QuickBooks Online 2021 #1 Navigation, Forms, & Reports

1. Introduction : Quickbooks Online 2021, number 1 at navigation forms and reports is a project-based course where we're going to go over the fundamentals, the core concepts of QuickBooks online, including how to access QuickBooks Online, possibly through a free 30 day trial or through a demonstration version, which will give you access even if you do not currently have the QuickBooks Online. Down below, we do have other resources as well that can be downloaded here and helped you to work through the practice problem and or support you as you work through the practice problem. We will at the end of the practice problem be generated and reports including major financial statement reports, balance sheet, income statement, as well as supporting reports that will be the completion or the demonstration of completion of the project. 2. .05 Getting Software For Free: Quickbooks Online 2021 that getting the software for free. Let's get into it with Intuit QuickBooks Online 2021. That first question related to a QuickBooks online course is, how do I get access to QuickBooks Online so that I can practice with it. Two major scenarios there when you don't have access to QuickBooks Online at all or two? Yeah, do have access to it, but it's through work or through your company file. And what we really want is a separate, clean QuickBooks file that we can use to do data input in and practice with, without messing up the current company file that we may have access to. One option is that it, the owner of QuickBooks often offers a 30 day free trial version or free trial period of the QuickBooks Online Software, which is ideal for a course such as this. So that's kinda be the first option that we can think about. Second option, we might have access to a free student version of the software if we're an eligible students in accordance with into it or the owner of QuickBooks eligibility. That's similar to the free 30 day trial, but you might have a more extended period that you could use it in practice with. And then there's going to be the free test drive. So into it offers a free test drive file that doesn't then have a period that it will end on, meaning we're not stuck with just 30 days. We can always access the free test drives file. However, we cannot save changes to that file, so we're going to go in there. We'll just get what we get, but it'll have data in it already, which is great for practicing situations. And then we also might want to look into discounts. And if you if you have your CPA or an accountant, Is that uses QuickBooks, they may have some kind of discounts that they can offer you as well. So this is kinda the hierarchy that most people would be thinking about when looking at a course such as this, to pick up the software so that they can practice with it free 30 day trial period. Note, just logistically that if you go over to the owner of QuickBooks website and try to access the free 30 day trial period. They currently have this little toggle item that you got to make sure is toggled over to the free 30 day trial in order to access it. Also note that if you already have a company file, a QuickBooks Online company file, you have may not be able to access another company file for the free 30 day trial. In that situation, you might want to partner up with somebody else that's interested in learning QuickBooks so that you have a different e-mail address, a different account, and therefore possibly being eligible for the free 30 day trial in that situation. Then we have the free student version. So this is coming from the Intuit website. So I'll just read this little snippet from the Intuit website. Students at accredited academic institutions are eligible for a one-year trial of QuickBooks Online and a five month trial of QuickBooks at desktop college, university and trade school students. Please complete the form below to confirm eligibility and unlock your free license. License for QuickBooks Online high-school students, please have your teacher complete the educator registration. So you can go to this link or you can just search in your favorite browser such as Google Chrome for the QuickBooks Online student version. And that's basically like the free trial version, but you get a longer access period to it. You're not limited to that 30 days, which can be a great tool. Quickbooks also provides a free test drive company file. This is accessible to everybody and there's no limitation on the free period for it. It also already has company data within it. This is the tool that we will use for the first half of the course. In the second half of the course, we'll start up a new company file and inter-data from scratch into the new company file. And the first half of the course, we will use this for a couple of different reasons. The first thing that a new user wants to learn about QuickBooks Online is how to navigate through the system, how to get to one place to another within the system, many people who are learning QuickBooks Online, we'll actually be working in employment, not setting up a company file from scratch, but rather be working with a company file that is already set up. The fact that this already has data in it will make the navigation process or the navigation part of the course a lot more interesting. In other words, set up a new company file. It has no data in it. Would we simply practice the navigation for it? It'll be kind of boring because there won't be any activity within. It's when we start with this company file, there will be activity in it and we can practice navigation. Now for those that would like to jump right to the data input, they already have some familiarity with QuickBooks online and they want to just start a new company file. You can jump to the second half of the course where that is exactly what we will do. It will start up a new company file. We'll go right from scratch and start entering the data for two months worth of data into it. The second reason we want to start with this tool is that if people are accessing that 30 day free trial period, we do not want them to kind of way waste any time in that free 30 day trial period. In other words, we want to make sure that you're getting the full benefit of that 30 days. So in the first half of the course, you don't need to be accessing the free 30 day trial period because we'll use this software in the second half of the course. That's when you want to basically access that free 30 day trial and run through the data input process, starting a new company file from scratch and making sure then in that way that the 30 days will be enough in order to cover that time period and learn as much as we can with it. So the last option you have is discounts. So you might ask your accountant or your CPA if they have access to QuickBooks Online and sometimes into it, we'll provide different discounts to different users of the software as well. So that's another option that you want to be thinking about when you're thinking about purchasing QuickBooks online, especially so for example, you might take this course and run through the QuickBooks 30 day free trial period. And then when you're thinking about purchasing QuickBooks Online for your company file to set up your business. That might be when do you want to go talk to your CPA or an accountant and see if they have any any further discounts that could be offered for it. 3. .07 30 – Day Free Trial Setup: Quickbooks Online 2021, 30 day free trial setup. Let's get into it within two. It's QuickBooks Online, 2020, one, here we are on the Intuit website into it to be and the owner of QuickBooks, this is the first place I would go for anything that's going to be QuickBooks related. Because if you just do a search into your favorite browser such as Google, it might take you to some other websites and you want to go here first because this is the source, these are the owners of QuickBooks Intuit, INT IIT.com. That's intuitive. Int IIT.com. What we're looking for here is to set up a free 30 day trial version of the software, which we will have for a limited time to be 30 days. Now we're going to do it up top here in the course because this is something that is often of interest to people. But note that you may not actually need this 30 day trial until the second half of the course. And if you're worried about running out of the 30 day trial period before the end of the course. You may want to wait and hold off on this until the second half of the course, but we just want to present the process at this time. We may present it again in the second half of the course. So up here, up top on the Intuit, owner of QuickBooks webpage, we have other items that are owned by QuickBooks other software they have other packages such as tax packages like TurboTax. We of course are focusing in on QuickBooks at this point in time. They have this icon up top to focus in on it. So I'm going to click on that icon. And then that takes us to our QuickBooks focused page within the website or system here, I like to go down to the products which are all the way at the bottom. So I'm going to go all the way down to the bottom of the QuickBooks page. You would think that there would be a narrow amount of products here, but you can see that we have a lot of items related to QuickBooks down here. We're looking for the top one that being QuickBooks online, it's probably the one that QuickBooks will be driving people to for mostly it seems like the one they're marketing towards mostly. But note that you don't want to get that confused with the QuickBooks Desktop version. They do similar things. There are set up differently and have a different look and feel. We are focusing in this course on QuickBooks Online. So we're going to go into then QuickBooks online. And then if we scroll down, here's the plans that they have down here below. Now they have the simple start plan, the plus and the advanced. I won't go through all the details on the differences between them. But the simple start is something that's not going to quite have enough for most people. And the plus is going to be the recommended plan. That's the one that we are going to use. That's usually good for, for most people unless you have more advanced needs that you can see down here, down below into the advanced plan. Now we're looking here to get the free 30 day trial. And so up here they've got this little toggle item. It says free trial for 30 days by now for 50 percent off for three months. So you've got to actually toggle this to the free side. So now we've got the free side for the free 30 day trial. And then I'm going to go through the selection process. I'm going to say that we want then the plus item here. Then it tries to tack on payroll. And I don't want payroll right now because it because payroll would cost more. So we're not going to get into the payroll option. And then it kinda frightens me with this $70 a month thing over here, but it says the free free trial excludes the discounts of trying to give an offer of the free trial or the discount. So I think we still have the free trial here. So I'm gonna go ahead and say, all right, Check out here. Then I've got to sign in. So sign in for an account. So it has on the right, the free 30 day trial includes QuickBooks Online Plus, and no credit card is needed, which is nice. Okay, so then we have the initial information that we need to be setting up. So we have number 1, tell us about your business. Everyone needs someone, something a little different from QuickBooks. Let's get to know what you need so we can tailor things to fit you. You can change your info anytime in settings. So this isn't set in stone here. We're going to say this is good, great guitars. That's going to be our demo. For the industry. We want something that's going to be dealing with inventory. I wanted to be kinda generic, so I'm going to put retail, retail and then all other miscellaneous store retailers summing up, pick that item. And then it says here, I've been using QuickBooks Desktop and want to bring my data. So that would be in a situation where you've been using QuickBooks Desktop version and you want to import that or transfer the data in some way to QuickBooks Online. In our case, that's not going to be what we'll do. We're going to start basically from scratch. So I'm going to say then next. And then it has some items that we what we want to, what would you like to do in QuickBooks? I'm just going to check them all off. I want all those things. So I want everything to be happening. This is just to get you started. You can always do more later. So I'm going to say next. And then number 3, ready for a free trial of QuickBooks payroll. We make it easy to pay your employees and contractors and file payroll taxes plus plus the first 30 days are on us. And that could be a great tool to practice with. I'm gonna go ahead and leave that on at this point in time, if they don't require me to give him a credit card to do that, then I will try to turn that on. Our focus will not be on payroll, however, on the first general half of the course. So what you get with QuickBooks, payroll, you get to automated payroll and tax filing that same Drake direct deposit time tracking and so on. So I get good thing to practice with if we can't get access to the payroll to practice with. So number 4, but usually it's an add on. So notice, obviously payroll in general would be an add on item. You'd have to pay extra over and above the standard subscription price. Number four, what's your role at your business will use this info to help personalize your QuickBooks. You can always change it later in the settings. So an employer, ie owner, bookkeeper, accountant, it's something else. I'm gonna go ahead and say owner, just for this example. Do you have an accountant or bookkeeper right now? And so if it's yes, someone helps me or no, I do it all myself. No, but but I would like help. I'm going to say here, you can work with them, right in QuickBooks. Okay, I'm going to say next. So and obviously you can't set up your own business and kinda work with your accountant within, within QuickBooks, which is a great tool to be having to be working with your accountant in it. So number 5, what kind of business is this? Tell us about your business structure. We use this to help organize your transactions. So sole proprietorship partnership corporation, non-profit organization, I'm not sure. We're going to set up by sole proprietorship at this point in time. This is kind of an alignment with a legal entity type that you are in. So if you file a Schedule C at the end of the year for on your tax return, you're probably a sole proprietorship. If you have to do it. Another return like a partnership at 1065, then you might be a partnership type of return. And a corporation for small businesses is less common to be like a C corporation, but you might be like an S corporation or an LLC or something like that. Llc might be closer to like a portrait partnership kind of formation now. So continuing on them. Now number 6, how does your business make money? We tailor your accounting categories based on your answers, select all that apply. I sell products, I provide services, something else. So we're going to do both here. We're going to have products and services, which isn't really an option. And this is more just a questionnaire for QuickBooks. So I'm not too concerned with it because it's not going to affect our setup of the actual payroll. Seven, how do you want to track income and expenses? Lincoln, your bank and credit card accounts is the best way to stay organized your transactions. Update regularly to keep your books up to date. So we're not gonna do that at the beginning. And there's a couple of reasons for that. Obviously, Lincoln is going to add a level of complexity for our practice problems. So it's going to be difficult to link for a kind of a practice problem. But we will demonstrate bank feeds it as part of the course and go over the bank feed process. But also people kind of are led to believe with the marketing. Oftentimes that bank feeds are going to solve all your problems, that you just connect to the bank and no problem, everything is going to be set up, but you still have to understand what is happening. So if you don't what you'll end up with a mess of data that you don't really know how to, how to import into the system. They'll import into the system, but there'll be kind of in limbo. And you gotta, you gotta know where to, where to put them. The way to do that is to actually learn how the QuickBooks works. So there's not really any given around it. You gotta learn the accounting cycle and what not. And then once you do that, then turn on the bank feeds. And so once we go through this course, we'll kind of have a feel for it. Then we could turn all the bank feeds and then be able to apply, apply out all those transactions in a much more logical fashion, hopefully with more confidence. So we're going to set up, and we're going to set it up. So it's all set here. And then now we have our QuickBooks file, company file set up. So it says, Welcome to QuickBooks. Let's show you around so you get your business Then I'm going to turn that off for now. So here's going to be our setup. So we've got the good, great guitars now, there's no data in this file, so this isn't great for navigating, like practicing navigation, but it's really good for setting up a new company file, which we'll do in the second half of the course. We're going to set up a new company file, just start a new entrant data than from scratch. The setup process really helps people that even if they are working somewhere where the file is already set up. Because the setup process kinda helps you to know how things have been set up or get some inkling of what, you know, what things were set up like so that you can then go back in there and fix any kind of problems that have happened. So that's where we're going to we're going to start or that's what we'll stop here with our free 30 day trial version. That didn't ask me no credit card, I believe was necessary for the whole process. So that is that is nice and we're good to go, We're good to practice. 4. .10 QuickBooks Desktop 2021 Vs QuickBooks Online: Quickbooks Desktop versus QuickBooks Online. We will go through the major differences between the two. Let's get into it with intuits, QuickBooks. Once you decide to use QuickBooks as your accounting software, you will then need to decide which QuickBooks you want to be using. The first decision you would want to make as breaking it out into two categories. That being, do you want to have some format of desktop version or some format of online version. Once you make that decision, you may need to break out further down to that to decide what your needs are. But that's one of the first kind of breakouts that you want to be considering the desktop version, it's going to mean that the software is actually downloaded it to your machine, it's on your computer. The online version means it's going to be housed on into it. The owner of QuickBooks server and you'll be using it online. There's pros and cons to these two items, to these two methods, and we'll go over some of them now, note as we do so that the desktop version is the older version, the online version is the newer version. So note that you might be saying, hey, is it going to be taken us away from the desktop version and trying to move everybody online for some time. It kinda looked like That's what into it the owner of QuickBooks was trying to do. And I think one of the big things that I really like about the online is that the fact that they want to have this subscription model, it looks like now however, that doesn't seem to be the case. There are updating the QuickBooks Desktop and in 2021 they made some major changes to it, especially within the bank feed. So it does look like there are significant advantages to having the desktop versions in some way. So it looks like now they're going to be updating the desktop version, but it looks like they're trying to push more to a subscription model. So it does look like the desktop version is going to be around. So if you're, if you're saying Hey, do I need to just jump to the online version because that's the new thing and that's where the future is, maybe. But I don't, I don't think they're doing away with the desktop anytime soon. And there's definitely advantages to the desktop and they're certainly and proven it. They made substantial changes add to it and a lot of traditional bookkeepers, like the desktop version. So let's go through some of the factors here. So when the desktop version is going to be a onetime purchase, whereas the online version is going to be a subscription type of model. You pay monthly or you pay yearly. Now note as we go through this, remember that both of these typically will have a free downloadable test kind of version. So oftentimes the desktop maybe a little bit more difficult to do that, but they still try to provide, oftentimes into it will provide a 30 day free trial which we will use in this course in order to work through the practice problems. So if you want to practice with the software, get a feel for it. You could have that 30 day trial here as well as in the online versions. It once you look for the 30-day free trials, they'll just make sure that you're picking up the correct software. Whether you want to look at the free trial for the desktop or the online version which you purchased the software, then the desktop version traditionally is a onetime purchase subscription model for the online purchase you pay monthly. Now, that means that the desktop was was difficult to purchase that first because you have to put a lump-sum purchase up up front, which is kind of painful. But once you had it on the computer, then you can have it for basically multiple years. Quickbooks will update the software each year, but it's quite possible depending on your needs. Use the same software for multiple years without the upgrade. Whereas of course, if you're on the online version, you might be paying monthly or you could pay one yearly some, but you've got to renew it each year. So whether or not the updates are relevant to you, you need to renew it each year on the desktop version. If you have it on your desktop, you don't need to update it each year. If the updates to intuit software are not things that are relevant to you and and you don't need some of the services that they would basically do each year now 2021, they have a big update on the bank feeds. So if you use the bank feeds, it may be well worth your while to update the desktop version. Now note that the into it, it looks like they've really like the subscription model. That's one of the things they've really like and that's why they've been pushing, in my opinion, the online version a lot and the desktop version having that fact that they get that they don't have the subscription model was something that looks like they wanted to move towards. So it looks like they're trying to move the desktop version now to basically pick up that subscription model. And that's going to be with like the desktop for o plus, which means that you basically have a subscription. You'll, you'll pay for it. They'll update it automatically pay for the update and whatnot more of a subscription basis rather than just buying the package and saying this is 2021, for example, version. And then you had to pay out a whole new version for the following year. So it looks like that's the way they're going into the future. Looks like they're going to have the same desktop still be on your computer, have the advantages of the desktop version if you like those. And they're going to be moving towards the online. And that might be, it might be a good time right now if you want to just have the software to practice, have a static version to get, to get your hands on a static version of that that you can use in the future because the updates each year are relevant. But if you just want to practice or have some basic information in QuickBooks, then you can use, you can use older versions of QuickBooks and they should work fairly fine. All right, so you can have multiple company files with one purchase of QuickBooks versus on the online version. Typically if you want to have different company files, you have to set up another QuickBooks basically account or another QuickBooks file, which could cost each time you set up a new company file. Now this for us is a huge benefit on the desktop side because that means that if you're working on the desktop side, you can have multiple accompany files and just test things out with a second company file when we're doing student or practice problems, we can basically use multiple files just like you would in a Microsoft Office or a Microsoft Excel or Microsoft Word where you have basically the software is the software and then you have the files and you can set up multiple different files within that software. We can do a similar kind of process with the desktop version. Really great tool to use that way. Online versions, a little bit different, where you set up basically another file for each company files. So every time you set up another account, you set up the company file, and therefore you gotta go through the process to set up each new company file. When we go through practice problems, the desktop version. We're will work really well here. But when we do the practice for either one of these, we can kinda utilize that 30 day free trial so we can get into it. Generally offers that we will use it if they have it right. And that'll allow us to go through the, through the practice problem with a nice clean company file. But if you have the desktop version, then you can set up a clean company file and not, and not have to have to mess up anything that's in your current company file as you practice things, right? And then we have the static backup files versus the data stored on the Intuit servers. Now the backup files, there's multiple different purposes. Why you might want a backup file. That primary purpose for the backup file is so that you don't lose your data. For that the online version is actually better. For the most part, you would think it would be better because your information's on their server and their servers has the server has a better backup process, so you're less likely to actually lose your data, you would think with the online version and just, just lose like data input like he entered and put today and something happened, you lost the data. That less likely to happen because it's way more likely like way, way, way, way more likely for your computer, your hard drive to go down. We're which is where the desktop version is stored, as opposed to the Intuit servers to go down and lose all the data. They, they back up their data a lot. So for that, you would think the online version would be pretty good now. But the static backup files, again, as students are practicing, working on this works really well because we can actually make a static backup file at any point in time. So if we're working through, for example, practice problems, we don't just want to save the data. We want to be able to have a static backup file that we can then restore so that we can put our company file right into that one place in time so that we can work through practice problems. So these static backup files really, really useful for practice because that allows you to put data into your system very easily. And then in like we say, we can have multiple different company files that we can use to basically practice with, with regards to these static backup files. Now as far as just saving the data with the QuickBooks Desktop, then what you need to do is actually backup the system. You can do this automatically. It'll make up it'll make basically a backup file to backup the file and to restore it is a pretty simple process. Quickbooks has a lot of data in it, so but but it's a pretty straightforward process to backup the data and then to restore the data. But to actually set up the backup process, you have to do it manually. You have to you have to set it up. And then when you when you backup the information, you've got to say, Well, where do I want to back it up? I don't want to back it up typically on the same computer, the same hard drive that we have the original file on. Because if the hard drive crashes, then you're going to crash both the backup file and the Drive. You can put it on an external drive. But then you want to, it would be nice if you could store the external drive in someplace other than like the office or place where you have the computer. Because if your office burns down. Then you would lose the backup drive. You can store the backup dr online, which might be one of the more beneficial areas at this point in time because then if the computer burned down in a fire or something and the backup file would basically be online. So you can set up a pretty secure backup system with the desktop version. But, but just kinda straight off the box or just straight usage wise, the data's probably safer on the on the online version because it's on the Intuit servers. But the backup system that you could setup for desktop version can be pretty good. And again, those static backup files are, are quite nice. So look and feel is different. Homepage and the flowchart in that. So you would think that because they're both they're both basically the same kind of thing, their accounting software, her and they're doing a lot of the same processes. When you look at the forms that we will be working with, the names of the data input forms will be the same. We'll have to learn some terminology with regards to inputting data. There's accounting terminology and then there's QuickBooks terminology, which is kind of a subset of accounting terminology. But even though the formers are the same and the processes are the same, the look and feel of the two softwares are quite different. The desktop version has a nice homepage, which is really good, especially for beginners to kind of visualize the process. It'll break out the process of the vendors, the the payables I'm sorry, the vendors that customers and the employees. So that's a really good place to start. We'll actually use that. I'll use that when we look at both of the QuickBooks Desktop and online version just to see that flowchart. But once you memorize the flowchart, It's not, it's not as useful. The online version has a nice, nice, clean look and feel to it as well. But again, there's just the layout is going to be substantially different. So if you're, if you're working in the desktop version, you can, you can visualize the flow being the same. The forms you're going to use are the same and what not. But where you find those forms is going to be, is going to be organized much different with the online version. So That's one big difference. So then, which is better, it just depends on your, on your taste. I've worked with a desktop version. Many accountants have worked with a desktop version a lot longer, so they probably have a preference for that. The online version is constantly changing their look and feel. Notice the desktop version, they can't really change the layout more than once, once a year. They can't move things around in the page is easily write in the online version. They'll just, there'll be testing it all the time, which could be good or could be bad because they might find the better configurations are good configurations that way. But there also, if you use it from one day to the next, it could have a button that's total and a different spot. And the next day or so pros and cons on those two. So then we can download, download of bank transactions can take an extra step. So when you're looking at bank fees, when you work with bank feeds, meaning you're going to get the data going straight from the bank into your system. Once you get it set up, the online version is a little more streamline typically than the desktop version, meaning the bank feeds will update automatically. The connection process might be a little bit easier to set up with the online version. Now the desktop version is getting better. They're actually mirroring the desktop version to the online version. And I think this is one of the major big, big things where they might have thought people might move from the desktop to online. Because the bank feeds being online, being banking online and the QuickBooks Online might be a little bit more seamless of a process. But I think now a lot of people really like the desktop and some of the desktop, thanks. So I think they're trying, I think they've done some substantial changes on the desktop. And in 2021, the desktop bank fees will look a lot more like the online bank feeds. So we'll get a lot more into the desktop bank feeds and see how much closer they are. They are, they always had the bank, they've had the bank feeds for some time now and they work pretty, pretty good that the bank feeds are doing what they need to do. You connect to the bank, but you typically need to actually go into the bank and say download the banking transactions to have it, to have it happen. It's basically another step that takes place. And the look and feel of it wasn't as clean as it was in the online version. They've changed it now in 2021. And we'll, we'll practice those in the future and see, see how compare and contrast them at that point in time, but they're improving the bank feeds for the desktop for sure that's where they're putting substantial amount of time, at least they did in 2020. One more, more difficult to work from different locations for the desktop. And it's easier to work at different locations online. So that's clearly one of the benefits on the online system. Meaning if it's if it's something on the Cloud and not actually stored are housed on your desktop. Then you can log into your QuickBooks system from multiple different devices. Because you're going straight, you're basically linking straight to the Cloud, to the Intuit server. You can use kinda Cloud capabilities, more online or internet capabilities with the desktop version. But it's a little bit more difficult to do because obviously the desktop version is housed in a, in a central location. So it takes another step to try to get people to house it in, in, in different locations. Now, if you do use different devices and whatnot and go onto the cloud computing, you do have to worry about security as well. So when you're logging on from different devices and using different Wi-Fi and whatnot. So you have to consider, consider the security of logging into an online or, or system versus a desktop system. In other words, if there's a security problem, it might be a little bit more difficult for someone to actually get into the data, basically on someone's computer than if they were to get the passwords and what not to get into the data in an online type of system. So, but, so that's something to consider. But if you're going to work from multiple devices, you want to make sure that you're going to be secure on that and it would be easier to do so with the online version because he just whatever device you're on, you can log in from that location using the Internet. 