I'm going to right click select copy. I'm gonna go back in here, said book one. I'm going to go, Ah, ro two and peace. Now here's all my checking account categories. I'm going to call this the category double click open up a little bit so now I have all the checking. Now let's get all of the credit cards, some good credit cards with the same thing. Copy everything here. When you right click. Copy. Come back over here to book one, and I'm going to go to the bottom of all this and I'm going to paste it. No, this is showing every single category for every single description. We do not need all of that information. All we really need is just individual wants. For example, we don't need all three American Express. We don't need all four bank charges. We just want to look at each category here. The easiest way to do this is to select column a go to insert and go insert a pivot table. Now we want to select a table or range, which we did. I was like, OK, so come back here in this paper table. I'm going to click on a pivot table itself. I'm gonna come back over here to category select that now this breaks down into a much easier and digestible format. As you can see instead of having about 270 we only have about 40 items to compare. We're not going to compare every single warm, but I will go through several with you. One major thing to notice. Here you will see American Express payments Chase credit card payments. Bank of America. Hayman's What the's are is these air transfers? So if I go back just to show you go to my checking account, here's my American Express payments. Now this is saying this is coming directly from his checking account. This is saying that from the checking he paid his American Express $2956.74. Now what's going to be very important moving forward is that this is considered a transfer . This is transferring money from one account to another account. So if you remember what we did previously, we already set up the back account and where he set up the credit card account. So there's no need to add an extra category here. There's no need to add an extra category here, since this is simply is BancAmerica payments. And finally, there's no need to set up the Chase credit card payments, since these air simply transfers again. When we go and input hiss, American Express, you will see that these payments are on his American Express Registered. Go down here. Down here. You will see the payments down here. Now, This is very, very important to know, because when we go to import most people, I come into a major problem with call a payment and expense when in reality these payments here are paying down the balance of all these individual transactions. Hopefully, that makes sense. This is very important to know. Now let's go back in here in a book one and I'm gonna compare a couple of these. So let's go over the car insurance. Let's go over the cell phone and let's go over the contractor. And also, for the sake of this, I'm going to highlight everything that we do not need to import again. We do not need to do this because these are transfers. These air, not expenses, there simply transfers. Now let's go into car insurance. So the next thing I'm gonna do is I want to see if this category is already in QuickBooks. And if it's not, I either want to adjust the category having here, or I want to add a completely new one and I'll do both. Now, let's go here. I'm gonna go on my QuickBooks account for my favorite marketer. I'm going to go down here to accounting, and I'm going to go to my chart of accounts. No, I'm going to. There's two ways we can do this. We can simply sort by the name here and we can go. OK, Do I see car? Um, payments in here? Dorsey car insurance. And here I see a car loan. I see a car truck. I see regular insurance, but I don't see car insurance. Okay, so since I do not see car insurance in here, let me do one more checks. I'm gonna filter by name here. Now go. Car woops car insurance. Okay, so I don't see anything for car insurance in here. So what I want to do is I'm gonna go over here again. I want to go to new. I want to go to the account type. Now again, car insurance is an expense. Go down here to expenses. You're expending money. We're paying the car insurance. I will go down here. When I select a detail type. I'm gonna go to insurance, and I'm going to name this car insurance. It's even close. So now when I go to import, I will already have a car insurance category in here again. When I go to my import, I will have car insurance in here. And when I run a profit and loss, all of the descriptions, all the transactions that I call car insurance will now roll up into that. Okay, so let's do another one. Let's go back here to book one next one. I want to go over his cell phone. Okay, so cell phones are pretty common. One. Let's see what we have in here. So I'm going to start going here. Let's type in cell phone. I do not see anything for cell phone. Okay, so now I showed you how to add a new one. Now, let's adjust one in here, right? We don't need all of these all this information in here, so just scroll down here and see what we have now. We have a lot of different categories. As you can see already in here, we do not have any reimbursable expenses for this client. So instead of creating and no one, I'm simply going to adjust this one. And what we can do is over here. They dropped down. Must select Edit some of over here is already an expense. The detail type it needs to change to utilities, which is, you know, typically a cell phone. So I'm going to go call this cell phone. Come over here. Delete this. We do not need to worry about a description for the moment. I'm going to hit, save and close. Yes, that's okay. We're going toe. Okay. So the final thing that I want to show you now is how to add a sub category. So what a subcategory is and I can show you a great example of how to use this is we want something to roll up into another category. It's an example I want to show you. Is this I'm gonna go back here in my book on I'm going to come down here. And as you can see, we have multiple different utilities. So what we want to do is we wanna have cable roll up into a utility. We wanna have electricity, roll up into utility, and we wanna have our water roll up into utility. Now, here's how we can do this. I'm gonna go back in here to QuickBooks. And as you can see, earlier, I believe we actually made in a lecture to category. So the easiest way to do this is to go over here to the drop down arrow, going to select this. I'm going to hit, edit, and I'm going to say is a sub account. Now what is it to some? Account up. It's a sub account of utilities. Go here and it's even close. Now we have two more that we want to add. We want to add our cable if you want to add our water. So I'm gonna go over here and we'll go back up to the top. I'm a select new I'm a go change the account Type two on expenses. This is our cable expense. I'm going to change the detail Type two utilities. I'm going to name it cable. And finally, I'm going to add it as a sub account of your toadies. And as you can see, my electric payments are already underneath utilities just like this. I'm a go. Okay, let's make one more. We're going to call this one the water bill, Come back down here. But to add one more expense, I'm going to go here, go to utilities. I'm going to call this the what? Her. I'm