QuickBooks Online | Jacob Malousek | Skillshare
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9 Lessons (3h 54m)
    • 1. 1.1 Product Overview

    • 2. 1.2 Import from Desktop

    • 3. 1.3 Set up QBO

    • 4. 2.1 Best Practices

    • 5. 2.2 Navigate

    • 6. 3.1 Sales and Revenue

    • 7. 3.2 Expense and Purchase

    • 8. 3.3 Other Transactions

    • 9. 3.4 Other Tools


About This Class

Lesson 1.1: Product Overview - Know the Features of Your QuickBooks Online Subscription

Lesson 1.2: Import Data - Identify Steps to Import Data into QuickBooks Online

Lesson 1.3: Set Up Your Company - Recognize Steps to Set up and Modify Lists and Users

Lesson 2.1: Best Practices Identify Best Practices when Using QuickBooks Online

Lesson 2.2: Navigate Company Home Page, Customer Center, Vendor Center, Various Transactions Tabs, Quick Create

Lesson 3.1: Sales and Revenue Transactions Appropriate Sales-related Settings, Alternate Entry Points to Enter Sales Transactions

Lesson 3.2: Expense and Purchase Transactions Appropriate Expense-related Settings, Alternate Entry Points to Enter Purchasing Transactions

Lesson 3.3: Additional Transaction Types Additional Transactions Initiated Using the Quick Create Menu