5. .15 QuickBooks Online 2021 Test Drive: Quickbooks Online, 2021, Test Drive file. Let's get into it with Intuit QuickBooks Online 2021 that in a prior presentation, we looked at the 30 day free trial option of QuickBooks Online offered by Intuit, the owner of QuickBooks. This time we want to look at the other free option that is offered by Intuit, the owner of QuickBooks, that being the test drive file, easiest way to get there is just to go to your favorite search engine such as Google type in QuickBooks Online Test Drive, QuickBooks Online Test Drive as I've done here. Then we're just going to click on this item, QuickBooks Online Test Drive from Intuit. Intuit's the owner of QuickBooks. It may give you a little test here to say that you're not a robot. And I'm gonna say, yeah, I'm not a robot. And then I'm going to continue. And then we get into our sample file. Now the sample file is for Craig's Design landscaping services. This may change slightly from period to period, meaning the data input that they put into the system changed slightly from period to period. But it's a great tool and that's what we're going to use for the first half of the course. The reason it's a great tool for the first half of the course is because for the first half, we're going to be focusing in on navigation, just getting around the salts were running reports on the salt. We're located where things are at within the software and having a resource or company file that already has data in it is going to be useful for us to do that. In other words, if we set up the 30 day free trial from scratch and we set up a new company file. That's great practice to start a new company file and inter-data, which we will do in the second half of the course. If you want to jump forward to that component, you can go ahead and do that. We'll go right into making a new company file there. But the first thing to really get under your belt or understand is just the navigation process. And to do that, we already want to have some data in the company file. Also, by working with this test drive file, we can kinda save some of that 30-day option for the 30 day free trial period that we would recommend taking advantage of if possible for the second half of the course. So when we get to the second half of the course and we start a new company file from scratch, then you'll have 30 days to basically complete that section of the course. If you're using a free 30 day trial period in order to work through that practice problem. So we want to spend the first half of the course doing the navigation without cutting into that 30 day time period by using the test drive file. Here. We'll start to continue on this in the following presentations. We'll also do some comparisons between the desktop version and the online version. And the reason we want to do that is because many times when you talk to different people, they get the two things confused. They hear QuickBooks and they just assume that you will know QuickBooks on both sides of things. Or they might be mentioning things that are on the desktop and the online versions. The objective of course is the same. They're both bookkeeping systems, but they look a lot different. So it's kinda nice to be able to see the layout of the two at the online version doesn't have the mapping or the flowchart that the desktop version has as well. That flowchart for the desktop version might be useful. I think it is useful to just kinda see or visualize the transactions. In other words, the transactions will be grouped by customer, vendor, employee E, and other. So. But in the flowchart, they'll actually show a flowchart with arrows in it to kind of get used to this, which is good when you're first starting out. Also, many people might be moving from the desktop version, which is the older version of the software, meaning it's still good, it's still a good software to use, but it's been around longer. Therefore, there might be more people that have an acquaintance with that version of the software. It, when they jump over to the QuickBooks Online, it's kind of a shock and because it's a completely different layout on QuickBooks Online. So for that reason as well, we'll be doing a little bit of jumping back and forth, which is to see the layout on the QuickBooks desktop version. And then just find those same kind of areas over here in the QuickBooks Online version. Every time you log out of this version and log back in, it's probably going to refresh the data. Meaning if we enter transactions, which we may do for test files, we might enter some invoices and some bills and whatnot. They're not Patna most likely will not be saved if you log out and go back in. That's okay for the first half of the course because our goal isn't to basically build another set of data files for our goals, just the navigation. In the second half of the course, we will have to do things in chronological order because we're going to go through the process of entering data from the starting point with a new company file and then enter two months of data, reconcile the bank accounts, and do the full process there for the first half of the course. However, when we're testing an invoice or just looking at something in the customer section. If we make an invoice, we really just want to make it for that particular time period. If your balance sheet doesn't tie out exactly to what we have, That's okay because we're really just looking at the relative issues in terms of how to get to the balance sheet or what, what's the impact going to be with one form or another form. Also note that you can basically do this first half of the course as well with your own company file without messing anything up in it as well, because we're not focusing in on the data inputs so much as just the navigation. We might do a little bit of data input just to practice. But that's not really where our focus is. Our focus is just that navigation of the software to see what different things we'll do, jumping back and forth then from these forms that we're gonna be using to enter data into the system. And the financial statements primarily being a balance sheet, profit and loss or income statement. 6. .20 Navigation Overview: Quickbooks Online 2021, software navigation overview. Let's get into it with Intuit QuickBooks Online 2020 one. Here we are in our Google search engine browser. We're going to be typing in QuickBooks online test drive to get to our QuickBooks online tests drive. Then I'm going to enter into that QuickBooks Online Test Drive here. Here we are in our Craig's Design and landscaping services Test Drive file. We're going to start off with a broad overview of how to get around. The QuickBooks online format will be doing some comparisons as we do. So the desktop version, so this is QuickBooks Desktop. I wanted to do this for a few different reasons. This comparison to the desktop version, because some people might be moving from the desktop version to the online version. For number one. Number two, when people talk about QuickBooks, they often talk about it as if it's one program and they might be referring to something like on the desktop versus online. So it could be good to have that comparison. And also, it's the difference between an online application and an application that you download will just have some differences in general in terms of how you can navigate and do similar types of things but using different functionality. We just want to show those as we go and look at that comparison between a desktop application, QuickBooks Desktop in this case, and the online application, QuickBooks online. Obviously, the QuickBooks Online, you actually have to be on the Internet in order to do that QuickBooks Desktop downloaded onto your system, you're not that you're not going to be on the Internet in order to, You don't have to be in order to run the QuickBooks Desktop program. The first difference I want to look at is how we can have multiple tabs open at the same time. So for example, if we want a report open and we want another data input screen open and we want to be toggling back and forth between the two or even see them at the same time. How can we do that online versus a desktop type of applications? So for example, if I went down to the reports down here and I'm just going to open up any kind of reports, probably going to be our main reports. Let's open up a balance sheet reports. And now let's say I wanted to do something else. While this balance sheet report is open, I want to have two windows basically open if it's an application online, what you can do is duplicate the tab and we'll be doing this often. So we're gonna put our cursor on the tab up top. We're going to be right-clicking on that tab and then simply duplicate that tap. So I'm going to duplicate the tab. That's how it's going to be done in a, in a Windows-based system, at least with the right-click in here, which is what I'm most familiar with. I'm sure there's a duplication function in Mac version as well. But now we have the two tabs, open it, I can then go back up the data input in some other location. This idea of having the tabs open up top is a lot different than what you would see on a desktop version. So if I did that same functionality on the desktop version, Let's say I'm down here, I have the Home page open, that's with the view tab dropdown and then the open windows, I've got open windows homepage. If I open up another report, I go to the Reports Company and Financial has just opened up a balance sheet standard on this report. Then we can see it here. And obviously the data's not the same, these aren't the same company files. But you can see here we have the homepage and I can toggle back and forth on the left. If you're used to this toggling on the left with the desktop version or many type of applications which is going to have to be somewhere in the same screen as opposed to an online application where you're going to have the toggling That's going to happen along the top of the screen due to the fact that it's online. So we can have different windows open at the same time. Now as you have these different windows open at the same time, you could have a little bit more problems refreshing the screens. You want to make sure all the screens are refreshed. You have a similar issue with the desktop version. Whenever you jump back to the report to memorize or make sure that the screen is refreshed. But with the online version, you've got to make sure that she'd refresh the screen, which could just be as simple as refreshing up top here. And that'll refresh the URL. So whenever you make a change, then that reports will then change up top with it as well. The other thing that's really nice that it's good to just understand upfront, is that you can increase or decrease the size of the screen on the online version a lot more easily than you can the desktop version. In other words, if I go back to the desktop version and I went to say this report and I want to make these numbers bigger. I can't really just increase the size of the screen very easily. I'd have to go change the font or I have to change the settings on my computer. But online, you can, I can just hold down scroll and then I'm going to use the up scroll on my mouse. And now I'm zooming into 110. And so I can see things a lot more easily once I do that. Note, however, this being like a website that it does kinda mess up other things, maintain adequate scrunch up other reports. And, you know, if you're in a report like a like an invoice or a bill or something like that. I would recommend not doing that because it can kinda mess up the functionality of those of those forms. But when you're on the actual reports, like a balance sheet report, it works great. So you want to then scroll and so, but if you have any problems with data input and you notice that you're at anything other than 100%. I would scroll back down to 100%, log out of the form that you're in, go back into the form with it at the standard 100% size and then see if the functionality returns to what you would expect it to be. So those are a couple of really big kinda differences. If you're moving from an application to the online version, and once you get used to the online version, it works, it works really well. Now then I'm going to go back to the, to the first green. This is kinda like our intro screen when we go into the program. So this, we have this intro screen down here which has some good information to it. But it's not what you would expect with if you're used to the desktop version. The desktop version typically has this home screen, that's the intro screen that has this navigation charts. I'm not exactly sure why they don't put this navigation chart in the QuickBooks online because I think it's useful to visualize what's going to happen in each of these sections. But one reason I think they don't do it as much on the online version is that the face of this middle part is wherever you all the activities going to happen and you're not going to be toggling back and forth through the open windows on the left-hand side, but rather on top. So it doesn't make as much sense to have your navigations kind of screens and take you to the actual forms from this middle part of the page. It makes more sense to be having it on the side or up top because this middle part of the page is not going to be there and you're not going to be toggling back and forth between this middle part of the page. So in actuality, when you look at this middle part of the page, you would think that's where some of your starting navigation would be. As it is oftentimes for many people that like to toggle back and forth as I do to the homepage and then see this visual chart and then say, Okay, and now I'm gonna go here, here. And into these forms. When you go online, you're not once you open something else back up. Once I open, for example, this report, I don't have that middle page and I don't have the homepage over here anymore. So that makes this middle screen, I'm toggling, I went back over here now, that makes this middle screen less, less relevant for navigation purposes, you have to have more stuff on the side or up top. That means that you don't have that kind of flowchart on your intro screen, but you'll have the same kind of functionality and it'll be, it'll be in this section and these little dropdowns on the left-hand side and in mainly in this COG up top. So now let's just kinda recap all the, all the settings here. So when you first open this up, the main thing you're going to be working at when you do the data input is this new tab and that's going to break out customers, vendors, employees, and other. That's a similar breakout that you're used to if you've worked with a desktop version in terms of the homepage which is broken out by vendor, customer, and employee, it'll have some of the same items in there. We'll compare and contrast those items more in future presentations. You also have the information up top in the COG up top. The COG up top is not the thing that you're going to be using most of the time for the data input to enter things like invoices, bills, checks. But it could be something that you would use for your settings to set up your settings, which we'll focus more on in a few shoot presentation to manage users, different users that would be involved in here, custom forums. So if you want to set up custom invoices, your chart of accounts is in here, and then you have your lists. So product lists and service lists, this is one item to go into there. We'll talk more about that in the future. Reoccurring transactions. So things that are going to happen multiple times, attachment tags, then we have the tools. You can order checks. If you're going to be ordering checks, that would be an add on kind of purchase feature. You can import data input here, import Desktop Data, Export Data, reconcile, budgeting, audit logs, smart look, and then you've got your profile information and your privacy information. So this is the place that you're going to go for, those things that you're not doing just normal day-to-day input, but you're, you're adjusting the settings in some way, shape or form things that happened on a more periodic type of basis. But you have some of the key items as well in here, including the products and services lists. These lists will be important. We'll talk more about that in the future. Also note that down below you have this toggle between going between a business view and the accountant view. Now the business view, the idea with QuickBooks Online is the business view is going to be more, I think simplify. They're trying to streamline it. If you don't have as much accounting terminology and put the accounting view in there for people that have more accounting terminology. But the two views are very similar. And they're saying that it's stated that the accounting view has more functionality within it. So I would assume that most people that are working in it, if your bookkeeper or even if you're doing your own company file and you're trying to talk to somebody else. They're probably going to be using the accounting view on because there's more functionality to it yet you can do, you could do more. So I'm going to leave this on the accounting view and be working on this through the, through the accounting view. You can toggle back and forth and see if the other view has been official to you. It should have much of the same functionality. I think it would be worthwhile to learn the terms in the accounting view, because when you talk to your accountant or a bookkeeper, something like that, those are the terms that they're probably going to be using. We also have the item up top, which is your notifications, if you have any notifications, and then we have the help item if you have questions about items. And then on the left-hand side, we've got these three little dots. That's what we call our hamburger. So that's the thing that's going to smash the screen to the left. And then he opened the hamburger, and that'll open up this item to the left. So that just gives you a little bit more real estate most of the time you probably have this open all the time so that you have your information on the left. But if you have a lot of data on the right, then you might want to, want to squish this down and so you can have more working space. So I'm going to open this backup. And then most of the time when you do the data input, this is where you would go the new tab. So you're gonna say I'm going to enter an invoice, I'm going to interrupt Bill. I'm going to enter a check so that most of those functionalities were thinking about this new tab. New tab up top is where u is similar to the homepage. It's broken out in a similar fashion. So we have the vendor section, that customer section, the employee section. These three sections are basically cycles. So we want to group them together in our mind because the functionality of the forms, we'll go through these three cycles in a systematic way. So if we can visualize the workflow in these cycles, will have a better understanding of what is going on. We'll talk more about that in the future. And but if I go to this new tab, we got the customer information. So invoicing, That's basically the bill that will make to the client. That's the customer cycle, accounts receivable cycle, invoicing cycle. And then we have the receive payment when we get paid from the customer estimates. If we're going to make an estimate for a customer, meaning we have like a construction job or something and we're estimating before we invoiced in credit memo. So if they gave the thing back, we had to have a credit memo to like reverse the sale, basically a sales receipt, which is going to be a little bit different from an invoice because we're gonna get paid at that point in time. I'll refund receipt, delayed credit, and delayed charge. And so I go in from top down to the two basically, probably the sales receipt are going to be the most used forms. Hopefully the credit memo isn't used that much, but down to the sales receipt, most used forms also note that these items in here are typically called forms that data input for QuickBooks when you're inputting data into an invoice, they call those basically forms. The forms are what will be used in order to generate the financial data, including the financial statements, primarily balance sheet income statement. Then on the vendor side of things, we have the expenses. So when we paid the vendors, vendors being who we pay. So we think of vendors not as us, the vendor. We think of the vendor as the people that we're paying. All right? So we're the business, the vendors of the people that we're paying customers are not us in our vision of the world, right? Were the customers or the people that are our customers, not us being a customer to somebody else. Vendors or the people that we pay, not us as a vendor. So there's always two sides of the transaction. And you've got to know what QuickBooks is talking about in terms of what side of the transaction they're talking about what terminology that are going to be using. We'll talk more about that as we go. But we have expenses, checks that will be entering bills, that will be entering here that go through accounts payable. Then we pay the bills, purchase orders, vendor credit credit card, and print checks. And then we have the employee information. We'll touch on the payroll information, which is here. We won't spend a lot of time on it. We have a whole another course on payroll. We might add a whole another section on payroll to this course. But in the primary section we won't spend as much time on payroll, although we will touch in on it. Payroll is an add on feature. It costs more if you're going to be doing it within QuickBooks. And it's kinda like a specialty field which can take a whole course in and of itself. So then we have other bank deposits transfer, journal entry, statement, inventory and pay down credit card. So if you want to show less, it could show you kind of the most important type of items, invoiced, estimate and so on. I usually don't use that font function too much. And then down here you've got your different areas of including the banking area. This is where you can set up bank feeds if we so choose, we'll do that at a future point. In the course. We'll talk more about bank feeds in the future point and how to, how to work those in. But we're not going to start out with the bank feeds because you want to learn how the system works first and my opinion. And then turn on the bank feeds because you need to know how to add the transactions from the bank to QuickBooks. And if you don't know how to do that, it could be quite frustrating. And then we're going to have the expenses. So we've got two tabs up top, the expenses here and the vendors to the right. So this is where the people that we pay, the list of people that we pay will be one place where you could find that. Then we have the sales information, which is the income type of cycle. We've got the overview, we've got all the sales that we make. And then we have the invoices, which is the form that we make when we make the sale. And then we have the customers and the customers or the people that pay us, those are our customers. And then we have the products and services. This is the list of things that we sell. And we saw this up top in the list here. When we saw lists and products and services in the desktop version, you would probably use that lists more. In other words, and the desktop version, this Lists dropdown is often used to get to like the item lists. So this, this term of lists has become kind of a QuickBooks accounting specialty, accounting term due to the fact that of that dropped down. So people often refer to these products and services as items now, and they often refer to them as a type of list. If you've used quiz, QuickBooks, Desktop a lot. And that terminology is kind of fluid into the online version as well. So we'll talk more about some terminology and whatnot as we go through it in this more detail. But this is what we sell service and product items. Then we have projects. We may get a projects is another kind of specialty area. We may get into a section on the projects at a later point. And then we have the employee information. So this is where the payroll would be. We have our list of employees. We have our contractors if they if they be here, contractors being people that we might have to issue 1099 reports to, although not W2 reports. And then we have the workers compensation information. Then we have all of our reports. Standard reports being the favorite reports of the balance sheet, profit and loss. And then we can set up custom reports and we can have managed report reports over here. And we'll get into reports and a whole lot more detail later. And then we have our taxes information down here, which we could talk about at a future presentation. So that's going to be the major navigation of the system. I'm going to go back on up to the dashboard here. And so if you're working on a day-to-day process, just remember your day-to-day data interests probably going to be right here. And then I'm going to show more detail right there. And then we'll be toggling oftentimes between there and basically the reports down here, because every time we enter something will have an impact on the financial statements. For the most part that being the balance sheet, the profit and loss, otherwise known as the income statement. 