going to go here to make it a sub account of utilities. So now I have three sub accounts underneath utilities. I have my water payments, I have my electricity payments and I have my cable payments. Snowmen? A saving close? No. Those are the three common ways to add Add it and sub out categories. Now, for the sake of time, I am not going to go through and compare every single one on this course. I'm going to do this outside of the course, in your spare time or in your time Washington's training. Please go through an add or edit for each of these categories that when we go through, you'll be able to select this when we're adding them into quick books on line. Okay, so now that we've gathered the information, we've organized it and we compared our categories here to the categories in the chart of accounts of QuickBooks online. The final step is we want to import this information and then we want to reconcile it to the bank account 8. Importing: Hi, everyone. And welcome to the importing into QuickBooks lecture. Okay, so now that we have organized, formatted and compared the checking account and the credit card account, the description and the categories toe what is going on in quickbooks online, it is now time to import this information. Now, the first and most important thing we need to do is we need to copy and paste each separate import tab and paste it into its own separate excel. You can follow along as I do this. However, the reason that we need to separate it out is that in order to import this information needs to be in a CSC file. I repeat, it needs to be in the CSB file. Also again, it is very, very important that deductions from your credit card or bank account are negative numbers. Now, in order to get this information to its own, if cell I'm going to highlight everything I'm going to, right click Copy. I'm going to come over here to file no blank workbook. I'm going to right click, and I'm going to paste. Now I'm going to open all this up so I have a better deal of it. Okay, so once we copy and paste into a separate, So we then need to remove the balance column, and we need to remove the category column, even though we just did all that. Now, the reason that we do this is that we Onley want to bring in relevant information. Unfortunately, there is not a simple way to just import this information. One time in a separate training, I can show you how to import this one time with the categories already in there using an app called sass. And but for this course, we are only going to be importing the date. The description end the amount for each particular transaction. Once we copy and pasted both excels into a separate excel file. We can then go into quickbooks online and upload these files. Okay, so now that I have this information, its own separate cell again, this is the checking account import tab I'm going to file. I'm going to save as and very important here. I'm going to save it somewhere. I know. I'll save it here in my you Timmy final. And as you can see down here, I want to save this as a type C s the comma delimited. Okay. And I'm going to call this the checking. Okay, import, You're going to hit, enter and save, and that's OK. Some features in your workbook might be lost. That's OK. That is not relevant for us right now. Okay, so now that we have saved this as a CS file, we want to go back into QuickBooks online, and I want to go over here to banking. I'm gonna hit this banking screen right here. It's going to bring it to a screen like this. Now, in a separate training, I can show you how to automatically connect so that your transactions automatically come into quickbooks. However, for this course, we're going to upload the transactions manually. So I'm going to select this upload transactions. Once I'm here, I'm going to select a file to upload. As you can see here, download transactions has only being a C. S. The file. I'm going to browse. I'm going to come over here somewhere. I save the file eyes and I'm gonna go to my checking account import. Now, you see is the CIA's we file. It's as simple as that. Next thing I'm going to do is I'm going to select next. Now it's going to ask us. Here is my bank file. This is what I'm importing. Here's the QuickBooks account. It's going to So as you remember when we first started out, we set up the checking account as its own bank account. You can see it right here. This is saying that when we go to upload this information, it will all be going to this bank account. So watches I found going to select this bank account. I'm going to hit next, and now we're going to get into the mapping field. So what this is saying is this is what it's saying in our so column one says, the day come three, says the description, and we don't really know what's going on come to so the easiest way to do this is to map it out directly to what it is. So, for example, this date is always going to be a date. The description down here will be the description, and this amount will be the amount column here. Now my CSP file has both positive and negative numbers. Again, this is very important to understand the positive numbers are going to increase my bank account and the negative numbers are going to decrease my bank account. It is the same thing with the credit card. Anything negative is actually going to increase the credit card and anything positive is going to decrease the credit card because that is the account type that we set up. There is a major difference between a credit card which is a liability, and a bank account, which is an asset. Now that we're here, we're going to slip next. It is going to ask us which transactions we want to import, and we want to import everything. As you can see, these are all off my amounts directly from the CSP, these air, all my descriptions directly from the CSP and these are all of my dates directly from the CSP. I'm going to select next because we have all the information. It says Quick folks will import 179 transactions using the field you chose. Do you want to import now? Yes, we dio we will find out in the final section whether we have everything or not. But for now, we're going to get everything in here. Okay, so our import was completed. Next step, let's accept some of these transactions. So we'll go down here to let's go. And as you can see now, in QuickBooks, I have $5000 balance. Now, this was the initial balance I set up when I set up my bank account. From here on out, I'm going to import and add all of my transactions down here. Now, As you can see, it's coming in based off the dates on 29 or 31 to 1. And if we go down here, it's a last. This will get us to our very last transaction that we have. Your bank account is all set. That is okay. Get out of here. God, it's gonna ask you a bunch of pop ups. Just click god it or click next or click out of it. Now, the easiest way to import of this information is to sort by the description. And the reason we want to sort out of the description is that instead of going a line by aligning, clicking, add, add, add, and we can simply select all of these and say Okay, I want to accept them now. Don't hit accepted right now because we didn't actually add the category at. So let's add a couple and show you how it's done. So I'm going toe unclip call of these first. The only way to add in for to recognize what you're trying to do is to do it from the