Lesson 3.4: Other Tools


1. 1.1 Product Overview: just want to walk you through our first lesson that we're gonna have and learning QuickBooks online. Super excited to walk you through this lesson. Just so you're aware that this is gonna be broken down into some different modules and so on this first module, just to kind of get a started to just kind of let us understand what QuickBooks online can and can't do for us, I just want to kind of give you an overview of the product. So many people, I've had their first experiences. If you've had any experience with QuickBooks and perhaps the desktop product, Well, QuickBooks on Linus is a product that they launched several years ago. I had to tell you a couple of years ago, if someone was to ask me whether that they should be using QuickBooks online or not, I would have probably told them no, Right. I don't think that the product was ready. However, one thing that we've seen QuickBooks do is they have really expanded this program. They have worked very, very hard on this program to make it work. And I think now that this program is a phenomenal program for most businesses to be using. And so what I want to do is I just want to start off this morning and just kind of give you some overview of what QuickBooks online is now kind of by the name. We would assume that it's an online program, and that's true. The beauty one of the biggest advantages air. One of the biggest beauties of QuickBooks online is that this is actually a piece of software that's hosted in the cloud, which means that it's hosted on a server, some other place. Now that might be scary, but I got to tell you that when we start talking about these advantages, it really can kind of put us put our minds to ease at not only the security that we have with our files stored remotely, but the ease of access of those files. And so you know, one of the reasons that we find most people want to convert to QuickBooks online is just for that reason ease of access. And so, with QuickBooks online, it really doesn't matter what platform I am using toe access it. So what I mean by that is, if I was in a desktop product and Maybe I had some users who were more familiar with using a Mac and some users that used a PC well, in that world, they just weren't talking together. So with QuickBooks online, I can have a Mac. I can have a PC. I get the same access to the software. In addition to that, you know a lot of businesses. They'll run around with relatively inexpensive chromebooks. And so we could have a chromebook that we're using to access QuickBooks online. I could have a tablet that I could access QuickBooks online and even Mawr. Importantly is, we all probably have one of these devices in our pockets. And so we have a smartphone or some way to you know, whether it's Android or whether it's an apple smartphone. The beauty of QuickBooks online is that they have specially designed an app to work with your QuickBooks online account, which makes the interaction with your accounting system so much easier. And so what it does is it puts critical data at our fingertips. Now, I'm not gonna lie to you and tell you that the APP is completely full featured as the same as you would have if you were gonna access it on your PC. But it's super handy toe have when we're on the road and being able to see if a customer owes you money to create a quick invoice to get an overview of where the companies that to be able to kind of look at ah ah, high level profit loss reports. You know, just yesterday I was talking to an insurance agent and I was kind of talking to about QuickBooks online in the in the advantages of it on. One of the things he said to me is He said, Jacob, I just I was sitting down with a client and we were estimating what his payroll was for the year where I needed to know how much he was going to spend on payroll first workmen's compensation insurance, and he pulls out his phone and he clicks a couple of things on his phone, and he's able to give that number to me, he said, I want that type of powerful tool in my pocket, and that's the reason that we're seeing so many businesses go to this platform so it doesn't matter if you're out in the field and you're talking to a customer. You're talking to a vendor. You're talking to your insurance agent or just you're just curious if a customer has paid you or not, you have access to that from that mobile device. Now that might sound a little bit intimidating, but I've got to tell you our experience of rolling out QuickBooks online too many, many different, um, organizations companies. We usually find that the person who is least tech savvy in that business organization is the one that gravitates to the mobile app. And so that's just kind of one of those things that it was one of those phenomenal phenomenons that we saw because it's so intuitive. It's so easy to use that we have people who are just gravitating to that. Now, the other advantage with QuickBooks online. The other reason we're seeing people who are using QuickBooks online is if I was using QuickBooks desk happened, I needed to get that information to my accountant. We usually had some sort of process that we had to go to. Maybe we're burning a backup and were given a thumb drive to our account, and then they were sending changes back to us maybe right. Or maybe maybe we have some workers who work at one location and some workers that work out another location. And so we were having to come up with these complex I T solutions to use the QuickBooks desktop product across different locations. If somebody wanted to work on the books at home, whatever that might be. With QuickBooks online, the beauty of it is everybody's accessing that file that's held in the cloud. So it doesn't matter if you're in one person's in Florida and the other person's in Oregon as they are entering transactions. It's really time. Everybody sees what everybody is doing Now. I use the example Florida, Oregon. It could be somebody who is in the same building across the hall that were the same concepts gonna work our fear across town. The same concept is gonna work. We're gonna be able to access that from virtually wherever we're at that we haven't Internet connect connection. Um, one of the things that we find that clients initially they get worried about having all their information in the cloud, right? And so that's kind of one of those those talking points that we have to overcome. When clients have information in the cloud, Is it safe? Is secure? Well, my thought on that is, is that I would probably guess that it's probably even more safe being a cloud based program, then having a QuickBooks desktop file on your computer that doesn't make sense. Somebody else has my data as opposed to being on my computer, your computers. Many, many thousands of times more susceptible to viruses, people hacking your computer than the server that is hosting your QuickBooks online. And the beauty of that. One problem we see with QuickBooks desktop is so often times people thought that that program was being backed up. We have a hard hardware failure. We have something that happens with our server and we lose data with QuickBooks online. That's just not gonna happen, right? So Intuit, the company that makes QuickBooks, has many different server centers across the Inter night United States. So one server center goes down, the other one picks up. You don't even know that it happened. You they have multiple different copies of your file, all safe, secure behind their firewalls that you have the ability to access so we don't have to worry about backing up our data. In addition with QuickBooks desktop every year, QuickBooks desktop came out with a new version of that software, and we would purchase that software and we would upgrade our company file, not a big deal. You want to do it every year. Some companies were doing it every few years, maybe over five years if they were really pushing it. But with QuickBooks online, the beauty of this is Intuit is constantly working on this software, and they're constantly upgrading this software. You don't even know that it's happening behind the scenes. Your upgrades air just happening in real time. If they're adding a feature to the software, if they're doing something like that one morning, you're gonna walk on, log on to your QuickBooks file on that new feature is going to be there now. There are some other things about QuickBooks online that I truly, truly love, and one of the things that I really, really like is that how I interact with my customers. So if you invoice your customers out, I like the fact that QuickBooks online probably does this mean you just a little bit better than QuickBooks test how, and the reason for that is that it's laid out just a little bit different than how QuickBooks that stop is laid out. So, you know, if I come over here to sales, is that all I need to do is come over here, look on my sales icon. I can click like where this has invoices. So this is super nice, because what this does is, you know, in QuickBooks desktop were kind of focused on particular customers, and we can we can look at it that way. Here, that's fine. But I can also see all my invoices that are open where all my recent invoices here and just simply by clicking this little button here that says overdue. But here's all the invoices that are overdue. So this is gonna allow you to look into your books and work, work on your books in just a little bit different way. So one nice thing about this is is that this also kind of helps you a little bit. So if I look at this, you know, cookies by Kathy shows me $75. Well, no wonder I haven't collected that. No wonder it's over. Do you see how this has not sent? I never even sent the customer the invoice. So it's showing me that and very quickly. All I would need to do is just click on this. I can either send them a reminder. I can send it. I can print it off right here. So you're just gonna go ahead and send that to that customer? Kind of gives me a little sample. What that's gonna look like this is all customizable, but a little sample. What? That looks like it just that quickly I emailed that customer copy of that invoice. Now, here's one other cool thing is that when I look at this and I'm sending invoices to my customers, customers via email, the beauty of this is that it's telling me whether this has been sent or not, whether that customer viewed that or not, whether they paid it or whether it's been deposited. Now, this viewed one. Some people look at this cowlick it gotcha. Like, um, you know, hey, this customers never looked at this invoice. That's not how I use it. I will look at these every week when I create invoices for my customers throughout the week . And if I have emailed them out, I'm gonna look at that to see if they've looked at that invoice. Well, if they haven't looked at that invoice what probably tells me you're going to check the ready to check the email address that I send it to the right person. By the way, if you send it to an email address and it gets bounced back when we first log onto QuickBooks, it's gonna give us on alert. But, hey, we sent an invoice to somebody and we had a bad email address so that super nice, it's just QuickBooks desktop. We're not. We're not getting that feature QuickBooks desktop, so you know, we could keep sending that invoice and it keeps bouncing, but we might not know it, but in QuickBooks online, we are going to know it. But how I use this if a customer hasn't viewed that invoice by the end of the week, I might send him another copy or I might print a copy out. I might mail it to that customer. I just want to stay on top of my collections here, and QuickBooks online is going to do a great job of allowing me to do that. Now, one of the things that super cool about this is that right here I've just how I got here, just clicked on all my overdue ones. I can select all of those in instantaneously send. Everybody knew copy were instantaneously. I can print out a copy of those invoices. You know, I've got 10 maybe maybe 10 or 12 there. Just that quick. I can put it all out, mail him off to the customers, whatever. We want to look at their. So this is a perfect way to help us relate with our customers and do that. So as we go through lessons, we're gonna talk about some of the features in this where we can have our customers actually pay us online. There's some super cool features inside of there. Now, one of the things, um, one of the things that I like about this is well, is some of us are going to use QuickBooks to track our inventory items. Now, if I was using QuickBooks desktop, I'm just kind of comparing the two If I was using QuickBooks desktop, um, you know, unless I had a really advanced version of that QuickBooks desktop. My my inventory method was going to be average cost. So if I bought something for $5 about something for about an item for $5 I bought an item for $4 QuickBooks is gonna show that the average of that is maybe 4 50 right? So I kind of do that math. It's gonna average those costs out. Well, with inside of QuickBooks online, we get some different inventory valuation methods that we can do For some of you, this won't mean anything at all. But for some of you, this is very, very important. And so I can use Fife Oh, as my inventory methods. So, first in first out, that's the most common way that ah, lot of businesses will track their inventory. So, you know, show that it will show you that that first item that you bought for $5 your cost on that was five. The second item that you sell cost you four, and so it, instead of the 4 50 averaging between the two, that might be something that's important to you. Maybe it is. Maybe it's not, but that's kind of one of those things. One of the other features I like about this is that the audit trail I contract if I have third parties tied into my QuickBooks one of the nice things where accounting firms air really liking people to be on QuickBooks online is they don't count towards your user account, but they can see what's going on in your books if you want to give them access to do that. But you can also see when they are logging onto your books and what they're doing. So that's kind of really nice to be able to see if your account is making changes. It will show up in here for you as well. Now, one feature that has been a little bit of a game changer for me is that when I come over reports and I'm running a report, we'll get, we're gonna get a lot deeper into reports and these lessons. But what I'm running to report here and let's say that I want this profit loss for last month, right so far this year, the last month kind of your year to date report what I can do with this report. This is super cool. I can custom I can save this customization. Just say like this is Jacobs report. Save this. There's some more features when we talk about reporting that will come back to you on this . But now it's in this customized report, right? So I never have to go kind of re create that. I will just go back into this customized reporting, can print it. But here's what's really cool about this, right is if I edit this report here, look at this. I can set this up to automatically email recipients this report at a certain date. So let's say that for our we want to send the business owner we want to send the board of directors. Ah, group of reports. Well, I just set this up once, and then I put on here how often I am going to send those reports to that to those people. I don't even have to think about it. It's just gonna automatically send those reports to him the game changer, right? And so this will make a lot of our jobs so much easier that this is just getting an automated process of sending reports to people now, another feature that people are really liking with this, and there's different tiers of QuickBooks online, and we're gonna talk about this. But this is one of the features that we like. So if you are familiar with the term class tracking, what class tracking allows me to do is be able to identify and expense for different departments. So maybe I have, um, or different locations. So maybe I have ah convenience store in town A in a convenience store in town. Be so I could create a class for that convenience store when I incurring expense in town? A. I could put it towards that store or, if I had one for the other story, could put it towards that store that's called class tracking. Well, the limitations that happen in class tracking inside of QuickBooks desktop is That's how I get a segment. I have one way to segment that, but let's say we're gonna use our convenience store example. I have to convenience store story store be, But maybe I have departments inside of there, right? So I might have fuel. I might have grocery. I might have deli, whatever that might be in there, and I want to be able to look at a profit loss for each store and each department. Well, that's one of the nice things that we got to do with QuickBooks. Online is that we can now track expenses by location and we can track it by class. So not only can I pull a profit loss report for Store A and store B, but I could also pull a profit loss report and see what each department inside of those stores revenue and expenses were. So that's something that is really, really kind of nice. Um, you know, I just keep saying that all these features are great And and they are, um, you know, one thing that where we're finding users really like QuickBooks online is that we know if we've been in a role of accounting or bookkeeping, that the bank account is what matters. We have to keep our bank account up to date. The beauty of QuickBooks online is that this justice is pretty much seamless. This is going to talk to our bank, and it's going to compare the transactions that have happened at our bank on, you know, on our bank statement to what's happened in QuickBooks, and it's gonna mesh those two together and it's gonna look for transactions that match up. It's gonna look for transactions that that are not, you know, that happened at the bank but did not happen in QuickBooks. It's also going to look for transactions that happened at the bank, however, because we've had a similar transaction to that before. It's going to suggest to us how we're going to get that transaction inside of QuickBooks. So the beauty of this is, is that I can keep my bank account up to date. I could do it every day if I wanted to. I could do a couple times a week if I wanted to. My bank accounts, my credit cards. It's gonna be talking to that bank, and it's going to be updating this now. Some of you might have seen the commercials for QuickBooks lately and they talk about a, um, you know, we've got a receipt. We can just take a picture of that receipt. And yes, from that app, you can take a picture of that receipt and the beauty of that. And this is a new feature. As of when we're recording this. Those receipts are gonna pop in here, and it's gonna help tie those receipts to transactions that have happened at the bank. We get into that, I'm gonna show you that. But I just wanted to I wanted to make sure that we saw that, and we're going to get into doing these bank feeds in another lesson. But I'm just giving you some overviews here of things that weaken dio. We could have unlimited users, the people who could track their time in here, or people who can, um, just look at reports inside of here. So this is great for nonprofits, right? So if you have a lot of board members, you want the board members that be able to have access to the books, But you don't want to build to mess with the books? Well, we can do that. You can have on a limited number of those now. Cool thing with with QuickBooks on online is that there's a whole community around QuickBooks online. What do I mean by that? Is that there are a significant number of APS that are being developed every single day that talk to QuickBooks online. So if you have so specialized need maybe Maybe you Maybe you're a chiropractor office or your dental office or your roofing company, and you might have some different software that's tracking your estimates or your patient stuff. You confined an app that will make those two pieces of software talk together. We also have APS organ. How help your employees track time. The list just goes on and on and on. A different types of APS that we can purchase that are gonna make our life easier for our specific industries in our specific needs. So that's kind of one of those things that we really, really like. So that's kind of what that looks like. The one thing that I just kind of want to show you here as we're wrapping up this first lesson is how much is QuickBooks? Online cost. So I've been talking to you about all the pros of QuickBooks online. There are some condoms and the biggest con of QuickBooks online or the biggest downside, the QuickBooks online is how much this is gonna cost you. Okay, so I am looking here, and I'm just comparing the different versions of QuickBooks online and just taking this right off of QuickBooks website. They have four different tiers of QuickBooks online. They start with simple start. They move up to essentials, plus in advanced. And so here's I'm just gonna you know, obviously I don't work for QuickBooks or Intuit or anything like this. I'm just gonna tell you how I see it. Um, you know, they have these big, bold prices here. Ignore those. Okay, let's look at the little prices up here. The simple start is $20 a month. Essentials is 40 plus a 70 advances, $150 per month. They do give you a little price break for the 1st 3 months. But when we're doing our price analysis, let's look at what it's gonna cost us. Once we were up on going. Okay, so simple. Start here. It allows us to have one user. The functionality of simple start is really, really just boiled down. In fact, I would almost say that simple start was created to get people to sign up for QuickBooks online. So that way they could quickly convert to essentials. So we typically don't even start people on simple start, we typically, if you're going to start using QuickBooks online. You're probably going to start in this essentials. Now, essentials will allow us to have up to three users. Obviously, it's gonna allow us to, um, do our invoicing track our expenses track 10 99 contractors pay use accounts, payable all that kind of stuff here. So that's kind of what we get. That's what we get with QuickBooks Essentials. This works for most people, right? So this is just gonna work for most businesses out there. What Quikbook says is the most popular. I'd probably say essentials from our experiences is the most popular option, but this Plus it's gonna cost you $70 a month. We get up to five people who can have access to this. Um, it's got a little bit more advanced reporting. It adds a couple of features here where I can track my project profitability. So this used to be one of the things that we didn't like about QuickBooks. Online art was because if you are a contractor, you're in the trades. We would never be able to do job costing very effectively inside of QuickBooks online. Now they came up with this new feature that's called track project profitability. And I actually think that the job costing feature inside of QuickBooks online is better than the job tracking feature. Job costing feature. Excuse me in quickbooks desktop. So I kind of like that. And then if I want to track physical inventory, I'm gonna be in that plus version there. Now. QuickBooks just launched a new version, obviously. Right. So, um, it is the advanced version of QuickBooks online. This is gonna allow us toe. I mean, we're just gonna really kind of build to blow some things out here. We can have up to 25 users. That's the primary reason that you're moving from plus advance is that you're gonna have more than five users who need access. This kind of coming down here, we can see that the features that we don't have in here is that we can really dial in the permissions of what people can and can't do. One of the arguments about QuickBooks online is that versus QuickBooks desktop is then QuickBooks desktop. I can really drill down on my my staff or the other people who are acting accessing. QuickBooks can do in QuickBooks online. You really can't, but They added those features in that advanced, um, in that in that advanced there. So and then we have some custom fields that we can that we can add to our customers and able to do things like that. They also say that you have this premium care with priority circle. I'm gonna be a little bit cynical here. I have priority circle care with QuickBooks. You know, with with my version of QuickBooks, I don't think it's any better than the regular support that we get from QuickBooks. So I don't really see that as a priority as a selling point there, obviously pushing it out as a selling point. But that's just kind of what that looks like. All right, so that's gonna wrap up kind of our overview of what QuickBooks online is. And so this is kind of just that really first lesson that we have in learning this, Um, stay tuned and we're going to You could just follow along and do the additional lessons as you have time to do it. Thank you. And we'll see you soon. 2. 