7. .25 Bank Feeds: Quickbooks Online 2021, the bank feeds. Let's get into it within two. It's QuickBooks Online, 2020, one. Here we are online in our Google search engine. We're typing in the QuickBooks online test drive to get to our QuickBooks Online Test Drive file, we're going to be clicking on QuickBooks Online at test tribe, verifying that we are not a computer here. And then continue. Here we are in the Craig's Design and landscaping services practice file. We're going to be touching in on the bank feeds. And the first thing we want to note is that we will be going into bank feeds in more detail, but it will be after the primary practice problem where we will focus specifically on bank feeds. You want to go forward in that directly. You can go down there and that, that's where the bank feats focus will be. At this point, we want to touch on it, however, because it's such a huge marketing point. And when you combine the fact that the marketing related to bank feeds, which is a really neat system or neat feature to the name of the software itself, QuickBooks. It can lead people to kinda think that they'll purchase QuickBooks and I'll just connect to the bank. And the bank feeds will just flow into QuickBooks. And then the financial statements will just be completely created automatically and an automated system and you'll have to do anything else. And that's not generally the case. It's going to be more easy or less easy, a little bit more difficult or less difficult. And that'll depend on many different factors, including the type of business that we have and how much we want to rely on the bank versus how much we need to do data input ourselves. So we just wanted to touch on that briefly here and just give you the rationale as to why we're basically going to be moving forward without the bank feeds. And then we'll think about how the bank feeds can fit into the system. And the main rationale for that was my main reason for that is that if you simply connect to the bank, the bank will then import the information from the banking system. That information is somewhat limited when it comes in, because all the bank knows is really whether it was an increase or decrease to the checking account. It doesn't really know where to put it within the system and you've got to basically make sure that you're adding the correct customers and the correct vendors. If you want to track things by customer and vendor. And you're also going to have to basically make sure that you're assigning to the proper income accounts or whatever other accounts and you're assigning to the to the correct expense accounts and those types of things you're gonna have to know a little bit about basically the forms. Because even if you are using bank feeds, even if you're on a cash basis system, QuickBooks will still be using the primary forms to assign out the documents, meeting, invoices, sales receipts, expenses, checks. These things are still going to be the primary forms that will be used when we allocate the items from bank feeds to the system. If you don't know what these forms and do. If you don't know how the financial statements are created from these forms, then it can be really difficult to enter the inter, the bank feeds. But if you go into the banking system, just to turn on bank feeds is really easy. All right, just to link your accounts to the bank. Pretty straightforward system. And you can go into the banking system here. And it'll basically go into an automated system to link your, your system to the bank. And the QuickBooks Online is even easier than the desktop version generally to do so, you will need some verification basically with the bank in order to input it. But the connection is not the problem with the bank fee. That's usually a fairly easy process. Once you have the information connected to the bank feeds, then I call it like bank feed limbo is what happens. The bank feats come in from the bank to the system. And if you imagine your, your system or your bank statement as the data that's going to come into your system. It's basically the bank statement data. And what the QuickBooks knows for the bank statement data is going to be, you know, the increases and decreases to the checking account. It could have guessing or provide some information from the memos, especially if you use electronic transfers about the about the added detail. And that detail can then be used to fill in the blanks in the QuickBooks system in order to add the information. So once the stuff comes in from the bank, it's really usually in bank feed limbo, especially if it's your first time using the bank feeds. And then you're going to have to go through here, meaning these items here are not yet included in the financial statements. They're not affecting the primary financials, the balance sheet or the income statement until you go through and assign them out. Now, once to assign them out to the proper locations, you have to have some idea of the forms because you're basically using a variant of these forums in order to do so, that's what we'll learn when we go through the first half of the course and our primary problem. And then you can set up the bank feeds. And once it knowing that after you've already set this up, then you can kind of tell QuickBooks to memorize transactions, and then it becomes much more automated. So you have to get through the first two months or so of data input that's coming from the bank using bank feeds, properly assigned them out using the information that we'll learn based on the forums, normal accounting processes. Then you can automate the system so that the bank feeds will become more and more automated. And they will become more and more something that you don't have to spend as much time with. So to do that first, we need to know what kind of accounting system do we have or we're using a cash or accrual accounting system and then how can the bank feats fit into it? But just to drive this point home a little bit more, I want to go over to the desktop version just because I want to look at the flowchart in the desktop version to consider what we mean by how we would fit the bank feeds into our accounting system, into the flow of the accounting system. So if I go back over, this is QuickBooks Desktop. The only reason I'm over here is because they've got this nice flowchart. So this the vendor flowchart or the payable charts, and then the customers are receivables and then the employees down here. Now note if you're turning on the bank feeds and you have something that is a completely cash-basis system. And not only a cash-basis system, but one where you want to rely on the bank, the information that clears the bank in order to construct your financial statements. That would be the easiest system to use in order to turn on bank feeds and be as automated as quickly as possible. And that would be something that you have to like gig work or something like that where you're getting paid from an, from an online application you sell through Amazon or you have courses that you're selling or something like that on a different platform and you're getting income. In that way, you have a podcast or that kind of income, then when the money comes in, you're just basically wait until it clears the bank and you're adding it then as income. In other words, you're not invoicing or billing the customer and then having to track the receivable in that situation. And also you're paying your expenses basically on a cash basis, your electronically paying the expenses in that case and that basis, the bank feeds work really well. Then that's the easiest system to be setting up because you will be on a cash basis system. And not only that, you'll be reliant on the bank, meaning you're not going to basically be entering, for example, the checks when you write them under that system, you would be waiting till the checks clear the bank. Which means, again, it's not even a cash-basis system. It's a system where you're relying on the bank because even under a cash-basis system, normally you would write the check and then double-check that the check had cleared the bank by checking them to the bank feeds. Okay. And if, if on the other hand, you're waiting until the check clears the bank before you record it in your system at all. You're not using the bank as a double-check to see that things had been recorded correctly. But rather you're relying on the bank in order to get the information to record. And so that's going to be the major difference. Now, if you're paying things with an electronic transfer, you're paying them right out of your bank account rather than writing checks. Again, that's probably a system where the bank feeds might be good in that system. Because you, again, you'll kind of be relying on the bank on, on that system. So that's going to be the easiest way you can set things up. But many times people have variants where they need to vary away from a cash-basis system. And one would be a type of business where you have to invoice clients, like a bookkeeper or a lawyer or something like that, where you do work and then you build a client and they're going to pay you at some point in the future. In that case, you have to track the receivable. You've got to track the outstanding receivable. And that's usually done with an invoice. So in that system, I can't just wait till someone pays me and then record the deposit as income at the end of the day because I have to track the people that have not yet paid me instead of an accrual account called accounts receivable and track the people that are going to be paying me. Then when I received the payment, I've got a track that I have then received it and that's when it's going to basically hit the bank. So in that case, the bank feeds are a little bit more complicated because on the deposit side of things, I'm going to have to in some way match up basically the invoice and the receive payment to what cleared the bank. Meaning at least on the deposit side, I'm going to have to do more of a traditional bookkeeping thing, which means I'm going to record the deposit or at least the accounts receivable first and then match what happens on the bank feeds to what I already recorded in my system. So if I have to track accounts receivable, if I have to build my customers because I'm in that type of industry, the bank feeds become a little bit more complex. And so that's what I mean by we have to understand, you know, what kind of accounting system we have so that we can put the bank feeds into it. And that's usually the biggest deviation. We're going to have here, is that on the, on the revenue side of things for small businesses, but you can also have a deviation on the vendor side of things. And again, if I'm just paying people like straight out of my bank account with electronic transfers, then the bank feeds might work quite well. And I might just be reliant on the bank. But if I'm entering bills first and I want to track the bills through the accounts payable and then pay them at a future time. Once again, I haven't accrual component to my process. And then the bank feets become a little bit more complex because I'm not relying on them clearing the bank to record the expense, but rather checking the bill that I have entered to the bank feeds that are going through. So if you're using accounts payable, then the bank feeds become a little bit more complex as well. The next thing that complex the bank feeds is inventory on both the purchasing side and the sales side. So if you have inventory, things that you're selling and you want to track the inventory in the accounting system, then it becomes more complex as well. Because when you buy the inventory, then, then you're putting something on the books basically as an asset and you're not expensing it at the point in time that you are purchasing it typically. And that means you're once again deviating from an accrual-basis method. And then you've got all kinds of questions about whether or not you're going to be using a periodic inventory system or a perpetual inventory system. In other words, are you tracking the inventory every time you make a sale of the inventory, which would be a perpetual inventory system, or are you counting the inventory and then making a periodic adjustment at the end of the week, day, month, which would be like a periodic system. So you've got to understand that if with inventory before you can really fit the bank feeds into it. And that of course you have payroll, which is another area that muddies up inventory. If you have payroll, then when you when you enter the check, the check that's going to clear the bank is going to be is going to be net of the withholdings when you pay when you pay the employees. And so you have all this issue with the payroll process of the withholdings to this payroll taxes and whatnot. And you have to think about the system that you will be using to record that information. Using the bank feeds when you have to deal with the fact that you have had these other items that will be involved also, are you going to be doing the bank feeds on the payroll within QuickBooks? Or you can have a third party person basically help you process the payroll and then simply enter the checks into QuickBooks. So those are some of the problems with bank fees that she got a mole over. And the only way you can really do that if you have a more complex system, meaning you're on some kind of accrual basis. You use either accounts receivable or accounts payable, or you have inventory, or you, you have employees, is to first know the system, know the function of how a normal accounting system works, and then how you can put the bank feeds in there on top of it so that it can integrate within the normal accounting system. If you have a very basic system, like just gig work than bank feeds might not be the way to go if you have inventory, accounts receivable, accounts payable employees, than then you're gonna have to put a little bit more thought into it. And the way we will approach this then is think about the normal accounting process without bank feeds. And we'll think about all of these forms that would be done in a normal accounting process. And then we'll add the bank feeds at a later point in time. And if you go through it in that format, then once we get to the bank feeds, you'll have a good understanding of how you can kind of integrate them into your accounting system. However, if you have, if you have an easy system and you just want to go right into setting up a new account and setting up bank feeds. You can go to the second half of the course where we set up a new QuickBooks file. And then you could jump right down to the bank feeds system where you could just start adding bank fees and just go, go right from there. You gotta do a little bit jumping in the course, but you can't do that and that's, that's, that's fine. 8. .30 Preferences Account & Settings: Quickbooks Online 2021, preferences, account and account settings. Let's get into it within two. It's QuickBooks Online 2020, one. Here we are in our Google search page search and for QuickBooks Online Test Drive. And then we're going to be picking QuickBooks online test drive for Intuit, the owner of QuickBooks, we're going to verify that we are not a computer or a robot. Kinda the same thing, I guess. I mean, a computer can be a robot. A robot doesn't necessarily have to be. I don't know. But in any case, we're here on the Craig's Design and landscaping services. We want to touch in on the preferences or account settings because when you set up a new company file, this is often one area that you're going to zoom in on towards the beginning of the setup process. If you're going to work for another company that already has the file then set up, then you're kinda locked into the preferences that they will be having there. Now that's similar to the situation that we're going to start off with when we're practicing the navigation. In other words, it would be similar to go in to work for somebody else or picking up a set of books that have already been set up. Trying to learn how to work within the system that has already been set up, how to navigate the software that has been set up and go through the information within it. Whereas if you start a new company file, then one of the first things you're going to want to look at are the preferences. So what we'll do is we'll take a look at the preferences and an overview at this point in time. And then when we get to the second half of the course, we're gonna go through each of the preferences one by one in detail so that you can set up a new company file. If that's your objective. Look at all the preferences and get them setup as you would like them to be customized for you at that point in time. If you want to jump to that area, if you want to start a new company file and then go right to the Preferences and then think about possibly bank feeds and go as quickly as possible. Then you can jump to the second half of the course where we go over setting up a new company file. We'll do the so with the 30 day free trial. And then we'll take a look at the preferences within that system. And then if you wanted to jump down to the bank fees and just set up the bank feed, then you can go down to the bank Feed Settings and go right into those areas. However, if you're a beginner, I would recommend going through the whole process here, going learning the navigation, then setting up a new company file, and then doing the bank feeds. So I'm just gonna do a quick comparison of the QuickBooks Online and the desktop version so you could see where they're located in both locations. So if I go to the desktop version, we would go to the Edit drop-down and the preferences down here, this is where the normal preference window would be. And you have all these items on the left-hand side, and then the preferences related to them on the right-hand side. And so you'd want to basically, most of these are pretty good out of the box or when you first set them up pretty standardized, however, some of them you might want to change and customize them to the business type that you are in or just to your individual preferences on how you like to see things. And so those preferences are a little bit differently named and located over here on the online version. Most of them are, many of them are in the little cog up top. And then you would go to the company, your company and then account and setting. So once again, we're gonna go to the COG, we're going to go to your company and then account and settings. Note that if you're picking up the company file from somebody else, if you're working somewhere else, then you're probably not going to be changing these settings. They've already been set up the way they're going to be set up for the most part. And you're going to be moving forward with a data input that will be over here, creating invoices and navigating, generating reports. We'll talk about shortly. You're setting up a new company file that you might want to verify your account and setting preferences, which once again, we'll talk about in the second half of the course when setting up a new company file. So let's go into those items now. Just a quick overview. So we have the tabs on the left. We have the tabs on the left for the company. We got the company name and information here, the company type. We have the contact information, the address and the address could be important that we would need it for the forms that we're going to give to other people such as invoices and whatnot communications with Intuit down below. Then we have the second tab on the left. This is going to be the usage, billable users chart of accounts and so on and so forth. This will be looking a little bit different. On the paid version, you'll have some more information about your usage and what not. And then the sales items we have, the customized up top customizes the wave forms a look to your customers so you could do some, there's one way to get into the customizing a forms on the sales side, possibly thinking about things like invoices and sales receipts, the bills in essence, you're providing to the customers. And then we got the sales form content. So the preferred invoice terms, these are the terms of the invoice preferred delivery method, whether you have shipping on or off, custom fields, custom transactions, service date discount and so on. We've got the products and services then Show products service column on the sales form. We have that on. You can turn these on or off, of course, and then turn on price rules, track quantity and price, right? Track inventory quantity on hand. So are we tracking the inventory or not? Do we have inventory? Do we need to be tracking inventory? That's going to be a key point and we'll talk about that when we go through the practice problem, late fees, and then we have the progress invoicing, if applicable, turning that on and off messages, reminders, online delivery. And then we have the statements show aging table at the bottom of the statement, we have the expensive side of things, purchases, expenses. These are things that we buy with regards to bills and expenses. Show Items table on expense and purchase Forms, track expenses and items by customer, make expenses and items billable. We'll talk about those in the future when we get to those components, purchase orders. And then we have the messages, and then we have the advanced settings here, including the account settings first month of the fiscal year. Most sole proprietorships will be on a 1231 or calendar year, meaning the last month will be December 31st, January 1st through December 31st the entire year. Then note that they are asking here for the first month meeting. If you're on a calendar year end December 31st, you your first month would be January. So for most people that would be at the default setting, January. If you have a different fiscal year, then you want to this is where you would go first month of income tax year, same as the fiscal year for a sole proprietorship. That's typically the case because your calendar year, January through December will be the same as your fiscal year for the most part, if that's the case, it'd be the easiest way to set it up January through December. And therefore your taxable here will typically be the same, you know, January through December accounting method accrual versus possibly a cash method. Notice that you probably want this on a cruel, Even if you're basically using a cash method in that, you're basically taking your information for examples, directly from the bank. Because you'll still be basically doing your bookkeeping on, on a cash method, but I would keep this on an accrual here. So if you have questions about that, you might want to discuss that with an accountant or, or something like that because that's confusing to some people will talk about it more in depth in the future. Company type tax forms. We have the chart of accounts and able account numbers. Account numbers can be very useful. We might have another section that will include on just the use of account numbers, but they can also be complex default then usually has the account numbers off, discount account tips, billable expenses. We have the categories class tracking, great feature in and of itself, the class tracking and also the track locations. So these are items that we might spend a bit more time on in the future. They're specialized to certain industries or certain fields, or when you expand and have different departments, class tracking, track locations can be quite useful. Automation pre-fill forums with previously entered content. So this is going to help you to basically do data input in the future by basically and seeing what you did in the past. And kinda trying to guess what you're gonna do in the future by looking at the prior transaction, say, for a particular customer, when you enter an invoice or a particular bill, when you're when you have a particular vendor related to it, it'll try to memorize the transaction. So these can be useful and the default settings are typically pretty good. Projects organize all job-related activity in one place. Projects is another custom area which we might spend some time on in and of itself. In a later section, just focusing in on the project's time tracking at service fields to time sheets. So we could track time within the system. Use time tracking to help us to populate our invoices. Possibly. We're billing based on hours. We'll talk a little bit about that as we go forward. Currency, home currency, multiple currencies, where we may have a, we have a course on the desktop version for multiple currencies. So if you have transactions, say accounts receivable, that you're going to get paid in a, in a foreign currency or you're paying in foreign currency, then you can track those transactions with multiple currencies functionality and specialized area. Once again, we might take a look at that in the future in a section in and of itself. And then other preferences, date format, how you want the date to look, month, date, year, the number format. How do you want numbers? Do you look to what the decimals and commas, other areas you might have a period where the decimal should be and what not. Customer customer label warned if duplicate check numbers. So that's a good default setting. Warm if you have duplicate bill numbers in, sign me out if inactive for one hour. And you do want to have some kind of default setting for the system to log you out. And whenever you leave, you do want to log out of the system normally to make sure that no one is messing with your stuff. But the default setting a log off is good. So that's just a general recap. We'll go into that in a lot more detail in the second half of the course when we start a new company file. 9. 1.15 Vendor, Expense, Purchases, or Accounts Payable AP Cycle: Quickbooks Online 2020 one, vendor expense purchases or accounts payable AP cycle. Let's get into it within two. It's QuickBooks Online 2020, one. Here we are in our Google browser. We're going to search for QuickBooks Online Test Drive. And then we're going to go into the QuickBooks Online Test Drive from Intuit to get to our practice file verifying that we are not a robot. They keep on trying to think I'm a robot but I'm not. So I'm going to say no and continue here. Here we are in our Craig's Design and landscaping services practice file. We're going to be going through what we could call either the vendor section, expenses section or the purchases section or the accounts payable or API cycle or section. Those are all areas are different names for things that are typically grouped together. And you can think of this basically, if you're indifferent, if you're in an accounting department, for example, you might be in the Department of basically accounts payable or the payable cycle of the purchases cycle versus the accounts receivable cycle or the employee payroll cycle. And what we want to be able to do with visualize what is going on basically by cycle here. So these things are going to be grouped by cycle, most easily seen in QuickBooks online by this new tab. If we go into this new tab here, see this cycles and then the forums in those cycles that being the customers, the vendors, and the employees were going to be focusing first on the vendor's cycle. So again, the vendor cycle means that we're paying somebody else. We're thinking vendors. Now we can think of, of course, ourselves as a vendor if we sell stuff because it's a vendor, someone who sells things. But for QuickBooks terminology, we're talking about vendors means the other side of the transaction when we are purchasing from somebody else or purchasing from a vendor. So we could then call it the vendors center if we want to think about it that way because we're going to be grouping who were going to be paying. Many people will think of but the vendor cycle as basically the expense cycle. So especially if you're on a cash basis system and you're basically doing electronic transfers or checks. Your main focus is going to be the expense form or the check form, basically cash decreased type of form. So you might think of it basically as the expensive cycle in that case. Or you might think of it as the purchases cycle when you're thinking about pain, either with an expense or check form for the purchase of something such as inventory. So if you have inventory, oftentimes people will then call it the purchases cycle. Or even if you do not have inventory, you might be purchasing things such as equipment and whatnot and not just have expenses. So you might say purchase a cycle and then you might call it the accounts payable cycle. If you're going to be running things through the AP account, a liability account. So that's another name for this cycle. If you're in a larger company, you will definitely have accounts payable. You can have a whole department based on the accounts payable and tracking the bills that will be there. And so you can call it the accounts payable cycle, but they're all listed in the same kind of group. You want to kind of group them together in your mind. Now I think it's easier to visualize that grouping if we see the flowchart and there is a flow chart in the desktop version. So I'm going to jump over to the desktop version, not because we're going to do anything in it, but just so we can look at the flowchart and then tie that information out into the online version. So here's the desktop version. And we're going to be concentrating on the vendor's section up top. Just thinking about the flow of what happens within the vendor section. So what we want to do is break this information down bisection. So now I'm going to, I'm going to think of it in terms of vendor section. That's what QuickBooks basically calls it. And then the customer section and then the employee's section. And then within each one of these sections, what we wanna do is then memorize the major forms that are going to be in those sections. Visualize the flowchart of how the normal process will work over time between those forums. And then think about what those forms will do to the financial statements. These forms being the driving component that will then create the transaction which would be called journal entries. If you're from an accounting background, going to be the things that actually affect the financial statements, that being the balance sheet and the income statement. So our first focusing here on the vendor's area and we're thinking about, okay, this is the place where we're like buy stuff from other people. We pay for services, goods and services, we buy things from a vendor. The most common form in this section would be the check or the expense type form. You might ask, why is that down here and banking, why is it that up here in the vendor's section? And I think QuickBooks is basically saying it's a little bit deceptive to have the checks in the vendor section because you could write a check for for different reasons. There could be a check that was paying something other than a normal expense or something like that. So they put the check in the desktop version over here in the other section, in the banking section. But it's basically one of the primary forms you'll think of when you're paying a vendor. Of course, if you go to the QuickBooks system, then those expenses and the check or under the vendors section, which I think is probably more appropriate because that's where you would mostly think of it being. That's going to be one of our major forms. Now note that even if you're using bank feeds, still going to be applying these forms out to the transactions that are flowing in from the bank feed. So we've gotta have an idea of what those are doing that, that form. Then I'm going back to the desktop version. Now. The check form will be decreasing the checking account cash and I'll be recording some other account. You can typically think of an expense account if you're normal kind of business transactions. So that's going to be one of the primary things you do on the vendor section. You're paying for expenses, you're going to be paying the vendors in there. That's going to result in a journal entry or transaction. Every transaction affecting at least two accounts, that two accounts at least being or often being decreased to the checking account. That's what a check will always do. And then the other side, often being an expense account. Now then if we expand out a whole accrual kind of cycle with regards to the purchasing cycle, instead of simply writing a check, then maybe we want to enter the bill when we receive the bill, even though we're not paying it at that point in time. And that can be useful for multiple reasons. One reason is that we want to get the bill in the system closer to the time period that we consume that the goods or services that the bill is related to. So for example, if we got the phone bill at the beginning of January, but it's not due till the end of January. It would be best for us to enter it into the system in January and then show the expense. Closer to the point in time that the expense was actually incurred was which was probably in February, right. We want to we want to record the bill closer to the time it was consumed, even though we're going to try to wait till as long as possible to pay it. And that would be the typical strategy if you work in accounts payable for larger organizations, that's always going to be their strategy at a cat, a typical cash management strategy will be, I'm going to hold onto the cash until the last possible day that I can without getting penalized for holding onto it. So what you would typically want to do then is is then enter the bill when soon as you can. So the expenses being recorded at that point in time, closer to the time that you consumed it, but then not pay the bill until the last point in time that you can. And so when you enter the bill, the transaction here is going to be an increase to the accounts payable, a liability accounts. The other side go into an expense. We'll show some examples of that shortly. And then you can pay the bill over here, which is basically a check form, decreasing the, the bank account and decrease in the payable, the liability at this point. You can also use this tool to sort the bills, meaning you can then sort the bills that are going to be payable, sort by date of when the bills are going to be payable, and then pay the bills that you would like to pay. If you look at that in the online version, then of course, we have this item here. That would mean we're entering the bill here and then we would be going to pay bills. So once we had entered the bills, we can then go to pay bills here and we can kind of sort the bills that we want to pay and then, and then try to manage our cashflow by paying the bills as late as possible. This is the general policy that you'll be you'll be doing as late as possible without being penalized is the general is the general idea. Back to QuickBooks Desktop to see the flowchart. Then. Now if you have inventory, That's going to be a little bit more complicated of a transaction, but it'll have both a vendor side of things and a customer side of things if you're purchasing and selling inventory, and on the vendor's side of things, you're going to be purchasing the inventory. Now the purchasing of the inventory is got this one form that's a little bit tricky. We'll talk about, we'll talk about all the forums and depth in following presentations. But that's going to be the purchase order. And the purchase order is actually not a form that will affect the financial statements, balance sheet or income statement. It's just a request for inventory and it's a little bit backwards. And what we really think of when we purchase something, say from Amazon or some online vendor, where we have to pay for it at the point in time we want it to be delivered. Where, as in a business or business to business transactions. Oftentimes, the purchaser kinda has more of the power to be able to say I want to order something, receive the order, and then pay for it. And in that case, you have this purchase order were no financial transaction has because the inventory has not been received and the payment has not been made. Then once we receive the inventory, the inventory will come attached typically with a bill to it. And that's the point in time that we will record the increase in the inventory and the increase in the payable, and then in essence will pay off the payable. So that's going to be the inventory cycle or flow. So that's going to be able to kind of visualize this flowchart Basically by section. And that'll make it a lot easier to understand the whole accounting cycle because you're grouping it down not simply by chronological order, by the date of every transaction that happens, but in kind of chronological order by cycle, so that you can visualize the cycles that will happen. And now, and now you want to kind of see these forms, how these forms will be related within the cycle. And then the next step we'll do is we'll break down each of these forms and we'll see what the impact will be on the financial statements, meaning balance sheet income statement, otherwise known as the profit and loss. And we will then every transaction has two accounts that will be affected. And then once you, once you can visualize what is happening on the financial statements, you'll have a much better idea of how the financials are being created. And then if there's a problem with the financials or you need to fix something or make any adjustments to it, you have a lot more confidence to do so. Otherwise, if you do not do that, what's happens is used to start entering these forums and hoping you're running on, hope that things are going to turn out. Well. But if you if you know what these forms are doing, you can kinda verify, double-check that hope and feel more secure about it. So we'll, we'll drill down on each of these forums in following presentations. 