bottom up. So the easiest way to do this is I'm gonna go to the last page and I'm gonna go to the very bottom here now. As you can see, we have our water payments right down here. So if I click into it like I just did it will show you that the bank details saying North Wales water. If I go over here to my checking account and I sort for my North Wells water, you will see that it should be going to the utility's water category. Let me go back in here and I'm going to select the water payment. So now, as you can see, it just changed this one right above. So instead of having to go through and saying that every time we need to select add, we can just add one of them down here We can also add the pay, which is North Wells water. I'm getting this directly from the bank detail here. Now, this vendor payee, this is who were actually paying. We're paying the North Wales Water department something to click Add hit, save. And as you can see and now added, any time the bank details is North Wells water, it'll go over here and add in North Wales water and I'll go to utilities. So you click out of here because these are good, right? I'm going to click, add, and I'm going to click. OK, do we want to create a rule now? Creating a rule is definitely a time saving activity. However, for this course, we're not going to do this quite yet. However, let's go back into here. So now the next one is We have I've arising wireless, So I want to go down here and type in Verizon Wireless. So we're paying Verizon Wireless for our cell phone. Okay, that looks good. So now I'm going to hit at Okay, The next one will do one more, and I'll show you how to add in multiple at a time. So I'm going to go down here to us. A police officer and I'm going to add in deep a U. S. A police officer. And again, I'm getting this vendor paid directly from my bank detail. So I'm going to hit. Okay, I'm going to hit Save Now this according to our spreadsheet over here, is a charity payment. So we go back in here and I'm going to select charity now. I said all these up, all the categories I set up compared to my spreadsheet. So I'm going to hit. Add OK, so now let's say we want to get a couple of them here time. We don't want to go through and click. Add add add all the way up. The easiest way to do this is will go into one, and we'll say, Okay, I'm gonna go back down here again. I'm going to add in the vendor pay, which is USA Insurance, and I am getting that directly from my bank details. So now every time I pay us insurance, it will come through as the Vendor USA Insurance. So if everyone of report and figure out how much I'm paying one particular vendor, it's easy to do that now again. Go back here. I'm going to double check this. My USA Insurance is my health insurance payments. I'm going over here and go to health insurance. Okay, so now all of my USA insurance all are now, say, USA insurance pay and category health insurance. Now, if I want to add all these, it didn't go. Click, click, click, click, Click. Let me make sure I have any more in here. It looks like one more. So I click this final one. I'm gonna come up here to my batch action, and I'm going to accept selected. Now, this is going to take each one of those US insurance and Adam all in at one time. As you can see, it did six transactions excepted. Okay, so that's pretty much a general rundown of how you want to add in these particular categories. Just because we imported them into QuickBooks does not mean they're actually in quickbooks yet. It's in this four review tab. If I go over here to my review tab, you can see all the ones that we already added, and you can see how I added it. Now this your say insurance. I added to expense health insurance and this water payment, I added to my expense utilities, water. I also added a vendor for each one. Okay, so now let's go over some of the tricky ones. Remember before how I was saying that we needed to figure out these transfers, right? You know, the transfers to the payments transfers to the credit card account. These are going to be treated a little bit differently. Okay, so let's get some of these tough ones out of the way. Let's go to this one, for example. Now again, we're in the checking account and this transaction in particular that I'm looking out on the Excel right here is saying that on 1 26 we made a $2956.74 sent payment to my American Express credit card. So instead of calling that a expense and, you know, categorizing up that way, I am simply transferring money from one account to another account. So let's do one. For example, let's find the American Express. You feel they are. So here's the 1 26 payment. Now again, we are in the checking account screen. I'm going to scroll down here. I'm going to click on this now. It automatically knows that this is some type of transfer because it's saying American Express QuickBooks is a relatively smart system, not as smart some people would like, but it's a relatively smart system. It kind of understands that American Express is a credit card. It understands that it's a transfer, right, But it's not transferring to anywhere is transferring to this on categorized asset Now, this is not correct. It should be transferring to the liability account that we have set up. And as you can see here, we have the bank account and we have the credit card. So what we're gonna do is when I select the American Express credit card. So what this does is it now takes the money from the checking account here, and it throws it into the American Express credit card. Some come to record the transfer. Now I'm gonna do this again on the 1 29 made another payment of $2956.74. So one select this. I'm going to record a transfer, and QuickBooks actually picked up that it's an American Express credit card payment. So again, I'm going to hit record transfer. I'm not going to create a role as we talked about already, and let's go to the final one. So the final payment we made, it looks like we made it on 5 22 2018 So when we go to do the American Express import, there's already going to be three payments in there. What that means is our balance is going to be those two repayments together. Now, if you can follow along a little bit, those let's say $6500 or the payments. Do you know the two that we just made in this one right now are going to reduce my American Express balance by $6500. We haven't picked up any expenses on that yet. We haven't added anything to American Express yet, so if I was going to run a report, you were to see that all my American Express balance will have the 8000 that we started out with, and it's going to be reduced by $6500. Now we know that's not accurate because we need to add in the expenses from American Express. So let's record one more transfer here. Okay, so now that I've added in the transfers, I want to get the rest of this information in so I can start running some profit and loss reports on the checking account. Now, the easiest way in the way that I recommend doing this is scrolling down to the bottom and going toe less. Let's start with last one first this way will be able to add everything as it flows up. OK, so for example, let's go to the U. S. Treasury. I'm going to add the U. S. Treasury as a vendor pay when I hit Save. And this is going to my taxes in license category. Right now, you see a couple more transfers here. Now, if we go over to myself, I'm