1.2 Import from Desktop: we're going to learn on how we're going to start using QuickBooks online. And so we're gonna make a couple of assumptions here, or are You don't necessarily have to have those assumptions, But what if we're using QuickBooks desktop? And now, all of a sudden, we wanted to convert to QuickBooks online. That, we see is very, very common. So I'm gonna show you how to do that, Okay. And then maybe you're starting brand new, and you have some data and some spreadsheets you want to bring in. Okay, I'll show you how to do that as well. So let's start with the very first step, Obviously, is going to be able to buy QuickBooks online. So I'm just looking at QuickBooks Is website here? You know, in our previous lesson, we kind of went through these different versions of QuickBooks online, but you simply are going to buy whatever version you want to go with now, you could always upgrade these versions, downgrade these versions, whatever it is that you want to do. So you just start where you want to start, and then we can upgrade into whatever version we might eventually need. But you just gonna You're gonna pay for this. You're gonna sign up. You're going to create an account. Now, let's pretend that you are using QuickBooks desktop, and I've got all these years of information and QuickBooks desktop that I want to bring to QuickBooks online. Now, I can tell you, QuickBooks now makes us really, really easy for us to do. So let me just walk you through the steps of what that's gonna look like. So the very first thing that I'm going to do if I'm gonna go through this process and somewhere QuickBooks is gonna do this for you as well, but I'm gonna come over, and I'm gonna make a backup copy of this file. Right. So, um, you know, file back company created local backup. That's step one. I want you to create a backup of your company file. Second thing that we're gonna do is if I look here under the company tab inside a QuickBooks desktop, and I scroll all the way down here. I now have this little icon here, or this little selection that I have right here that says export. Your company filed QuickBooks online, so I'm just going again. Walk you through how easy this is for us to do. What this is going to do is it's gonna have us. It's going to say, Hey, let's get really move. Let's pack up your stuff. Let's let's let's go. So you can start your export to QuickBooks online. You're simply going to sign into your QuickBooks account For most of you, this next step is gonna be just a little bit easier than what we're going to see here. You may only have one QuickBooks online account I obviously have a bunch of. So what I'm gonna do here is I'm just gonna pull this down here, and I'm gonna find the QuickBooks online account that I created that I want to put this to . So you see how I've got Bob's gift shop here? I created QuickBooks online account called Bob's Gift Shop. So what I'm gonna do here is I'm gonna hit continue after I log, you know, obviously, I logged in. I hit. Continue. It's gonna say, Well, wait a minute. Are you sure you want to do this? Because anything that if you've done anything on quickbooks online, that stuff is going away. We're gonna take this information and we're gonna override it. So it's makes you actually type in the word agree right here to replace that data, Right? Says, hey, it's gonna prepare this file for us. You can see here that this process might take up to 30 minutes. Maybe it will. Maybe it won't our experiences that this if you've got a, you know, normal size QuickBooks file. This process is going to take just a couple of minutes for you. So we get this little we got this next little pop up here that says, Hey, we're on it. We're going to send an email right here. Once this is all done again, probably 30 minutes or less. You're going to receive that email saying that it's all done. Somebody hit. Okay, I've got that. And we're just gonna wait for that email from to our inbox. Now, I want to show you something here. Let's say you're like me and you're just a little bit impatient and you try logging into your QuickBooks online account before it's ready to go. You're gonna get a little error like this that pops up and says, Hey, there's a problem here. Don't worry. That just means that QuickBooks is working behind the scenes bringing that data. So what I'm gonna do is I'm just gonna stop the video. I'm gonna wait, tell you that email and we're gonna start back up again to see when that data comes in. Now, by the magic of the Internet, we're gonna fast forward. And, um, our data came in from that QuickBooks desktop file. It was just that easy. And obviously, since you can't tell what time it is or how long that took, I've got to tell you, it was under three minutes for all of my QuickBooks data to be imported into QuickBooks online. Now, I gotta tell you, probably if you do this. Ah, Busy. Maybe Monday. Tuesday morning. It might take a little bit longer, but usually we're not seeing it. Take more than 30 minutes for that to happen. Now, all that information I had in QuickBooks online is now in quickbooks desktop. One thing that we have, we have to talk about. A couple of things are not going toe happen when I bring that information over. So this isn't ah, 100% smooth. Now, when we were in QuickBooks desktop. You may have customized him invoices, and you might have had those invoices customized with your logo. All of that stuff on there that does not come over. Okay, so those customized invoices, credit memo statements, all that stuff did not come over into the QuickBooks online. You're gonna have to set that up in here again. We're gonna do that in a future lesson. But just to let you know that that has to has to work. If you've had memorized transactions inside of QuickBooks desktop or memorized reports, those are not going to come over and and work work for us that way, our reconciliation reports. So this is something that will probably the biggest glitch that we will encounter from time to time. QuickBooks tells us that, Hey, you're reconciliation reports are gonna come over. But for whatever reason, every once in a while, we see a company file come over. The last reconciliation does not come over with that company file. So you may have to do your last reconciliation on those bank accounts, credit card accounts, whatever that might look like. Don't worry about that. That's not that big of a deal. You can do that. If you were doing payroll inside of QuickBooks desktop, all of that information came over, but not as your employees didn't come over, as as it would need to be inside the payroll file. So you're gonna have a little bit of work to do via an interview just to make sure that the year to date amounts are correct and get rolling with this. The beauty of this is that, well, it's a good thing or bad thing, but one of the things if you're using payroll inside of QuickBooks desktop, it's gonna automatically recognize that and is going to sign you up for the payroll inside of QuickBooks online. So you may have to turn that off. If that's the future, you don't want Teoh. Um, you know, one question will get is that okay? Well, I converted over to QuickBooks online from QuickBooks desktop. Can I go back to QuickBooks desktop from QuickBooks online? So even though this just took me three minutes to go from desktop toe online, I don't want you. This is not something that we're gonna do often. This is just kind of a one time deal that we do. We bring it up. If, for whatever reason, we need to go back to desktop, QuickBooks has the ability for us to do that again. I'm not doing circles on this. What it means is like, oh, this weekend, I want to work on QuickBooks online. So all converted to QuickBooks online. And on Monday, when I get back to the office, I'm gonna convert it back to desktop. You're gonna create issues. If you do that, that's not what this is intended for in very there are some steps that you have to do. You have to work in Internet Explorer. A lot of computers don't even have Internet Explorer anymore. So you're gonna have to find a computer that probably has Windows seven on it. And you have the ability to from inside of here you can see that we can export our data. We have to kind of walk through a little bit of oven interview here inside of, and it's gonna require you to use Internet Explorer, install some Activex software, not a big deal. It works. It's just not completely smooth to do it we've done. We've done it in a number of times. We've had clients that did not like QuickBooks online or for whatever reason, something changed in the business. They wanted to go back to desktop. We've made the trip back. It's not completely smooth, but it can certainly be done. Now, one other thing that we can do in QuickBooks QuickBooks online. And I'm just gonna tell you, Let's just be careful if we do this. This is something that I really want you to think through before you do. It is you can import information into QuickBooks online from, like an Excel spreadsheet or from a different source. So, for example, if I come over here and I want to import data So maybe you didn't start in QuickBooks test potentially. Maybe you didn't start in QuickBooks desktop in your starting brand new. But you have an Excel spreadsheet of all of your customers. You can go up here and you can download a sample company file kind of copy paste. Put it into the format that QuickBooks wants it to be. Upload it, mapped the data in import that file. It works pretty well. Just make sure that you're just not rushing through this. This is something. I want you to think through. I want you just to check, make sure everything is lined up, and then we can do it that way. Now, in our previous lesson, we did talk about some kind of cool things is that there are APS out there that we can use inside of our that that really tie into QuickBooks online. Really, Really well. So if you have, let's say that we were creating all of our sales receives there were creating all of our invoices or we're attracting everything kind of an excel workbook, and I want to convert it over. There. You can see here is that there's some APS that we can purchase, and I've actually used this one before. This is a great app. Um, sas ants is. I think that's how you pronounce it Is the developer of this. I've used this a number of times. It works super, super Well, you can take Excel documents, and you can just shoot that information right in QuickBooks online. This isn't probably a you know, a novice is probably not going to use the software program like this, But if you go slow, you take your time. You go through it. It's gonna work out really, really well for you. So again, Pretty simple to move from QuickBooks desktop to QuickBooks online. If we need to, we can go back to QuickBooks desktop, and then we have this import area here again. How I got to that just went to my gear. Important data. And I have these different options where I could bring in bank data, customers, vendors. I can't even download my chart of accounts like so, if I had my chart of accounts and Excel workbook, I could do that as well. And my products and services that I provide my customers, which is really handy. Right. So you're vendor may have given you a list of the products that you sell you created. That's in a Excel spreadsheet. You can just load that right in here. All right, That's what we have for the second lesson. I appreciate you sticking out with us here today, and please stay tuned. We'll see you next time when you're ready to take your next lesson. Thank you. 3. 1.3 Set up QBO: Well, hello, everybody. My name is Jacob, and we're gonna be starting our third lesson and QuickBooks online, and we're walking through that. This will probably would be one of our longer lessons. This is where we're going to talk about how we set up the company. Now, when we go through that process of initially setting up our company file whether we're using QuickBooks desktop or QuickBooks online, it's important to turn on all the features that we need to have toggled on toggled off our user set up all of those different things in order for it to work best for us. So let's get going. It started here, and the first thing that we're going to need to do when we set up our QuickBooks online account is we're gonna have to set up our users. Now you're going to kind of see that if you're used to working in QuickBooks desktop, the layout of QuickBooks online does look a little bit different. However, once you get the hang of it, all the things that we were doing in QuickBooks desktop, you'll kind of feel where we need to go to do those things. And QuickBooks online So, for example, if I want to set up a user, I'm gonna come right over here to this gear. And a lot of times, this gear, a lot of the functions that we're going to do inside of QuickBooks, where we're changing our the settings of QuickBooks, we're going to go to the gear to find those settings. And so, as you can see, I have a little ah, button over here. I can select that says, manage users are having area I can select for that. So I'm gonna click on manage users and again, going back to our previous lesson. You can see that I am in the QuickBooks online essentials. And so I'm sorry. Yes, I'm in QuickBooks, online essentials here. And so I have five users that I have the ability to add. Well, I put myself in here. I'm the master administrator. Um, and so if I wanted to add a user to this, all I really need to do is just hit this little green button right here that says, add user and I can direct what type of user I want this to be. Now. I said I had five users in this QuickBooks online second set of five separate people to work in here. Now I can, as we discussed in our last lesson, if you have people that you just want to have access to QuickBooks, maybe two C The report's but not be able Teoh affect transactions inside of QuickBooks. I can set them up as a report on Li user. Or if I am using the time tracking feature inside of QuickBooks online, I can set them up for a time tracking only they do not count towards your user limit. So you just need to be up here. You pick if you want a standard user or you want a company admin. I'm just going to show you kind of have a standard user might look like Set that up and again. This is probably one of the things that we don't necessarily like with the lower tiers of QuickBooks online because I don't have a lot of flexibility in how I can set up my users. So I can kind of limit them here a little bit to customers, and, you know, they can do these things, but they can't do those things. I put on vendors, you know, here's what they can do, Here's what they can't do. So we have just to some very broad things that I could do or if you want to see, be able to do everything, you just click all right up here. So I'm just going to kind of come over here to say that I have and user that's going to probably create some invoices, maybe receive some payments. They're also gonna enter some bills, maybe pay some bills. Something like that. Um, this user is not gonna be able to see the bank account on by community. See the total income and expenses expense accounts for particular customers are obviously their neck male to see the financials. So I'm going to just go ahead and hit next here. Do you want them to be ableto remove users? You obviously put that in there. You want him to head it? Company info. Do you want to be able to manage the subscription? Those defaults there? No, that all you have to do. It's type in their email address it save. It's going to go ahead and send them in email, inviting them to do that. So if Bob at that weird email address would check his email. He would click on a link he would create his own log in, and he would be able to access QuickBooks based upon the parameters that we set up. Occasionally, some people just ignore that email or that they're not looking for it. And so if you ever need to re send that email, you can just kind of come over here and resend that if you ever need to, you can come over here and you can just delete a user. So let's say that Bob no longer works for the company. I can just come over here and I can delete Bob and Bob will no longer have access to any thing inside of QuickBooks. Okay, so one of the thing I want to show you when we're setting up users here and this is a feature that I as an accountant I really like is that I can click on where this says accounting firms here. Now, the beauty of this is that you can add your accounts and you can have up to two accounting firms on this, and so most of time, you just need one, but occasionally you'll have a couple of accounting firms who can see this. The really nice thing about this is from my desk, any of my clients, they're using QuickBooks online or any of my staff in my accounting firm. If they have a client, I can let give them access. To be able to see that client's books to do transactions to change modify things inside of there. It just really makes it really convenient for that communication back and forth between your client between the client and the accounting firm. It seamless. So we no longer have kind of those weird things that we were having to do before, like, you know, create those backup copies, perhaps even make an accounting copy to accountants copy on QuickBooks desktop to send it to him. We don't have to do that. So this is gonna be really nice. They're gonna be completely integrated in here. And if you want to invite an accountant, obviously just hit the invite. But put that accountants name and there went the only trip trip. The only little trick I will teach you there is ask your accountant What email address. They want you to set up with this. So we should be talking to our accountant. Just don't use the perhaps just don't use the email address you have for that accountant. A lot of times in accounting firms, they're gonna have an email address that where they kind of are managing all these QuickBooks files. So it just it's a lot easier for them if you can just send it just to that email address. And then that kind of loads it into that. Clients that accounts portal excuse. So that's just one little tip there. Ask your count. Would email address that they want that invites sent to. Okay, now, one thing that I want to show you here as it pertains to our chart of accounts and some coming up here where this says where I have my gear here and I'm coming over here to my chart of accounts and I can see all of my chart of accounts. Now, one thing that I kind of like about QuickBooks online. It really makes it easy for me to let's say that I had this this particular fixed asset account. I can just come right down here, and I can either edit this account and change the name. I could make this account inactive if I'm not using that account my chart of accounts anymore or if I want to. And this is kind of really handy's. I could just run a report right here for my chart of accounts and just see all of the things that went into this particular account. So obviously, this is just like a fixed asset. Not a lot of transactions in there, but we can see what all those are And then if I want to obviously I have this print icon. I could email this report. I could print it out. I could even save it as it exported as an Excel file or exported as pdf just kind of come back here. And I am gonna go back to my chart of accounts. Another thing that I could do inside of my chart of accounts. And, uh, I like this because it's a lot easier to do than it was inside a QuickBooks desktop. I could just come right up here to the very top, and I can just hit run report. There is every account in my chart of accounts And you know, if it's a balance sheet account, it'll have what the balance is on that particular account right there. So that's really nice for us to be able to dio. Now if you watch the previous video. One of the things that I kind of I really like about QuickBooks online is how it talks to our bank. And so this is somewhat of a seamless transaction for us to be able to do in making sure that this will talk to our bank. So I'm gonna walk you through actually, how we would set this up to have it talked to our bank. So the very first time I come in here, it's gonna ask me, Do you want to connect an account? This is very simple. You just connected account. You type in your banks website for the bank's name. Until it pops up there, Type in your user name usually does one of these things make sure you're not a robot. May have some security questions that we might see here. Maybe it will. Maybe it won't kind of depending on your bank or financial institution. Now, keep in mind, I'm connecting my bank account here, But I'm also going to connect. You know, I also have the ability to connect other accounts. They're coming in here, and I just hit Connect here. So here's the beauty of this is we can see here that I have all of my accounts. You know, this this linked up here. So it tells me moments ago this was updated with the Bank of Bennington. Here is the amount. Here's the balance. I showing QuickBooks and I have 49 transactions I need to enter. So what this did is this brought in those Those looked at the bank and it found all the transactions on the bank, and it brought those in, and it compared it to what was already in QuickBooks. Some of them were matched. Some of them are missing here, and we just go through and we can work these transactions. We're gonna We're gonna have another lesson on how we do this, but I just wanted to show you how we connect that. And again, if you have mawr than one account, you just come over here. You add that account, we go through that process all over again. Nice thing about this is. You know, some retailers will have a PayPal account, the QuickBooks online, our ability to connect that PayPal account. Here, you have a PayPal credit account. We have those in's and out's going out of that really, really nice. So I'm gonna do this not only for my bank accounts, but for any credit card I have. So if I have a capital one card there are a chase card. I will be able to connect those as well. So something for us to keep in mind. And that wizard, it works pretty well. One thing that you're gonna find as, um one thing that you're gonna find is that occasionally you know, and this is probably a good thing you're gonna have to re enter your log in credentials for that bank. And your bank is constantly changing the technology of how it's going to allow third party APS to talk to that bank. And so you know, every once in a while it's gonna want to make sure that you are you, and that is gonna be what it is. So just kind of keep that in mind is that normally it will just update on its own, or you can hit the update button right here. But I would say usually every 30 days or so, you're gonna have to log in. So if your password changes something like that, it's gonna lose its connection for you there. Okay. So I'm gonna show you some other things here how we're gonna manage our account settings. All right, So I'm gonna come up here to my gear, I'm going to hit accountant settings, and this is going to take me to where I can start to customize different things inside of here. So, for example, if I wanted to change my name here, I just have at it. Put that in there. Just like that. My e i n number. Whatever that looks like. Type that in there. If I want to tax form, you can just go ahead. And you can put this here kind of how my company is structured. So maybe I am a a limited liability companies, so I can just pick that there. My industry here if I want to put that so if I just want put in like retail retail Baker, you just kind of type in whatever your industry is there should give you a selection. What? Your company email information is what your company phone number is. What? Your addresses. One of the things that I think is probably pretty important is this market marketing preferences. So you know into it they're a great company into it's the company that makes QuickBooks. They're a great company. They're probably also even better marketing company. So you can have them. You can. You can tell them not to market to you here. Why? Just opting out if you want to. So that's kind of one of the things that you can you can do if you want to. There. I'm just going to kind of walk through these here. So under this usage tab here, this is kind of telling you where we're at. So in my level of of quickbooks here, I can have up to five users. We already discovered that I can have in my chart of accounts up to 250 accounts in my chart of accounts before they're gonna want me to upgrade to this advanced classes and locations I can between the two of those, I can have 40 which if we think about that. If we were to think about it from an accounting perspective, we wouldn't want more than 40 of those. Anyways, in most, most average size businesses were not gonna need more than 40 of those anyways, So coming down here to this sales tab, just kind of looking here, I could do some different things. And so one thing that we discussed in our last lesson is that maybe if you came from QuickBooks desktop and you're now on quickbooks online that you're the way your invoices looked, Maybe you had customized that. Well, that didn't come over to QuickBooks online. So they're gonna look different in QuickBooks online. Now. One thing that I'm just going to let you know what this is that we can come in here and we can select a new style for my invoice estimate or sales received over here on the right. They don't have a lot of different options for me to choose from, right. So I don't have the ability to to customize this the way I did in QuickBooks desktop. But we've really never had anybody with a whole lot of issues there, So you can kind of name your invoice template here. So you can call this like Jacob's invoice. However, we want to do that, I can come over here. I could put what content I want in there, so it kind of breaks it down as QuickBooks desktop does. I've got my header kind of my body here and then my foot. Or if there's certain items I wanna have in there, I wanted to display the discount. I can put that there so you can see. I can put a custom message down here that will print right down here on every every time we send out or print out this, either email this out or whether or not we printed out. These are the types of different things. I can adhere here, I can add. Remove different columns. I can edit what those air called my emails here. This is how I am. This is what your email is going to look like. And so I can kind and customize this a little bit. And this is this is one of the reasons I I am really, really Ah, positive person on QuickBooks online is because of our ability to email out our customers is so much simpler than it was in the desktop version. And it's so nice that we're tracking this and that we can see if our customers have received this or not in kind of go through there. They have a couple of different, a couple of different styles. Where I could do like a fool ranking is some. Their email will just kind of be summarized here, and they can print it or save it right from there. You can also determine whether or not in that email whether that PdF is gonna be attached. That message that's gonna go to your customer. This is where I'm going to customize this here. My subject line. This is what I'm going to customize it. I can use a greeting here, and it's gonna pull out the information on that customer. Put it right here. So, dear Ted Smith. And that's how that kind of work. Now I can also customize my reminder email. So if I need to send this out to him again, hey, you know, if you want, change your Burbage here, they're pretty soft, pretty friendly on that. Maybe that's what you want to use their to follow, or if you're gonna be a little bit firmer on your on your language there, you certainly have the ability to do that as well. And then over here, underpayments. This is This is an important thing for us to talk about is another huge advantage of QuickBooks is that I can let my customers pay me with a bank transfer. There's a small fee that applies to this. It's not significant, I gotta tell you, it's probably cheaper than if they mail you a check and you take the time to process that check and take it to the bank. It's probably less expensive than that. Or if you want to, you can apply for a merchant account, and you can allow your customers. When they see this email they will be able to do is click right here and pay that whether or not you use the bank feet, the bank transfer or the credit cards they write from that email, they can pay it to you now the just kind of the really nice thing about this. The reason I like that is from your perspective. QuickBooks is going to take care of the rest of the rest of the book worked for them. As soon as your customer clicks on that gets that email clicks on, it takes him to a secure website. They pay that either through a bank transfer or through a credit card, if you if you so choose. The nice thing about that is that inside of QuickBooks, it's automatically going to show that this invoice was paid. It's automatically going to record that deposit into the bank account as it happened in the real world, as QuickBooks had transferred that money from their credit card to your bank account. It's going to do all of that recording for you, which is going to save you a whole bunch of time. This is great for a lot of a lot of companies who, you know what? We set out quite a few invoices, and you know what? We're normally spending a lot of time processing payments, having your customers have the ability just to click on something and pay it totally worthwhile. You know, 11 story like to share is that my for my former landscaping company, they had this. They were using this module and it was so nice, because as soon as I got my monthly invoice, I was able to click on it and immediately pay it. So they were paid within a couple of hours. Well, you know, we things change. We had a different company now and in there, you know, they they still mail the statement to us in the mail. And you know, quite honestly, you know, I don't write a lot of checks. And so it probably takes me a week or two before I get around to kind of compiling the four or five things I need to run a check for and write out those checks and mail it back to them. So whereas the company that had this service I was getting, they were getting paid essentially the same day or probably next day. Um and then, you know, from the standard of mailing, it takes a couple of days to get there, then the process at all that other stuff. I think that this is a great future for you. So I just kind of wanted to show you that. So I'm just gonna exit this without saving, but I just want to give you a little what that looks like there, if I'm going to set that up some coming back in here into my account settings and we're just gonna keep working down here a little bit. So that's how I customize the look and feel of what my what that invoices gonna look like Or where that sales receipts gonna look like to my customer A lot of other content that I can put on those sale for sales forms. Do you have a preferred invoice? Terms? This is an advantage over QuickBooks desktop. Say they keep adding these little features that are nice. We can set it to fall terms on there. So hey, you know what? My customers only net 15 we can edit this and we can put that on there. We can set this up, so that way all of those invoices that I create, it'll go into Q. For me to print those all out at one time, you can put your parameters as faras shipping if you want custom fields on there. You know, if you want to change your transactions, transaction numbers to kind of follow a custom scale, we can do that as well. Products and services. Do you want to show the products your item names? Item numbers on there Turn on price rules. Now this one here, says Beta. So what a price rule is is this used to be six months ago. This used to be something that QuickBooks online did not offer. And if somebody needed to use price rules, they would have to stick in QuickBooks desktop. So what is a price rule? Let's say that I sell pins. I'm going to sell you this pin. Let's say it's an expensive pin. I'm gonna sell this pin for $10. That's my That's what customer walks in off the street. They paid $10 for, But I might have some customers that are preferred customers. Maybe they're under a maintenance contract. Or maybe they're just certain circumstances where we've done contract negotiations with him and they're gonna only pay $7 for that pin. Well, when I set up that item to sell, I said it for $10 but I could turn on price rules, and I can apply that to certain customers. So that way, when I create an invoice for that customer, this pin, they will only be charged $7. And so that's kind of what a price rule is. And this is still in beta. Which beta means that they're still testing it. That's get kind of a nice thing about QuickBooks online is that even if a feature is not completely ready, if they haven't fully tested it, they're gonna let the end users test it just so that way they can get it in front of them as quick as possible. Just some different things here to our track. Quantity of price levels. Progress. Invoicing again. Two years ago, I was telling people, I don't know. QuickBooks online is a great option. Today they're adding these features that make it work