10. 1.17 Vendor Center Expenses or Vendor Tab: Quickbooks Online 2021, the Vendor Center or expenses or vendor tab. Let's get into it within two. It's QuickBooks Online 2021. Here we are in our Google search page. We're searching for QuickBooks Online Test Drive. We're going to open up the test drive from Intuit, verify that we are not a robot. We are now in our test drive file for Craig's Design and landscaping service. We're taking a look at the vendor cycle or the payable cycle, the expenses cycle, which can't be found or many of the forms can be found under this new tab and then under the vendors item. Remembering that vendors for the purposes of QuickBooks means who we are paying too. We're paying something to, ultimately the vendors. And these are the forms that we went over briefly in the prior presentation. Now I'm going to jump back over to the, to the desktop version so we can see that flow chart. Again. If I go back on over to the desktop version, we're looking at the vendor center. Remember our objective is to basically visualize the transactions not simply in chronological order, but in chronological order bisection in this case, the vendor payable or expenses section. Then to think about each of the bills or not not Bill. One of the items is Bill, but each of the forms within these sections visualize the sequence of forms and then visualize what the financial transaction meaning the effect on the balance sheet and income statement, the financial statement reports will be every time we enter one of these forms. Now, there's also a center that we can go to on these items too. They kinda help us to track this information. Quickbooks Desktop, they call it the Vendor Center, which you can get to by going on here, or you can go up top to the vendors and the vendors center. So it has a nice ring to it. So many people will probably still be saying Vendor Center, even when they go to the online version, which doesn't really have as much that terminology. And this is the vendor center. Let's do that same kind of thing over here on online version. So if we go to the online version, we don't have the same kind of drop out. We don't have that homepage, but we do have these items on the left-hand side. Once again, if you're just entering forms like checks or if you're intron that checks for the accounts payable, paying off the bills, are entering bills, you're probably going up top. And then to the transaction you need here. However, if you want to sort some of the data and the other two areas you might go, one, you might go to the reports, balance sheet, income statement, or a accounts payable aging, which we'll talk about later. Or you might go to the expenses area, which this is, instead of calling it the vendor center, this would be more like a tab on the left-hand tab, which doesn't sound as neat, but, you know, you've got the expenses tab or you can call it the vendors tab as well. These will go into the same kind of area which is similar to the vendors center on the desktop version. If you go in here you have the expenses up top and other tab up top, and then the vendors to the right. So now we have two tabs on the right within the expenses tab, in the tabs to the left. So in the expenses area, if we scroll down to the expenses, we will have basically the activity. And this is going to be activity including expenses and other types of transactions which are in basically the vendors section, meeting these types of bills or these types of transactions forms, I should say, which make transactions, meaning accounts being affected on the financial statements, are the types of things that will then be in this area of. The expenses section or the vendors Center in essence. And then you can sort these easily in here. So if you wanna go look up a transaction that has already been entered, this is one place you can go and you can filter the transaction. You could filter the transaction by type. And there you see our types that are in basically the vendor cycle, expenses, bills, bill payments, check, purchase order, and so on, so forth. So if I just wanted to look, say for expenses, for example, I can filter by just the expenses and I can see the transactions simply by the expenses. I can also filter up top and I can remove that filter by resetting. So I can see everything I could sort by status. If I wanted to just see the items that are open, I can go to the open items and apply that. So now we're typically talking about bills that have not yet been paid. So they're in the liability of accounts payable. That's one way you can track the items that you have not paid the accounts payable. We talked about the other way that you can track those items and I'll do this by duplicating the tab up top. So I'm not leaving this window. I'm going to duplicate the tab by right-clicking on the tab up top, then go into Duplicate. So now I have two tabs open. And on the second tab, I'll be able to maneuver around outside of this expenses area without leaving this spot. So I'm going to then go to the dashboard up top. And you'll recall, if I go to this drop-down, in the new drop-down, we could sort the bills that need to be paid by using the pay bill item. We'll talk more about that in the future. But this is one way you could sort the information that needs to be paid. Probably the most common way to sort, because when you're paying the bills off, you can go in here and sort the bills that need to be paid by due date and so on and so forth. However, going back to the first tab, you can also do that in this format by sorting the bills basically over here and looking at those open. If we go back up to the filter again, I'm going to reset the status so that we can also sort by the payee. And basically most of them being vendors, but we could have others there as well. And the category, most of them expenses, but we can have other categories here as well. So those are going to be the sorting options that we have. And I'm going to reset this again. I don't think I reset it, so I'm going to reset and Apply. And now we have all the transactions again. Now note that these transactions that here also look a little bit similar to where you can go, which would be the check register, which is another place that you would often look at transactions. So the items that are affecting the checking account directly, which would be things like the paying off of the bills, which is basically a check expense forms. And the and the check forms. These things can be found on just like the check register, which would be monitoring the activity in the checking account. So one way we could go there would be, Let's do this in the second tab again, I'm gonna go to the second tab. I'm going to close this back out. So then I'm going to go down to the accounting and I want to take a look at the chart of accounts. The chart of accounts. Now you might have something that's a little green button here that you're gonna have to check to see the accounts. And then you'll be in the chart of accounts, the top account then being the checking account. So that's going to be our cash account. And we have the options to the right to view the register and some other options. I'm going to view the register. So this is basically a check register and this is going to show us the increases and decreases to the checking account. And some of those increases and decreases you'll see will be the checks and the expense items and the pay bill items, which are in essence the vendor cycle items. However, in here as well, we're going to see things like the deposits, meaning the deposit side of things. So just note that form the place that we were looking at before. Some of those items you can see on the checking account if they're affecting the cash account. And this is often where many people will go to find those transactions. If I go back to the expenses transactions, the items that will not be on the checking account are going to be the entering of the bills, these bills than, or things that happened in the vendor cycle that do not affect cash until they're paid off with a pay bill section. We'll talk more about that in the future. But that's why the bills and the tracking of the bills and those that have been paid and those that have not been paid, or probably the primary thing that you're going to be looking at if you're going to be going into this item, the expenses item as well, and also in the vendor's tab. Let's go on over to the vendors tab now. Now remember the vendors or the people that we are paying. So we're paying vendors and we may be having people that we have not yet paid for goods and services, meaning we have an accounts payable open for them. Tracking those open accounts payable is what the accounts payable department will be spending most of their time doing tracking the accounts payable, decided when they need to be paid. Now the list of vendors is usually going to be quite long because there's a whole bunch of people that we end up paying in the course of the business. But we probably have some vendors that were more concerned with with regards to tracking their information, such as when we purchase inventory, those types of vendors are probably going to be some of our most important items. We could do batch transactions by selecting some of these vendors and then recording a transaction here, email, or we can make it inactive. We have our purchase orders notice up at the top we've got these ribbons which can help us to track our information. Purchase orders, you'll recall and we'll spend more time thinking about what a purchase order is in detailed in the future, but those are requests for inventory. So if it's open, that means we request requested inventory from a vendor and have not yet received it. So this is a great section to go to to track those purchase orders which have not yet been received. We then have the the bills here. These are the overdue bills and notice how it kind of breaks out these bills between the overdue and then the open bill. So overdue bills are still open, meaning there are bills that we have not yet paid, but they're overdue and therefore we should pay them. If we don't, we might be subject to some type of penalty. Once again, this is the area that many times people will track these bills and when you pay them, I'm going to go to the second tab again. You might then go to the Pay Bills section. And this is where you'd have those bills, the open bills that you would need to pay and you could sort them to some degree here as well. I'm going to go back on over. So going back to the vendor sections. So we have the overdue and then the open bills, and then we have the items that 21 paid last 30 days. And so these are going to be the items that were paid. So for example, if you're using this area, you might be of course, asking which bills are going to be due, which builds are going to be passed to the asic. Nice little feature up here to have that. If there's questions about if a vendor calls and says, Hey, I've got a question about a bill that hasn't yet been paid, then we can go over here and check whether the bill has been paid here. Or we might then go search for the vendor themselves and then check the detail to see whether or not the bill had been had yet been paid. If it had had to been paid, and the vendor says they hadn't received it than if it was a check. We might then want to see if the check had cleared the bank and basically go from there. Also note up top you have are items where we have the 1099 information, pay bills and order checks, and then we have the vendors where we could set up a new vendor here if we so choose, we can also set up new vendors. Basically as we go, as we enter transactions, as we enter, for example, bills and checks, checks, bills and expenses. So we'll talk more about that in future presentations. 11. 1.20 Bill Form: Quickbooks Online 2021. That bill form. Let's get into it within two. It's QuickBooks Online 2021. Here we are in our Google search page. We're going to be searching for QuickBooks Online Test Drive. And then we're going to be selecting the QuickBooks Online Test Drive from Intuit, the owners of QuickBooks, we're going to say we are not a robot and then continue. Here we are in our Craig's Design and landscaping services practice file. We're going to be continuing on with our vendor section. I'm going to go over to the desktop just to review our items first, we're going to take a look at the vendor sections. So these forms over here focusing in on the bill form this time, let's see it with regards to the flowchart, which we can see on the desktop version. So I just want to look at our flow chart over here. That's why I'm in the desktop version. We're just checking out the flow. So we're up here in the vendor center flow and we're going to go through the full kind of accrual process for the accounts payable, purchases, or expenses type of cycle. We're going to be entering the bill, we enter the bill and then we're going to be paying off the bill. That's going to be the normal flow that we will have in when we enter the bill. Then what's going to happen is that we're going to be increasing the accounts payable, a liability account. The other side, if we're paying for an expense, then go into an expense account on the income statement, then we would be paying the bill. This would be the second step that would happen in our two-step to form process. That would be the pay bill, which would in essence be a check that we would be paying or an expense form if it were a check, not a check, but like an electronic payment of some kind, which would be decreasing the checking account, the other side decreasing the accounts payable. That's going to be our normal type of flow. If we're doing the flow flow, the full flow process, if we were just doing a cash-basis process, meaning just paying off the bills as they become due. Instead of entering the bill, we would simply go right to the inter the check or expense type of form. So let's go on over to QuickBooks and see those same processes. If I then go to the new item into the vendor item. Up here, we see the different forms that we have below. As we think of the data input, we want to visualize the flowchart that we looked at on the desktop version. Then visualize the forms that would go kind of in order for our standard flow for our particular business. Then we're going to visualize what's going to happen when we enter these forms into the system with regards to the financial statements, the things that we are building, those being primarily balance sheet income statement, otherwise known as the Profit and Loss report. So we're going to go then into the bill form. Entering the bill form. So here we have a blink bill form. We've got the vendor up top, we've got the mailing address terms, the bill date, the due date, and then we're going to have our categorization down below. Let's go look at some examples of some Bill forms and we could do this. I'm going to close this back out. And I'm gonna go then to the expenses center over here. Go to the expenses center, and then we're going to search for some of the bill items. I'm going to put a filter up top. I'm going to filter these items and I want to look just for the type of transaction that are the bills, but things that are increasing the payable. We're going to say OK, and apply that item out. And then we have our bills set up here. Let's go ahead and just choose one of these bills and look into it. So I'm going to choose this item and we'll just analyze this bill. So this is going to be the vendor up top that has been set up. We have the address that's going to be set up for each particular vendor. As we set up each vendor, we might not always have the full address for the vendor. For example, if we're paying like the phone bill for AT and T or something, I don't really care with a billing address is if I'm paying electronically. Then it doesn't really matter. I'm just going to enter the bill and then possibly pay it in the future. And then we've got the bill date and then the due date. So note that these dates aren't always the same because we could have a term here. The term might be that it's going to be doing ten days or 15 days and so on and so forth. That due date is going to be the thing that's going to tell us when the thing's gonna do, going to be due and how we can then sort our payables so that we make sure that we pay things on time and in an attempt to pay as late as possible generally, for a cash management strategy, while still avoiding any kind of penalties that could be there for late payments. And then we have the categorization down below this one, then go into the legal and professional accounting items. And that's what's going to be impacting the financial statements. So as we enter these into the system, that good practice that you want to have here is to be able to then visualize what's this bill go into due to the financial statements. The fact that it is a bill means that the accounts payable is going out. So the account of accounts payable will be increasing. The other side then is going to be driven by this item down below, which in this case looks like a an expense type of account. If we hit the drop-down, we could confirm that it's going to be an expense type of account for accounting. Now I'm going to go to the financial statements and try to find this on the financial statements. Now remember, there's always going to be at least two accounts that will be affected for every transaction, which almost every form that we look at is going to be impacting the financials and have at least two accounts that will be impacted. I'm going to do this by duplicating the tab again. So I'm gonna go up top. I'm going to right-click on this tab and duplicate it. So I'm gonna go ahead right-click and duplicate. So we have another tab. I'm going to open up our two favorite financial statement reports, which are which are going to be our primary reports because they are the financial statements that being the balance sheet and income statement. Financial statements include the statement of cashflows, but the major two statements are always going to be balance sheet income statement. Closing this back out. We're going to then go down to the reports on the left-hand side. Let's then open up our balance sheet. The sheet that we balance stuff on, those being the assets, liabilities, and equity. Now it's going to be up top and the Favorites area because these will indeed be our favorite reports balance sheet, income statement. We're going to be checking them all the time. So there's our balance sheet. I'm going to then open up the income statement. I'm going to right-click on the tab up top again, right-click on the tab up top again, duplicate. And then we'll open up our other report that being the income statement. The income statement for QuickBooks as we'll talk more about in the future when we get to the reports is also called the P&L, or Profit and Loss report, because QuickBooks likes to do their own thing sometimes and just call it something a little bit different for some reason. So they're going to call it the Profit and Loss report. And now let's check our bill here and see the date on the bill. It's in 2020. So I'm going to then change the date range up tops here to make sure I'm picking up the 2020 date range, I'm going to change the day sub 0, 1, 0, 1, 2, 0, 2, 1231, 200. I could also just say the last, last year here. So I could say that I want the last last year. I think. To me, it's kinda just easiest just to enter it and then I'm gonna go ahead and run that report. So now we should have that data. Now the balance sheet is as of a point in time, we'll talk more about this later, but having that date range will help us when we drill down on the data. So we know that this is affecting then the accounts are the accounts payable and that's down here, the accounts payables down here in the liability section. Now I'm going to close up this hamburger up top, so we have a little bit more room closing up the hamburger. And then I'm going to hold down control and scroll in a little bit. So we're zoomed in here a bit. And now I can go down to the liabilities. The accounts payable is going to be one of our primary liability accounts. That's the account that shows that we owe somebody else money, we owe our vendors money. We could zoom down on the activity in this account by just drilling down here. This is the Zoom feature which basically opens a general ledger report. I'm going to hold down Control and zoom out now a bit so that I can see the whole report. And so here's the whole report and they call this a transaction reports, basically a general ledger report here showing the activity for this account during the time-frame of this year. And it's really nice because it shows the dates on the left. And then it shows these transaction types. These are going to be really nice and really helpful because they tell you the types of things that are, the types of forms that are constructing this report. And then you can start to understand what these forms do with regards to this transaction. So you can see these bills then are affecting this report. The bill that we just took a look at was for the 315 on 12 eight. So we had 12 eight for the 315. So there's the bill. And if we actually click on that bill, then it'll, it'll take us to the source document. So this is kind of like you could think of it almost as an auditing type of report meeting. When we look at the bills, we look at the bills into the bills and then go to the financial statements being the end product. Then we can go to the end product, the financial statements in drill back down to this source document in this case being the bill. So I'm going to close back out on that. Really useful just to do that. Just to do that. So there's going to be increase to the payable, increased the amount that we owe. If I scroll back up to the top, there, we have this back to the report item that'll take us back to the report. So there we go back to the report. Now, if we look at the other side, which is going to be on the income statement, I'm going to go to the income statement, tap to the right, and then I'm going to close up the hamburger over here. I'm going to zoom in a bit. I'm going to change the date rates to 2020 again, which is going to be 0, 1, 0, 1, 2, 0. Notice how I enter that in as fast as possible. I don't put any dashes, just 0, 1, 0, 1, 2, 0. Then tab on the keyboard and it'll populate the dashes and the 2020, and then 01 and then 12, 31, 200 and tap. Then I'm going to run that report. Running that report. The other side of this bill, if I go to this bill over here, was going to the legal and professional fees. So legal and professional fees, it's going to be down in the expenses. There could be quite a bit of expenses. So it's in the legal and professional and then and then it was accounting. Now note how this is formatted legal and professional colon, that means that there's a parent and subsidiary account. We'll talk more about those later, but parent and subsidiary account. So in other words, we have the parent account up top and the subsidiary account below it. That being the accounting under the legal and professional. If I drill down on this using the zoom feature again, we're going to get down to the activity and we can see that that actual bill, which I believe was this 250, if I go back on over right now, it's the 315. 315 on 12 812. Yeah, there it is. It's a bill, not an expense. So there it is. There's the 315. And then we could zoom in on this and that'll take us back to the bill once again. So these are the two sides of the transactions. Every transaction, every form in essence will have two transactions, just about every form. So once again, we have the date, we have the type of form that was used, a bill type of form, and then we have the name, in this case the vendor, the account that's going to be affected, and the other account, meaning the split account, meaning in this case the accounts payable the other side of the transaction that is affected by this bill that is being entered. So the primary account, you'll recall if I if I go back up top and I go back to our forms, the primary account that's going to be affected by the bill. The thing you want to think about is accounts payable. If I go back to the forms instead of us decrease in the cash account with which is the checking account with either a check or an expensive form, which would be things that decrease the checking account. We are increasing our liability account, that being the accounts payable account when we purchase something on account. In other words, when we purchase it with the accounts payable, these bills, then this is an accrual type of account. We're going to have to track this stuff separately from the cache. Now, if we're using an accrual type of account, and that's where it comes into play. That how do we track these open bills that will come into play? So I'm going to close this back out. I'm going to close this back out. And the couple of ways we can do that is we can go to the new tab up top, and we can then go to the to the pay bills item. And we could sort the bills that we want to pay in this window, right? We could sort these bills and we could filter the bills by the e and the two in the front date and so on and so forth in this window. Let's do that again. I'm going to go to Reports, I'm gonna go to pay bills. And we can also sort by the bills that are due for the bills that are overdue, right? And I can sort by the bills that are overdue here. And we can see that item. I'm going to close this back out. We can also sort this information as we saw by going to the expenses tab down below and the expenses area here. And then we're going to sort this by bills once again. So I'd sort the drop-down. We sort by the bills, and then we could sort by whether or not the bills are, are open or not. So once again, we might sort the status of the bill as open or overdue. So I'm going to say open. And so now we've got basically the open bills and we could sort by the status up top for the bills that are going to be our past due or overdue bills and then apply that out. So there we have that. I don't think I hit the apply on the last one. So if I went back up top and I said, I want the open ones you have to hit apply, not just click off of it. And then it'll, it'll apply that out. So that's another way you can kinda sort the bills. You can also go to the vendors and you can look at the activity here in terms of the bill. So we've got the bills here and then the open bills as well. You could sort this way. And that'll listed out basically by the vendors. The other way you might do this is with a report and it's useful to know some of the other reports. We'll talk about this in more detail in the future. But notice that these two reports, the financial reports, are our primary financial statements. Almost every other report is going to be giving more detail on some account on those major financial statement reports. Now the accounts payable are people that we owe. So if we go down to this section, was who we owe, what you owe. Then we can go on to some reports that give us the detail for basically the payable account. So we've got the accounts payable aging detailed report and the accounts payable aging summary report here. Let's go ahead and look at the accounts payable aging detailed report. So if I open that up and I changed the date up top to 12, 31 to 0. Then. And then I run that report. This is going to give us the activity up top and give us the detail of the type of form. These are the bills that are basically outstanding. And it's also going to give us the detail in terms of the due date, so past due and the amount up top. So this the point being here though, is that this bottom line number, the 16 0 267, should tie out to the to the accounts payable on the balance sheet. So if I go back then to the balance sheet, up to my tab up top, we've got the 16, 0 to 67. So this other report then is supporting this number on the balance sheet, which most other reports, if not all other reports other than the final financial statement reports, a balance sheet and income statement will do. And this gives us a little bit more detail about how Pass do it is. So we've got 31 to 60 days 31 to 60 days past due, and then we've got the one to 30 days. So these are the current item, items 31 to 60, and then we have 31 to 60 days past due. If I go back down to the reports and just take a look at one more down here. And we go to the who owes you or who you owe. So we've got the accounts payable detail and then we want, we might want the vendor balanced detail or vendor balanced summary. And this will basically listed out by vendors. I'm going to change the date up top once again to a custom date as of 1231, 200, the end of 2020. I'm gonna go ahead and run that report. And now we've got the information kind of detailed by the vendor. So this is another way where we kind of list things out by vendor point being that the bottom line is once again that one hundred, six hundred and 67, that then ties into the balance sheet again at that 1000 to 67. So we'll get into a lot more detail on this when we actually look at the reports and the structure of the reports and how basically the major financial statement reports are going to be the reports that all other reports will kind of support. But we want to get an idea of that as we enter the data as well. Whenever you enter data, you want to think first, how's it going to be impacting the financial statement reports balance sheet, income statement? And then think about the other primary supporting reports that will be supporting a particular item, typically on the balance sheet or income statement, which are the primary financial reports. 