going to go and say, Okay, what are these transfers for? Okay, these transfers these air transfers to his wife. So this is him giving money to his wife and in some in this case, is actually getting money from his wife. So these air simply just transfers back and forth now for the sake of money management and for the sake of knowing how much we spend each month. I am not going to call us a transfer. I'm simply going to call this a wife expense. Who knows what is actually going on here? So I'm going to say OK, this is for the wife. I'm going to hit C and already have a category set up cold. So now I'm going to at all of these in and as you see what a couple of them something go ad had here. This one since has come when the received and does not automatically get recognized to say , OK, wife and I'm go down here toe wife. What's life here? Okay, some select this last warning to say, OK, let's accept all of these. Okay, so now we're back to here. Now we have Toyota. So instead of going through each and every one of these, I'm going to assume that you're able to actually follow along and add all these in by yourself. So, for example, let's do one more someone going a Toyota. I'm going to select the option off Toyota If I can't smell right. Select Add Gonna hit. Save now these air, car and truck payments. Right? This is him paying the Carville. Now? What we want to do here is you want to say OK, except all of these. We're here to bash actions, and I'm going to accept selected. Okay, so now this leases with just a couple more left, for example, Tillman builders, we have another tax. We have some central bank. If you're going through, you may see that QuickBooks most of recorded as a transfer. However, these air not transferred these your expenses for the shopping, the reason I know these expenses for the shopping. Because when I organized over here and I went to my synchrony bank payments, I will see that we want to call these shopping. These are not transfers. Okay, some of the back over here and I'm going to select add I'm going to make the pay sink runny . Thank sink, Peroni. Thank. And I'm going to call this shopping. So if it gives you that option to record a transfer, not one of the quarter transferred and this 1 may be a little more fine tuning. You may need to actually click in each one it once it recorded transfer. You'll see this several times in here I'll show you another one in the second again. We want to go here. He's going to pick up the cat and excusing defender to pay your synchrony bank and we're going to select a category A shop. I'm going to slick ad again. We do not want to create a rule. Now we have two more. I'm not going to go through these. I'm sure the other ones that's going to give you this option on some go back here. And as you see, we have all these import. I'm gonna let you import these all by yourself and we'll be able to tell if you're right or wrong for this. So let's see, none of these are look good. You see where Here it says transfers again. It wants to say that these chase payments are transfers. Now, we do not have a category set up for chase. We didn't We're not tracking his cheese credit card. What we want to do is you want to say okay, these chase credit cards now. So since we do not have a Chase credit card account set up, I want to call these directly expenses. Now the reason I'm calling these directly expenses are. I want to know how much I'm spending on chase each month now from here not to confuse you. If you wanted to add in your chase credit card, you would simply follow the same process you had downloaded from your downloaded from chase dot com into XO. Categorize it, format it and then copy and paste into a CSP file. And then we will just import it like we just did for the checking account. For the sake of time, I am not going to do that. I'm going to simply call these expenses now. I can call these whatever expenses I want. Since we don't really know, we're not really sure what's going on here. So I'm going to say Chase, and I'm going to pick a good account to put this in. So I'm going to call these on categorize expenses, and the reason I'm doing that is again. This is a Chase credit card payment. However, we do not have the chase expenses, so we will never be able to reconcile the Chase account because we do not have the expenses that make it up in order to reconcile in order to analyze our checking account in the American Express account. I'm going to simply add this as a chase, and I'm going to call it an unknown categorized expense. Okay, now, again, every time that QuickBooks wants to transfer, we need to click into it. Me too. Whoops. We need to click into it and me to click on add here. Okay, so now that we have a little better idea, what does it transfer when to transfer and mortar expenses We're going to add in the rest of these transactions. Okay, so let's start about the last one. I have one. Here is Tillman builders so added in Tillman voters as a pay. And I said, This is a house repair the next. This is a simple tax payment. So I'm going to call this the U. S. Treasury, and it's going to taxes and licenses. Now, here we run into this transfer issue again. I want to select add. I want to say that this is a synchrony payment. Synchrony bank. I'm gonna say that this is a shopping expense. Okay, so now we have just a couple more tricky ones before we can kind of get all this in here one time. The reason that we need to add out instead of transferring is that we will not be able to bulk upload or bulk batch action bash action everything in. So I go. OK, go back to here and I say that this is a shopping experience and I will go back up here and call the synchrony bank. What's that again and what would you say? Okay, this is shopping. No again, come up here. Most like that. I want to select synchrony Bank Go to say that this is a shopping expense Now, as you can see, this is quite annoying. We do not want do this all the time. Okay, so how many more we have? Let's say only couple Moore's Let's go through these pretty quick to add synchrony bank shopping, you know, here, add synchrony, bank shopping, looking back here to add synchrony, bank shopping and one more. Let's get on here too. Ah, synchrony, bank and shopping. Okay, now we have those out of the way. Let's make sure we have no more transfers in here and again you'll be able to see the transfers. Consider saying adhere. Don't say transfer so it looks like we should be good. Teoh, there are a couple more these air those chase wants. And let's get these other way too. So you add chase on categorized expense. I'm going to go down here to add chase. Excuse me, France, Click Add. I gotta hear cheese. Uncanny arised experience. Okay, so just a couple more here. Chase? Yeah, on categorized concerns. You came here Another one? No, to add chase on categorized expense. So again we run a profit and loss All of these chase payments gonna be under a known category tries to expect. Okay, so just two more here. I'm going to what's and see I make mistakes all the time here. I'm gonna click out of here, look like ad chase on categorized expense and one more boring one. Someone go down here to chase. I'm going to go to add chase on categorized expense. And again, in a perfect world, we would have our chase transactions in QuickBooks. And that way we would call the transfers. But