Progress. Invoicing is one of those features. So what is progress? Invoicing. This is We see this a lot in the trades. What? I mean, So if I am, if if I typically and going to do a project for a customer and they're gonna pay me in different phases, for example, if I'm gonna put a new deck on your house potentially, you're going to get 20% down for me. As soon as the materials air delivered your might, you might give me another. I don't know, 50% down. And then when we complete it, you're going to give me the last 30%. So what, That price level or that I'm sorry. The progress invoicing allows me to do is to progress. Build that out at the certain percentages or certain quantities. Whatever I want to do. Do you want to have a default message set on your on your invoicing weaken? Set that there. Do you wanna have a default message sent with your reminders? So, online delivery. What? Our email options here in statements. Do you want to show the aging table at the bottom of your statements? You probably do. That's why it's defaulted to Yes, over here. I've got this next half for expenses. And so what this is going to do is this is the other side of that. Before, under that, sales were talking kind of about our revenue side of it. What we're dealing with our customers, this expense side what we're dealing with our vendors here. So again, these air just little toggles that I can put in place to make QuickBooks work for me. If you do job costing you may want to have this on where it default every time you make an expense, we're gonna build that out to a customer. Not a lot of us do that if you want. If you want that, you can have it on. Otherwise, you just hit edit here, and I can turn that off messages. Do I wanna put message? Don't have hurt. Be able to use purchase orders of my vendors. I can turn that on off my messages here. Do I wanna have a default message on down here? Underpayments. This kind of goes back to where we were discussing when we were customizing that customizing our invoice. If you want into it, you want the ability and into it to be able to accept credit card or bank transfers, accept payments through, you know, on those emailed invoices. To be able to do that, we have to sign up for a merchant account through into it. Now we could go spend a long, long lesson. Our merchant services and people who will provide that service to process credit cards with you. I have to tell you into it is what I would consider a nontraditional processor and What I mean by that is there's all these traditional credit card processing companies out there, and then we have a group of non traditional credit card processing processing companies out there thinks square. Thanks, stripe. Think Pape out. I will put into it into that same group. And why I would put into it into that same group is because they're very straightforward and honest with you. In terms of this is what it's gonna cost. No more, no less. They're not going to have you in a weird contract with weird cancellation fees. They're not gonna try leasing you any equipment. They're not gonna try doing all those hooks that traditional credit card processes do for you. What's the trade off for that? Well, we find businesses who may be processed more than $50,000 a year and credit card processing . If you process less than $50,000 a year. In my opinion, it's a no brainer. Let's just use into it to process it. You might have a company that processes more than $50,000 a year. It may cost you slightly mawr toe. Have intuit do your processing. Maybe, maybe not. Depending on what type of contract you signed. And so but what we're seeing Mawr more businesses doing. And they're like, You know what? I know I'm gonna pay just slightly more processing through into it. But I'm gonna do it anyways because I just don't want to deal with a traditional credit card processor. I want everything integrated. I wanted toe work. I want everything just to be just fine. So that's how that works. You tell you, for the whole time I've had my accounting for my training company. I've processed through into it. I could have probably saved a few dollars trying to find a different processor, But for me, it just was never worth it. I always wanted to be able to just no, in the back of my mind. Hey, I'm not gonna have any contracts. I don't have to lease any special equipment. They're not going to try and get me one way or the other there. Very straightforward, honest and trustworthy when we were processing credit cards. So that's kind of one of those things that we can talk about their that I just recommend it . I like it. Click on this advanced half here And so these air somewhere, those advanced functions that we can do inside of here. So when we talk about accounting here, what's your fiscal? Was the first month of your fiscal year. So you know, a lot of us are probably January to December. If it's different, you can modify it here. Accounting method. This is really cool because I could default. My reports to either report to me on a cash were cruel basis. Kind of nice. Now, just because we said it a fault here, does that mean that if I'm looking at a report my profit lost report on it might when I run it? If my default is a cruel, it'll pull on a cruel I could still switch that report. Look at it on a cash basis, which would probably dio if you want to have the ability to close your books out. We can just do that here you put a closing date and then go from there. So some companies really some companies never close their books, which is completely fine. Some companies like Teoh Hey, once we get to the end of the year and we've sent everything off to tax Let's close that down so we cannot make any changes to the previous years. However you want to do that, what's your company type? Limited Liability s Corp. Whatever that might look like. We could change that right in here. So so proprietorship nonprofit. However we wanted to do that, we could set that in there. Chart of accounts. Do I want to enable account numbers? So sometimes companies will, in their chart of accounts, use account numbers. Not only the name, but the number. So your office supplies we have We have an account named office supplies. It's an expense account. Well, some companies will have a number that they will put in front of that office supplies. So it might be, you know, 52 01 is office supplies. And so when if I use those account numbers, it's kind of nice if we have multiple people who are accessing our books that that way people can code it the way that, you know, we kind of have this universal language for how to code it with account numbers Or, you know, sometimes we'll see companies that have multiple different entities. They'll use account numbers so that way those accounts will line up across across the those different entities class tracking. I could turn that on on. I can also have the ability to turn on locations. We briefly talked about this in our last lesson lesson. To where, If you do class tracking, where your tracking stuff by locations or departments, you have the ability to turn that on. Here in QuickBooks online, we get the extra feature to add another layer to that where I contract not on lee different locations, but under that I can also track the departments in those locations. We're finding that real estate property management companies that are using QuickBooks like this function because let's think about this. If I had two apartment complexes, those air two separate locations that I'm gonna I want to overall see what my revenue and expenses are for each one of those locations. But I can also have the ability now because I have that second layer to be able to determine what my revenue and expenses were per unit inside of those locations. So just you know, if we need that kind of insight in our world, it allows us to do that So this next thing I have down here is called automation. Do you want to pre fill forms with previously entered content? This is 100% your user preference. I gotta tell you, it annoys me to no other, so I always keep that is off. Do you want to automatically apply credits? This is one that I always turn on. Yes, I want automatically Apply my credits if you use billable activity. So, for example, you incur a cost. You pass that cost on to your customer directly. You want to automatically bill for this, and you wanna automatically apply bill payments. And so we can just have those different functions there that we turn on project tracking. We talked toe a little bit about this. This is a job costing. Plus, if I want to be able to If I'm if I'm in the trades and I want to do some sort of job costing this kind of job costing Plus, we're going to get into looking at the projects inside of here, but what this allows me to do is kind of create a separate area, and QuickBooks so going back to my example, we're gonna put a new deck onto my house. Okay, Perfect. So what that looks like is that I will have a little area inside of Quickbooks that I can record all the sales in all the expenses for that For me. Beal, determine the profitability of that particular project. Do we use time sheets for for our employees? We can have that turned on her off. What's your currency? Do you use multi currencies? Other formats? Here are other preferences here. What is my date format that I want. What's my number? Format? Customer label. You know what? What I call my customers do I call them customers and changes here. Maybe they're actually clients, maybe their donors, members, whatever. That is. It just kind of change that vocabulary in there. Do you want us to warn you if a duplicate check numbers ever issued, I just stick with this default? Yeah, I would like to know that. Um do you want to warn you if when you're entering in your bills, accounts payable? If it has already seen that bill number before that invoice number from your vendor, has it already seen that one before? This is really handy. If we receive a lot of in bills or invoices. However we want refer to it. If I receive a lot of bills from a vendor, I may not have realized if I had already entered one of those or not. So this is kind of give you a pop up saying, Hey, are you sure you want to enter this in? I'm already showing something with that exact same number used on it. And then this last thing that I want to talk to you about here is Do you want this to sign you out if you've been inactive for a certain amount of time? So if I have been inactive for two hours, I'm gonna have that sign me out. It's gonna hit, save on this, and they kind of save all my preferences, Takes me back here. I'm just gonna kind of close out of this. Now that I'm back on my dashboard, there's one last little tip that I want to share with you before we before we close out this lesson. So I'm gonna go back into my chart of accounts because if you remember, I stated that Hey, I do want to track account numbers here. Well, you can see some of my accounts don't have account numbers by them. So I could either go into each one of these accounts one by one and edit it and type in the number, or QuickBooks gives us the school little tool here where I can batch at it. These accounts, I could batch enter changing this name, whatever. We want to call that and come in here. And I can put whatever account number I want to in there, whatever that looks like. I just wanted to show you that. Hey, you know what we can match at it. Those that's cool feature that we have inside of there again. Just gonna kind of hit save here, you know? Well, what I'm done with something. I was just kind of go back to the dashboard. Kind of takes me back to my starting. All right, we're done with less. And three appreciate you hanging out with us today. I hope that you've learned some tips and tricks that you can use in QuickBooks online. Feel free to continue on with the lessons. And I appreciate you hanging out with me 4. 2.1 Best Practices: Congratulations. We are now in the second session of this course. We're gonna start of first lesson here talking about the best practices when using QuickBooks online. So give me a relatively short lesson, but it's going to be important to help you navigate through the software. So let's get started. Okay? So if we're going to use QuickBooks online, obviously it's an online program, so we're gonna access it via a Web browser. Lots of Web browsers out there. So if you're using Mac, you might have safari. We might have Internet Explorer. By the way, if you're still using Internet Explorer, you need to stop using Internet Explorer Microsoft Edge Firefox, Google Chrome. Now what we're gonna find in QuickBooks online is that Google Chrome is the best way to access this software. And to use this offer, we can use Google Chrome on Mac, or we can use it on a PC. If you don't have Google chrome, it's as simple as going to Google and in the search bar. Type in. Download Google Chrome and you can download it. It's free. Install that software, but that is the Web browser that we would prefer that you use. Now there's some things inside of Google chrome that just it works better with QuickBooks online. It almost seems like the developers of QuickBooks online developed it for Google Chrome. So it will work in those other browsers. It's just sometimes we kind of find that it will just feel funny. Things will act weird. So we're gonna use Google Crow now. Some things that I want to show you on QuickBooks online that sometimes we forget that we have access to the first thing that we can do is that we can work in multiple different tabs, so I can have multiple different instances of my QuickBooks online running. So that way, if I need a toggle back and forth and look at different things, whether it's on different screens or on the same are on the same screen, we can have multiple instances of this going. So let's just do this hypothetical. I'm in here and I'm looking at a report, but I want to be able to look at something else without leaving the screen. One thing that you can do is if you just come right up here to this tab and you right click on it. You see how I could just duplicate this? What this is going to do is open up a separate tab with my company information on it. It will always pick up where I left off. But here I might go into my banking section and I can look at something in here, pop back here and look at my reports so we can open up virtually as many different tabs as we need to. Now, if you have multiple screens, you may know this trick. I can take this tab and I could just drag it out here onto another screen if I want to. Now, one other thing. And this is something that I recommend everybody do in side of Google Chrome Weiqing create user accounts. And so how we do that is if you just kind of come right up here. Mind says Jay, because I'm logged in here. Um, I can come down here and down here where this says manage people. I can do that. And I can add a special person here. I'm gonna add a special person here, and I'm a call it QuickBooks user. And if you want to, you can pick one of these icons, and you can add that right there. Now, why would I do that? Is because when I'm going to do that, I can be logged in as myself here. Yeah, I could do all the stuff that I do on the Internet or I can log in under my special user. And just by clicking right here in that way, all of the Internet history everything that happens with using QuickBooks online is just gonna be in that user account. It's gonna make this so much simpler for you to t navigate that way if you have to clear your history or you have to clear if you have to clear all the cookies off of your computer on your tab, you probably have all the cookies from your bank. So that way you can log in your bank. Well, if we have to clear those out in order to make QuickBooks online work, I don't want you have to clear all your banking information, so just work under a separate user when you're using QuickBooks online and again, you can add as many of those different people or users as you want to. While you're navigating in the software. One other thing that we can do is let's say I'm over here and, you know, when I open up the books online, I always just kind of want to come to this screen here. Potentially. It's where I create my reports. You can also just create it. Put this little start here, and that will bookmark this and you can call it whatever you want to. And then I will just be able to go to my bookmarks and I will be able to find that really simply in my click on that will take me right back here so you can use bookmarks while you're cookbooks online. And that works out pretty well. Okay, so one other feature that I like is that if you're working in QuickBooks online and you want tohave another tab, I just showed you that you could right click up here and you could duplicate. But let's say, for example, you want to have a tab over here with your sales information. All you have to do is take one of these things. So I just kind of click on it. Singley and I take it my dragon and I drop it right up here. It created another tab so you can see that I have three different tabs going right now for the same QuickBooks company, which is super nice, because it's gonna allow me just to kind of work on different things at one time, flip back and forth, and that's gonna be that's gonna be really, really helpful. Now, I want to show you some things inside of here, so we have just like we haven't desktop. We have some keyboard shortcuts, and so how we can get a reference of those. And this is something that you kind of just have toe. I'm gonna put up here on the screen here what we're gonna type here. But if you click when you're in quickbooks online, if you click control all in the back space control the backspace, it will give me a pop up here and what this pop up does it does several things. The first time I just want to point out to is it gives you your company. I d. Now, if you ever have to call QuickBooks for support, they're gonna ask you for your company. I d. Again, I sit control backspace, and that gave me my company. I need but everything down here is all of my keyboard shortcuts. So if you're a fan of using keyboard shortcuts, this is for you. So what we can do is while I'm looking at this, for example, if I want to do an invoice, all I need to do while I'm in quickbooks is type control, and I don't want to write a check Control W and you can kind of just, you know, after you memorize thes, it'll be quicker for you to do different things inside of QuickBooks. So let me just show you what that looks like. So I was gonna come back here and hit control I And what that will do is you can see that that just brought open this invoice window. And so, from wherever you're at inside of QuickBooks control eyes, just one of those shortcuts. If I click that, it'll start an invoice for me. Now, while I'm in this invoice, I want to show you some other things that weaken Dio. And this is the same as QuickBooks Desktop is that I have date shortcuts now. I always use these So, for example, if I want to put today's date in there, I just type in a T will put today's date of their if I want to put the first day of the week in there, type in a double if I want type the last day of the week. Type of K first day of the month. Type of him Last day in the month. Type in age, first day of the year. Why last day of the year part. If you haven't picked up on the pattern there, it's the first ladders is the first and last letters of those words, so week starts with W. So you type in a W. That's the first day of the week. K is for the last day of the week M first letter in the word month h last letter of the last letter in the word month, last day of the month so you can use those keyboard shortcuts while you're working inside of QuickBooks. Now, the last thing that I want to show you here is that whenever we're in an amount field, so whether I'm typing in quantity, whether I'm typing in array or the amount here anytime I'm taking in a a figure there. I can use that as a calculator. I can I can have some shortcuts to use that as a calculator. So all you do is you type in your number and you can hit the plus key on your keyboard and type in the second number that you want to add together. And you could do a whole series of these if you want to. And as soon as you hit the as soon as you hit the tab key honest or as soon as we go to the next section here, you'll see that it will do the math for us. So 53 times to you see will do that 106 There. Okay, so that's kind of one of those keyboard shortcuts that you can you do math inside of there . The other thing that we could do inside QuickBooks online. If I hit the escape key, it's gonna say, Hey, do you want it? You know, let's say that we just want to get out of a transaction. We want to cancel it. Hit the escape kit. I'll say, Hey, do you want to leave without saving. And yes, I do. All right, so that takes us through this next lesson that we had. So our first lesson in our second Siri's. I appreciate you picking up on these quick tips. Thank you so very much and have a great day. 5. 2.2 Navigate: All right, We're getting ready to start our second lesson. Lesson 2.2 in this lesson. What? I'm gonna do something teach you how to navigate around in QuickBooks online. So if you were a user that was using QuickBooks best hot and you're converting over to QuickBooks online, this is probably our number one complaint is that how we navigate in the software is completely different? The good news is, if you were user who's just starting on quickbooks online, it is a relatively intuitive way of navigating around, finding different things. And so, in this lesson, regardless of where you started from or if you're just starting from today, I'm gonna show you how we go find different things and how we navigate around in the software. All right, let's get started. All right, let's talk about how we're gonna navigate through QuickBooks. And so let's get started here. And this is our lesson 2.2 and navigating around QuickBooks. The first thing that I want to kind of show you is what we're looking at right here is what we might call our home screen. Now, this is a different thing. QuickBooks desktop would and we were talking about our home screen. And this is typically where people get this thrown off a little bit because it looks different than quickbooks desktop. What I want to emphasize here is that when we're navigating around inside of QuickBooks, there is multiple different ways to do every function inside of QuickBooks are nearly every function inside QuickBooks, just as there was in QuickBooks desktop, we could we could start. We could start creating an invoice, for example, in multiple different ways. The same thing is true in quickbooks online that we can just navigate to find things in a lot of different ways. So I will walk you through what that looks like. But before we get started, I kind of want to lay out this home screen for you a little bit. What we were seeing here, what we're doing and what we how we're going to work inside of it. Okay, so one of the first things just to point out here is the name of our company. So if you were working in multiple different companies and quickbooks online, you're gonna want to pay attention to this. So this is the company filed that we're looking in and we can see the name of the company. The other thing that happens. And we'll see people who are using QuickBooks online for a long time, and they still have this set up screen here. Now, this set up screen, Aiken, simply hide it by just clicking this little hide button here and that will get rid of that set ups. Now, if I ever want to bring that back, all I need to do is click this button right here and that will allow me to bring that back . I'm gonna go ahead and hide it for the remainder of this lesson, so we just don't have to deal with it. So here's what that looks like. Just getting just hitting the high button on there. One thing that I like about QuickBooks online is on my home screen. I have these different boxes that I can see different things that are going on inside of my company. And so what I have here is my invoice is, for example, is I can see Hey, here's how much you have in invoices that are on paid, So I have, like, $5200 in voices that are not paid. But what happens inside of QuickBooks online? It's a little bit more intuitive toe where I can click on this. For example, right here I could click on where this says overdue, and it's gonna show me all of those invoices I have out with my customers that are over two . So that's really nice. It will allow me to drill down, kind of from this start screen or this whole page where I'm starting right here. It shows me my kind of major expense categories that I've had here. It gives me a little snapshot of my profit loss in here. I have a little bit of a sales craft, these air Good. But one thing that I want to make sure that I'm doing when I'm looking at that is I can change my dates. So, for example, if I want to look at my major expenses for last month, I just changed that there, and that will change this little change. My numbers right here on my sales find when I change that to let's say I want to look at that for the last 12 months, you can see my graph here of sales in the same thing here. I can change this toe last year, Whatever it is that I want to look at, this is a make believe company. So there's not a whole lot of information in here, but we can kind of see how, by changing these different dates here, I can see potentially What's my profit loss for this particular year? It just kind of gives me that snapshot of what it is that I'm looking at here. Okay. All right. So the next thing I want to show you on this home screen is over here on the right hand side is I have all of my banking credit card accounts. Now, this is really nice. Just a quick snapshot. How much do you have in your checking account? How much do you have in your savings account? So on and so forth. Now, if we have these accounts connected to our bank like we had showed you in a previous lesson once those update, it's gonna tell you how long ago it was that those accounts updated. And it's also going to tell you how many transactions you have to review. So how many transactions came in from the bank compared to what was in your red shirt. How are we going to review those? I can simply click right here. It will take me to the area where I can review those transactions. So it's really nice. Now, one thing that and QuickBooks online that's sometimes difficult is actually getting into our checking account registers or our savings are registered for our credit card. Well, right here from this home page or this dashboard. We're using all different terms to describe this. But right here you can see where I can just select go to register. And that's gonna take you right into that checking account, that savings account register, whatever that looks like. I can see the register right here. Now, there's multiple different ways to do this. I'm gonna show that too. But I just wanted to give you that overview coming back here to my dashboard. If your accounts are not connected to the bank, you could do that right here. Connect over here on the left is kind of all my menu selections right here. And so I can navigate to these different areas if I want to. If I want to navigate back to the dashboard. I just click this and will take me right back to the dashboard. One thing that we can do is we can get into our customer center from right here along these menu selections. So let me introduce a little piece of vocabulary here for you is we have these things called Centres, customer centers, vendor centers and what that is is That's kind of like your filing cabinet. To where, If you would imagine us doing everything with pencil and paper, we would have a filing cabinet that we would go to that would have your customers file in a list of all their transactions will inside of QuickBooks. We have centers in lieu of those filing cabinets, but I can still go to that that customers file and see all the transactions that have happened. So in order to get to our customer center, there's gonna be a couple of different ways from you to do this. But first, let me just show you here I can click on the sales, but then I can just click right here on the sales and I can select customers, and this will take me to my customer set. Now I think you might have seen when I highlight over here to sales, I can also just as a short cut, select customers. And it will take me right here to this. Customers show you some different things inside of this customer center. So what I can do here is I can search right here for custom solutions. Do you can You can even start just by typing in part of their names. And it's gonna bring up everybody that has that information in there. So, for example, I wanted to look at Freeman Sporting Goods. So I just started typing in free here, and I brought up Freeman sporting goods. And when I click right here, that's going to show me all of the transactions that have happened cream and sporting it. So all the invoices, all the payments, all of those different things are going to be shown right there. So this has come back here to my customer center. I did that just by clicking customers. And again, from here in the customer center, you can see all of