12. 1.22 Pay Bills Form: Quickbooks Online 2021 now, pay bills form. Let's get into it within two. It's QuickBooks Online, 2021. Here we are in our Google search page. We're going to be searching for QuickBooks Online Test Drive. And then we're going to be selecting QuickBooks online test dropped from Intuit. It's then going to be verifying that we are not a robot, which I don't think it's very fair. Looks like they're saying my good buddy, C3PO is not allowed in the QuickBooks establishment. So I got Star Wars in my head there, but I'm back now. This is for serious. We're back into our test drive sample file for Craig's Design and landscaping services. We're going to continue looking at the forms that are going to be in the vendor's section. So I'm gonna select the new item here where the vendors, last time we looked at the bill. This time we're going to look at the pay bill forms, which BY as indicated by the name, is going to be intimately related to the bill. So I think it's easiest to see this first in the flowchart. So let's go over to the QuickBooks Desktop just to look at the flowchart, just want to look at the flow chart over here in the vendor's section. This is the typical flow that will happen. You're going to enter the bill. The bill will be increasing the accounts payable, a liability account, and the other side then go into typically an expense type of account. You're going to enter a bill as opposed to possibly entering simply a check or sometime a payment that would go directly out of the checking account. Those are the two ways that we might enter, say, normal bills into our QuickBooks system. One, by just entering a check that would decrease the checking account directly or to enter a bill, which does not decrease the checking account directly, but rather and increases a liability. And then we're going to pay the bill. Now what are we going to be paying the bill width? We're going to be paying the bill with basically a check or some other kind of payment, which is basically a check or an expense type of form which will be decreasing the checking accounts. Why isn't this form just simply called check then? Because this form, by being Called Pay Bills, is going to give us an indication not only that, it's a decrease to the checking account, and therefore basically a check or a paycheck or like an expense type of form for an electronic transfer or something like that. But also tell us that this is taking down or decreasing accounts payable directly. And therefore, if I want to see what the actual expense was, four, I need to go back to the actual bill that increased the accounts payable because that's where the account is affecting the actual income statement if it was for an expense amount. So let's take a look at that over here on QuickBooks Online. If I then select our item here and I say we want to go to the pay bills. We're going to see our screen that will be sorting out the bills. The screen looks a little bit different than some other forms that we might imagine, like an invoice or bill or a check because we're not actually importing or inputting data into the form, but rather simply selecting the bills that are outstanding that we want to then pay. So whenever we say the pay bills form, what that means is that means that there's going to be some decreased typically to like the checking account. And then the other side is going to be decreasing the accounts payable. That's what basically the pay bills form means. The actual form that we're going to be using. It might be something like a check or like an expense type of form. If we go through this, then we've got the payment, the payment method which will typically be the checking account most of the time. So we'll have the checking account here, the balance, the payment date, which will typically be the current date that we will be working in if we're working in real time. And then the, the check number, if we have the check number that we're going to be starting on will be 71. If it's not going to be a check that we're going to be paying with. We may not put a check number. There might be some kind of electronic payment. And if you wanted to then print it or print it later, then you can select this item here and actually print the check. So if you're going to print the checks and then give out the checks, male out the checks, then this could be a good tool for that as well. But to do so, you still need to buy the checks separately and then you'll have like preprinted checks that you buy from the bank. And then you've got to put them into the printer and make sure they're organized the right way. You've got the right face down or face up, however the printer works and what not. And then you're going to print on the check, but you can print all of them basically at the same time by using this system as well. So then down here we have the actual bills. These are going to be the bills that are outstanding. We could select the particular bills that we want to pay and then line them up and basically pay those bills. Or we can also select all of them, selecting this item up top. And then we could use our filtering options if we want to filter these items. Now, obviously this green doesn't have any bills here, so we can just imagine those five bills fairly easily. However, for larger companies, then they're going to have a lot of bills that are outstanding. And this is a great tool to be able to sort the bills that are outstanding and choose which of those bills that we want to be pain. We can also select sort by E over here. So we can click on these items and give alphabetical order by the E reference number if necessary, the date is typically going to be the default because we want to see the ones that are due, the balance we can sort by and credit applied. Then we can also go to the filters up top and we have the date range that we could be sorting in. And then we could sort by basically the payee, which is typically mostly vendors, or we could sort by overdue status. So checking this and applying out, then we have the overdue status there. If I go back on on on this and I uncheck and apply out. So now we're back to basically normal. Let's go ahead and just pay one of these just for an example. So I'm going to, I'm going to check off this one. I'm going to say that we're not going to have a check number because it's basically going to be an electronic transfer. So I'm going to delete the check number and I'm not going to print the check. Also note over here, this COG just to note, shows you the number of rows. So you can change the number of rows that will be shown in one, in one at a time. So you can adjust that as well if you have a whole lot of checks that will be involved here. So then I'm gonna go ahead and process this. I'm going to process this. What's this going to do when I say Enter? It's going to basically, let's do two of them at a time and actually heal is to the 1120 4. And then let's do the 129 items so we can do two of them at one time. So then I'm gonna go down here. We've got a couple different options. We've got Save, we got Save and Close. I'm going to go ahead and save and close the item. And then now let's go to our financial statements and see where we can find those on the financial statements. Do that. I'm gonna go to the reports down below. So we're gonna go to the reports. We're then going to go to, let's go to the balance sheet. I'm going to close the hamburger over here, which is going to close the side window. I'm going to hold down control and scroll up a little bit so that we can see more. So I'm at 150 per cent. Now, I'm going to scroll up so we can see this information at the top, which you can't really see when you write go right into the report. And then now you can see we're in January, so we actually pay this, I believe in the current date, which for me it's going to be the January 4th. So then we should see that activity than in the checking account down here. So we got checking account. So I'm going to go into the checking account, drill down on the checking accounts to see the impact on it for those two items. And there we have it now we've got the pay bill item. I'm going to hold down control and scroll down a bit. So we've got the PBL. Notice it's still kinda like a check type of form because that's the form that they use to decrease the checking account, of course, but it also tells us it's a it's a special one. It's a bill payment. The fact that it's a bill payment tells us that it didn't just go the other side of the transaction isn't going to an expense account, but rather decrease in the accounts payable. We also know that because the split account over here also says Accounts Payable. So we have those items and if I if I then click on this item, we're not going to go back to the same data inputs screen, but rather to a screen that looks like this. It looks like a similar data input screen, but it's the pay bill item that we have down here. And then the bill is selected down below the bill that was paid for this particular item. So this is the source document. Now if I want to know what this bill was actually four or the expense account it went too. Then I gotta go to the actual bill, which has a nice link here. So then I can go actually to the bill which was the first thing was entered. And this bill then is what was increased. This this caused the increase to the accounts payable and the other side then went to this expense account down below that be the gas and utilities. So you get this nice audit trails. I can close this back out. And then this is the other one. This is the second one that happened. And you get that nice basically audit trail. Now if I change the dates, I'm going to bring this back to 2000 21. Let's go from 0, 1, 0, 1, 2, 0 I'm sorry, 2020 to 2021. Run that transaction detailed report. We can see basically the activity that's going to be in the checking account. And you'll see that we have the checks that are going to be the pay bills. And we also have basically expense items which are going to be basically a check type form as well, except that it's not going to have a check number. So it's going to be a similar type of form decrease in the checking account. And then we also have a check, which this one is one where we actually have a physical check with basically a check number. So this one, we have a check number. You can see it here. The form here is going to be much the same. So we have a check item, we have a check number and then on the bottom half in this case we bought inventory. So that's what the other half said. But the check form means we're decreasing the checking account. And then we can see that that if we have the expense form like this one, here's an expense type of form. It's basically the same type of layout here. So we've got the people that we are paying. And down here now we're paying for a job expense. The only difference really between a check form and expense form is that is that the check form is designed to basically include the check number, but in essence to the same data input form in QuickBooks, Desktop. There's really no difference between the two forms. You just don't really put a check number in the form if it's not a check, but rather like an electronic payment or something like that. So here in online we've got these two separate forms. So that's the only indication that's being made by those two. And then you have another check type of form, which is the bill payments check, which again is just a check form or a form that in other words, decreases the checking account. But the fact that it's a bill payment tells you that the other side is going to accounts payable. It's paying down the payable account. So then if we scroll back up top, I'm going to scroll back up top. And the other side's going to be in the payable account. So if I go then into the accounts payable here, so here's the API liability account and we go into that item. Then we see this same form, the bill payment form. This is decreasing the balance to the payable, meaning this is a liability account. We owe the liability because we entered the bill in the past because we consumed something didn't yet pay for it. Therefore, increase the liability kinda like a credit card would work. And now we're paying off the liability with the bill payment. So the checking account went down other side here, going to the accounts payable. So we're decreasing the accounts payable by that 200 five and that 8644. So again, note that there's no impact at this point in time to the income statement because we're paying down the liability. When was the income statement affected? When we entered the bill? That's when the income statement was had a transaction to it. Let's go ahead and go back to the forms, then go back to the forum. And I'm going to right-click on this item again, and I'm going to duplicate it. So let's duplicate this one and then we can run another report or do some other stuff with it if we so choose. And we're going to choose to do so. And so then we can go down and run our other report that's going to be supplemental to that accounts payable reports. So if I go down to the reports down below and we run some information related to the accounts payable. I'm going to go down to the who owes, who you owe, what you owe. And then I'm going to look at the vendor balance detailed report, the vendor balanced detailed report. This report, like all other reports, backs up or summarizes something on the balance sheet, in this case, the accounts payable. So now we've got our vendors for the bills that are still outstanding. And we have the amount they're at the 13 one 123, which should tie out to the 13 one 123 on the accounts payable here. So we can track it in that format. Also note, if I go back on to the to the second tab here, that if we go down to our expenses tab on the left, and then we go to our expenses up top. This is another way that we saw that we can sort out those open bills or the bills and total and the open bills and the bill payments. So if I select the sofa, I filter up top and I sort by type and out and I want to look at the bills now. We did the pay bill. If I want to look at the bills that were written before and then paid, I can select those items. These are all the bills. If I want to sort of the bills that have not yet been paid still after having paid some of them, two of them. Then we can then say that I want to see the outstanding items status and we want to see the open, open ones. And then I'm going to say apply that out. So now we've got these open bills that are still basically outstanding. Another way to see this item, and the other way we could see this is if we went back to the new and we went to and we went to pay bills again. Right. So we went to vendors and pay bills. We'd see a similar kind of situation. So here's the three bills that are still outstanding and open. I'm going to close that back out. If I wanted to see the pay bills information, I can select the drop-down. And we could say that in this, you can imagine this if someone came and asked you, like, you know, what are the recent bills that you paid, the bills that were outstanding, that were paid. We can hit our filter or even reset it. Maybe I can reset and then go back to the filters and say that we want to now search by the payments that were made, the bill payments, and then say Apply. And then we can find our two checks. There's R to build checks. Once again, for me most of the time, if I was to look at the payments that were made, I like to go to the actual tax forms and find the check in the checking account or in the cache. Anything affects cash. That's typically the first place I will go to kind of drill back down on it or audit back down onto it. Or in this case, the accounts payable, which might be a little bit easier because there's less detail in it. Now the other question you might get is if the vendor came back and said, you know, I didn't get the check or something like that and we wanted to verify it on our side, then we could search basically by vendor and the to pay ease. So for example, if Norton, Norton lumber, I called us, then we might sort our information by, by vendor here we're searching out for Norton lumber. So here's going to be Norton lumber and I'll select Norton here. And then if I go into it, we're gonna say all yeah, there we go. We got the 14, 21. That's when that's when the payment happened. So you should have it should have gone out. We sent it out. The check was in the male in this case. According to according to our system, if they haven't received it, then what's the next step to see if it cleared the bank? Did it clear the bank? Let's wait a couple days and see if it clears the bank. If it doesn't, then then we can go from there. So that's going to be an overview of the pay bill item. 13. 1.24 Purchase Order Form - P.O.: Quickbooks Online 2021 now, purchase order form, otherwise known as a PIO form. Let's get into it within two. It's QuickBooks Online 2021. Now, here we are in our Google search page. We're going to be searching for QuickBooks Online Test Drive. Then we're going to select it the QuickBooks Online Test Drive for Intuit. Once again, it's going to ask us if we're a robot. I'm starting to think I am a robot. You know, why else would it asked me this so many times. But I'm going to say no anyways, even though I'm certain effect maybe, maybe I am a robot. Note that one reason I'm going to keep on logging in is to just show that we all use the free sample file number one and number two, that if we make any transactions into this file in a prior presentation, if we log back in, then it should kind of reset itself so that I want to show it from a kind of a clean slate as if you're going to start and remove yourself from each presentation, then go back into it, if you like, take a break and come back into it. And then basically the data will be reset to the prior point. We'll be having a similar a data point as possible whenever we start each presentation. So we're in the Craig's Design and landscaping service practice file here. We're going to be continuing on with the items within a vendor section. So we're looking at the items and the vendor section, the primary items we looked at where the bill and then the pay bill, that being the primary kind of cycle within the vendors section. We're going to take a look at checks a little bit later, but now we want to add into the mix, what if we have the inventory involved in this? So now we're going to add the inventory. The inventory is going to include possibly a purchase order depending on the type of business and the type of inventory in process we are using to do this. Once again, I'm going to go over to the desktop version just to see the flowchart. I just want to look at the flowchart over here. So we have our flow chart up top. Now if we don't have inventory turned on like for the desktop version or if we didn't have inventory, you can just visualize these items that we went over in the prior two presentations as your primary, basically a cruel cycle process. Meaning, once again, if you do not have inventory, you'd be paying off basically your normal expenses by either into a check type form or expense type form which will be decreasing the checking account directly. Other side go into like the expenses or you'd be running through accounts payable, entering the bills, which would then increase the accounts payable and record the expense at that point and then print a check or expense type form, which is going to be a pay bill type form, decrease in the accounts payable. The other side then going to the checking account decreasing at that point. Now if you have inventory, then we have this added kind of row up top that you can basically visualize, and that starts with the purchase order. The purchase order is something that not all businesses will have and it's a little bit confusing to think about this as the one form that basically when we write it out, there's no effect on the financial statements. There's no financial transactions, There's no impact on the balance sheet and the income statement, which is different than just about any other form that we're going to be looking at. The forms are usually the data input point for which the transaction will be recorded. The system by, by QuickBooks that journal entry will be recorded two accounts at least will be affected. The double-entry accounting system will be happening. Purchase order, not the case. What is the purchase order then? We're going to be requesting inventory from say, a vendor. And if we're imagining what's imagining, we're going to be quest requesting inventory like coffee cups from a company in China, let's say, and we're just going to be requesting the coffee cups now, normally if you were an individual and you are going to be requesting something to be purchased a online from something like Amazon or some online retailer you would be paying at that point in time. At the time you'd request the purchase with a credit card typically, and then you would be shipped the information. Now I'm at that point and in that case, you would have a financial transaction because you're paid for it at the point in time that you've requested it, even though you had not yet received it. If on the other hand, it's often the case that if your company or business to business type of entity, the purchaser may have more control over the situation in some cases. In other words, they might be able to request, in our case, coffee cups maybe to be shipped to us without first pain for them. Then we're going to receive the coffee cups and then we're going to basically pay for them at the point in time we receive them. So that's a little bit different than what we're used to in an individual type of transaction. So in that case, that's what the purchase order is doing. We're going to say, Hey, look, we want this mini coffee cups. We want them shipped to us. And then once we verify that the, you know, the shipment lines up to what our purchase order is, then we'll then we'll pay it. So that means that we want to track the purchase order because that's the request for the inventory, but there's no actual effect on the financial statements. There's no effect on the balance sheet or the income statement because one, we haven't received the inventory and two, we have not yet made a payment. And then what's going to happen is we can imagine we'd receive the coffee cups in our, in our warehouse with a bill attached to it. And they're gonna say, okay, now pay us, we gave you the coffee cups, give us our money. And so now we're going to into the coffee cups, increase in the accounts receivable at that time and then the accounts payable typically. Then we're gonna go ahead and pay them off in our normal kind of bill pay process. Meaning at the point in time that we received the inventory, we will then be in the same process in essence as if we enter the bill down here and then we can basically sort the bills and then pay the bills. Now if you're in a situation where you are paying for the, for the merchandise like you're buying from Amazon or some online retailer at the point in time you request the goods, then you're basically going to record it at the point in time. At that point in time because you've already you've basically pay for it. So they're basically kind of yours at that point in time. So the purchase order would only be there for, you know, kinda larger companies that have that have the ability to basically request the inventory without having yet paid for it. So then if we go back on over to the online, then so if we think about it here, if we go to the new item, we're thinking that process will be under the vendors section. We're going to have the purchase order, No financial transactions going to be related to it. But then we're going to receive the inventory. And once we receive the inventory, we're going to enter that with the bill. It's going, we're going to receive it with the bill. So those two things will kind of be linked in that case. So let's open the purchase order and let's build one out just to get an example here. So I'm going to hit the drop-down. I'm looking for something that would be relevant that a purchasing someone that we would purchase from. So I'm going to try down here Higgs hardware. So let's go to hicks hardware. We're not going to have an e-mail address, but if we wanted to e-mail the purchase order, then of course we would need the e-mail address up top, the mailing address. We're going to keep their shipping address. I'm going to keep the current date, 14, 21. The shipping address not going to put anything to the ship B or sales rep. And then I'm gonna go down and notice we have two categories down here. We've got the category detail and we're going to be down here in the items. This is typically the category that will be used when purchasing inventory, and we'll talk more about that in future presentations. This is kinda memorizing the last transaction for the last purchase order. What I wanna do with clear all these lines and I'm just going to add another inventory item. So we'll just kinda make one up so that we could just see the example. So I'm going to clear all these line items. I'm going to make an inventory item and I'm just going to call it inventory or inventory. And then tab, I'm going to set it up. I'm going to set it up as an inventory item. We'll talk more about how to do this in future presentations. So I'm going to go through it fairly quickly here just to show the purchase order. And then I'm gonna say the quantity on hand. I'm just going to say 100 for the quantity on hand, the reorder point I'm sorry. The as of date I'm going to say is January 1st, 2021 reorder point. I'm not going to have one. The inventory asset account is going to be inventory. So I'm just going to keep that as is the description. I'm just going to call it inventory. And obviously in practice we would have a more specific inventory name, what we're actually purchasing. But we'll talk more about that. Tracking the inventory in the future. And then the sales price or rate I'm going to keep blink and then I'm just going to add it when we enter the data into the actual purchase order. Then it's going to be going to the income account of sales of product when we actually sell it. But at this point in time we have a purchase order, so we're going to be buying it. And then the taxable at the standard rate. So I'll keep that as is purchasing information. I'm just going to say inventory again, inventory and the cost I'm going to keep blink as well. When we sell it, we're going to expense it in the form of cost of goods sold. We'll talk more about all that in the future when we, when we get into the financial transactions, you know, step-by-step, but I'm going to say save it and close it. And there's going to be our inventory item. I'm just gonna put it on the books for $100. So $100. Then down below, we can add lines if we need to, we can clear lines as we saw, we have other messages for the vendor, the memo, and then we can add attachments if we need to. Down below, we can cancel this, we can clear this, we can print this. We can make it a reoccurring type of transaction. And then we can of course, save it down below. I'm going to go ahead and save it and close it. When I do, there will be no effect on the financial transaction, on the financial statements, balance sheet, income statement, otherwise known as the profit and loss statement. However, we will be able to track whether or not we have received the purchase order. Once received, once we have it in our warehouse, then we can imagine a box of goods, the inventory come in with a bill in it. And that's when we record the bill. So let's kind of imagine that process. I'm going to say save it and close it. And this is Higgs hardware, that's where we didn't so save and close. Okay, I think it's saved there, so then we can track it. We can track the open purchase orders then. So it's not going to affect the financials, but I can go down to the extensive areas which is basically the Vendor Center, where we have the two tabs that the vendors and the cut and the expenses up top. We can then track our infant information on the expenses tab if we so choose by filtering up top. And I might want to filter say by type. And I might want to filter by the purchase orders, for example, and then apply that out. And there we have our purchase orders. We might want to look at basically the open purchase orders. So I might filter once again. And we might say that we want the status to be open. So we're looking for the open purchase orders and then say apply that out. And then we have our purchase order. So here's the purchase order up top. We may also look for the purchase orders by vendor. So we might then go to the second tab over here to the vendors section and say, I purchased this from hardware. I think it was down. So right down here. Here it is. If I, if I select that vendor, then we should see the data related to them as well. So there's going to be our purchase order down here. Now the next thing we're imagining is that this comes into our warehouse with a bill on it. So we've got the inventory box of inventory bill in it, and then we enter the bill into the system. There's a couple of ways to do that. Let's see a couple. I'm going to go back up top. I'm going to duplicate the tab. I'm going to right-click on this tab up top. We're gonna go on down to Duplicate. So we have another tab that's going to be showing on the right-hand side. We can imagine that our box of inventory with that bill in it. And we can then go in and say, Okay, now we're going to enter the bill so I can go to the new tab vendors and we can say Bill, we're going to enter the bill now. This is now bill doesn't mean we're billing the customer. That means we're paying the vendor. That's what QuickBooks terminology is. Quickbooks terminology goes one way. Bill means that were being built by a vendor someone else is charging us for, in this case inventory. And then I'm going to type in Higgs hardware. And then when I say tab, this thing pops up on the right-hand side. It said, Hey, look, you have you have this purchase order that is linked to it. Do you want us to populate this bill? Is this what you're paying for? Is this the inventory that you got this I'm paraphrasing. What QuickBooks is trying to tell us is what it's trying to tell us. Is this the inventory that you got that you're trying to make the bill from, do you want us to populate this bill from the information that you use to populate the purchase order and link them together. We're going to say, yeah, that's what we want. And if we're not sure we can open it up here, we could actually look at that purchase orders to double-check it. But we're pretty sure because we just did it. So I'm going to say Add and then it's going to add that information. So now we've got the mailing address for the bill the bill date and so on, which is for me the current date. And then down below, we've got the 1, 0, 0, 0, 0, 0 for the inventory being purchased. Now normally it would be tracking down here as an inventory item as well. I'm not sure the inventory settings are set up to have it tracked in in the in the Practice version here, so we'll look at it more when we get to the second half of the course. But we can see we have, the charge has been populated for $1000 for the inventory. So I'm going to go ahead and say Save it and Close. So we'll save it and close it. And then I'm gonna go back on over and there and there we have it. So