again, for the sake of time, we're only doing two accounts really doing the American Express, which we transferred from the Bank of America makes you different banking checking account into the American Express that liability account. Now we have all these transfers out of the way, so oh, I spoke too quickly. Here's one more. So again, this is another credit card payment. But since we're not adding in each of these credit cards, we just simply want to call these on categorize expenses. You hear, save if you can master the transferring back and forth and you can understand the concept of it that will get you about about 10 light years ahead of anyone else that uses QuickBooks online. When people call me to fix their QuickBooks nine out of 10 times, that has to deal with transferring. They do not understand that when you're transferring money from one account to another, if it is set up, it simply needs to be a transfer. Now, since these were not set up again, these need to be on categorized expenses. So but one more here, look at the Bank of America on categorized expense. Okay, so I got all of my little transfers out of the way. They're all here now. So now I could just simply add everything that I want So let's go back to the bottom here. So now you can see all of the stuff already have out. So let's start going through some of these to make ourselves to add in some is a pity save . We know that this is eating out the next one. I want to go to his public storage. Gonna say oblique storage. I want to go to program specialty in insurance, Just like ad save. And let's see, what do we call program? Specialty insurance. So I come over back here to myself, were mapped everything out. Go down here. And this is car insurance about here. Quick pokes. And this is good, Actually, already isn't car insurance. It's all my programs. Specialty insurance is air. Good. Okay, so let's go up. Plumbing. Benjamin Franklin. Benjamin save. And we know that these are house repairs. Okay, so we have this Philadelphia newspaper, okay? It was paper. I can't remember. Off the top of my head will be called this. So let's go back here and we call this subscriptions. Some of the back here se subscriptions to go. Okay. Next one. Philadelphia Electric Company. Here you go. So, uh, del fio like truth company. But again, this is a utility. But we set up a separate account for the electric payments. And one more time you can see how it's automatically picking up everything here. Okay, So without going through every single transaction, I hope you can follow along with what I'm doing here. The next and final step of this is adding in all these transactions. Okay, So as you can see here in the cut time, I went through each and every one of these transactions added in the pay and put in the category. And as I'm going through, I notice I did was wrong. Now, this will have You will be wrong from time to time. Okay, Let's go out of here. And now that I know, I have all this mapped out correctly, I know the maids or house cleaning. I know that interest, income messengers, income. We have some deposits as income. Basically all of my left in here. That's for review matches. Exactly what is in my checking account import over here. Okay, so now the easiest way and quickest ways I'm going to select all of these, and I'm going to batch action and I'm going to accept selected. This is going to automatically accept every single transaction that I just mapped out. Instead of going line by line and clicking, add, add add, which is certainly condo's. And you may want to do the first couple of times. You can get everything into QuickBooks one times now there's nothing left for review. Everything is now in QuickBooks. And, you know, if you fought along correctly, everything's good. You should have $9000. You should excuse me. $9038.57 in QuickBooks. So the next step is we want to repeat the exact same process for the American Express. And I'm not going to go through. All the Americans rest with you. However, I will repeat the process right now to show you how to get it in there. And then you can categorize it out yourself, and I will do it myself. Was Well, no. As far as timing. It took me about 10 to 15 minutes to categorize all these transactions in QuickBooks outside of this course. Okay. So shouldn't take that long to go line by line and make sure you have everything Okay, so now that we have the checking account in QuickBooks and next is we want to get the credit card account in QuickBooks as well. Okay. So going back to our initial how to import lecture, the first and most important thing that we need to do is me to copy and paste this American Express import all this information and need to put it into its own separate excel again. The reason that we want to do this is because we can only import using a CSB file something to copy and paste everything here. We're gonna go to file. I'm going to do it to new, and I'm going to go to blank workbook. Want something here? I'm going to, right click, copy. And I'm going to paste everything here. I'm going to click on this double click that can everything out this way. Okay, So we know how important is it needs to be in a CSP file again. It is also very, very important, especially for credit cards that any deduction. So any time we make a payment, it is a negative number, and you'll see why. Okay, So what to do now is I'm going to again. We need to copy and paste into excel. And we need to remove the balance column because we're not putting in the balance and we need to delete the category common because we need to put the categories in QuickBooks again. There is a much, much simpler way to do. This, however, is a way more complicated. It uses an application all QuickBooks called S A s, a anti sass and well, you can do is you can actually map all of this stuff out. You can have the category here that we just had. The balance is here, and when you can do is you can import everything one time. I can go over that in a separate course and is very helpful. However, for this course, we're going to add it manually. So the next that we need to do is you go file when you go to save as, and we need to save it somewhere. So once I'm here again, this needs to be saved as a CSB file common delimited file. And I'm going to call this the Americans Express import. So now, once I save it as a CSP file, I'm gonna go back into QuickBooks now, from this screen, I'm going to go to this file. Upload. Here something go here. We've seen this room before. I'm gonna go back down here to select a file uploaded. As you can see again, it needs to be a C S E file. When a select brows, it will take me to my American Express import from Select next. Now again, where is this going to mapped out to what accounts is going into? Well, where do the checking. So it's not that one. This is the American Express import so needs to go to the American Express credit card account. Looks like next make sure this is mapped out, right. The date looks good. Description is fine and finally need to add the amount. So I'm going to select next, as you can see is ready to import. We have all the transactions in here and then select next again, and we want to import 96 transactions. Okay, so now that we're here, we need to accept a transaction. Now, this is a very similar process to what we did with its checking account. Except for one