your customers that are past due by simply clicking right here. on all your overdue customers, and it's giving you a list of all those customers that are over. Do no. Meantime, I have I've clicked on something to sort my customers down, and I want to get back to seeing all my customers. You just click right here that says clear filter, and that will take you right back here. Now, if you want to add a customer, you can see from this drop down here I can just I can click this button right here that says, new customer, It will start that process for me to set up a new customer right here. If you have your customers in Excel, you have the ability to import your customers right here as well. Now, down here you're seeing Okay, so I've got my customer, their phone number balance, and then I can take actions with those customers. So, for example, I could send them a reminder I could create an invoice for that customer. I could create a statement for that customer. Whatever it is that I want to do, I can also click this gear button here that will allow me to add new columns in here. So I just added a column here for their email are at a Coleman for their address. This will be really nice if you're in a service based company and we need to dispatch somebody out real quickly. I can tell you what they're address is, so that's really nice. Now some other features in here that I can do Ihsfah just click off of this click away from this gear is right here. I have this little email. So when I set up that customer, if I put their email in what this customer, I get this little icon right here that looks like an envelope and so I can click on that. And what that will do is it will go ahead and it will open up whatever email client you have. So I'm using. For example, I'm using Microsoft Outlook. Do you see how it started an email for me? So if you just need to communicate to your customer real quick, you don't have to copy and paste their email address from inside of QuickBooks. You just click that it opens up Microsoft Outlook. It puts that in there. And, um, you can type in your email here. So maybe we had a question on their order. Do you want blue or whatever that might be? You can see here that I can just do that simply by clicking this email, but really nice feature love that. It saves us so much time when we're communicating with Another thing that I can do is that I can sort my customers here potentially. If I click on this column right here, it says, open balance. It's gonna sort all of your customers in ascending order of their open balance by clicking again. It'll sort all my customers in their descending order of open mountains. So this is really nice of working through our accounts, payable whatever that is. You can click on that to see what's going on. All right, so some other things that we can do inside of here that I really like is if I click this right up here, this batch actions I can come down here and I can create statements for that. So for all my customers, batch action is the easiest way to create a statement for all of them. Just by clicking their here's all customers that are going to get statements so on and so forth and we can email those out. We can print them, whatever it is that we want to do. Clicking on that and getting out of there. All right now, another feature I want to show you so you can see I can adjust these column Listen here. I did that in Inverted Lee, but weaken Good to show you that you can just adjust those. So if you need to see more detail, that's not fitting on your screen. You have the ability to do that. All right, coming up here, whether says customer type, what this allows me to do. I don't have any type set up, but I can create new types of customers. So maybe we have retail customers and we have. We'll sell customers. What this will allow me to do is put a little tag on my customers. Teoh did know whether they're a retail customer or a wholesale customer, and by doing that, what that's gonna allow me to do is in a later lesson. When we talk about reports, you can pull out a report showing your sales for retail customers or your sales for wholesale customer. So if you have different types of customers, we can add that in there. And if I want to, I could just simply click on this customer here and I can edit them. And now I can add that type in there. So just in here I have the ability to add the different type of customer. So over here, under additional info, I can select that this is a retail custom. So here's kind of how I'm playing around with my customers a little bit. Okay, so the next thing that I want to show you is our vendor center. So here's everything dealing with our customers. But now I want to show you our vendor center. Ah, lot of these things are going to be very similar that we can do when we're navigating around there. But if I come over here and click expenses, I can click either here and then select vendors. See how that was two clicks or if I want to. Just by highlighting, are just hovering over expenses. Here I can select vendor, and so this is my vendor center. So venues, people, we owe money to a lot of those features air Exactly the same. I can search for vendors right here. I can add a new vendor right here. I could do my actions here where I can enter a bill. I can write a check to them. I could make them inactive. Whatever it is I would want to do, I can also click right here and show me all the vendors that I am past do with. Get rid of that filter their show me, all my vendors. It again. If I click on a vendor, I can see all and hit at it. I can see all of that information for them back here in my vendor center. Or if I just want to see transaction history with the vendor I can click on. And then here's all the transactions that have happened with that vendor Bender. Details here shows me the information. Sometimes I'll come up here and add it to see all the information where you can just go right here to see all their information as well. So it's come back here, back to my vendors. Another thing that we can do is we can actually use QuickBooks to prepare our 10 99 So just by coming down here, I can are just by clicking right here, I can prepare my 10 99 for my vendors. This will take you through a little bit of a process here. There's an additional fee that into it's gonna charge you to issue those 10 90 nines for you because they're gonna actually male. And they're gonna deliver him to your vendors so on and so forth and take care of all of those filings for you. So this is really nice. It makes that process of creating 10 90 nines so much simpler. All right, Just kind of coming over here back to my dashboard just to kind of show you I went into my customer center by going right here to sales customers. I can also just go right here to sales and then all sales. And I just this top quite a bit. What this tab is doing is this is showing me all the transactions that have happened. And so here again, I can click on all my overdue transactions. And what that will do for me is that I can see every invoice that is past due. You know what you can do here under this action tab. And again, I use this all the time is I can send them a reminder just by clicking right here. Send them a reminder it's going to create an email for me to send to that customer just by doing this, I just sent them an email saying, Hey, this was passed, Do you know so on so forth. We're looking to get payment on, or I have the ability to do batch actions in here under my sales tab where I can send everybody who has highlighted here remind. So in this case, I'm gonna send 10 emails just that quickly. So this is going to help us with our accounts receivable to be a lot more efficient in what , what it is that we're doing or if you still print things out, Or maybe we want to print all these invoices out. I can print them in batch by just clicking print transactions here, and then it will bring up the file for me to send to my printer. So here's all of those invoices. One by one, hit my print button, and those are going to go out to um, those are going to go out to my customers. No. Coming back here to sales transactions. I can come over here and again. If I just click that, it's gonna get rid of that filter, and it's gonna show me all of those transactions. You can see the transactions that have been paid were those filters. Here's all my Here's all my transactions. Yeah, Over here, you can see that we can import transactions so a lot of people will use, like, square. So they might be out in the field and they're accepting kind of on their square terminal. You could just import those transactions right in here. So all those invoices that were created in your square app can be imported in here. We also talked about being a little batch batch into transactions through an app through sands. And here we discuss that in a previous lesson. If you want to bring those in this way, you can do it here. I can also just a new transaction here. I can create an invoice. I can receive a payment. I can do an estimate. Created sales receipt. Maybe I need to do a credit memo for a customer. You can see that there's all of these different things that I can do from right in here. Now, if you already kind of started to think this remember how in the previous lesson I said you could do like a control I and that would create that would create in an invoice. So that's starting the process to create an invoice. There's many ways to do this. Come right here. New transaction created in our, you know, envoys here that will start. They'll start that process so again, a lot of different ways that we can We can enter things into our sales transactions. Okay. All right. So I'm coming back here to my dashboard. Want to show you kind of the next thing you so down here under where you have this tab that says accounting, this is a way that I can very easily get into. My chart of accounts usually gives us this little This will pop up here that says, Hey, let's see your chart of accounts. He cooked that. And here are all of the accounts inside of your charge accounts. So if I wanted to see my check register again, many different ways to do this. I could just come right over here to accounting chart of accounts and the one that opens up , I could just go right in here into my check register. Okay, That's nice. That allows me to do that. And then from here inside of my check register, I have different things that I could do. I have this pool down here where I could add a new check. I could do a deposit. Could do a sales receipt. Whatever it is that I want to do again, I can also get to that check register from my dashboard by just going right here. Go to registers and get to my check. Right ship. You're gonna find that there's just a lot of different ways to do to get into these things . And I write to where I was at a second ago and I can come in here and I could just write a check if I need to, Or it could do a journal entry transfer money between accounts, whatever that looks like that I want to do. Somebody's come back here and I'm gonna go back here to my chart of accounts, something that we can do over here on any of our profit and loss accounts is I can run a quick report. So, for example, I wanted to see all the transactions that have happened in my advertising expense account. I could just come right here, and I can hit a quick report, and that's gonna show me all of those transactions. I can also change the date range here of when I want to see those transactions, but allows me to do that quick Report Pretty simple. Also from inside of our chart of accounts here. Another thing that I can do is I can edit one of these accounts. I could also make one of these accounts inactive. Oregon. We can run a report from, so that is kind of how I'm gonna navigate through there. All right, So I showed you a lot of ways to go in and start transactions, whether I'm gonna create an invoice, whether I'm gonna enter a bill, all of those different things. And this is probably where some users get frustrated initially with quick QuickBooks online is that there's a lot of clicks that I would go through the sales invoices, New invoice to create that in place. So that seems like that's more clicks than I would do if I was using QuickBooks desktop product. But here's the secret that I share with everybody when we're using QuickBooks. It's this plus key appear is the quick, create key. Appear so all of those functions that we had just done. Whether I want to create an invoice, I want to receive a payment. I want to do estimates over here on my vendor side if I want to write a check if I want to enter a bill, if I want to pay a bill, I can do all of that just by clicking this little plus keep. So when I am training somebody to use QuickBooks online that has already used QuickBooks desktop, the first thing that I show is that quick create by because you can do most of the functions that you want to do inside of QuickBooks simply by clicking that quick create button. Now, one thing that is another little tip here I want to show you is that you see here with us as show less. This will be your most frequently the most frequent things that you do inside of here. So click that here's the most frequent things that you do are if you want to. And that's how I set it up as I was always keep it on this show Mawr. So that way you can see those different items get If you're new to QuickBooks online this button up here, this plus keep That's gonna be your biggest friend. That's how you're gonna navigate around inside of the software. This is gonna end our lesson right now for a lesson to to. I appreciate you hanging out with us. Um, thank you so very much. And we will see you on the next lesson. All right. Thank you, very 6. 3.1 Sales and Revenue: All right, We have made it to the third course in QuickBooks. I appreciate your signal sticking with me this this far in all the lessons, I know that this material could be dry and boring, but you are on your way to mastering QuickBooks online. I just appreciate you sticking with this. I believe that the lessons now or become a lot more interesting and maybe apply a lot more to what it is that you're doing day to day in QuickBooks. We laid the foundation. Now, in the next lessons, we're going to start to really use this software as we're going to use it each and every day. And in this next lesson, I'm gonna show you how record sales transactions in equipments. I know that could be just a simple has created an invoice. But with all the tricks and tips that I want to show you, I think I can make your life so much easier as you're doing this and more productive. All right, well, thanks for listening to me. And let's get started. Let's get started on recording our sales transactions. So this is less than 3.1, and we're going to go through this and we're gonna show you how toe control our revenue or how we get our revenue inside of QuickBooks. Now, before we do that, I want to give you some vocabulary. Right? So we're just gonna have a little mini lesson here on vocabulary before we get started, because I'm gonna throw us in terms. I want to make sure that we are all on the same page when it comes to using those terms. So the first thing I want to talk about us estimates sometimes will call those bids or proposals. But what that is, it's a non posting transaction. I can create an estimate for a $1,000,000,000. It's not gonna change your financials whatsoever. This is just kind of what we think that we're going to do for a customer. So we're giving them a bid. Your proposal an invoice is a sales transaction that records revenue and a receivable. So invoice a customer is going to pay us at a later date, which goes to our next vocabulary term. And that's what we call receiving payments will receive a payment from a customer. What that does is that takes that customers balance out of accounts receivable. And then we show that money needs to be deposited into our bank Accounts were, well, have a term that we call on deposited funds on deposited funds is something. It's a place that we're keeping money that we need to group together to build deposits, and we're gonna cover that in a later lesson. But just to give you that vocabulary of what on deposited funds is we also have sales received. So what a sales receipt is is that if the transaction and the receiving payment is happening at the exact same time, I could use a sales receipt, which combines the two functions of creating an invoice and receiving that payment. So a sales receipt does both of those into one transaction. We also have credit memos, and a credit memo is used when somebody returned something to us, and we need to deduct that amount off of what they owe us. So I'm gonna use a credit memo for that. I also have refund re seats, so customers already paid us, but they're bringing a product or a merchandise back, and we're going to refund, um, that money. So that's called a refund receipt. And then there is this thing instead of QuickBooks online that I really like because it's not as easy to use inside of QuickBooks desktop. And this is what I call a delayed charge. We're gonna talk about that. But what I can do is if I am building all of these different things that I'm gonna have to charge out to my customer. Let's say that world landscaper, that's the example we're gonna use in each. I invoice my customers out every month, but we mowed their lawn every single week. I can use these things called delay charges, so I just kind of set it in there every week when we perform the service. And then at the end of the month, I can grab all of those and I can create in invoice for that customer toe. Let him know that they owe us money. All right, so what we have to do is, if we're gonna use QuickBooks in this manner is we have to first set it up for us to kind of put in the different parameters of how we want to treat transactions inside a quick. So what I'm gonna do to do that is I'm gonna come up here to my gear icon. When I click on my gear icon, I'm gonna come over here to where? This as accounts and settings, I'm gonna click on that. And then what I'm gonna do here is you're going to see over here to the left where it says sales. This is where I'm gonna start to set up all of the different parameters of how I want to treat my sales transactions. Well, probably the first thing we want to do is make sure that our invoice looks and feels the way that I wanted to. That's how that's what's going to represented to my customers. So I do that by just clicking right here with us, says customized look and feel. When we come in here, we're gonna have any sorts of forms that we've had in the past. Well, this is our first time in here. We've never created a sales. So what I want to do is I want to come up here and I want to create a new one. Someone click on this new style. And when I do that, I can create an invoice and estimate the sales receipt. This is the template. This is what it's gonna look like, what my customers are going to see. So I have to build that template. So I'm gonna come in here and I'm gonna click on invoice here, and we can see here that this is what it is going to look like for our customers. Now, one thing that I'll just tell you is that this is different than QuickBooks desktop. We don't have as many different things that we can customize inside of here that we can inside of quickbooks desktop. However, for all the clients that we've dealt with, it's just never been an issue. So it is a little bit more limited. However, it just really hasn't been an issue. So one thing that I can do up here is I can change the name of it so I can just call this mine envoys or being call this movie service invoice. You know, what I can do is I can dive in with different templates here, but click on that. You can see that they have. So I don't know what we got here. Six different templates that I can select so maybe I want to do this fresh template. You see what that looks like? Arkan do a bold one. That's what that will look like. You just kind of picking one kind of as a starting point to what it is that you want it and how you want it to look. What I could do after that is I can put my logo on this if I want to seconds quick right here at a logo, and it will allow me to it. Allow me to put one in there. I'm working in the sample company file. So it's not going. Allow me to load anything up there. But if I If this was your company filing, you could certainly do that. I come right down here where I can splash this with some color. So maybe, you know, if you have a certain color type that you want, you can put that right in there. They were in use this kind of green or whatever that might look like appear. If I want to change my fonts, I can certainly change my fonts right in here, Toe, Whatever that looks like. That one doesn't look too good so I would probably change it toe something like this, and then I can if I want to. I can kind of see what this will look like when I'm gonna print this out. So what do you want your margins to look like? Maybe you have letter had already that you're using. So if you put that on there, it's gonna shift everything down, and so that's kind of we're gonna have their Here's where I'm gonna get into the body of what's gonna be on here. Um, I can come in here, and I could just click on the right and I can edit different things in here. So, as you can see appear in my header. I can change this if I want to. I can add my phone number here. My email here. I can change my address. But when I had my website, I can certainly do that. And just by clicking this button here, you're going to see that it's gonna add it right here. Here. I have some different things here. So where my form numbers are, I can have my invoice print on their my invoice number print, and there are not have it put on their my form names. What that means is that this will say invoice here. If I wanted to say something else, I can. And then here, Aiken display different things, such as terms due dates so on, so forth. And I have the ability to create some custom fields here. So where I can add my custom fields, we're gonna talk about this here in a minute. But we have the ability to create. Sometimes we just have data points that we need to create. I'm gonna show you how to create those here in a minute. But here, I just want to show you that we can apply those data points. So that way, for potentially one of our data points is we have a crew number on our landscaping. I can add that in there if I need to, and it will show up for my customers. All right. So flipping over here too. Where? This as e mails. Here's what this will look like is how do you want your invoice to appear in emails? You can put full detail, summarize. I always do this where you're gonna attach a pdf to that email. We can edit the name that your customer get with every email. So down here we can you know what? The standard email. We would be able to edit our settings here, subject line of those emails. You can customize those toe whatever you want. That toe look like on Dhere is your message to your customer. So this becomes your default message to your customers. And so you can customize this however you want that toe look. And then, obviously, when were we can also down here. If I click this when I send out reminders to my customers, what do I want that Borbidge toe look like? I can just put my different email settings in here. As I wish to dio, this gives you a little bit of a preview of what that looks like. Now, over here, I have this payment setting here. And so under this payment setting, I can select this to allow my customers. When I e mailed us out to my customers that they can get send a bank transfer to me. Now, there are some fees that apply to this or if I want to I can sign up for into its merchant processing, and they will be able to click and pay that on a secure website. Everything comes into QuickBooks and it will all be it'll all be taken care of. If that is something you're looking to do is soon as you finish this lesson, you're going to receive an email from me. And if you want to do this, I can help walk you through that process of setting this up. And if you set it up through my firm, what we will do is we'll negotiate a little bit better rates than what you might get, what you might get for setting this up on your own. So again, if you have to, you can set this up on your own. But if you're interested in it, I recommend you know, I can give you the pros and cons give you outlined with those fees Look like could potentially save you a little bit of money if I help you sign up for that. So just look for that email after this. After you complete this lesson and if that's something you wanted to do, we'll help you do that. Okay? So when I'm all done with this, I can hit done. And that's what my invoice is going to look like when it goes out to my customers. So this is gonna come back here and now you can see that I have this service invoicing here . If I ever want Teoh, I can go back in here and I can edit that. Do whatever I want to do with that. There was going to save and exit there, and then I am going to come back and we're going to go back into our sales settings to show you kind of the next little piece of this Over here, my sales form contact our content information. If I click this little pencil here, it's gonna allow me to change these different things. One feature that I like about QuickBooks are thing I like about. QuickBooks is in here. I can default my terms for my customers. Whatever those terms are going to be for my customers, I can set that up as a default. That is really, really nice. That's a feature we haven't quickbooks desktop in. What it will do is it will help us as we're going through our accounts receivable making sure that everything is lined up preferred delivery method. I can put here that I can going to send this out later. Which means I'm gonna group email all these out. I'm gonna print the model out later. Whatever that looks like. Custom fields. We just talked about that. If I have certain data points that I need to track for my customers, I can do that. So, for example, for a landscaping company, I want to put the crew number on that invoice that I'm giving them. So right here I have I can put that on there. You have up to three different sales. Things are sorry. Custom fields that you can put on here. Now, this is kind of one of those features that you will probably use. Do you want to use custom transaction numbers? If you don't do this into is automatically going to assign in invoice number Teoh each and every one of your invoices, and that's fine. We probably want them to do that. However, if I need ever modify that, for whatever reason, maybe I'm converting from another system to this system and I want to start with a certain invoice number. If that's the case, you'll put that there. I have the option to put a column on those invoices called service Date. We would use this a lot inside of service companies to if they if you might have an invoice date. But what's the date that we actually serviced that custom? We have this discount line, Adam here. So if I want to give my customers discounts, uh, I will show what that discounts gonna look like on their If if we do deposits from our customers What? That looks like tips. So on and so forth. I can just change those parameters right here. Products and services. So, do you want to show? Aren't Just click the edit button there. Do you want to show products and services on yourselves forms Most of us will. A new feature here is Do we want to turn on price rules? So any time where quickbooks and we see this little beta, it means that they're that they're testing something and they're bringing it out to us. Do we want Teoh do want toe, have the ability to use price rules. And so here's what price rules are is if you sell widgets. And so I think in a previous lesson we're talking about potentially selling remotes. And so if I sell remotes to my customers, normally we charge $20 for this remote making that, uh, But if I have certain customers that pay different prices other than my standard price, that's what price rulers And so having price rules allows us the set custom prices for individual customers. So if that's something that is it part of your world, you can turn that on right here. And that's where we would do that. Do you wanna track quantity and price in different rates? So I have all of those different columns on ourselves forms and do we want to track inventory? So if we're gonna use perpetual inventory, this is where I turn that on progress. Invoicing. So a newer feature in QuickBooks and so what this does is progress. Invoicing. If I turn this on, what that allows me to do is phase bill out my customers. So if I create an estimate for my customers and I do that work in certain phases, so I want to build to build them out in in phases, that's what we call progress invoicing. And so I can set that up here, and I can save that. All right, so coming down here messages If you wanna have default messages that show up on your invoices, maybe you have a little warranty disclaimer something along those lines. We can set that up right here. Miller. Cool thing is that maybe you every time you send an invoice out to a customer, you want it. You personally want to be copied