now the bill has been paid. We have the bill up top and then we have the purchase order that we use to create the bill. That's gonna be the typical order we will have, will have the purchase order and then we'll pay the bill. Now, just note that I was going to show a couple of ways if I go back to the vendors section and we look at those open purchase orders, let's say let's say I go back to the expenses down here. And then I'm gonna go to the expenses tab up top. And then we have this other purchase order or the other way you can get to that bill is you can go to this open purchase order within the expenses. And we could say, Hey, I want to hit this drop down and I want to copy this to a bill directly. So then instead of going to the bill and then saying enter vendor and then add it, I can just go to here the purchase order and then say copy it to a bill. And then it'll generate, it'll generate the bill with that information. And you can see down here at populated properly with the the item being shown at the bottom so you can see the items shown. And basically that link happened in here. That's going to be it pulling over. So I'm going to close this back out. And you want to save it? I'm going to say, do you want to leave without saying I'm going to say yes. And then that then should be what affects the financial. So if this one got recorded correctly, it should affect the financial flows, check out the financials is to look at that. If I go then to the reports down below, Let's go to our favorite report that being the balance sheet. Balance sheet report. It's one of our two favorites, at least, balance sheet and income statement. I'm going to close up the hamburger. I'm gonna hold down Control scroll up just a bit so we can see the information and we're in 2021. So that's when it got recorded. So that should be it. And you can see the inventory asset down below. So inventory should be increasing, you would think. So we're going to increase that. And I'm going to hold down control and scroll down a bit now. And so there we have the bill that came in. So there's the $1000 that's now increasing the inventory and note what it didn't do. It didn't record an expense yet, even though we enter the bill. And oftentimes, as we saw in the past, when we entered the bill, it would affect an expense account. Now we have kind of a an accrual type of thing going on rather than a cash basis, we got an accrual basis kind of thing. That meaning that we're going to track the information. When are we going to record the expense for inventory when we actually use it to generate revenue in the form of cost of goods sold. So that inventory complicates things a bit, kind of forces us oftentimes to use an accrual-basis method. So, and then I'm gonna go back on over and then the other side is going to go into the accounts payable. So if I go to the liabilities down here, we've got the AP Accounts Payable. And if we select that item to drill back down on it, then once again, now we have the bill and the bill was generated from the purchase order. So if I go into the bill, we see the bill that was that was generated here and now it's showing that line item down here like it should with the inventory on the line item at the bottom. It's also indicating this link over here. And that's meaning it's linked to something else. In our case, that link is drawn us to the purchase order. So I'll scroll down that little links as it's drawn to the purchase order. And then notice things were not working correctly right there because I was zoomed out. I was zoomed in to like 125 and I'll zoom back in to 100. And then things look correct. Now if I hover over this thing, Let's bring it down even a little bit further. This thing, if I hover over this thing now, it does what you would expect it to do. There's our link. So sometimes you gotta zoom in and zoom out a bit so it populates on the screen correctly because it's kind of a website page. And then I can go in here and I can go to the purchase order and I can link back to that source document so you can see how they're all kind of linked together there. So I'm going to close that back out. And then we'll close this back out or we can go back to the expenses. And just note that if I go to the expenses tab up top and filter this, I'm gonna unfilter. I'm going to reset. And then I'm gonna go back to the blog. I'll keep it at that, apply that out. And then the last two transactions we can see up top once again, we've got we've got the purchase order that was put into place, and then we've got the bill that was used to enter the bill from the purchase order. Now to see this more and more rows here and more space, you can close the hamburger when you're in this section. And then I can scroll up a little bit. We're back to basically a 100%. You can see those two items here. Also note that if I go into this purchase order, it now says closed, the purchase order is closed up top. And if I if I close this back out in our files to sort, then again filters. And I wanted a certain sort by the purchase order. And I wanted to see just the ones that are open now and apply that out, then that one is no longer there. Here's an open purchase order files to select the open purchase order and go back up top, you can see the indication that it is an open purchase order. 14. 1.28 Check & Expense Forms: Quickbooks Online 2021, check and expense forms. Let's get into it within two. It's QuickBooks Online 2020, one, who we are in our Google search page, we're going to be searching for QuickBooks Online Test Drive. Then we're going to be selecting QuickBooks Online Test Drive. And then QuickBooks is going to try to call us a robot. Again, I'm going to say we're not a robot. You're the robot. The robot. Quickbooks. And then we're going to login there. We're still looking at our vendors section. So if we hit the drop-down over here, we've got the new drop-down where in the vendor section we talked about basically the accrual process, which is the entering of the bill and then the pain of the bill. Now we're going to talk about the other process, which is kind of a more straightforward kind of a cash basis type of process forms where we have the check form and the expense form. Let's just take a quick look at this. Over on our flowchart. We're going to go to the desktop version just to look at the flowchart, just to say the flow chart over here. And if we're in the vendor section, I'm going to close the item up top the open windows. Then we looked at this process and remember when you're thinking about just like normal bills that you would pay, there's two ways that we can do that. One is the direct way we get the bill. We could imagine a bill like a utility bill, film bail and so on and so forth. And simply pay it with either an electronic type of transfer straight out of our bank account or with a check form. When you're looking at the QuickBooks Desktop version that they're basically the same form because QuickBooks Desktop is saying, hey, look, any form that's going to decrease the checking account is just going to be a direct check type of form. And therefore it will just make the same form. And if it's a if it's not a check, then just don't put a check number in it. If it has a check number in it, then we're assuming that's going to be a check type of form. That's going to be the standard process for the desktop version online will have two forms that have basically the same function or will look pretty much the same except for it will have that difference between one, we're expecting the actual physical check of some kind, where the check form versus an expense form where we are not, we're expecting some type of electronics transfer. And then we have the other method that we can have which we looked at before, the accrual method where we get the bill, utility bill, phone bill, and so on. We enter it as a bill and then we pay them at some other point in the future with in essence a check once again, but this 4D electronic payments, same kind of form though, however, will have that special form over here where it's going to be a pay bill type of form telling us that it's paying down and accounts payable. Therefore, we're going to have to go to the bill if we wanted to see the actual expense account that was affected. Now you'll note down here in the flowchart for the vendors section, they put the check kinda down here rather than in the vendor section, which is the area. If I was going to put it into one of these areas, you would think most likely it would be in the vendor section. And that's possibly be because we might be writing checks for other types of reasons. For example, we might be writing checks in order to pay us, like the owner's, you know, that's when we take money out of the company, we're going to be using. Form to decrease the checking account, which will be either a check form or an expense form. In essence, the same thing to pay ourselves if we're paying off loans or things like that. Those aren't really vendors. If we're paying the bank for a loan we took out. And therefore with a desktop version, they didn't put the check up top. Although most of the time when you enter a check, you're probably paying a vendor. And if you're paying the normal month end checks than the other side's probably go into an expense account. So let's go ahead and take a look at those over here. This is these are going to be our common forms. And if your major form of pain vendors is through check or electronic transfer being an expense form, then that can be a good tool to use your bank bank feeds tool with as well. If you want to track them through the bank feeds tool, which we'll talk about later. So if we were to add these, the two forms we're looking at is the check form and the expense form. Let's look at the check form first. If I go into then the check form just to review one, we've got the E up top, so we've got the E up top. If we select a payees such as the burger joint here, and we're going to say the burger place. And then we've got the checking account. So it's coming out of the checking account. That will be the standard. You're not typically writing checks out of a savings account. We might have more than one checking account, however. And then we're going to have the date notice here. We have the check number. Now if it's a check, then you would expect basically a check number. If it were not a check that then you don't want to use the check number because the check number should be in alignment with preprinted checks. So you can imagine actually physically writing the check and then mirroring what you're writing in QuickBooks. If you just have a hand written check that you're writing, the check number on your checkbook should match what's in QuickBooks. And then if you're going to print the checks out of the system, you might want to check this item to then print them later. In that case, you would actually get the physical checks from the bank still in the format of principle paper checks that you can then put it into your printer, feed them in their print out the checks, and then mailed them out in that fashion. So then we've got the tag's below. We got the categories, two sections of categories down here to the top category are the ones that we're going to be using when we're applying out. Just a payment for some type of expense. Looks similar on the bill side of things. The bottom side of the category down here is when we're going to be purchasing inventory. And the reason for that is if, if I'm purchasing something like Meals, see if we have meals and entertainment here, then I'm just going to assign it to an expense account. If, on the other hand, I'm purchasing inventory, then I have to assign an inventory and we've got to set up an item for the inventory if I want to track the inventory item. And that's when we have to deal with inventory items, which we'll talk about more in a future presentation. So then we could have a description if we need, we have the amount. So the amount here and I'm just going to say it was four out, say 650, then we could say it's billable or not. We'll talk more about what it means to be billable hour later. But basically that would that would mean that we're going to pay for something now and we're going to use that information to populate an invoice. So we're paying for an expense, we're going to use that expense then to help populate an invoice that we're going to charge to our customers. So we're we're paying something for it for check now that we're paying for that, we're then going to pass on that expense by populating an invoice with a billable item, and then whether it's taxable or not. And then we have the customer. Assigning it to the customer. And again, that would be tied to what whether or not we're saying it is billable so that we can have tie it to a customer and then make basically an invoice that will pull over that billable item. So that's going to be it. And what's this going to do when we record it? It's going to basically it's a check. So check means the checking accounts going to decrease. The other side's going to be assigned in this case by the account that we assign it to, this being an income statement account as most normal expenses are like just the periodic expenses will be going into meals and entertainment. Let's go ahead and save it, and close it. Save it and close it. And then we could check this out in our reports. So I can go to the reports down below, go to Reports. And then I'm going to make our favorite reports, one being the balance sheet report. So if we go into our favorite balance sheet and then I'm going to close up the hamburger up top hold down the Shift and scroll up. So i'm, I'm scrolling into 150, So we're at 150%. And then let's go into the checking account by zooming into the checking account using our Zoom feature. Now I'm scrolled in 24 hours. I'm going to hold down control and scroll out because I can't see that thing. And there it is. So there's our checks. So once again, transaction type check, we haven't the number because it's the check number here. And then there's the name of who who we paid checking accounts where it came out of the split account, meaning the other account, meals and entertainment, that'll be on the income statement. And then if we click on that 650, then it'll take us to the source document which is the check. And if you needed to adjust to check QuickBooks is pretty flexible that you can actually change the check, but you want to be careful in doing that because because you don't want to, especially if it's your backdating things, you don't really want to change it and you'd rather enter another chance or transaction, but you can't delete the check or change it if you need to within QuickBooks. So I'm going to then go back up top and let's go back over. I'm going to open up another form of let's duplicate this tab and open up the income statement in another tab. So I'm going to right-click on it. I'm going to duplicate it. So we have the two windows opened a half our favorite two financial statements open at the same time, that being the balance sheet as well as the income statement. Quickbooks calls the income statement the P&L or the profit and loss. So we're gonna go down on the reports and open the other one, the Profit and Loss report, basically an income statement report. But QuickBooks has to be different. And I'm going to close up the hamburger up top. And I'm going to hold down control. And so we're in 2020 one, so there's the date. And we see down here, there's our meals and entertainment. There's the 650 once again. And then if we select on that item, it'll take us down to the detail. And then if I select this item once again, takes us down to the CEC. So as you can see, you've got two transactions are two things happening, at least two accounts happening on the financials. The major financials being the balance sheet and income statement. Your major to reports, at least two things happening with basically every form that you entered. It's in the standard flowchart except for that purchase order, which is a funny one. Closing this back out. And then I'll go back over here. And so there we have that one. Let's open up another tab again. So let's open up another tab. I go on to right-click and then I'm going to go to duplicate again. So now we've got our balance sheet income statement and then this tab where we can do Steph and enter new things into it. So I'm going to grab this tab here. I'm going to pull it to the left. I'm gonna pull that to the left. So we have it now sometimes it gives you the name of top of it, which is nice if it would name my reports and sometimes it doesn't. So but in any case, we got the name of top for that one, but I'm going to change this one now. So scrolling back down, Let's go, let's open up another one now if I go to the to the new and I go to the expense. So expense is going to look a whole lot like a check, but it's an expense. So if I was to do like the same thing for the expense and where the checking account we're going to go to the burger place again, and this time we're going to electronically pay them. So our options in the drop down here, we got we've got a check, we've got the credit card. If we pay them cash that we're paying them, check, Diners Club discover another credit card and all these credit cards that we can pay with down here. Now notice that these two are going to do similar function. If you, if you say cache, then you're decreasing the checking account and most likely, possibly, possibly you're not paying cash. Possibly you're basically having an electronic transfer oftentimes, maybe not for the burger joint but for other types of places. Basically you're putting something other than the checks so that you don't have the check number. What you don't want to do is pick up the check number when you have electronic transfer or something like that because you want to make sure the sequence of numbers will be in order and line up with your checkbook. So the expense of formal help that so whether you have cash or you have check here, even if I choose check, it's still kinda like the check form there, right? Because I'm decreasing the checking account, but I don't have the check number and that's really what I don't want to do. I don't want to if I don't have a check, if I'm not physically having a check, then I don't want to assign a check number. I might then have some other numbers such as a reference number that I would put in here. And then the rest of it will be, will be much the same. If I go to a category down here and I say meals again, meals again. And this time we're gonna pay it like let's say 170. We have the same options to make it billable, taxable, take it to a customer in case we want to assign this out to an invoice that carry on the expense that will then charge to the invoice. We can add the line, we can clear the line, we can have other other items. This would be the items once again, if we had inventory items rather than just an expense, which we'll talk about later memo. And we can attach documents down here as well. If we have two categories that we were assigning this out to for whatever reason if we had to things like meals and then travel maybe travel. Do we have travel? Travel meals. So we've got some burgers to go for, go into a different category of travel. We can then have the two categories obviously adding up to the 2020. If we were then to record this out, what would happen? Well, it's an expense forum which is basically like a check form. That means checking accounts going to be going down, other side's going to be assigned by these categories down below and this time two categories, one being the expense account of the 170 to maintenance and maintenance. This should be meals. Let's make it meals. Maintenance doesn't make any sense. Meals and entertainment, 750 and the other to travel meals for 50 and those are going to be on the income statement. Increase in the expenses, decrease in net income. Let's save it, close it, check it out. So I'm going to save close. And then let's go on back to the income statement which is opened here, but I also have it on the right side. So the income statement notice how it didn't refresh yet. So what I'm gonna do is I'm going to refresh the window. One way to do that as you can go up top and just hit that little refresh item up top. And then we should see the new, the new information populated. And that's something you've got to be careful of with the online version to make sure that you have everything refreshed when you go back and forth into the open tabs, otherwise, you can get a bit frustrated. So then we have our information for the meals. So now we have two item for meals. One's a check, one's an expense. But they're doing basically the same thing. And then if I go back up top and go back to our form, back to our form and take a look at the other one. We have the item to travel here, so the item with the travel. And then if I look at the balance sheet, balance sheet and this tab, this is where we had the balance sheet. And then I open that up and I go back into the checking account here, back into the checking account. And we're going to say that we have the two items that we entered again. One's a check, ones that expense. This one in the split window shows us the other thing that was affected. Here. It can't do that. Why? Because there's more than two other accounts affected. So the split window cannot just say, Hey, look the other side of this one went to the checking account, the other side went somewhere else. We don't know where it went specifically or we can't put too much information into this window. So if you go into here, then you can see the document. And then you can say that we have two accounts. It's going to be the meals and then the travel. Okay. So if I close this back out and I go back to the first tab, also note that you might enter this information directly into the register. So if you're talking about cash transactions, cash transactions that are, that are just decreasing the checking account directly in your entering and you're trying to enter the data as quickly as possible. You might say, hey, look, it's takes too much time to enter the forms. Why don't I just go directly into the register, which will be a similar process here. So it'll record kinda like the same thing. So if I go into the register, I can go down to the accounting down below, take a look at the chart of accounts. Go into the chart of accounts. I gotta hit this little thing here and say see that chart of accounts. I want to see the accounts, please. The first one will typically be your checking account. And the what I wanna do, uh, see the register, show me the register. And so there we have the register. So now we have our register and this is basically like a checkbook type of register. If I close the hamburger up top for bit more real estate, then you can enter these same kind of transactions here. You can say this is going to be the reference number, the payee, the memo, the payments, that deposit if we have that and then the balance, I can then enter the drop-down and then we have the same kinda options. Do I want to check that we've got the deposit, sales receipt, received payment, bill form, refund, or expense type form, transfer, journal entry. So we could choose either check or the expense if we want to choose the expense because it's maybe an electronic transfer, we have the same kind of thing here. We've got the reference number. Let's say we're going to Bob's burger joint again. And then it's trying to memorize basically the last transaction. Here's trying to help us out to where it's gonna go. I think that's what it's doing. But, and we'll talk more about those options later, but I'm going to change it to 330 those time. And then once again, it's going to go to the meals. So meals and entertainment. And then if we save this, I'm going to go ahead and save it. So then we can see it showing it in the register here. And that takes us down to a dollar. We don't have a dollar lefts. Better it makes them anyway. Then we see it there. And then we could go back into our forms again, go to the balance sheet. And I'm gonna, I'm gonna go back up to the balance sheet by going to the back to the summary and then refresh the screen. I'm going to refresh it up top to make sure that we're up to date. I can see it is because I only have a dollar. There's my dollar. We've got $1. What can we buy for $1? I'm going to minimize the silver here. Hold down Control, scroll up a bit. We're going on that dollar. What has happened? Let's go into the activity and see how did this happen. Because we keep on going into the Bobs burger joint and spending all our money. So here we got on one for our transaction. And if I go into that, notice, it's not gonna take me to the register, even though we entered it into the register here, it's gonna take us once again to an expense form. That's the type of form we have. And it's important to note that because many people, if you do the bank feeds, it'll be a similar type of process. You'll add the items from the bank feeds. You won't see the full form of an expense form. But you gotta kinda realize it. It's going to doing the same thing. And if you drill back on the data from the product, the financials, it's going to take it back to the full form, the expense form, even though in this case we introduced into the register and in the case of the bank feeds, it's going to have it like a shortened type of expense format as well that you could do the data input a little bit more quickly within. 15. 1.29 Void Check Prior Period Adjustment: Quickbooks Online 2021, voided check, prior period adjustment. Let's get into it within two. It's QuickBooks Online 2021, given to it. Here we are in our Google search page. We're searching for QuickBooks Online at test drive and then we're going to be selected QuickBooks online test drive for Intuit, the owner of QuickBooks, we're going to verify that we are not a robot. And then we'll continue. Here we are in the Craig's Design and landscaping services practice file. We're going to go up to that new tab up top. And in prior presentations we've been looking at the vendor sections and the forms In the vendor section the last time focusing in on those forms that are decreasing the checking account including the check form and the expense form. Now we want to think about the concept or the idea of or situation where we have to delete something or in other words, void something, voiding a check or voiding and expense type of form that you can't do this quite easily within QuickBooks, but you've gotta be very careful about doing that, especially if it's in a prior period. So that's what we want to cover here. And this is going to be a general concept you want to think about anytime you're thinking about deleting something. The general rule when you're thinking about deleting something from an accounting standpoint is not to delete something because you're going to have you want to keep the audit trail that's going to be involved and then add something else that will basically reverse the transaction. That one keeps the audit trail. So that's one reason you want to do that. The other reason is that if it's something that happened in the prior period, then you gotta be very careful to delete it because if you do, the temporary accounts roll into retained earnings and it can throw off kinda the retained earnings. So if you ever work in an account, an accounting department, the CEO or whoever's in charge of the bookkeeping may be very strict about things that are going to be deleted. They're going to say, Hey, look, if this period is closed, don't remove anything or make any changes to the prior period before the cutoff date. If we reconciled, for example, January, then don't go back into January and make any changes because that can mess things up as we roll forward. So you gotta be careful with those prior period of changes, especially for small companies were thinking the yearly cutoff. So if you have a 1231 year end financial statement and you don't want to be making any changes like in January that are going to affect December in the prior year unless you're very conscious about about what you're doing because it can mess up kind of a rollover. So let's just kinda think about that concept and it's easiest to think about with these, with these forms that are going to affect the checking account. So typically what will happen is I'm going to go into the check register down here in the accounting, go into the chart of accounts. The chart of accounts. I'm going to want to be able to see the chart of accounts. I'm going to click the little green button, so that allows me to do so. We're going to go into the register. Let's go into the register and then we have our activity here. So this is the activity for the checking account. Now this is a practice files, so they haven't been doing all the reconciliations at the end of the at the end of each period, basically monthly, but typically what you would happen as you enter the stuff in and what you would want to do as an internal control is compare this information to the, to the bank statement with a bank reconciliation. And this might be a little bit easier to do if we use bank feeds as well, but you still should do the reconciliation process. And what will happen is when we do the reconciliation process, meaning we're entering checks and expense forms and deposits and what not if something doesn't clear after. After a few months, it's going to be obvious that that's the case on the bank reconciliations. And if a check that we thought we wrote that we entered in the system doesn't clear for a long period of time. At some point we're going to say, Hey, look, I don't think that check is going to clear at this point. I'm going to avoid that check. Otherwise it's just going to be on the books and it's it's never it's not decrease in the checking account. If we determine that that check, it should be void, meaning it's not actually going to be decreasing the checking account, then we're going to want to avoid it. And that would basically fall out if when we do the reconciliations, which we'll talk about at a later, at a later point. But basically, I'll just give a quick example if we go to the reconciling item here, and I'm going to say we're in the reconcile tab. Then we're going to go to get started. And I'm going to say maybe later. And then I'm going to say we're in the checking account. And the ending balance, I'm just gonna make up an ending balance of 6000. That would be on the bank statement. We're comparing our books to the bank statement, imagining to be doing so at least. And let's say that we are doing the reconciliation for the end of January meeting. We have January's bank statement in front of us and we're going to compare what we have in QuickBooks to January's big statement. That's the point of the reconciliation, which again, we will talk about at a later point. So in more detail here. So and then if we go into the reconciliation, Then basically what we're gonna do is check these items off that have cleared, everything that has cleared what kinda checkoff we're gonna put a little check mark over here and then reconcile them. And that means that in the following month when we reconcile, they won't pop up here anymore because they will have cleared. We'll mark them off to ask cleared. Now if we have some check that's standing out, that we wrote a check and it's not clearing for multiple months. At some point we're going to say, Hey, that check is not going to clear. I need to avoid it because it's just basically, you know, we might have all these checks, a buildup over time that we need to void. The problem is that the checks that we need to avoid could be in the prior year and that causes a problem for the rollover. So let me see if I can kinda demonstrate that. To do that, I'm going to duplicate the tab up top. I'm going to right-click on the tab up top. And we're going to duplicate the tab. And we're going to be opening up our favorite to report, those being the balance sheet and the income statement. So let's open up the balance sheet and the income statement. So I'm gonna open up another tab. We're going down to the reports down below. And then we're going to be opening up one of our favorite reports, the financial statement report, the balance sheet report. And we'll open that up. And then I'm going to open up another tab for the income statement. I'm going to right-click up top. We're going to open up another tab for the income statements. I'm going to duplicate the tab again. And this is our other favorite report, a course or two favorite financial statement reports. This one being called the income statement, otherwise known as the profit and loss. That's what it's goes by. With. Quickbooks. Quickbooks calls it the P and L, the profit and loss. So there's going to be that information. I'm going to then go back to the first tab and I'm going to introduce another transaction into, into our register just so we can see a fresh new transaction and what it will look like here. So I'm going to go then down to the accounting tab. We're going to go into the chart of the accounts again. And I'm going to go into the check register and I'm going to enter a transaction, I'm going to enter it in 2021. So what I'm gonna do is I'm going to say add a check. I'm going to make it a check. So we're going to add a check and I'll add it as of 12, let's say 2620. So that's as of last year. So I'm in 2021 right now and this was done in 2020. And the check number I'm just going to keep that check number 71. And I'm going to say the payee, Let's bring it to that Bob's burger joint again, the first one there. And we'll say that this one is for just 500 even to make it nice and simple. And this is going to go to meals and entertainment again, meals and entertainment. Okay, so then we're going to say, let's save that. So if I save that now, there we have it. Now, what's going to be the impact on the reports? Well, if I go back to our reports here on the balance sheet and I refresh the balance sheet now, I'll say I'm going to go up top and refresh the screen. I'm going to close up the hamburger. I'm going to hold down control and scroll up a little bit. And so now I'm at, let's say 150. And so then I'm gonna go back up top and let's bring this back to 2020 now. So I'm going to say 0, 1, 0, 1, 2, 0 to 12, 31 to 0. And then I'm going to run the report. So then if we go down in the checking account, the checking account side of things, I'm going to go into the checking account and we have the check that we wrote all the way down here on There's that check. There it is. So I'm gonna go back up on top. So the balance sheet seems correct, but we're going to imagine that that checks not going to clear and we're gonna wanna avoid it, right? And so if I go then to the income statement, what happens over here? Let's go back to the prior year. Again, we're gonna go back to 2020. 