major thing now The major thing is that we saw earlier that there were payments being made to this American Express accounts. Now, what we want to dio is we want to find these account first. Now, remember how we transfer the money because we're saying that it was a pay down of this, um, credit card. So what's very important? Here's as you can see. Remember how I talked about earlier when we went to the checking account, we moved over 6500 around $6500 into this credit card liability account. It's already being being accounted for in this register. So those payments this for 96 this to 956 is already in here. It's already on the American Express Register. So instead of double counting it, we're simply going to match and say, yes, this is the same exact same exact transaction that I already did. So this transfer of 4 96 already happened in the checking account, and it already happened in American Express. I'm simply adding it and again in order reconcile it. And since it's coming from my Excel file here, I'm going to match and say, yes, this is the same exact transaction. Some click match here. Now again. That one was easy because it was, you know Ah, interesting dollar amount and obscure dollar amount. It was also in obscure date. Now, these with same dollar amounts on two different day. Two different days. Excuse me. So I want to do is go over here. I want to say Okay, this is the first transfer that happened on 26. So it gives you the options about it for this case. It doesn't necessarily matter for other times, it will definitely matter and confuse you. If you do not select the right day, you can get very confusing. You have multiple transfers for simplicity. I made this one the first payment, which is on 1 26 I'm going to match this one. And this will leave me with one match left. So we're gonna say OK, match this as well. Now again, that is way more complicated. Way of doing things away of matching. Now you need to do that in order to reconcile. Okay, so now that we're here, we want to go through the same exact thing that we just did. So for the next five or 10 minutes outside of this, I'm going to add in all of the pays. And I'll do so. For example, I'm going to come down here. I'm going to go to the vendor pay. I'm going to say this is for Zo. I'm going to add this No to save. And I remember correctly in my credit card account. Zo me. Excuse me, sort by my description here, my Zo is a marketing expense. Someone go down here and I go down to marketing. And as you can see, it's going to add Zo and marketing for each bank details that we're bringing over. Okay, so in the meantime, I'm going to go through the registered here, the four of you tap, but I'm going to add a pay and category for everything. Now again, I want you to follow along with this Excel. This excel needs to identity to me. A direct match toe. What isn't QuickBooks? So did Zod already. I'm going to go through the rest of this ad in the payees and categorize it out. I will see you afterwards. Okay. So as you can see here in the last, you know, 10 to 15 minutes I went through when I categorize and I added every Peggy for every transaction that we have, I did this again according to the Excel that we have over here. Okay, so now that I have everything mapped out, I'm going to the same together for the checking account. I'm going to go to select all this top button over here. I'm going to batch action, and I'm going to accept the selected and watch my QuickBooks balance change. Okay, so now I have a negative $4322 balance, my American Express. Okay, so with all that being said, I now imported vocal Excel spreadsheets into QuickBooks online. So from here, there's only a couple minor things left to do. Left and the first and most important things that we want to reconcile. So in the next section, I'm going to show you how to reconcile the account and buy reconcile ng. We know that we're not missing any information from the checking account or credit card 9. Reconciling: Hi, everyone. Welcome to the wrecking styling, your QuickBooks account section. Okay, so this is the final section, and this is probably the most important section in this section We're going to know for right or not. And what I mean by that is do we have all the information that we need and is it going to the right account? Now? The easiest way to do this is we need to go back to our initial excel, the one that has our raw data on it, which is over here. And this is why we made this role data account and exported it over here. Because, as you can see, the balance is when we sort out kind of go all over the place. Now, if you can remember, this was exported directly from the client's bank account. He had a beginning balance of $5000 in the checking account. So if I follow along with this, this is his register in the checking account. It's very bottom down here. I'm gonna have his ending balance. And again, this is all recorded in your checking account or your credit card account. You can actually go date by date. month by month and reconcile month by month. In this case, we're going to do it all at one time. Just because this isn't an in depth training on reconciliations or where they go, it's really just showing you how to reconcile. Know that we're accurate or there were correct or not. And I made a mistake in the American Express to show you how we can tell that, Right? So what I'm gonna do is this. I'm going to take this ending balance, which is $9038.57. The next most important thing I want to know is I don't know what day is at all. So on 6 29 2018 he had a balance in the checking account of $9000. $9038. 57 cents. Okay, so let's reconcile this in QuickBooks in order to know that we're accurate or not. Okay, So, to get to the reconciliation, I now QuickBooks on the banking sharing. So, as you can see, I'm probably going to be fine here because in QuickBooks, I have a balance in $9038.57. So in order to actually know for, right, I'm going to go over here to the gear icon, then click on this. I'm going to need tools. I'm gonna go through reconcile. Okay, so now that I'm here, click out of these messages. They show up all the time in a recording. So I go down here now, as you can see, we set up our beginning balance. In the very beginning of this course, we set up the beginning balance of $5000 so my ending bounce is $9038.57. According to the statement, the ending day was on 06 29 2018. I'm going to hit start reconcile ing. So as you can see, we have a zero difference. This is what you want to see every time you reconcile, click out of this message again, as it is quite annoying. So QuickBooks and ourselves automatically imported and reconciled everything here. And we know that we're right, because the statement ending balance said 9038 I clear bounce in 9038 are beginning balance had $5000. We spent 78,000 and we input or had income? A peak. 2000. So simple math. We have the 5000 we add in the 82 of income and was attractive. 