on the email. So that way, you know that happened. Or maybe there's a sales manager. Somebody else wants to be copied on that. You have the ability to do that. Okay, coming down here. Reminders. I can just kind of change the different lingo that's gonna be inside these reminders. Online delivery. If that's part of our world, we can set our email options up for that as well. And then our statements here, we can set up our different parameters for our statements. So, like here, for example, I want a list each transaction as a single line item. Um, or you could even put the details on there if you like. So this is just kind of going through and setting up some of those parameters. OK, so the next thing that I want to do is just come over here to my advanced settings. And when we come down here in our advanced things, there's some different types of things that we may want to weigh may want to look at. So, for example, do you want to pre fill your forms with previously entered data? I typically don't do that. I will typically put here that I want credits automatically apply to my customers. Do you want to automatically invoice on build activity? We're gonna talk about that more here in a moment. I usually don't do that. And then do you automatically apply bill pains? And so that's for for accounts payable. Next lesson, Other preferences down here. I can set my date formats so on and so forth of what that might look like. It's just gonna ask me if I'm gonna leave without saving. All right, so now it's time for us to actually go in and enter transactions, as we talked about in the previous lesson. There are always multiple different ways of entering transactions into QuickBooks, so I'm going to start by entering this transaction directly into my customer center. How I'm gonna do that because I'm going to come over here where this cell cells and then over to customers. And so when I'm over here, what I can do is I confined a particular customer that I want to enter a transaction for. So let's go here. And maybe I have a That's were called cool cars. So I can either search manually through here, which is not difficult to do our Aiken type it in right here and then I have cool cars. So let's start by creating an estimate for this customer. So you can see here I found my customer, and if I come over here to my action, I can come down and I can create an estimate. So I'm just going to create this estimate here, and then maybe our put our service date whatever we might want to in their product and service. And maybe we're gonna do some custom design work, and here I'm going to say that that work is gonna be want or it's gonna be 50. That's $75 apiece. So I'm creating an estimate here for 3750 dogs. Just a hypothetical here. Right. So, while I'm doing this, I can also come in here and I can customize this description. I can change that. I can put a expiration date up here. Now. This crew here, this crude number, we probably wouldn't need that honor estimate. But this is one of those custom fields that we created because I said that I want to be able to change my transaction numbers here. I can give this a custom estimate if I want to. Now, next time I create an estimate. I just made that 1 5000 The next time I create one, it will be 5000 and one. It will always kind of progress up through there. Now, if I want to. I can put a custom message down here if I need to. I can attach files to this if I want to, and then I just create this and I've got my customers email up here. And then what I can do is just down here is I can save and send. I can save and close. I can save and create a new one down here. I can make. I can print this out, whatever it is that I want to do. I saw it can print that out if I want to. So this is how I create an estimate from inside my customer center. So I'm just gonna hit saving sand, and we're gonna go ahead and just email this out to the customer. You can see that we can change the body of this, and then I am going to hit, sending close. And that's how I create that for that particular custom. All right, so now I have my customers up here are back in my customer center. And so if I just click customers here, it kind of gets rid of it Will get rid of all of those filters. I'm starting to click this here, and I'm going to get rid of my search here, Laura. So now come back in here to my customer center. I can see all of my different customers. So now when it's time for me to create an invoice from that customer, all I would do is I'd find your customer cool cars here pop down here and I can create an invoice. So you can click on this right here to create an invoice and let me show you what this looks like. So I've got an invoice now, going back to our vocabulary and invoice is a posting transaction. So what will happen? Because this customer has an open estimate with us. Those are going to show up any time I create an invoice for that customer. And all I need to do is just hit ad right here, and it is going to bring up a papa. So because I had picked that we are going to do progress. Invoicing. I get this pop up had you not selected that you want to do progress? Invoicing. That entire estimate would have ruled over into this invoice so I could do that by just clicking. Hey, all of this is going to go into this invoice or I could say that Hey, 50% of it is going to go into this, or if you have multiple line items on that estimate, you can pick certain line items and see certain percentages off those line items to go on. So now I'm just gonna copy this. I'm just gonna do this for 50% and copy that to that end. Voice. And then that brings this up Right here. So now this invoices gonna be posting, I can print this out. I can send it to my customer, whatever that looks like, What I need to do with this customer, I have the ability to do that. So I'm just gonna hit, save and send here, and we've can now see what this is gonna look like. And I'm gonna hit, save in close on that. All right, So I just showed you how to do a progress invoice here, and that's what that looked like. OK, so occasionally, what will happen? And we're gonna This is a little bit difficult to show you, because how we set this up is going to be in the next lesson. But if we had items that we needed toe invoice out to our customers what we call billable items those air going all show up right here. So if we had an activity or an item that need to be built out to our customers from my customer center, bills will all show up right here so I can click right here and then for Amy's Bird Sanctuary. I had a unbilled activity or for video games by Dan. I had to build activities. So all I need to do is just click this right here to start an invoice, and you're going to see that those on build items are going to come and already be a part of this invoice for us to then, you know, go ahead and print out email, whatever we're going to do for this customer. So I'm just going again. I'm gonna save and send this off to the customer. You could print it out. Whatever you want to do that I'm gonna hit, save enclosed there. So that's how I'm gonna handle any on build activities that I need to invoice out to my customers. Probably simplest ways. Just come over here customers and select that on build activity. Another way that we can do that is if I was just to go and get rid of all of these filters , I just want to show you what this is gonna look like if we don't go there, and if I am going to create a new invoice. So let's say that I am going to use this video games by Dan. So I'm going to just come right over here to this customer, type them in. And now when I come over here to a new transaction and I created invoice, you're going to see over here that I have some items that I need to add to so I can manually enter these in. So if I had some billable activities for this customer and I forgot to go in and create in the way I had just showed you next time you create an invoice for this customer, they're gonna be right over here, and you can just added it. Remember how there was two of them when I had both of those in there? And then I'm gonna hits even sand print, email this out to my customer, whatever I want to do there. All right, I'm gonna go back here to my dashboard here, and I want to show you may be another way of entering sales transactions. And again, there are so many different ways that we can do this. But if I come over here to sales and then all sales, we looked at this in a previous lesson. here. But from here, I can go right up here. And I can just put new transaction and I can create an invoice. And I can just go right through here. Created an invoice type in my customers name here. So video games by Dan, and then I can create my invoice. However, I want that toe look. So that's just another way for us to get to that exact same place. So I was gonna exit without saving that there. The next thing that I want to show you is how we're going to receive a payment for my customers. So let's fast forward. We invoiced out cool cars, and now it's time for us to receive a payment. So they sent us that check in the mail. And so what I'm gonna do here is from either my all sales here or for my customer section, whatever way I want to do it is I can click on this, receive payment, or I can drag it down here and select that. So if I hit, receive payment here. This is gonna bring open my receive payment window. So what I'm gonna do here is I'm going to put in here. My customer That's already put in there for me. How are they gonna pay me? Let's say that he paid me cash over here. I'm gonna put the amount that he paid me. And here's an important thing. This is probably where most QuickBooks online users get into trouble. And that's this deposit to because most of the time this is defaulted right to your checking account. What I want you to do is I always want you to change this toe, have it go to on deposited funds here in this In a future lesson, I'm gonna show you how toe work those on deposited funds. But I want this to go toe on deposited funds. I don't want this payment to go directly into the checking account. We have a step before that happens. So always deposit this on deposited funds. And I'm just This is just how I record that payment so I can hit, save and new do my next one I can save and send and that will send a payment receipt out to cool cars. Or I could just hit saving close here. I want to show you a couple of things that might happen in the real world. Let's say that this customer short pays me. They owed me $1800 but they only paid me 1500. What is going to happen here is that when I come over here and I type in that $1500 what's gonna happen is that is going to show that they have underpaid me. And so there will be an outstanding transaction. The remainder of this transaction will be left out their outstanding. So let's say that they overpaid me here, let me show you what that looks like. And so if I type in that $2000 here, it is going to show that I have an amount to credit. So it's gonna automatically create a credit for that customer. All right, let's go back and just say that they paid me exactly what they owed me, and so it worked out perfectly. So all I need to do then is, as I'm done with this is I can hit save and close aide and said, saving new whatever that looks like a few other things on here. Before we do that, I can show you that I can type a memo in here. So that way later, we can kind of try to understand what what happened there. And I can also attach an item here, so I wanted to take a scan of their check. I could attach that on there if I so wanted to. So I'm just gonna hit C in close here, and we will be done with that transaction. All right, So the next thing that I want to show you is how we enter a delayed charge. So if I come up here, I'm just gonna use my quick read on this, So I'm gonna come up here, and I am going to click my quick create, but nor I was called my Plus Key, and I can enter a delayed charge here. So what? This will look like what a delay charges is. This is a non posting trans non posted transaction. And so what that will do for me is it will allow me to record things that are happening, that I'm going to invoice out for those later. So, for example, let's say that world landscaping company and we do gardening so on so forth every week we do it, but we're gonna invoice our customer out once a month. So let's just go here. I am a pick in his bird sanctuary. As my customers, I come down here, I could put whatever the service date is maybe by hitting the letter t open today's date on it. Or I could hit the hit of W. That'll put the first day of the week on there and then my product or service. So maybe we did gardening for them or weekly gardening service. We did that one, and our rate for that is $45. Now what happens is I can hit save a new enter my next one. Or I could just hit saving close once I hit saving close. Now what happens is every week I'm gonna be entering those delayed charges in for my customers, and I've showed you a couple of different ways to create an invoice. But normally how I'm going to go ahead and create invoices again, just coming up here to my quick, select key, my quick create key and hit invoice. Now watch what happens when I type in Amy's Bird Sanctuary. Do you see how I get this little pop up over here. And so let's say we had four weeks of gardening. Or maybe it was just one thing that we were that were needing to add to this final invoice . They would all line up right here. I only have one. So I'm just gonna add that right in here. It will create this line item Hey, on this date, this is what happened. And then you can again if you just have one. You just add the one. If you have multiple of you just out all of those multiples in there to create your final invoice at the end of the project or at the end of the month whenever it is that you're gonna go ahead and do that Billy, save, save and send again those same options here. So I'm just going to send that out to the customer, show you what it looks like and we're going to hit, save and close on that. All right, The next thing that I want to show you here is sometimes we're gonna have something called re occurring transactions. So if you are a service business, let's say we're a pest control company and So I'm gonna come up here, and I am gonna create an invoice for my custom. Maybe we have a contract with our customer that we provide pest control services for them each in every month. And so I'm just gonna pick on the same customer that we had before. So Amy's bird sanctuary and here I am going to say that we're going to do pass control. And every month I charge a me $35 to do pass control so I can just come in here every single month, and I can create that invoice or what I can do is I can make this invoice re occurring and a re occurring in voice. Just so you know, for the vocabulary in QuickBooks desktop, we call these things memorized transactions. So I'm gonna make this transaction re occurring by just coming down here to the bottom and clicking right here. This is make re occurring. And when I do that, it's gonna give me a little some options here. It's going to say that this is a recurring invoice, and what I'm gonna do here is I can put what the template is, what type it is scheduled my customer So on and so forth. What are my options? What? I want to print that out later. Do I want to include any unbilled charges in their toe? Automatically send the email. But probably the most important part here is How often is this gonna happen? This could happen daily Weekly monthly. So on so forth. On what day of the month is this gonna happen? Maybe it's gonna happen on you know, it's gonna happen by day by weak the second day or the third week or whatever that might look like. Here's the day it's gonna happen every six on every one month or every other month. Here's the date that it's going to start. And then here's the date that it's gonna end. If you put none here, it's just gonna re occur. Each never month. So what this is going to do is this is going to create an invoice for this customer each in every month automatically. So when I'm done with that, all I have to do is just hit save template, and that's gonna automatically create an invoice for Amy's Bird Sanctuary each in every month. Now, here's what's gonna happen. Sometimes we need to stop building out a me each and every month. So I need to know where to go and manage those re occurring transactions that are happening inside QuickBooks. So if I come up here to my gear and I have this recurring transactions, you can see here that Amy's Bird Sanctuary scheduled every month Here's the next time that that's gonna happen. And if I want to, you can see here that I can put this customer on pause. I can duplicate this for another customer. So the next time I get a pest control customer who who is $35 a month, I can just take all of those parameters of that invoice duplicated, change the name and they will start to become re occurring as well. I can skip the next one, or I can just delete it right here. So just by clicking, delete and he's never gonna get another invoice for us again. All right. So I hope that I gave you some insights on how getting revenue inside of QuickBooks is gonna work for you. This takes us to the end of this. This lesson 3.1. Thanks for sticking with me. Like I said, at the end of completing this lesson, you should receive an email. If you're interested in using QuickBooks for merchant processing, you can sign up on her own. Or if you want me to walk you to that, I would be happy to do that for you. Thank you. And have a great day. 7. 3.2 Expense and Purchase: All right, We're ready for our next lesson. We're gonna work on lesson at 3.2. That's what we're gonna talk about our expenses in our purchases inside of QuickBooks online. So what we're talking about is recording checks. Maybe somebody had already hand wrote a check. Maybe we receive a bill in the mail from one of our vendors. Or how do we record all that stuff that's happening on our credit card purchases that we're making on their credit cards? I'll walk you through. That's not what you came. Maybe. Look what the best practices are for your particular business organization. Thanks for sticking with us. All right, let's get start. Right. Let's get started on this lesson three point to where we're gonna talk about expense and purchase transactions inside of QuickBooks Justice we did in that last lesson. What I want to do is I want to give you some vocabulary that we can use. That we're gonna use here is that we were all on the same page when we're talking about these different things. So the 1st 1 is an important one. It's what we call a bill. And so a bill is a transaction that we enter inside of QuickBooks when we receive that document from our vendor. And what happens when we enter a bill inside of QuickBooks? It books that transaction to accounts payable and typically the expense side of that transaction. Now, this is something that we have to just kind of adjust our vocabulary. And what I mean by that is often times we confuse the word bill and invoice. Let's for the sake of our world. Let's call in invoice a document that I give to my customers, saying that they owe me money in a bill of something that my vendor gives me, saying that I owed them money, even though on the top of that document probably says invoice, we're going to call that a bill. All right, so in QuickBooks online, we have this other kind of piece of vocabulary that we didn't necessarily having QuickBooks desktop, And that's where we enter expense transactions. And so this is where we can go to enter in Our credit card charges are after the fact checks, different things that are that have already happened. We can go to that expense window, and we can enter those right there. We also have checks. This is pretty straightforward. Ah, check is where we're gonna enter a transaction that comes out of the checking account to show you how to do that. So that way we want to post right to that checking account register. We'll use the check function inside of there. One thing that we have to keep in mind. When we do that, when I say the word check, you might be imagining that little piece of paper that you sign your name on the bottom of it. That's true. However, it can represent that. But when we talk, when we use the word check we're talking about, any transaction that's coming out of that bank account could be considered a check. Whether it's a ch whether it was we used our debit card, whatever that looks like. We're using that word check to represent transactions coming out of their ah, bill payment is simply when I have put a bill into QuickBooks into my accounts payable. This is me taking that out of accounts payable and recording the transaction either to my credit card if I paid the bill with my credit card or from my checking account, whatever that looks like. Ah, Purchase order. This is kind of one of those things that we would use mostly if we're going to do physical inventory inside of QuickBooks online. What this does is that this is a non posting transaction. It's just kind of telling our vendor, Hey, I wanna order these goods it inside of QuickBooks. It says, Hey, we get these goods coming, And then I could take that purchase order and I can convert that over to a bill. A vendor credit. I think that was pretty self explanatory. When your vendor gives you a credit and you want to reduce the amount of money that you owe them, we would use that, Ah, credit card credit, Same type of thing. If we were using a credit card, we made a return, and we need to record that credit in there. That's what we would we would use for. That is the credit card credit there. All right, so let's get started here and again, just like when we were talking about our income. When we're recording our income, there's a few things that I want us Teoh. Just make sure we understand our settings. And so if I come up here to my gear and I can come over here to account in settings, what I'm gonna do is I'm just gonna change some of the settings here are at least identify what settings I want to look at. I think we can see over here that we have a tab that says expense. So I'm gonna click on that, and in here it's going T is gonna show me some different things that I can dio. So if I want entities again, I'm gonna come over here to the right hand side and I'm gonna click on my little pencil here to edit that, um, show item table and expensive purchase forms. Yeah, that's probably probably want to have that tracked expense items by customers. So this is if you do job costing, we're gonna wanna have this turned on. If you don't do job costing, it's going to save you time and you can just check on check that or it's gonna make our forms a lot cleaner. If we're not doing job costing mark expense items as billable again, this is going to be a job costing type thing. So if you encounter an expense and you want to pass that expense on to your customer, we would have this checked. Although this is rare. We see so few people who are using QuickBooks will actually use this Because let's say that we were a construction company and we were gonna put a new deck on the back of your house. I don't build a customer for all the nails and all the lumber. I just told me I was gonna cost $9000. It is on Lee. If we're going to give our customers a listing of all of our expenses and then here you can show them how much you mark that up. This is most commonly going to be used and cost plus type work. So again uncommon that we would do that. If we're gonna do that, do you want Oh, when we build those customers out those expenses, are we going to treat that as income so you can kind of change those things right there? An important one here is Do we charge sales tax? So this is where I could turn on my sales tax features right here. Default bill payment terms now, Probably not going to use this most of time. Each one of your vendors you're gonna have different terms with. But if you had a default term, you could select it here. Probably. I guess it probably doesn't hurt. Maybe just select like a net 30. If that's kind of your default, what you're going to pay to That's how often you're gonna pay your vendors. I'm just gonna save on that. Come down here to where this says purchase orders, and I can click on this. And this is if I want to use purchase words. So again, this is gonna be more along the lines of if if I'm using physical inventory, I would use purchase orders here again. I can do these custom fields here. I could do default messages on their whatever it is that I want to do. And then I can put some messages here on my e mails with my purchase orders. If I'm going to do that, he can see that we can just kind of create a custom email message here. Cancel it that down here under my advanced settings, okay, so another thing that I could do here's I can automatically apply bill payments. I would use caution with this. Normally, my default setting for this is going to be toe have this as off. And the reason for that is what we find is that, for example, we see a check come through to a vendor and there's an open bill out there form. It's gonna automatically say that that check goes to that bill. That sounds good in theory, but I guess we probably just Seymour issues with that than good come out of that. So I would want you to really think about that before you before you have that checked. Now hear this Pre fill forms with previously entered content. This is another one that I typically I typically do not have this set on. I typically turn this off again. We might think, Well, this Pete might be really, really nice, because if I type in a vendor, it's gonna bring in the last information that we've used with our vendor. Well, I got to tell you that again. We probably just see it cause more problems than it does help us, you know, by bringing that information over. So I'll typically turn that off. I will have. Or make sure that I automatically apply my credits from that I have with my vendors. Whatever. I'm paying a bill. If I have a credit with that vendor, I want that automatically apply right on there. Okay, so down here, under other preferences, do you wanna warn if a duplicate check number is used? I'm gonna always have that set to Yes. And then do you wanna warn if a duplicate bill number is used? I will probably change that, too. Yes. Yeah. I just kind of helps me there because sometimes, you know, we might have a stack of bills from her desk, and we just want to make sure that that has been that we haven't entered that in twice, so I always have that one on its It's really handy was gonna hit save on this. And then what we're going to do is I'm just gonna kind of come back. I'm gonna close out on loose. Sam done here, and I'm gonna come back here on to my dashboard. And then what I want to show you here is I'm gonna say the same thing over and over again. here is there are multiple ways to do every type of transaction inside of QuickBooks online . So what I want to do is kind of show you may be the long form. Here are how we could do this from inside of our vendor center member. In our previous lesson, we talked about working in the customer center. We also have a vendor center that we can work inside of here. So what I'm gonna do is I'm just gonna come over here to my expenses that I'm still click right here, toe vendors and we're gonna be inside of our vendor center when that opens up. So you can see here. Here's all of my vendors. This looks similar to my customer center, where I can see I could click right here, and I could show all my past dues. So here's all the vendors and passed do with I could clear that filter if I wanted to. So one thing that I do from in here, and so let's just say I got Bob's burger joint here. If I received a bill from Bob's burger joint here, I could come right over here, and you could see that I could enter a bill, so I'm just gonna do that. Show you what that looks like. So here I have a bill. And again, what this is doing is that this is showing that I got a document for my vendor and I owe them money that I'm gonna pay at a later date Now, whenever I'm entering bills. One thing I just want to really kind of emphasize a lot. Here is that dates are incl credibly important. So as we're going through this, I've got Bob's burgers here. I put my terms and my bill date here. This day is really important. What this date represents is not today's date, but the date that we received on that bill from Bob's burgers. So you would adjust this to whatever that date waas whenever we incurred that expense. And then we have our due date here that will be calculated off of our terms. This bill number over here, this is the This is the the bill number that comes from our vendor probably called their invoice number. But we'll just type in whatever that looks like, and then I come down here and I'm going to start to put in my categories of where this goes . So I'm just going to say that this one was for advertising and here I would put a description I typically will. And I'll say that this was for the the event in September, whatever that might be. Obviously that would be whatever it waas, I'm gonna put in my amount that I incurred here. So let's just say it was $2500. Now again, right here. You can see