0, 1, 0, 1, 2, 0 to 12, 31 to 0. We're going to go ahead and run that report. And then if I scroll down, we've got that meals and entertainment down here, where it went into down here went into the meals and entertainment. And if I select that item, then we're going to have all these, all these items here that we go to Bob's burger joint but a lot. So there's the 500 in there. So if I go back up on top and we go back to our report now that's an increase to the expense account which is going to decrease this net income. And that's going to be the issue because if I if I then go into 2021, now we're going to imagine it's 2021 and we're going to say, Hey, we've determined that this check right there shouldn't be there, it should be voided. Miss input. We've determined it's not going to clear the checking account and we need to avoid it for whatever reason. If it's 2000 and 2001. Now, we've already basically closed out the year and we've done our tax returns and our tax returns have been done, and we've done our financial statements. And then if I go back in and void it, it's going to change my net income for the prior year, which we have already finalized. We've already run our reports on it. We've already done our tax return based on that based on that information. So we can't really avoid it. We don't want avoid it in the prior year because if I run my income statement for the prior year, then it's going to be off. It will also affect basically the balance sheet because this income statement number this one, 176, 46 is part of the balance sheet. If I pull over the balance sheet, which is the double-entry accounting system, it is assets up top. And we'll talk more about the double-entry accounting system. Assets, liabilities, and equity down here. And you can see this net income. There it is, it's part of the balance sheet. So again, if I've already used this balance sheet, if already done the reports as of 1231, and then I delete something that's going to mess up this number in the prior period. Then it's gonna, it's gonna have some. Now we've got something different in our system that what we finalized when we did like our tax returns and whatever else and did our financial statements as of 1231. And if I if I go one period up, let's say I bring this to the the 21st, even if it's January first, I'm going to run the report now. So now I'm in 2021. And if I go back down here, notice this net income number is 0 now, because that amount rolled into retained earnings. So the net income rolls into this equity section in retained earnings. So the question is, how do I avoid it? How do I get rid of these checks then without messing up that process in the prior period process. Now there's a couple of ways you can do it. There's kind of one way you could do it is to basically keep the check here and say just edit the check and then make another transaction in the current period that will reverse it out. In other words, I'm going to hit Control and zoom back down to 100% because I'm doing data input now, I could go in here and then basically indicate that it has been voided by just basically putting a MIMO in here saying that it's been void, right? I can say this has been void right there. But if I do that, it's not really it's not really saying void on the checkout. I'd rather just completely void the check. And then and then when I go in and look at it, I'm not going to get confused as to whether it because what I wanna do is check it off as cleared on the bank statement. If it if it looks clear that it's still a check, even if I have that memo that says void, it might it might not I might get confused as to whether it's void or whether it cleared. So what I'd like to do is actually void the entire check. But if I do that, I'm going to avoid it. I'm going to avoid it and change the transaction that happened in the prior year. So what we gotta do is I'm going to re-implement this thing with basically journal entries, which is, which I will not be able to, won't be as likely to be confusing for the check when I do that. So what I'll do is I'll add another transaction and I'm going to call it a, a journal entry this time. So I'm gonna make it a journal entry and not a check. And I'm going to reinstate this as of the same date. So it's 122620 and I'm going to call it now a journal entry for the payee. You could add the same P, E and it'll go in and out as the same page E again or you could leave it leave it blank and just show the voided check. Because when you go into the vendor detail, you want to be able to see that the check basically was voided in the vendor detail. If you add the vendor again, it's going to go in and out again because we're going to add two more transactions and then I'm going to share it in the middle. This is to void. This is to avoid check and checks 71 to Bob's burger joint. So I'm going to put that as the memo. We're going to go ahead and copy that. And then I'm going to say that this is going to be for the $500. And the other side is then going to go to that meals and entertainment. So meals and entertainment. So then I'm gonna go ahead and save that. So I'm going to save this transaction. And so there we have it. So now we've got these two side-by-side and they line up. Now if I go back on this transaction and then let's just take a look at it by editing. I'm going to go ahead and edit, and this will take me into the more detailed. Look or the actual journal entry form. And the reason I like to do that is because I want to add the the memo down here as well. So it's on both sides. So this is going to record both sides of this transaction. And then I'm going to say Save, I'll save that. And then close this back out. And then I'm going to, then we're going to have to add another one, which is going to be in the current period in 2021, and then I'll go back in and void once I got all three of them in there, then I'm going to go back in and void the duplicate one or the original one. So then I'm going to go back in again. I'm going to say now we want to enter and I'm going to make it in the form of a journal entry in the current time period. Because again, that's going to make it easier for me to see that this is something a little bit different than a than a standard deposit thing. This is something that we had to do to make an adjustment. I'll make it in January 1st, 2021. It's going to be a journal entry. And I'm not going to put the e here once again, and I'm going to say the memo is going to be the same. Check sodium one. So void check 71. This is part of avoiding process and this time we're going to add it as a deposit on this side. So meaning we're going to increase basically the checking account on this side and we're going to record the meals and entertainment as the other side of the account. Which seems kind of funny because obviously the meals and entertainment is an expense account. It's going to be increasing in this time period, but we got a match it out so that we get the voiding happened in the proper time period. In other words, since we already recorded the expense last period, we gotta basically recorded as a negative expense in the current period to basically voided out. So then I'm going to say save it. And so now we've got these three transactions, right? We've got these two that are duplicated checks and they're in the same time period. And then we've got this one that's going to be a deposit in the next time period. So now what I'm gonna do is I'm going to avoid this one, the original check, that's the one I want to avoid. So I'm gonna go into that one to avoid it. I'm gonna go I'm not going to delete it because I want it to say void. So I wanted to show it as a voided check rather than just vanishing all altogether because we want that audit trail. So we're gonna go into the Edit then. And now I'm gonna go ahead and go to the More button on the bottom. And we're going to go ahead and void that checks. So we're going to say void. It says are you sure you want to do that? We're going to say yes. And so now it has been voided. I think I said No before. I'm going to say yes, I want to do that. So now transaction successfully, transaction successfully voided. Now we have our three transactions here, so we have it on the books, but now we put it back on the books as a journal entry. We've avoided this one which now shows as 0. And then we have the one that's going to be there on January that's going to reverse out. Now the point here is that when we look at the, at the reconciliation, something has to clear on the reconciliation and these two will match each other out in order to clear on the reconciliation, this one will show as void. So let's just take a look at the reconciliation to see what that would look like when we'd reconcile. Now, if I go down to the reconciliations to I'm sorry, the accounting down below, not not in reports, a. Counting down below and then want to go to reconcile County and reconciled. We're on to reconcile tab up top. And I'm going to be in the checking account and I'm just going to resume what we did last time. And then when we check these off, we're going to have these items. If I go all the way down, we've got these 23 at the end. And I can check these off. And because these two are equal and opposite, they will be removed from our reconciliation process so we can reconcile them. And this 0 balance because it's 0, it can be removed as well. In other words, these will not throw off our reconciliation now when we reconcile. So we should be, we should be good there to, to reconcile. And then if we go back to our reports up top, Let's consider what will happen on the income statement. So if we then go to the income statement or profit and Loss report, I'm going to run the report again. That should refresh the report. And then if I go down to the affected account, which is the meals and entertainment, I'm going to go to the 528. Now, that 528, and we still have that 500 in there. So there's going to be the 500, but now it's showing us basically that voided check with the journal entry. And we couldn't really removed that expense because if we did, it would mess things up because we already finalized the income statement with it there and that we're avoiding it in the following period. So we still want that there. So that looks good. But it's showing us. And then we have that same 117646 here. Now if I go to the next year, if I go to 2021 now, let's bring this up from 0, 1, 0, 1, 2, 1 to 1230, one-to-one. Then run that report. And then we scroll down. We got the meals and entertainment. Is that in there as a negative number? And that looks funny. As an expense is not generally a negative number, but that's what we had to do in order to avoid the item that's in, we had to void a prior period item. And instead of going back to the prior period and amending basically our return and what not which might mean like amending the taxes and everything like that. We wouldn't we kept the expense in the prior period and therefore, we have to have a negative expense basically in the current period that would that would match it out so that we can basically avoid the check in the proper time period. And then if we go into the the balance sheet over here and I bring this back to 2020. So I'm gonna bring this back to 2020 and run that report. And we scroll down. We still see that 11 7646, that is now in net income. So we haven't really messed up then our AR balance sheet as of 2020. Because again, you're imagining that you already did the taxes and you did the financial statements, would you run your 12, 31 2020 report? In 2021, you're running the prior year report prior your urine and in 2021 should match what you ran when you ran the report, basically for your taxes or whatever you did at the end of the year. So when you finalize the reports for 2020, 12, 31, 2020, going forward, you really shouldn't have any changes if you run the balance sheet as of that date, right? If you'd have if you do have changes, that means that something got changed in the prior period. And that could cause problems basically, when you're trying to when you're trying to match things up and going forward. So that's going to be that item. And then if we go back on over, I'm gonna go to the first tab again. And then if we go basically down to the expenses area and we were going to say go to the vendors. If we go to the vendors and we say we want to go to Bob's burger joint because that's where the check was voided at. Then we've got this check and it's just showing this one check that was voided. So if there's a question about that check, there's there's really no no no question about it. I can't mistakenly say I was at voided or not. No, it's it's pretty clear that, you know, it was it was a check here, so it was voided. So we have the full the full voided check and then brought it basically down to 0, right? The status of the check is void. We can't, we can't really mistake that. Whereas if we just put a MIMO, the description that we might, we might not fully get that right. It won't it won't be a complete voided check. That's why we did the two transactions. But you could instead of having done that, you could have kept the original check and just put in the memo voided and then you would not have had to had to add the journal entry. So that's one less step, but I don't think it's going to be quite as clear to do that. So just know that this similar kind of process is going to be the general kind of process you have with anything that you're going to be deleting or thinking about changing the general accounting rule is don't change it, add something else that is going to be keeping the audit trail, although we will break that rule from time to time, and QuickBooks makes it easy to break that rule from time to time. And then however, if you are changing something in the prior period, then you gotta be really careful about the temporary accounts and the rolling over the temporary accounts, if anything, is going to be affecting the income statement, income and expense accounts in a prior period, especially a prior year for smaller companies that are that are relying on this for tax preparation and what not, then you want to be careful about about how you go about doing that, so that everything rolls over properly. 16. 1.30 Customer, Sales, Revenue, or Accounts Receivable AR Cycle: Quickbooks Online 2020, one, customer sales revenue or accounts receivable AR cycle. Let's get into it within two. It's QuickBooks Online 2020, one. Here we are in our Google search page. We're going to be searching for QuickBooks Online at test drive. Then we're going to be clicking on the QuickBooks Online Test Drive for Intuit, the owner of QuickBooks, verifying that we are not a robot. And continue here we are in our Craig's Design and landscaping services practice file. We're going to hit the new button on the left-hand side last time or in the prior section, we took a look at the items under the vendor section. Now we're going to be taking a look at the items under the customers section. Remember that every business transaction has two sides to it, but we want to know what side we're talking about when we're using the terminology for QuickBooks. So for QuickBooks, when we say customers, we don't mean us as the customers, other people such as us being the customers of the vendors here we're talking about the direction being we are the business selling to customers. So these are going to be our customers and we've got the documentation related to the customers. So we got the same process that we want to think about with regards to the customers cycle, or the sales cycle or the accounts receivable cycle. These are different names for the same kinds of processes that we will then have. In that we want to be able to visualize what the process will be. We want to be able to visualize the forms that will be in there, that's going to be the data input forms. And then take each of those forms and think about what the impact of inputting the documentation for those forms will be on our major financial statements, that being the balance sheet and the income statement, otherwise known as QuickBooks calls it the profit and loss or P and L report. To do that, I'm going to go to the desktop version just to look at the flowchart. So the only reason we're overhears to look at the flowchart, you don't need this version or anything. We just want to look at this flowchart, which basically has the same forms in the online version and just has this pictorial format in order for us to see it a little bit more clearly, then we just need to take a look at these same forms. We'll, that'll be in that drop-down list and then consider them. So our idea here is in the customer's section. And remember you might visualize this section for or think about it in different terminology. If you look at the homepage, it's going to be listed under the customer section because obviously we sell to customers. It also involves the accounts receivable. So if you work at it at a larger company, you're going to spend a lot of time managing the money that is owed to you. And you'll probably call it the accounts receivable cycle. But you also might call it the sales cycle, sales, another word oftentimes used for revenue. And because obviously this is going to be at the revenue generation cycle as we sell to customers. Or you might simply call it the revenue cycle as well. Now, there's going to be a difference in terms of different types of industries as to what the full cycle will look like. So if you have a full accrual process, then you'll typically have the full invoicing process, then receiving payments, and then you're going to be making the deposit. If however, you make the sale at the same point in time as the work is done, we might have just the create the sales receipt and then making the deposit. And if we do something that's very kind of straightforward or basic in terms of like gig work or something like that, where we get the deposit, were actually record the deposit and the revenue when it clears the bank. Maybe then we're just going to record basically the deposit and we're going to court record revenue at that point in time. Let's go from the easiest process to the more complex process that might take place. The easiest kind of setup on the revenue side would be something like the gig work. If we had gig work and we work for say, say Amazon, we sell slut like books on Amazon or something like that, or audio books. Or we have courses that we sell, or we get revenue from YouTube, or we get revenue from something like that. And we wait till the thing actually clears the bank until we've recorded, then we're not only on a cash basis, but we're also just basically depending on the bank in order to populate our information. That's a basis that will be the easiest thing to use on the deposit side for bank feeds as well. And in that system basically we will be recording the deposit when it clears the bank and just recording revenue at that point in time. That would be like the easiest system that you can have, but you can only have that easy system if you're in an industry that supports basically that easy type of system to be setting up. If on the other hand, let's say you're in like a restaurant situation where you collect the money at the same point in time that you provide the goods or services, you provide the food. And let's say you, you basically collect cash or credit card at that point in time. You're not going to invoice the client, you're getting paid at that point in time in that case, then you're basically going to have to record the sales receipt. You can imagine basically a register being set up, a register type of situation where you would record the sale, you would provide the receipt for the sale and then the money that is collected during that time period, you're going to have to then deposit it, right? You can have to take the money, some of it possibly be in cash. You can have to deposit it to the bank. Now in that system, you're probably not going to want to wait till it clears the bank in order to record it. Because what you wanna do is use the bank as a double-check. So you're going to make your sales all day long. And then you're going to have the deposits flow through either either cash or credit card or both in some way, shape or form to the bank statement. Then you will already have something recorded in the system on our books. And we'll have to tie that out to what gets recorded on the bank statement. Meaning we'll have to do a reconciliation type of process in some way, shape, or form. So you're still kind of on a cash basis in this system, but you can't really rely so much on something clear in the bank before you record it, you'd rather probably use that double checking process so that your sales see that your sales match up to what the deposits are going to be matching up when they clear the bank will talk more about that in the future as we go through our practice problem and go through these forums. And then the full service process would be something that might be used for like a bookkeeper or a lawyer or something like that, where we have to do the work first. So first we do the work and then we're going to get we're we're we're gonna get paid at a later point in time. We do the work, we build the client, which is called an invoice here. For QuickBooks, the invoice means we're building the client. We're sending the invoice, the bill to them. The bill means for QuickBooks, that is someone else, a vendor that's sending a bill to us. So an invoice means us doing work for like a law firm or you can imagine a bookkeeping firm. We did the work and they were issuing the invoice, which is the bill in essence to the client. That we are going to be sending it to. Then we'll have to track the accounts receivable and be collecting on the receivable. And then we're going to make the deposit once we have collected on it. So the full service cycle is going to be kind of like the most complex cycle. And it's the, it's the one that's a little bit the most difficult one to tie into, say, how the bank feeds are going to work. Because you cannot rely simply on the bank transaction. You have to tie in the bank transaction to the invoice in some way, shape, or form. That's going to be basically the full cycle process. So you kinda want to visualize that, that flow that's going to be happening. And then we'll go into more depth on each of these transactions, each of these forms, which are in essence data input forms, and each one of them will have an impact on the financial statements. So quick recap here. If you're going to have to build the client, if you'd like a law firm or a CPA firm to do the work first and then you have to build a client. You're going to receive payment at some point in the future because you have to build a timeout or something like that, then you're going to insert into something like an invoice that's going to record the accounts receivable, then the sales at that point in time, then you're going to receive the payment, somehow recording the payment that has been received. And then this one's a little bit tricky because we might put it into something called an deposited funds. And this is something that if you've learned traditional kind of bookkeeping in like a school type setup, we haven't really you haven't really seen the deposited funds because you don't deal with when you're just looking at journal entries, the logistical problem of reconciling the bank statement, and how that kinda get messed up when you have the deposits that are going into the bank account that differ in a different format or they're deposited in a different grouping on the bank statement as in the books. So this step often kind of confuses people in that if you're going to be depositing multiple checks or multiple payments to the, to the bank. Then we want to basically put this into like a clearing account, which we're gonna call an deposited funds. And that will basically be again, decreasing the accounts receivable and then going into this cash account, but it's on deposited funds, not the checking account. And then we're gonna go to the checking account and deposit it. Our goal in the checking account then on that added step is to group our deposits together so that they will be shown on the bank statement in the same grouping as they will be shown on our books. So that when we do the bank reconciliation or match it up to the bank feeds possibly, then it'll be easy to do. And then the second kind of business, if we, if we collect cash at the same point, you're thinking about a business with a cash register or something like that where you're collecting the money and possibly have cash sales involved in credit card sales at the same time that good or service is being provided. Then once again, you're going to collect the money here at that point in time, provide the sales receipt, which is going to increase sales and then it's going to increase, most likely once again, this an deposited funds because it's not going into the checking account yet, although it's basically cash. If we have cash sales were going to gather that cash together, then at the end of the day, typically into the day if possible, we want to do it every day, go to the bank, then make the deposit, put all that cash into the bank. Although sales that are individual sales grouped together, basically when we make the deposit into one grouping and make sure that we make the grouping the same. So it'll show up on the bank statement as the same as that there'll be in our books for the reconciliation. And then there's kind of the easiest process, whereas gig work or something like that. Someone pays us, like online, we've got YouTube revenue or, or its course revenue from different platforms, or revenue from audio books or something like that. And we just wait till it clears the bank. And then we'd go in there and make the deposit when it clears when it clears the bank, that would be the easiest process. And again, for the, for the revenue side of things, if you're turning on the bank feeds and you want it as automated as possible, that kind of system can be easier to automate. So those are the primary forms that we will be taking a look at. And this is the flowchart that you want to be considering or visualizing. Also just note that this deposit form over here, you can see it's in the banking section, even though you've got this arrow. So they're trying to say that hopefully most of the deposits are coming from customers, but obviously you could have deposits for other reasons. We might have a deposit for us, the owner putting money in, just investing money into our business or loan or something like that for the deposit. So that's why it's kind of over here. But then if, then once we have this visualization in our mind, then you want to go into this drop-down and you have the same kind of thing, customers, that's gonna be the revenue cycle, sales cycle. We've got the invoice that would be increase in the accounts receivable for like a bookkeeper or a law firm, we've got the received payment, which would be what happens next after we have the invoice, we would then get paid. An estimate is something that would be specialized to a particular industries that are going to make an estimate before they issue kind of the invoice, then we've got the credit memo. Now this is something that if someone basically you have to return something or something like that, then you're going to have the credit memo, which will basically kinda reverse it's kind of a reversal of the invoice. So we'll talk about that as well. But it's less common hopefully. Then the other items and then the sales receipt that's like the cash register. If you make the sale at the same point in time you receive the payment. Those are the major forms you want to have kind of a visualization of. And then next time we'll go into each of these forums and take a look at them and see what the impact of them will be on the financial statements. So then you always want to then be able to visualize the flow. What are the forms that are going to happen in the flow? And then what's the impact on the financial statements, meaning which accounts? There's going to be at least two every time with every form. Which two accounts or more are going to be affected with each of these forms as we do that at data input for them. 17. 