78 of payments that leave. This was a 9000 the re a dollar 57 cents balance. Now, if only it was this easy every time. Now again, most people call me because this usually never said zero. In this case, if you followed along, it should say zero. The reason that should say zeros because we took his data, which is over here. This is his raw data. This was exported directly from the bank account. So throughout the whole course, we manipulated this. We added in categories we called vendors payees. We added in the amounts etcetera. Now, in order to know that this excel made it into QuickBooks, we need to reconcile. So we reconciled and we have a zero difference. That means we did it were Don't we reconcile this account from here? We can go and analyze just the checking account. Now I have further information and further courses on reconciliation. How to reconcile? What? You know why it's so important. But just know that It's very important because we, you know, you never know if you're right or not. Unless you reconcile, you can say you have a $1,000,000 in the bank account. But if the bank account says you have zero, well, you don't really have a $1,000,000 you'll never know really the difference. Now let's go to finish now here and I'll show you simply I'll have done here. So we reconciled, right? We have all the information from the checking account in QuickBooks. We know that for effect. The reason we know for a fact because you've reconciled it to the bank account. We looked at what was in QuickBooks and he said, Okay, let's make sure all of this and QuickBooks is in the bank account and vice versa. We did that by reconciling again. We had a zero difference. We were able to reconcile. Now let's try to reconcile the credit card account. Someone over here. We just did the checking on my go over here to the American Express credit card. So again we had a $6000 balance. We got that from his statement, which is right here on the raw data tap as you can see, at the very top. On January 1st or second, he had a $6000 balance. Now, at the very bottom, we won't do the same thing on 6 29th over here, he had a 5692 and 26 cent balance. Now we know we're gonna be off a little bit, because when we're looking at the bank's green we had or I had a negative number here. So what? You know, what did I do wrong? Where what's going on here? And I'll show you briefly how to fix this. But just know that, you know, I did this on purpose to show that things can go wrong from time to time, someone over here and I go back to reconcile. I'm gonna come down here. Okay, so we're in the checking account, so I want to go to my credit card account. We have the right beginning balance now my ending balance or she's not putting the day. First ending date was 06 29 2018. In the ending balance on that day, Waas 5692 to 6. So it's 5692.26 Okay, so I'm to start reconciled. Okay, So it's giving us a zero difference balance, which is which is good. That's what we wanted it to Dio. However, you'll see things in here that are not clicked, right? So what are these? This means that this, for example, this is a good one to look at. This expense on to 22 2018 was coming from the bank, the bank account, and it was for a Chase MasterCard payment. Now, what this means is that this is in this American Express register. Now, if I go over here to my register, this is where I can see everything that's making up the balance. Now you'll see appear my ending balance is negative. 3401 and three cents. We know that that's wrong, because in my credit card account, I have $5682.26. So what's throwing off the balance? Why? Why is it not agreeing toe what this number says? Even though we reconcile, we were able to have his year difference. It's still wrong here. So what's causing now? The easiest way to do. This is you see these little sees and you see these little green boxes here. Now, as you can see, this was manually added from the bank feet. So when we imported all of our transactions, this transaction of $67 Unite Sense was in my excel. Now, what this means also is that this that has no check and no box was not in my excel. And I could do a double check real quick, So I loaded this to 25 57. I'll go over here and I'm sitting on a search for 2 25 Now, I don't have any payments in here for any expenses or anything for 2 25 So what does that mean? Now let's go into here and click. Let's see what's going on. So I'm gonna click into this particular transaction, get out of here, and I'm going to edit it. So, like, what? Why's this in here? What's going on? So now that we're in the screen, we can see that we keep getting pop ups. Um, we can see that the pay is chase. We can see that's coming from This is the payment accounts is where it's coming from. So it's coming from the checking account and it's going to the American Express. Now we know that this is wrong because this is a chase payment. This is not an American Express payment. So in order to change this, I want to select this category that I want to go. Okay. This is actually a non categorized expensive. You can change it right from here. So we go clicking on categorize expense. We understand and close now, this was reconciled in the bank checking account. It was reconciled their That's why showing this message it's OK to select. Yes. We didn't reconcile it in the American Express Register. We reconciled it in the bank. Checking register. Someone slipped. Yes. And now watch what happens when I go back to my reconciliation screen. Our shoes. Me. It's in my register screen that to 25 disappeared. Now it is now gone. It is now my own categorized expense register. I removed it from this American Express because it wasn't an American Express payment. There was a chase payment. I accidentally put it in the American Express, and I know that that was wrong. So I need to go through and figure out what else did I kind of do wrong? So if I had to guess, I put all of the chase into the American Express when really they were all on categorized expenses. Some go here and said, Save yes. Now you can go through and kind of poke around and see where they are. Or you can do this. You can sort by this check box on this check box is gonna give you the see what a C means that I was cleared. It was 10 and it'll be reconciled. That means that this made it through the banking screen and QuickBooks So what did it make it through the banking three and QuickBooks, And why isn't in this register? So, as you can see, I just quickly want over here and said, OK, there's one more big what? Right. This $8000 payment has no sea and has no green box. It's showing up in my American Express Register. Why is that? Well, because I made a mistake. Someone go here, click at it, and I'm going to change this and I'm going to get out of here again. and I'm going to call this and on categorized expense. Okay, It's not stable. Close Now. You see what I just did? I took it out of the American Express. Registered where it was in, was here first. No, actually, it wasn't a payment to American Express. It wasn't on categorized now is gonna get out of this register, and it's going to go into this on categorize expense register. Okay, Same message as before, We're not gonna be out of balance because we reconciled in the checking account. Somebody hit, save and close. Now we should have the correct ending balance here. So now we have 5692 to 6. And I'm gonna go over here, and I have my 5692 to 6. Now, I know that my ending balances is agreed. I have nothing else in this register that shouldn't be here. And I can just sort this again to make sure that that's accurate. I have nothing in here now. This was our body balance. This was automatically reconciled. Okay? Coming back here to reconcile. Now, I have the same $0 balance again. But I have no