that this billable. What that is is again, if I'm gonna pass this along to my customer, I would have that checked right there. And then if I was going to do that, I would select the customer that I'm gonna pass this along to. So now down here in the memo, I could type a memo if I want to. So I could just put in here whatever that looks like. You know, full event, whatever it is to help you recall that now I showed you in a couple of different areas of quickbooks that we can attach documents. This would be the one area that I would absolutely want you to skin and attach these documents And what a lot of times these air coming to you in an email anyway. So just drag and drop that email right on there. And the reason for that is it's not gonna be tomorrow. You're questioning what happened here. It's gonna be a year or two from now. You're gonna question what happened here, and that way you can drill down and you can see that actual bill that came to you so kind of one of those things that we could do. So what I'm gonna do here is I am going to hit saving new. We're gonna go ahead and we're gonna enter in our next bill. So if I come over here and I am going to just say, like, Bob's burgers again and we maybe we got our next bill from now, something I wanted to point out is remember, just a minute ago when we were in that settings and I had it not automatically pre filled the information that will give me a clean slate when I'm working in here. If I hadn't done that, would have brought over that exact same information that we had just entered. I'm not a fan of that. So I would just come over here and I would select my date for this. My reference number of my bill number. And let's say that this was advertising again. But this was for the winter jam. Whatever that I don't It waas $900 again. I could put memo all the stuff is still the same. Here. I am just gonna all right, So I'm just gonna save him, close on this, and then it takes me right back here to my vendor center. All right, So here's one thing that I can do is you can see here that I can come over here, and if I want to go paid that bill to Bob's burgers. What I'm gonna do is I'm just gonna come right over here, and I could select make a payment. You know, here in this bill payment section, I could select which ones I am going to pay. So maybe I'm just gonna pay this one. How I'm gonna pay that right up here. My gonna pay that through my checking account or my gonna put that on my MasterCard when I pay them. So let's just say it's my checking account here The date again. Dates are incredibly important here that I can put that right there. Reference number. So this would be your check number in this case if I was paying that with a check. However, chances are, if you're gonna pay these, you're actually gonna print that check out of QuickBooks. So it actually hit this print later, and that's gonna put it in Q for me to print out later. So again, you just select whichever bills you're wanting to pay here. And then what you can do is we can just hit save in close, because I'm I'm gonna print that check out later, and I'm gonna show you that here in just a second. So I'm gonna hit saving close on this, and that's going to then have paid one of those bills that we received from Bob's burgers. All right, another way that we can do this is if I was to go right in here and just click on one of my vendors. So I'm gonna can go into this benders account and from the upper right here. You can see that I can also enter transactions from here, so I could enter a bill right here. Same process that we just went through. I could go ahead and just enter a bill. You know, let's just say this is produced in subscriptions, so I'm just start typing it in. You see how it selects it here for me? So assumes it highlighted that. So I'm special use again. So by typing dues, do you see how I don't populated that news and subscriptions for me? So I am just going to assume, as it does, that I'm gonna hit the tab key. And then let's just say that it waas for $100 again, I probably put in description in here for whatever that looks like. Ah, memo down here attaching that document, and then I can simply hit save in close on this. All right, So then what that allows me to do is you can just kind of see the history inside of this particular This particular vendor, all the bills, all of the payments that we've made to them. We're gonna be right in here. Okay? I want to show you maybe how I would normally do this instead of kind of coming in here. I know we were in our in our vendor center, You know, either going right into the vendor account doing that or just pulling it down here and entering the bill. Probably the best practice. Probably the easiest way to do that is up here from your quick create button, or I was called the plus Key. So if I click on the plus key, you can see that right here I have the ability to enter a built so entering a bill, I'm showing you three separate ways to start this transaction so I could go right here and let's just go ahead and do books by Betsy here. Dates are important, and I am gonna put in here that we have an office expense for $25. Make sure you put the reference number on here. That's gonna be handy for you later. And it will also show up on that bill payment stub that we're gonna send the books by Betsy when we pay this particular bill that we've received from. So I'm just gonna hit saving close on this. All right, so those were the three different ways that we could enter bills. Okay, so I could also pay my bills up here from this plus Kia's Well, so hit my plus key here, right here where this has pay bills. And if I do it from here, the nice thing about that is that is showing me all of the outstanding bills that I have to pay. So the first thing that you're going to do is you're gonna pick the account that you're paying these out. So let's just say that we're gonna write a bunch of checks here to pay some bills. This tells me here in this account, here's what my balance is. Here's the date that's gonna be on those checks and then whether you are going to print those checks out of QuickBooks were most often going to do that. If you are not going to do that, let's say that we made him through our banks online. Bill. Pay Well, then you would uncheck this and put like E f t or something along those lines in here. So that way it did notes inside your register that this was paid Elektronik Lee, keep this is print later, and I'm just going to select the different bills that I am going to pay now. Something to keep in mind. I don't. I don't, missus. Oh, I do have it here. So you see here how I have two bills to that insurance agency. The nice thing about this is this is gonna combine those two bills into one transaction. And so it's gonna cut one check for those two bills and on the stub, it's going to show the details of those two bills. Something else that I can do is I can short pay one of these bills. So maybe at Bob's Burger joint, for whatever reason, whirling in a cinema check for $1000 instead of that $2500 we were going to send them. What that's going to do then, is next time I come in here, it's gonna show that I still owe them $1500. So if you're short pain somebody, something like that, that's how that's gonna work down here. It's going to show you that Hey, here's your current account balance. Here's your total payments. Looks like I'm gonna run this one in the red a little bit here, But this is just a sample company. So what I could do here is I can go right here to save and print. And what that will do is it's going to bring up a window here for me to go ahead and print those checks out. Now, in the in my example here, I've never printed out checks before. So what I would need to do is I would need to set up QuickBooks in order to do that. So when you print checks out of QuickBooks, you're gonna have to styles of checks either this voucher check or the standard checks. So most everybody, I would say probably 95% of businesses out there are going to use this voucher check. And then what you would do is you walk through these steps to make sure that the check align So you're printing aligns inside of QuickBooks. So if you are ever having problems with that, I do a really extensive lesson on this in our you tube page to show you how to get that get those like those real pesky ones to print. Otherwise, here you just select all the ones that you're gonna print and you hit your print button here, preview and print, and then you would put your starting check number appear. So let's just say that that 6000 preview and print does. This is what it comes up with here. And then you would just simply hit your print button to print those out onto your tax stock . Now, after you after you. After you're done with this lesson, you receive an email from us on. If you need help worrying, check stock. You can get check stock from a lot of different places. For example, you can go to Costco Sam's order it. That way you could order it directly from into whatever that looks like. We also have an option to where we can take care of that order for you and have it shipped right to your door directly from into it as well. So if you don't wanna mess with into it, trying to get figure out a place that order all that stuff, we can do that for you. If that's something that you're interested in, we'd be more than happy to help you with that again. I'll send you an email at the end of this lesson for you. If that is something that you are interested. Okay, So what we had just been talking about is entering bills. And so that's kind of a two step process. What we just saw there, I entered the bill and then later I pay that bill via check or whatever that might look like. You could if you want to. When you incurred when you have a bill, instead of going through all that process, you could just simply go straight to write a check and then print it right from that screen if you wanted to. Now there are some pros and cons to this. If you do that process, what will happen is it will be simpler. However, from a report standpoint, from where we're looking at our financials, your financials are only gonna be as good as we'll only be good on a cash basis. We will not get to see our books on an accrual basis. And when we talk about our reporting, I'm gonna show you why that's very important. So I want you to be able to see your books on accrual basis. So that's why I recommend when we go through the process that we would go through and we would enter that as a bill and then later we would go pay that whenever that was gonna happen. However, there are some things that let's say that the local high school comes in and you just need a kind of check for them for the for the yearbook at or whatever that looks like. We could just go in and we can write a check. Or maybe we have somebody who's out in the field and they hand wrote a check. Or maybe we have somebody who used their debit card on that checking account we can go right through and we can just write that check. So what I'm gonna do is again here for my plus key are my quick create key. I could go right in here and I can select check. So when that comes up here, I could just write a check to potentially Let's just say that this is Hill Properties. Here's my account that that's going to come out of payment date again. Dates are incredibly important. So what, there were gonna pay this? If I am going to print this out, I'm gonna leave this here to print later or if I am recording the transaction that had already happened, I could come right over here. And I could put that check number in here if I wanted to. I'm going to keep this is print later, and I'm gonna put this as rent or lease, unless just say it was 14. 50. Just making that number up really does not matter. And so what I'm gonna do here is I'm just going to show you that. Then I'm gonna hit, save and new. I want to show you something else here. So if I pick this so I'm starting new check here. But let's say I pick this particular vendor here. Diegans. Now, do you see here? And this is a feature I like about QuickBooks online Is that when I'm entering this check, it is gonna give me the option and say, Hey, wait a minute. You have an open bill with that with that particular vendor. Is this what this really is related to? And if it iss, it will automatically add that right here, and I can put it in there. So that's kind of one of those nice things, too, is that there's just multiple, different ways to do this. But I'm just going to show you that QuickBooks is gonna catch you if we're doing something and it sees that. Hey, wait a minute. We started this process by entering a bill. Now we're writing a check. It's gonna identify that. Hey, there is an outstanding bill that we want to use that in this case I did. So I am going to hit saving close on that. All right, so that brings me here to the next thing that I want to show you. If I had created a whole bunch of those checks, I went and I just entered all those checks and I had that little to print next to them. Well, now I want to print all of those checks out, or I have paid my bills, and I had that to print next to it. So what I can do again up here for my plus key is I can come right down here to where this says print checks, takes me back to that screen. This is very similar to that screen that we had just looked at. So what I'm gonna do here on this is I am going to hit, I'm willing to type in my first check number. This is gonna probably predict that for me. However, I can just type this in. However, I want to so say that it's check number, whatever that looks like. And then it kind of defaults to pick all of the checks here. But maybe I don't want to print this one out quite yet. But again, just preview and print takes me up to my print screen. I hit print and I send those out to my printer, whatever that might look like. So I'm just doing just quick. Pdf here because I want to show you what it looks like when we're all done. So then I get done here, and then it gives me this pop up in this pop up is important. It's going to say, Hey, did all of those checks print out? Okay. And the reason that this is important is because, um, often times like, if you're just starting this, you'll fix. Find out that your printer prints checks and just like these weird ways, and so you know, you might to set the checks in there and reverse order upside down, whatever that looks like. And maybe you printable out They all got ruined or something happened. Somebody you put him in the printer, and somebody else sent something to the printer, and they over printed those checks. So if they all printed out correctly, you could put yes, they put it out correctly. You could put some of them need reprinting or no, keep all the checks in this to print list, and then when I come back here, they're all still here for me to go start that process all over again. All right? So I'm just gonna hit close out of this, okay? I want to show you probably the number one reason that people use QuickBooks online or why people fall in love with QuickBooks online. It's how it integrates with our bank. And so if I come over here to my banking tab, I can click this here and then what this is going to do is this is going to bring up all off my accounts here that I have linked to the online banking, including my credit cards here that I've linked to my online banking. Now, if you have an account that a new account, and you need to add that you just come right over here to add that. Now, here's what's really cool. Once you put in your log in credentials for your bank, occasionally you're gonna have to update those, obviously, as your banks changes the passwords and so on and so forth. But all you need to do is you need to hit update here, and that will update all that information from your bank so you can see here. Like updated moments ago. We now have 25 transactions to review now. So over here, my savings account, I have one transaction to review. Another thing that we can do is if I click this update here, I can upload a file for my bank so you have the ability. If your bank, if you don't want to connect these two things together, you can download a file from your bank. It's called a Q B o file. You have the ability to download that file from your bank, and, um, what we can do there is just upload that file and we get the same results. So if you are having trouble getting them connected or for whatever reason, you don't want to have them connected. You can go to your log on your banks website. You can download a Q B o file and then you can upload it right here. So it we still get the same benefits of this, the banking transactions. It would just be a few more steps for you. It will automatically happen there. So if we look here, I'm just gonna look at my MasterCard here for for a quick second. It's trying to give me a little tour here in what I have here is that I can see here that I have seven transactions that need to go in. Now this. I'm on my tab here that says all but you can see out of those seven transactions, three of home were matched to existing transactions inside of QuickBooks. So what I'll typically do is all hit this recognized here. That way, I'm only looking at thes making sure that their what I want them to be I can select him all , and I can accept those in there works pretty well. Now I come back over here to my other transactions, and you can see here that this gave me the description that came in from the credit card company. All I need to do is I need to put the payee in here. So let's say that my pay here was Amazon. It was on software tips. Check in Amazon, and they weren't in there. Some Adama's a new name in Hit safe, and then here for my category. Where am I gonna put this to Let's just say that this WAAS office expense so we type that right in there. If I This was billable, I could put it there. I could do the memo right here. I want to add an attachment. I have the ability to do that if this is a split transaction. So part of this Amazon purchase was not just office expense part of it. Waas something else. So I could. But Amazon office Office expense was $40 of that. And maybe my dues in subscriptions would make up the remainder of that. Just giving you a hypothetical here. Right? So you can see how we can do a split transaction. You can add lines. You could do all of those things that you need to do right in there. So we have the ability to do that. So I just work these transactions one by one by one. And typically what I'm going to do is every week or several times throughout the week. If you stay on top of this and you're just working those transactions, your accounts are going to be up to date, which is just going to save you so much time and so much effort when it comes to the end of the month and more were reconcile in these out, so we would just put all of that right in here. Now, I want to show you something up here where I can click on this gear and just show you some different options here. So one thing that I like to make sure is checked. Well, first of all, I can add different columns here If I want to add a check number column. I have the ability to do that. I usually add that in there, Obviously you're not going to see that on your credit cards, but for my bake account, I certainly do that. And then one thing that I want to make sure that you have here. Is that copy of the bank detail into the memo? So any transaction that either came into her from our banker from our credit card, it has that memo. It has that description that came through. Well, typically, just copy that to the memo. So that way I can always I It will be easier for me to track things back and see what they're looking like later. All right, so in here, here's another one. That's good. Remember the category selection? So next time I type in Amazon, it's gonna remember that that category selection so on and so forth. Okay, so I just have to work these right here. No. Next thing I want to show you up here is that I can sort these by just clicking the call by by clicking the category here. So here, this found that on this week, clean, there was two records found. And so what I can do is I can view this, and what I'm gonna do is I had already entered in an expense, so I want to match that up so I could just hit match right there. Now that's important, because I'm gonna show you some other things here in just a moment. Ah, brand new feature inside of QuickBooks online that we could to do so again. So if I just found one record found here, I can just tie that right there. And here's where those come in, they're going to come in in a couple of different ways. One is if I manually enter expenses, I'm going to show you that here in a minute, it will tie these things together. The other thing that we get to do is this new feature over here called the Receipts. So what this allows me to do is I can either drag and drop receipts right here. And then when I go on, I'm updating from my banking tab. I can I can match those together. But what's really cool is that in QuickBooks online, we have our phone app. So whether you have an android er on apple, you have a QuickBooks online app. Really cool. What happens is let's say that were out on the road. We have a receipt. We simply take a picture of that receipt, and in there I will put that this receipt was for meals and it was on my credit card. Okay, You sit, save, and then those receipts go right. And you put it, you'll type in the amount. Don't tell you that it can identify them out, but you type in the amount. And then what happens is what we're updating these here. It's going to say, Hey, wait a minute. We saw that you scanned a receipt. Is this related to that? And then all you have to do is yet it ISS I'm just gonna match that up and I'll go right into that register with that receipt attached. This is cool stuff. I don't know if I can over under emphasize that enough. This is really cool stuff that if we have people who are out spending money with a debit card with a credit card boom, they take a picture of it with their with their smartphone. And then when we come in here to record all those transactions into the account, it's going to suggest that that transaction the match on that transaction, and it will already be attached. So that's really, really cool. Some other things I want to show you up here is up here when we're talking about are rules . And so when I'm in here and I click this rules here, here are all the rules that are created. So what's a rule? As soon as we see a trans assumes, we add a transaction into QuickBooks. Um, through this method, it will try to predict in the future what that looks like. So, for example, if in that that description that comes over from the account, it sees the word shell in there or it contains the word Chevron, it's going to select the category as automotive automobile fuel. And the nice thing about this is if I want to, I can edit those if I want to, so I can select those. And I can look at this particular rule. You can see here that I also have the ability to come over here and I can have those just auto add in there. So if it's one of those things that hey, we just know this is what's gonna happen, it's gonna automatically add those right in there. I usually don't use that, but you can. The other thing that we can do is we can create the new rule up here. So if I just click this great new rule rule name and let's call this Amazon and this is gonna be on all accounts, you can pick what accounts that this applies to. So when the text contains the word Amazon and you can add as many of these lines is you want to, here's what's gonna happen were treated as an expense. We're gonna make the payee Amazon, and the category is going to be office expense. Now, here is this feature that for years and years and years, people have asked me for So this is super cool. I can have this do split. So what I can do is I can have automatically do splits. Think about it this way. Let's say we have our telephone company that we have landlines and we have Internet. Is that okay? So I want to split. I want to have that. That transaction always be split what it comes in so you can split my percentage or you can split by amount, whatever that looks like. So let's say that on this one office supply, our office expenses always going to be 48% of this and then the other 52% Always gonna be dues and subscriptions. Do you see how I could build this rule? That if I have a transaction that comes from some place that I can I can split that up between different categories. So this is really nice. I like this. All right, so one thing that I can do here is do you want to just automatically apply this rule or auto? Categorize this. You certainly can. And you can always have a your default memo. You can have a default memo for this particular vendor. Come in. So these are really, really nice. I can't emphasise again. I keep saying this, but this is going to save you so much time when you're going through and when you're going through in your entering transaction. So this is gonna be really, really nice for you. And you are in kind of working through that doing that. All right, So one last thing that I want to show you is a different way that we can enter transactions in two QuickBooks. So if I come over here to my vendor center, we were talking about that before, but I also have this expense. Now, I'm gonna tell you that out of all the users that I see using QuickBooks, we probably don't use this feature a whole lot. So a lot of times are maybe we would if we're entering credit card transactions in there, so on and so forth. But what this is doing is that this is just putting that transaction inside off that registered directly. So this is gonna be for typically for after the fact transactions. 8. 