extra have nothing extra hanging out in here, right? So I'm going to say okay, we reconciled for the six months. I know that everything is in my American Express register. I'm not missing anything, and I'm not adding anything that shouldn't be there. It agrees exactly. Toe, what is in the bank account on that day? Okay, so hopefully reconcile ing is that easy for you again? There are courses. There is a lot of training on just a reconciliation alone. It is, You know, 95% of the reason that people calling me as a QuickBooks advisor Well, my bank account doesn't agree to the QuickBooks balance. Well, did you reconcile? No. Well, that's the first step. You will never know what's wrong. You'll never know if you have everything until you reconcile. So now they'll be reconciled. We completed the course. Congratulations. Now, here's some things that I would review. Now I am going to have a further course on how to analyze what to look for, where to look for it. But for you to get started. There are two major reports you want to look at. And the one is really the report that you want to look at the one report and how we'll get there. We'll go over here to this report section and we're going on here now. Our profit loss. Now, this is going to show me. Since it is now October 16 2019 it's going to show me my profit loss for this year. Now, none of this information that we did in the checking account or the credit card account were from 2019. This was all from the 1st 6 months of 2018. So I need to frame my record. I need to change the dates. Now you can do this number of different ways. The easiest way to do it. It's simply just changed the day here. So I'm gonna say this was for junior. First dozen 18 and it's through 6 32,018 OK, no one remembers. Want Excuse me? Run my run in my report here. So now we can see for the 1st 6 months how much we made first, how much you spent. And now we can also see what we spent everything on. We can see what we spent on home security. We can see what we spend on home supplies, but it's been a will be sent home on house cleaning, house repair, investment advisors, marketing, massage, etcetera. The client is now able to see over a six month period where this $80,000 went, so he brought in $80,000 right now, in a perfect world, he would have $80,000 left his bank account put as we know, we don't have that in there. We had about 9000 left. So where did the rest of that money go? Well and what the car payments and with the car insurance and with cell phones and with the charity, when the contractors Now from here, I'm not going to tell you what's important and what's not important where you spend your money and you know where you should cut back. But, you know, this will give you a better idea of where everything is going Now, you can also break this out by months. If you want to say OK, But what happened in the month of January, I could say okay when a free my report for just the month of January going to hit or on report here and so that was pretty good month. I made $14,000 that month. Now let's see what I spent. Oh, well, you know, I spent about 11. I have $11,000. A total expenses. Okay. Well, I have $2000 left over. So, you know, with this remaining 2000 you know, $2700. What should I do? Well, that's really up to you, and I'm not going to tell you what do with that money. However, you now know that at the end of January, you had an extra $2000 to your name. Write what? You know what can do with that kind of money. Well, let's see. Maybe you can cut back on the membership fees a little bit, and now your net income will go up. You'll have a little bit more month. Okay. What if you know, I needed drama marketing expenses a little bit. I realize I'm spending almost 300 hours a month on house cleaning. I've spent $2100 a month on health insurance, you know, kind of look at other plants. No. Here's some of the questions that I would kind of ask and start to you know, really die deep into what's going on here. Now, without going too much further into an in depth QuickBooks course, I'll just show you how to know what makes this stuff up now. Like I said, QuickBooks is very user friendly. You can actually click into each one of these categories and see what's making it up. So let's see what's making up this big balance. I simply click into here. I said, Okay. I had one big payment. That was it. OK, that seems reasonable. You know that. That's kind of my health insurance per month. Let's go out of here and see. OK, you know what looks odd in here? Um, you know, house Countrywide. Brian's house. Thank you so much a month. So we're clicking here, and we're gonna see Okay. You know, we had one payment for $24. Okay, Those good? Um, let's see here. You know, membership fees and rant. Okay. Shopping. You know what? My shopping on this month. Oh, okay. Now, here's multiple things. Now, these are all the descriptions that we had from the checking and the credit card account. As you can see, this 8 66 is made up of about five separate shopping payments. So you know, why did I spend so much in Macy's? Why they spend so much an Amazon? You know, Dad, by your suit of men's warehouse, you know what's kind of going on? These are kind of some of the questions that you can start to ask yourself, and you can kind of start to analyze your own report and say, OK, you know, now that I reconcile now that it's all in one place, you know, let's start to kind of take a deeper look into a month by month. You know what's going on? My mom Now again, Hopefully, with all this information, you're now gonna be able to make it a little bit more informed decision by month by month, a three month, a four months, five months, a six month basis, you know. So in order to end this course, I'm going to hop on screen again on camera and thank you again one more time for joining the course. I'm also going to make myself available any way possible to help you out. Whether it's a text message, it call if you have trouble with the data itself, accessing it, access in QuickBooks of you know, your numbers don't equal my numbers. You know, Feel free to give me a call, attacks an email, and I'll be sure to help out. See you on the next screen. 10. Closing and Thank You!!: hiring one. So you finished. Congratulations. Welcome to the end of the course. I really hope you were able to take something away from this presentation to that. If you have any questions or need some help with a particular area or section or something isn't quite working out along with the course, feel free to send me a text message, email or leave a comment below. I left my information up on the screen here. I wanted to really thank you a lot for following along and hope you continue to follow along with my courses. I would love to hear your feedback on how I am as an instructor in the course presentation . It's up. There are also other areas or Uggams you like to know. As far as budget analysis, QuickBooks online or accounting overall, please feel free to let me know in the next couple of courses. I plan on expanding from this verse one and really diving into the details of both accounting and QuickBooks online. Again, this was just an initial way to start to track and understand some of your finances. So in closing, I really want to show my gratitude and say Thank you so much for following along. I will see you in the next course