3.3 Other Transactions: All right. So you just went through two really long lessons in learning how to put transactions inside of QuickBooks, Those air. Probably good beer along this lessons of this class, the next thing that I want to show you here is some just different types of transactions that we will put in there. I'm gonna go through several of these, and some of them are gonna be transactions that a lot of times will cause us to make some estates inside of QuickBooks. So I want to show you some tricks on how to will wait that. All right, let's get started. All right. So in this lesson, I just want to show you some unique transactions that we may or may not use instead of QuickBooks. So I'm gonna walk you through these additional transaction types that we're going to occasionally use. Okay, So the 1st 1 is that if you were doing payroll inside of QuickBooks, or if you are doing job costing inside of QuickBooks to where I'm keeping track of how much time we're working on a particular customers project, let me show you a couple of different ways that we're gonna enter that into QuickBooks. So the first ways if I come up here to my quick, select key or my quick create key again, I was called my plus. Keep if I come over here and click on that, you can see here that I can enter time for a single activity, something click on that. And this is my sheet here where I enter my time. So what you would do is you would put the date that that employees work. So you know, you're gonna go back through the week or whatever date it was that they actually worked your employees name. You'll put that there. You contract this by customers so you can select your customer that we would want to apply that to service item. So what this is is that if you have certain items that you bill out at a certain rate So this is regardless of what I'm paying Emily. But for every hour that she works, I potentially bill out, Let's say $45 an hour. That's not how much I'm paying her. That's how much I'm charging the customer for her hours. I can set that service item up here, so let's just say she's doing some design work, whether or not this is going to be billable back to the customer. So if that's part of your world where you build the time that you're the actual time that your employees work back to the customer, I would select this option here. Here, I can put it in the time, in terms of our so say it's one hour and 15 minutes. I could type that in there or if you want to. If it's easier for you, you can select this and just put what time they started and what time they ended. So whatever that might look like they're. If you want to put a note on here, you could certainly put a note on there. And then you would just hit saving new saving new in saving you again until you enter all of those individuals times. So this is a good way to enter just one item at a time. Okay, so I'm just gonna hit saving close on this, and I want to show you probably how most people are gonna enter time. So coming back up here to my plus key, I can enter weekly time sheets. So if I click on this to enter a weekly time sheets here, you can see that I can do multiple off these. So, you know, for cool cars already entered that one in there. Down here, you just select the next activity, and then I can put here, OK, They worked 1.5 hours on this day, two hours on this day, so on and so forth. And you can see that it's keeping a total by day and by customer here. So if you're going to use time, she eats a lot of you are probably going to use this weekly time. She just like this. In addition to that, I can come over here and I can print those out over here. Under this little gear, I have the ability to change some of those settings of the particular day. So let's say we never work on Sunday. Well, we can just eliminate that there. Right? So you wouldn't you wouldn't have to have that on there. All right, so then you know I'm done with this. I can hit saving new or again Aiken, just hit. Saving close. All right? The next thing I want to show you how to do is how we make our bank deposits and out of all of the areas and QuickBooks, this is the area that we see most people make mistakes in. So I want to show you how to do this, give you some best practices. So on and so forth, where that looks like again, I'm gonna go to my quick create plus button of here. In this time, I am going to select bank deposit. Now, in a previous lesson, I had showed you when you receive a payment for a customer, have that deposit on deposited funds. Okay, so Step one is I receive a payment from a customer I select on deposited funds when I received that payment. And then what happens is when I come in here to make a bank deposit, what's gonna happen is all of those funds and on deposited funds are going to be right here for me to use to build this deposit. First things first, though. I'm gonna select the account that I am going to make this deposit to the date that this deposit is going to be made. I am going to select the items for my on deposited funds that are going to actually be a part of this deposit. So I'm gonna say the same thing over and over and over again because it's so important. And it's the number one mistaking QuickBooks Is that right down here? That needs to be the amount of money that is actually going to be deposited into the bank. Okay, so again, number one mistaking QuickBooks, this amount of money is what actually means to show up at the bank and end up showing up on my, um on my bank account statement. If we do this our reconciliation process, our books are going to just be so much easier, so much clearer for us to do So. For example, if I had not taken the second item as a part of this deposit, and I only had this first item is part of the deposit and they were going to go to the bank in two separate deposits, you're going to do this process twice just to build it. So that way this amount right here is the amount that's going to show up at the bank. I know. I said that already wants twice. I'm gonna keep saying it because it's so very important. No, your deposit could be just a simple as this. However, Sometimes weird things happen in our business. So maybe what we did is we took part of this money here, and we went and we went to the post office and perched purchased some stamps, so I don't have all that money to deposit at the bank. So what I'm gonna do here is under this section here where I can add funds to this deposit . I want to show you something. It's part of sniping, like postage. Our office expense. Here. My description. Type in what I used here. Cash. Let me show you something. Here. Right here. I can type in a negative amount. See, what that did is that reduce the amount that's actually going to the bank? So that way, my deposit will show at the bank, as it means to This doesn't have to be office expense. Perhaps one of the shareholders took some of that deposit, took some of those funds for their personal use. Well, then you could put the shareholder distribution. One other concept that I want to show you in here is that occasionally What will happen is we get what I call random money. So we get money. That is not from our customers. Maybe we sold some scrap metal. Maybe our insurance company gave us a refund. You know, maybe we got a rebate from one of our suppliers. Something like that that you're not gonna create an invoice for. But I need to take that money. I'm gonna put it as part of this deposit. So what I'm going to do here is I'm just gonna come down here to that next line item, and I might have something here where, um, I'll have something here where I got a refund on my insurance. Maybe we get a workman's comp refund checks on the type of workman's comp here. Now, whenever I get kind of a refund on something, always put it to the expense account that I received that refund from someone put on here. Let's say that's 2017 refund check, and then I'll type in the amount. So let's say that they gave me a refund check for 100 $56.32 probably coming over here and put in the Czech number. And they're just so I would have that for my reference number later and marking that I received this with a check. So what will happen then is I come right back to this here where that's gonna be the total amount deposited to my bank account. I can also put a memo here if I want to. I could also attach documents here if I need to, so sometimes that's that's nice for me to be able to do. One other thing that I want to show you over here is that I have this print button right down here, and what this print button allows me to do is when I order my check stock, I can also order deposit slips. So if you receive a number of payments all at once, you can print these out on a deposit slip, which is really nice, and be able to just take that to your bank. So if you're still using kind of the bank's deposit slips and in handwriting all of those out, this will be a huge time saver for you that you can just print that out on to your deposit slip one last time. I just want to show you this. I am going to deposit 17 98 84 into this account on this date. Make sure that that is what's actually gonna happen in the real world. Okay, so that's how I'm going to account for that on. And then I am just going to hit Save in close. All right? I want to show you one other scenario on doing a bank deposit again. I'm coming right up here to my plus key bank deposit. I have this item here, but let's just say that this person paid me if you have a stripe account or if you have a square accounts or a PayPal transaction. So this customer paid me $387 they paid their bill. However, $387 is not going to be what lands in your account because PayPal or square stripe is gonna take their fee from that. So you're gonna log onto that platform, determine what your net deposit amount is going to be. But what I'm gonna do is I'm gonna reduce that deposit to make sure that it lines up So I just put bank charges. Here it Let's say that that was going to be a minus $9.32 for that pay, pal. Fear that strike T. So that way I select this. I had got paid $387. That payment processor took their fee. So Onley, they're rolling in a deposit. $377.68. One of those areas that we just may We see a lot of people make that mistake. So I wanted to make sure that you were able to identify just gonna hit saving close on this . So the next thing I want to show you here is how do we transfer funds between different accounts again? I'm coming up here to my quick create key or my plus key. And you can see that I have a transfer. So this is pretty straightforward. What account of my transferring from? Let's just say I'm transferring from my savings account. It tells me how much money I have in there and I'm gonna transfer to my checking account. How much am I gonna transfer? Let's say that I want to transfer $200. On what day? Put a memo and again you can attach something there. So transfers are pretty straightforward. What this is going to do, it's gonna go into my savings account ledger, take $200 out and put it into my checking account ledger. So that's how we do the transfers internally. Gonna hit saving close on that. Okay, so the next thing I want to show you here is how do I do a journal entry? So a lot of times, here's the deal. When we do journal entries there kind of confusing, because at this point we have to know what our debits and credits are. Here's the trick. Just go to Google and type into Google Search, debit and credit cheat sheet. And it will bring up a document that you can print out that will show you which side of whether a transaction is a debit side or transaction is a credit side. So all the journal entry is is I am moving something from one account to another account. That's all it iss moving something from one account to another account. And so, in order to record a journal entry, I come up here to my quick create right down here to journal entry. Set my date, your journal entry number. And then you just put your accounts here. So let's say, for example, I had a was gonna move something for my gas and electric type in the amount and I want to move back to my fuel or my telephone, so we had categorize something wrong. I just want to quickly move it over there. That's how that's gonna work. I am a big fan of putting descriptions on here putting memos on here because you're going to get asked the question later. Why did you make that journal entry? So if you have that on there, you have the ability to do that. So one nice thing about, um, one nice thing about QuickBooks online is that I can make journal entries to multiple accounts receivable in multiple accounts, payable accounts on one journal entry. That was a feature we didn't have on QuickBooks desktop. So if we need to move balances two different plot to different customers, we have the ability to do that. So here you would just put, you know, accounts receivable, and then the customer's name, whether you're gonna debit or credit that in the next lined up item down accounts receivable. And then the customers demand that will move the balance for one customer to the next customer. So that's just a simple is it is to create a journal entry. I'm gonna hit saving close on this. But what that will do is that will wrap this lesson up for us. So this was a nice quick lesson. Just wanted to show you a couple of different types of transactions that we will do inside of QuickBooks. Thanks for sticking around for this for this quick lesson. And please join us for the next lesson. Thank you so very much. 9. 3.4 Other Tools: All right, Welcome toe lesson 3.4. And here we're going to wrap up this series. We're showing you some very important things. How do we reconcile that account out? And how did we close our books out at the end of the month? End of the year, Whatever you might want to do That one thing that I want to do as we're starting this off is that this video is gonna be just a little bit different than the other videos we did. Because I believe that we have some best practices that we should follow when we're reconcile ing out an account. And I actually put a YouTube video out on that. So worried is going to start this video by showing you that video, and then I'm gonna come back, and I'm gonna show you how to reconcile the come out QuickBooks online. So what we do that one thing that is kind of want to point out to is that at the end of this lesson, I'm gonna send you an email. And in that email is gonna be a link to our YouTube state, her YouTube channel. I recommend that you subscribe to that because there's gonna be a ton of free content on it . So we have post videos just about every week on there, which is the little tips or tricks or different things that you can do. So I recommend after you finish this lesson, go ahead, take that email, go out and subscribe to our YouTube channel, and that will certainly help you. All right, thank you very much. And let's get started. All right, So here's what I want to do when I'm reconcile in an account out in QuickBooks or in any in any accounting software, what does that really mean? What I'm doing is I'm taking my bank statement that I get from my bank, and I'm comparing that to what actually happened inside my accounting software. That way we can find any discrepancies. We can find anything that's missing. We can find things that shouldn't be there. So my first guide lighter, my first guideline that I'll give you on reconciling is this. I would like it if your bank would mail you your bank statement. Sounds kind of weird, right? So even if your bank charges you to receive that bank statement in the mail. I prefer that everybody gets a bank statement Male tomb in the reason for that? Well, it's kind of intangible, but we look at it differently. And so I want that to come in the mail. Is that where we open it up and we're gonna look at our transactions that are happening? Make sure that everything is should be happening the way it's supposed to be happening. And you know what? A lot of cases, embezzlement or fraud is hard to hide. So if somebody is looking at that bank statement, it's gonna be really hard to hide some sort of embezzlement or fraud. So that's the first step that I want you to do when your breakfast's on this out. If you can have that being statement mailed to is, just trust me, it's well worth it. Second thing that I would like for you to do is we don't save this activity up writing by that, as soon as we receive that big statement in the mail, it's going to prompt us that we need to go do something. So this isn't an activity that we save up for the end of the year, save a couple of months reconcile all at once? No. Within a couple of days of you receiving that bank statement, let's go ahead and reconcile that account out. So now let me show you how that works on my QuickBooks home screen. I haven't icon here that says reconcile. And so what I do, I click that icon. I'm gonna get a pop up that looks like this. You picked the account. It shows you the date of the last reconciliation right here. You put the statement data, and a lot of times this is gonna predict it for you. You look at your beginning balance right here in QuickBooks. And you're gonna verify that to the bank statement that you received in the mail? Make sure that beginning balance matches. Then you are going to type in your ending balance right here. Okay, So that's what we're gonna do is where it's gonna go through. Make sure the beginning balance matches type in the ending bounce. If you had any service charges or interest or anything like that that had not already been recorded, we're gonna want to put it in right here. And you just simply hit your continued by now you're ready to reconcile. So first step that we have to do is right up here where it says hi transactions After the statement date, my preference is always gonna be to click this. It's going to get rid of any transactions that we should not need to see. So by clicking that it's gonna it's going to save us some time of going through this and so on and so forth. Just so you know, up here on these column headers, you can click those two sort your transactions in a different order on this side. Over here is where I have all my checks and payments on this side. Over here is where I have all my deposits and credits and you're simply going to find that transaction on your bank statement. And then you come over here and you put a little check mark there, work to your next transaction so on and so forth working your way down that bank Steve again. You can move these around, however, you need to find those transactions. So once you worked through this reconciliation, your goal is to get your reconciliation toe balance to zero, just like does right here. Now, those of you that have done this before, you know that it doesn't work just that simple. Ah, lot of times you're not going to get this to balance to zero for whatever reason. So here are the steps to help you determine where that problem might be. First thing you're gonna do is your gonna take the amount. If you were off by an amount down here and you're gonna divide that by nine So let's say we're off 27 cents. I take 27 I divided by nine and I get 33 is a whole number. What I mean by hole number. It's not like 3.2. It's not 3.6. I get a whole number of three. Chances are, if you're doing a reconciliation, you're off by an amount. You divide that amount by nine and you get to a whole number. What that means is you probably transposed a number somewhere in this reconciliation your brain. It's very difficult for you to see those Once you know that you're looking for him, it can. It turns on your brain a little bit, so that way you'll be able to identify and they'll pop out. So that's the first step. Look for transposed numbers by simply dividing the amount that you're off by nine. If you come up with a whole number, chances are you've transposed a number. The second step that I'm gonna do if I still have not found where my reconciliation air is , is I'm gonna hit this modify, but And when I hit this modify. But it's gonna take me back to this screen just like we looked at when we started this reconciliation. And what I'm going to do there is I am going to just re verify that my beginning balance is correct. My ending mounts is correct. This more likely is not going to be the problem in your reconciliation, but had you typed in your ending, balancing correctly here. You'll spend weeks in weeks in weeks looking for your reconciliation discrepancy. So let's just go ahead and check that right away. The next thing that you're going to do is you're gonna look over here at what I call our check figures, and what I mean by that is that we're going tohave on our bank statement. The number of deposits air number of checks in the amount of two checks in the amount of deposits that you went through the bank account on that month. So just verify those numbers. See which side of the equation we are often. And here's what's gonna happen. As you work through this, you will find it. And what do I mean by you're gonna find it? One plus one always equals two. Your beginning balance in your ending balance are always gonna be the transactions in the middle. And what will happen is you'll stumble across the transaction that hate. Maybe it wasn't in here on the bank statement. Nobody give you a receipt. Whatever happened, so it's not in there. You could just hit leave. You can minimize it. Go right into your home page here and write a check and put it right in there. So when you come back, that transaction will be there. So sometimes these will just kind of take a while to work through fourth, too. Is that what you're going to do? Is if you've been looking at this for more than 30 minutes and you can't find where your reconciliation does not work out for you. Your differences, not zero. If you've been working on it for more than 30 minutes, take a break, walk away from it and come back later. You'll be surprised by just doing that one thing where you'll just find where your problem is A lot of times, what happens is if you old analogy, you can't see the forest from the trees. When you've been in working in this reconciliation for a long time, you can't see where the problem is. So take a break, come back and you will find it Now. That being said, let's pretend that we get our reconciliation toe workout. We get to the zero amount here. A lot of you are going to be attempted to hit this blue button here that says, Reconcile now that's not what I want you to do. I want you to ask yourself the question, a couple of questions. Does this make sense? I know I have it balancing what was on the bank statement, but does this make sense? The second thing that you need to do is you need to explain any transactions that do not have a check mark next to it. Okay, not to explain to me. You just have to build Explain them to yourself. Now, some of those are going to be easy. You're gonna have a check that was written towards the end of the month. That has not clear you with that same check. Is there next month? We should start to dig into that. But all of these transactions should have a check mark next to it. Unless it legitimately hasn't cleared the bank. And if it hasn't cleared the bank month after month after month, we have to start questioned whether those transactions were legitimate. Now, what about transactions like this one? Where the one of them is checked off in the other one is not. They happened on the same day to the same place for the same amount. I need you to work these transactions. Let's get rid of this transaction. That never happened. This was a duplicated transaction here. So all you need to do is just double click on it, right? Click. And you can either delete or you can avoid this. I'll probably avoid it. Save him close. And when I go back in there, that transaction, we'll be gone. The reason that that's so important is because in that case, where I had that transaction duplicated in there, my bank account balances off by $67.62 the most accurate place that you should be able to tell somebody where your bank account is sitting or how much money is in your bank account is inside of QuickBooks. In order to do that, we need to make sure we're working through any of these transactions that haven't cleared. All right, we're back here into our QuickBooks online account. So I appreciate you watching that video, even though it was with QuickBooks desktop on how to reconcile those points are still very , very important for us to understand, no matter what software we are using to reconcile out now, one thing is, if you're new to QuickBooks online and you've been using QuickBooks desktop when I see the word reconcile that you probably comes with a little bit of trepidation, right, because it's always been kind of this. I don't lose task that we don't always necessarily look forward to. However, when you are using QuickBooks online and you go to reconcile your account out, I think you're gonna find it to be so much easier, especially if you do what we showed you in previous lessons where you've connected your bank account, your reconciliation process is going to go from if it if you were if it was taking you 2030 40 minutes to do in QuickBooks desktop. And now we're doing in QuickBooks online, it's going to take you on a matter of minutes. If you're just starting on QuickBooks online, you might not even understand how big a problem that this was inside a QuickBooks best up or how difficult it waas should you inside QuickBooks test. So let me walk you through what this is gonna look like. So if I'm going to reconcile on account out, what I'm gonna do is I'm gonna come up here to my gear, and I am coming down here to where this as reconcile. So again, I'm coming up here to my gear, and then I'm going down here to where this says reconcile. So I click on that, and what we do here is we are going to select the account that were going to reconcile out . So I'm gonna reconcile out my checking account, you can see that we can reconcile Our savings accounts are credit card accounts. So on and so forth. What will need to do is just select that account. We come in here and we're going to type in the ending balance off of our bank statement. So I looked at my bank statement, and my ending balance is $4472. One too many for us there. $4472.27. And then what is that statement ending day? I'm just gonna make up a date here just for the sake of this example here. So then what I'm gonna do is I'm gonna hit my green button here that says, start reconcile ing. And what this is going to do is this is gonna take me into this page. Now, this is gonna be it's Give me a little pop up here to kind of show you how to do this. One thing, though, is if you have been downloading these transactions from your bank and this is I'm talking about in your real world, example, not my protect pretend example Here, Any transaction that you've download loaded from the bank and you've hit that match but non or you've added from our banking center. Guess what? It's going to know that those have already happened at the bank and it will have put the check mark here next to the transaction. Otherwise, what you're gonna do is you're gonna take your bank statement and you're going to compare from that bank statement to what you were showing on your screen. You find the transaction on your bank statement and you put a check mark next to it. Here are cool is to get this difference here 20 So I'm gonna just do a quick shortcut here , and I'm going to just pretend that we select them all. And then I am going to just show the transactions that actually did not hit the bank account. So what will happen is once we have selected everything and we haven't matched up against what happened on the bank statement, my difference will be zero here. Now, as I mentioned in that video that you had just watch. It doesn't always work that way, so you can still go through those things processes of makings to see where those problems happen. You can divide by nine to see if he transposed a number. You can click on a transaction, modify. A lot of times there might be transactions that are in here. You just go into your plus key here and enter. Enter the expense or enter the check whatever it is that you need to do there. And so that way we can come back here and we can check that transaction off. Couple of things that we can do here is I can select my payment button here just a short trip in the transactions that are payments. I can select the deposit here just to show me those transactions that are just deposits. Or I can select all. Here's the deal again. If you've been downloading these from the bank, here's how simple your reconciliations are gonna be. You're gonna just type in your ending balance and you will come in here and almost every time it's gonna do kind of a self reconciliation for you. We find that this process has just saved us so much time in our accounting and then all you have to do again, like we talked about in that video you just watched is explain away why there's transactions that have not cleared, have a have they just absolutely not hit that bank. What's going on there? Because I want this your bank account balance inside of QuickBooks to be the most accurate reflection of what your bank account balances. If you do that, your books are in good shape. Okay, So explain away those transactions that do not have a check mark next to it. So if you've got a check that hasn't cleared for months and months and months, find out why, maybe we It was a mistake that we accidentally put in there so you could just delete that whatever that might look like are at so soon as we're done reconcile in here. All I need to do is I need to hit this finish now, or I can save this for later, or I can even close it without saving. I'm just gonna hit finish now, and it says, Hey, success. You have reconciled your account and you can view the report. I always recommend you view the report printed out. And then once you're done with that, you can hit done. All right, so then we're good to go until the next month where we need to reconcile out. Yeah. QuickBooks online. You're gonna love this because that process goes so quickly and so smoothly. Don't forget to look for transactions that don't have check marks next to it and identify what happened with those. The next piece of information that I want to share with you is what do we do if we want to close our books out? So I recommend that we at least close our books out at the end of the year. Or a lot of blood of companies will close out their books each and every month. So after you've reconciled out all of the accounts, what closing our books does is it keeps us from going and messing with any transactions that have happened prior. So I want to show you what that looks like again. I'm coming up here to my gear and then I'm going over here. Where? This as account in settings. What's I come into this area? I am going to click on my advanced hat. I want to click on my advanced. Have you can see we have this little accounting section of here. And if I want to close the books, all I need to do is I need edit this, and I need to put a little check mark here that I want to close out my books. Set your date that you want to close your books for. And then you have two options here. Allow changes to those books with a one or allow changes to the books, but you must enter a password in order to do that. So here's how I typically do that. I might close out the books for a month, and I'll put this hate will allow changes, but I wanted somebody to be aware that they're changing something that is already part of last month's books that we've closed out. But certainly at the end of the year, I will allow changes on Lee with a password, and you can set that password and have that set up there. So that way somebody would have to come to you in order to change stuff from the previous year. You know, the stuff that we've already sent out to our account for the tax is to be done or perhaps our taxes already done. We don't want to modify those transactions. So it would take something special. Somebody coming to you to get the password to do that. So again, perhaps after every month, allow it to people to change the books, but will give me a warning once we send our files out to our accountant For our taxes to be prepared, I will set this here toe where there will have to be a password for us to change those transactions. All right, that's all I've got for you in this lesson. I know that this third series of lessons have been kind of intense. This is where we've really gotten into all of the things of how we're going to do a lot of what we're doing day to day. I appreciate you sticking with us. Our next lesson we're gonna talk about reporting that is gonna be so much fun. So let's get started on that. And thanks for sticking with us.