1.32 Customer Center Or Sales Tab: Quickbooks Online 2021, the customer center or sales tab. Let's get into it within two. It's QuickBooks Online 2020, one. Here we are in our Google search page. We're going to be searching for QuickBooks Online Test Drive. Then we're going to be selecting QuickBooks Online Test Drive from Intuit. We're going to be verifying that we're not a robot, even though I'm not totally sure at this point. I mean, how would you even know really if you were a robot or not? I mean, if you think about it, it's kind of, it's kind of a deep question. But in any case, we're going to be logging in here. Here we are in our Craig's Design and landscaping services, a practice file. In a prior presentation, we moved on to the customer section and we note that what we want to do is be able to visualize the flow of the activities that will happen in the customer section. Apply then the forms to that flow and then understand what's going to be happening with regards to the input of those forums and the impact on the financial statements of them, that being the balance sheet and the income statement. To do that, I'm jumping over to the QuickBooks Desktop version just to look at the flow chart over here, so you don't need the desktop version here, but we have our nice little flow chart here, which shows you basically these forms in order in the flow that they would typically happen in. However, of course, with the sales cycle even more so than other cycles, it will be dependent on what type of industry we are in, as we took a look at in a prior section. Now we want to think about how we can organize basically our customers. And this becomes particularly important if you have accounts receivable. In other words, if you're in the type of industry where you do the work first and then you invoice or bill the client, and you need to track the receivables that have you've done the work for, but you have not yet been paid for. If you take a look at the desktop version, you can get there by going to the customers tab up top or in the customer's dropped down to the customer center. That's why I labeled it the customer center. However, in the online version, it's not going to be called the Customer centers on the sales tab basically, where you'll find many of the same functionalities on the left-hand side. But if you're working with people that have used QuickBooks for some time, they're probably just going to still say customer center because it's kinda sounds neat. Customers the customers center. So in any case, customer center, that's where we're gonna go on the left-hand side, but this is going to be the Sales tab in QuickBooks Online, which is kind of the same thing as the customer center on the desktop version. And then up top we have our information including the overview, the all sales, the invoices, the customers, the products and services. So I'm going to close the hamburger up top. So we're going to be closing up the hamburger. We're in the overview tab. In the overview tab, we have some options for payment options, and these are typically going to be kind of add on apps that could make the payment processing a little bit easier. So you can look into those items. We may spin a little bit more time on them in future presentations, but it's not our main focus at this time. Then we have the all sales. So this is gonna give us kind of a general recap, as we saw in basically the expenses center or the payable center or the Vendor Center. We basically have the transactions in here that are going to be related to the to the customer cycle. So those transactions then if I hit the drop-down, up top being these items here. So these forms then can basically be seen and sorted in this section, it'll be kind of isolated to those forms. So then if we go down below, we've got our filtering option. So we can filter by the type of transaction in once again, these are the types of transactions that are generally within the customer center or the sales cycle. Estimates, invoices, sales receipt, credit memos, unbuild income recently paid money received, and the statements. Then we have the status down below, open, overdue, paid, pending, accepted, closed, rejected. So at the delivery method we have here and then of course the date range. And then we could sort by the customer as well and use those filtering options up top, we have similar kind of filtering option kind of things. We have the estimates here, we have the unbuild activity, the overdue, and then the open invoices, and then the 12th paid last 30 days. Up top, we have the import transactions. So if we need to import items, we could use this in pointing item. Most of the time you're going to be using these items over here. So importing might happen most often when you first set up basically the company file. If you're importing information from a prior system. And then we can set up a new invoice payment estimate, sales receipt, credit memo, and so on and so forth from this window. And if you're working within this customer center or the Sales tab, then this way to get there might be useful. However, many people probably are going to get to most of these forms by going to the new tab under the Customer Center and finding them on this side. So I'm going to close this backup. And then we could do our batch action to kind of transactions down here we can select multiple items or all items. And we could do our batch actions, which would include print transactions, print paycheck slips, and so on. I'm going to uncheck that item. We can also sort to these transactions by these static, by these headers. So if I just click on the header, it'll sort by basically date. Or I could sort by type, which could be useful as well. Customer memo, due date, balanced total, and so on. And then if we look at these type of items that aren't included in here, remember again, these are items that are basically in that customer section. The customers cycle, the sales cycle, however you want to name it. So we have the estimates. Those are things that would estimate before we basically create an invoice. They would only be there for those types of industries that have estimates. So not all industries happened. It's kind of specialty area. And let's go down. So the time chart, we'll go down to that later. But the invoices, of course, are going to be the first document if you build the client for work that has been done for which you have not received anything for yet and these things are not affecting cash. So note that these are affecting accounts receivable and these are the ones that you spend most of your time on. And you could have entire departments on in a company tracking the receivables that are basically generated from the invoices. And then of course, the receivable should be paid on at some point. So we have the payments than that are basically connected to the invoices. So we need to be tying out the payments to the invoices, the invoice creating a receivable the payment than paying it off a credit memo will basically be decreasing an invoice that had been reversing in essence and invoice kinda negating the sale in a sense. And then the sales receipts down below, those are going to be the forms that don't go into accounts receivable. They're gonna go directly to the receiving of the payment at the point in time that the sale or service was done. So then we're gonna go to the invoices tab up top. So if we go to the invoices tab, this is a nice area to, to specialize or zoom in on simply the invoices. Because remember, those are probably where you're going to spend most of your time. If you have the type of industry where you build the client and then you get a track when they're going to pay you. You're going to be sorting in here. If you work at a company that you're just you're in the accounts receivable department. It could have spent a lot of time with the invoices and seeing whether or not they have been paid. So here we've got our invoices down here and then we can sort them by status. All needs attention. So then we have the unpaid overdue and not to do so, we have the unpaid options. So I could say, Hey, I want to look at the unpaid overdue invoices here. Or I could say I want to look at the not to do unpaid but not do invoices. And then we can take a look at the paid and then we have the difference between paid and not to deposited. So in other words, these have been paid, but they haven't been they haven't gone into our checking account yet. They're kind of in limbo at this point, meaning they might be in an deposited funds. And let's check that out. Let's let's open up another tab. I'm going to right-click on this tab up above and duplicate it. And then let's open up a balance sheet down here. Open up a balance sheet. And I'm gonna go down to the reports down below and open up one of our favorite reports, the financial statement report of the balance sheet. So let's open up the balance sheet and then I'm going to change the dates up top from 2020. So I'm gonna go 0, 1, 0, 1, 2, 0 to 12, 31 to 0. Then run that report. And then I'm going to minimize the hamburger and increase this here and these and deposited funds that 2062. If I go into that, I'll show the activity. I'm going to hold down control and scroll down a little bit. I'm, I'm gonna, I'm gonna see it. We'll see payments then that we've received, but we haven't yet put them into the into the bank account yet. And that's this. And deposited funds is often kind of a difficult or a point of problems for many companies. So we'll talk more about the deposit funds and how it's used or how you might or might not want to use it in your system. So for example, if I go back to the first tab here and I'm just going to look at the detail on the payment that was made. We see that we have, for example, this payment of the 16, 17, 550 too, 1210. And if I go back up top, we see that 1, 0, 0, 0, 0, 0, 0, 6, 75, 50 to here. And then if I go, if I go back on over, I'm going to go, I'm going to right-click on this screen again and duplicate it again. So we're going to duplicate that screen. And then let's say we're going to go to a deposit. So I'm gonna say new and then I'm gonna go and enter a deposit. I'm not actually going to do the deposit, but just to take a look at, here's the bank deposit, which we'll take a look at shortly. You'll see that these two items are popping up kind of automatically. And what the deposit screen would do is take it out of that and deposited fonts and put it into the checking account. And that's that middle step we talked about briefly. Prior presentation where we have basically an invoice, for example. And then the invoice when we've received the payment, we put it into an deposited funds instead of directly into the checking account because we're imagining we're holding onto checks or cash or whatever form of payment before we enter it into the checking account. And then we're going to group it into the checking account and whatever format we expect to see it on the on the bank statement and then make the deposit over here. And that's kind of what's happening in this process. And that's why these items are basically pulling over here. And that would be decreasing the end deposited fonts and put it into the checking account. So I'm gonna so that's the 387 and a 167 552. If I go back to the first transaction, there's the 16, 17, 552, and verify go down here, here's the 387. And then if we go to the customers, I'm going to go to the customers tab up top. Once again, we have up top the estimates, the unbuild activity, the overdue and open invoices, and the 12 paid last 30 days items up top. Then we can sort our information by customers in. Remember that the customer's mean because there's always two sides of the transaction. When you're looking at QuickBooks, you got to know which side of the transaction they're talking about because we are customers sometimes as the business. But when we've talked about customers in QuickBooks, we mean our customers, people that we do services are delivered inventory to, not who we're purchasing from. So these are the people that, that were hopefully generating revenue from. We have our batch actions over here that we can take by selecting these items and doing a batch action, we could sort by the customer phone the open items up top. And then if we drill down on any of these customers, if I drill down on the customer, we're going to get the activity for that particular customer. So if a customer comes in and asks for something in particular, then we can go into their detail and then we can see the transactions related to them in particular. And we can have Batch Actions over here. We can then filter our items if we so choose by the transactions. So we have open invoices, overdue invoices, open estimates and so on and so forth. And we can sort this information in any way that we think best for that particular customer. Let's go ahead and sort by type over here just so we can get them kind of grouped up by type. Now this first one is a time charge. That means we charged something made like a billable item basically that we need to invoice. We need to charge this this customer for. And so that would mean over here on the action, that's why it says create an invoice. So we can create an invoice for that if we so choose. And then we have the invoice over here. If the invoice have not has not yet been paid, then our action would typically be to receive payment. We can we can basically receive the payment here and that's why we have the action that's going to be on the right, which will be the received payments, credit memos, meaning that we we basically reversed a sale that happened to that particular customer. Their projects is kind of a specialty area. We might, we may do a course on or projects or at least a section in and of itself. And then if we go to the customer details, and this is going to be where we put the detail for the customers. Now how much detail do you need for the customers will depend on the type of industry that you are in. If you're in an industry where you're just making sales and you'd never expect to see the customer again hit, then you don't need much more information than most of the vendors, right? You just need to know. Enough information to record the sale. However, if you want repeat customers and you expect to send them your newsletter and all that kind of stuff, then you want as much information as possible with it. So it's more likely that you're going to want to add more detail in the customer section. If you're in the type of industries such as a service industry, like a bookkeeping or a lawyer or something like that. And you want the information so that she can keep in contact with your customers versus, versus a situation where you're basically just making sales and you don't expect further interaction too big degree with the customers. You can edit the customer information over on the right-hand side. And then we have the late fee information, if applicable, if we're charging basically the late fees. Now if we want to get back to the main list, then I hit this little item on the left. So I'm not going up to the hamburger up top. I'm hitting this little line item with an arrow. It's like a mini hamburger with an arrow because I'm not that hungry. I just want like a snack, hamburger. And then we could we could take it back to the customers, the full customers here, and that'll take us back to the customers area. Obviously, we can also use the tabs up top. So if I was in a particular customer, I can go back to the customer tab up top, and that'll take me back to basically our main customer page, where once again, we can sort by each of the customers themselves. So if you've got a particular question from a particular customer, then you're probably going to be going into this report and that finding the customer. And then you can take a look at the detail of the activity with relation to a particular customer. Then on the right side we've got the products and the services. These, these are often called items as well because in the desktop version they were called items, service items, and inventory items in particular, these are the things that we sell. So if we have services, we set up these items so that we can then populate our invoices as easily as possible. These are things that many people that have never set up a company in QuickBooks don't understand very well. They only understand how to populate the invoice and these items having already been set up. So we'll go through the setting up of these items, which makes the invoice population and the data input of the invoice a lot easier. Also, if you have inventory that you're tracking in any way you sell actually goods, then the items become a bit more complicated. These being the inventory items that we're going to be setting up here. Once again, those things then populating, in that case, both the invoice and the purchase orders when we purchase the inventory items. So this is the best way to get a good feel for those is actually a setup the items. And when we do the second half of the course, that's what we'll do. We'll go through and we'll set up we'll set up these items and we'll track them and see how they create invoices and what they do to the financial statements, which can be a little confusing because they're kinda hidden in terms of how they're going to impact the financial statements with regards to the data input forms like invoices and so on. So that's going to be the recap of the center here. Just realize also that the center can kind of tie into reports as well. So if I went to the balance sheet up top and we're talking about like the sales cycle. We're often thinking about basically the receivable, accounts receivable. That's what you often concerned with when you're looking at the sales cycle because you're always looking at collecting on the receivables. The HR department, accounts receivable department is going to be a big department for larger companies that have a lot of receivables that they're going to be collecting on. And then you can use this center than to kind of answer a lot of your questions there. And it also ties into other reports as well. So the Reports, meaning they're going to be supplemental reports or reports that tie into the accounts receivable. So if we go back to another tab, I'm going to close this back out. And if I go down to the reports down below, and let's take a look at the who owes you money reports. We've got an accounts receivable aging report, which kind of sorts out how old the receivables are, which is going to be a really important report. And then we've got the customer balanced, detailed report. Let's open that went out. And this will summarize kinda similar information that we saw over here in or over here in the sales center of the customer center, the Sales tab. And it'll give us our information by customer and how much is outstanding, how much is due? And this report is useful because if you get to the bottom of the report, you can see that this report that 5000 to 8152 ties into what's on the balance sheet. If we were at the same date, 5000 to 8152. So when you're over here looking at the customer center, you may not get that feeling. He may not. And you don't see that bottom line number tying into the balance sheet. But remember, everything that's in accounts receivable or every other report other than the balance sheet report basically ties into and the income statement. Every report other than the financial statement reports balance sheet and income statement, otherwise known as a profit and loss, typically ties into supports in some way. The balances on that report, the balance sheet. And you can see that here with this, with this report showing basically the receivables that you'd be looking into oftentimes by customer, because we need to know who owes us the money so we can go then ask them for it. And that's the 5280 152, which will tie into what's on the balance sheet. So in other words, if you looked at the balance sheet itself, you're only going to see the number that people owe you. And if you go into the detail on it using the zoom feature here, then you get a detailed report, but it's by date. So that's not good. No, that's not what we want. What we want is that information by customer because I need to be able to know who owes me the money and how much they owe me. So this detailed report is not enough for accounts receivable. We needed structured in another way as well. That's going to be structured by who owes us the money. That's another kind of subsidiary ledger report that you can see in a report format and you can see it basically, that's kinda what we're tracking. Oftentimes in the Customer Center. 18. 1.34 Invoice Form: Quickbooks Online 2021, that invoice form. Let's get into it within 28. Quickbooks Online 2020 one. Here we are in our Google search page. We're searching for QuickBooks Online Test Drive. Then we're going to be selecting QuickBooks Online Test Drive from Intuit. It's then going to ask if we're a robot. I was once but then I made a wish upon a lucky star. Now I'm a kangaroo, so we're good. I'm going to check that off. Continue. We're now in the Craig's Design and landscaping practices file. In prior presentations, we've been taking a look if we tip the new drop-down, the information in the Customer Center and we want to memorize or think about the flu that's going to happen in the Customer Center. Then take a look at the individual forms. We're not going to do that within the forums here looking at one of the major forms, that being an invoice form. Before we do that, however, let's take a quick look at the flowchart. I'm going to go to the desktop version. You don't need the desktop version here where in the online version. But we have the flowchart, which is nice on the desktop version, where we see the full flow of an accrual type of process that would happen depending on the type of industry you are in. So if you're in an industry, you do the work before you before you get paid, like a lawyer or an accountant or something like that where you have to do the work, you have to bill the time that's going to be out there and then and then charge the client, then you're going to be creating an invoice, increase in the accounts receivable and then increasing the revenue at that point in time. Then we're going to have to receive payments on it. And then we're going to basically make the deposit of that payment into our checking account. So the invoice is the first of those series of transactions that would happen. Obviously, when we see receives something like a bill, like a utility bill, a telephone bill and so on and so forth to the person who sent it in QuickBooks terminology terms, it would be an invoice to them and it would be a bill to us. And that's the first thing we kinda want to consider. And we always have to keep in our minds, we know that every transaction has two sides to it. When we're looking at QuickBooks, we gotta be understanding exactly what their terminology is to tell us which side of the transaction we are on. So in other words, an invoice is also a bill. But when we're thinking about QuickBooks terminology, the invoice means that that's something that we're going to be building our customers for. And the bills that we've received or invoices that are from others that we're going to receive. We call a bill to us that a bill for QuickBooks means that we're the recipient of basically an invoice that was sent out by somebody else to us. So now we're talking about the invoice, which is basically a bill that we create for the goods and services that we do when we create the invoice that's going to increase the accounts receivable and increase the sales item or revenue. Let's go on back over to our QuickBooks here and let's just take a look at one. There's multiple ways to get to the invoice, but the most common ways to hit the plus button up top or the customer section, we're imagining that we're basically sending a bill to the client. Work that was done in the past that we expect to receive in the future, we will then create an invoice. The first step of the invoice is to pick a client. Now if we already have the client set up, meaning we've done business with them in the past. We want to select a current client. Or if not, you can actually add the client as you go up top. So we could add the client here. I'm just gonna call it dumber one. And that's all you really need to make the invoice. However, of course, if it's if it's a customer and you expect repeat business for them, then you probably going to want more detail for that customer. So any added details that you can have for the customer, you can open up the added def tail field here and add more information for the customer, including the email address, which can make it easier to then send the information including the invoice and other forms. We'll go through the setting up of customers in more detail in the second half of the course when we add more customers there or start our practice problems. So I'm just going to call this customer one then at this point and we'll keep it there. I'm not going to have an e-mail address. The billing items down below only showing the name here because I didn't add the billing information for that particular customer. The term than means when it's going to be due. So if we're sending basically a bill to somebody else, invoice built at somebody else. When's it going to be due by the default often be in that 30 days, That's going to be the due date. So in other words, if I send this out on January 5th, then the due date 30 days later is going to be February 4th. So it's calculating that end date based on the terms, in this case, the net 30. So we have the standard terms here, net 10, 15, and 16. You can set up different terms if you so choose. I'm not going to have any Crew number. We've got the tag number, not going to include a tag that and then we've got our products or services that we would then be including down below, these are going to be the items that make it really easy to populate an invoice. So what you want is for someone to be able to populate an invoice without knowing much about how to add the items that are needed to populate it. For example, how to add inventory items, how to add the service items that you're actually charging for. And so they can just enter the data input so that you can delegate to somebody else to just do the data input. In other words, if you think about someone like ringing up the information at like a cash register or something like that. They're bringing things up that can have really complex kind of transactions related to them. But the ringing up process of it with like a cash register is quite easy. And we want a similar process with our invoicing process. We'd like to be able to delegate to someone to create invoices without having to know the things that need to be done to make the data input as easy as possible. Or the effect of the financial statements on or the invoice on the financial statements. If they do know that, that's great, but we want to make the data input as easy as possible. Part of that is to set up the products and services. Now we'll talk more about that in future presentations when we get into building our company file, when you're taking over or looking at or working on a company file that has already been set up, then most likely these products and services have already been set up in the data inputs should be easier to do at that point. So these are going to be the things that we sell in here. We gotta kinda like a construction customer company. So we got concrete design, gardening and landscaping and whatnot. Kind of stuff is somewhat of a specialty area. If you have a contractor because you might be using more of a job cost system and what not. We have a course on job costs systems if you want to get into that in more detail. But you might have a service company and then you don't have to deal with inventory. Or you might be selling basically inventory, a whole cell. Kind of kind of purchasing and selling inventory, marketing and selling inventory. Let's, let's just add another account for one of each. So what I'm gonna do is I'm going to add another item. You can add items basically as you go or you can go and add all the items at once. I'm going to do this quickly because we'll spend a lot more time on adding items when we do the practice problems, I'm going to add a service item down here. And then I'm just going to call it service item. And I'm going to say that this is going to be the service item item. And you can think of this almost as hourly. If you wanted to think about your service item might be your hourly rate or something like that. But I would recommend thinking about doing something that is more standardized and your billing system, even if you're an accountant or lawyer who often do hourly systems, because it could be a lot easier to save a lot of time if you can kinda standardized what you are doing into, into chunks so that you can tell the client, Hey, look, this is what we're gonna do in this, how much we're going to charge you for it. For example, if you were to say that you're doing bookkeeping services, instead of saying I'm going to charge you by the hour, I might say I'm going to run a transaction report and I'm going to charge you by the number of transactions if you're in this range of transactions, this is how much it's gonna cost. And that way it's a little bit more concrete on both sides and your billable hours might be easier to deal with. So I'm not going to put the sales price, not right now because I'll put that in later. And then we have here a service income items. So that's going to be the income account that would be affected. And then we've got the sales tax category. I'm going to say this is not taxable in the United States, oftentimes the service items are not taxable. So I'm going to say non-taxable. And there we have it. So I'm going to say save it and close it, save it and close it. And let's just make this a $1000. And and and so there we have $1000 being charged for the service item. And then down below, we've got the add lines if necessary, you can have multiple lines. So I might have another service item or some other item down below. So we can have a quite long invoice in that way, especially if you're in something like a construction company or something like that where you're basically listing out a whole lot of things that are going to be included on the invoice. So if you need more lines, you can add more lines. You can clear all the lines. You can add the subtotal here and then you can add messages down below, message on the statement. And then we can have attachments if we so choose, we've got the subtotal down below. We didn't charge any sales tax in our case because we're saying it's a service item and were not subject to sales tax. And therefore, this is going to be an easier type of invoice. That's going to be the total then. What's this going to do when we record it? It's an invoice. Therefore, we're going to have an increase to the accounts receivable. That's what an invoice deaths, that's a balance sheet account representing people owing us money the other side, then it's gonna go to revenue. And it's going to be driven by the account here in terms of which revenue account it's going to go to, but it'll be an income statement account or P&L profit and loss account. Those being the same thing. Income account, profit and loss. Let's check it out. Let's save it and close it. Save it and close it and check it out. I'm going to duplicate the tab up top so we can open up our favorite forms. Those being reports, income statement, balance sheet, the financial statement reports. So I'm going to right-click on the tab up top. I'm going to duplicate the tab. Let's duplicate it. And then we're going to be opening up our favorite report, the balance sheet of the two ICANN lot. I'm calling the balance sheet the favorite, although the balance sheet and the income statement or are probably both tied, you can pick one or the other as your favorite report, but it pretty much has to be one of those two because those are the major financials. So I'm going to pick the balance sheet first. So there's going to be our balance sheet report. I'll keep the date range in 2021 because that's when I enter the transaction, so I'll keep that there. I'm going to go up top. I'm going to right-click again and duplicate again. Open up the other favorite report, and that's gonna be the profit and loss or income statement report. Quickbooks calling it the Profit and Loss report. In accounting terminology, more often you'll see income statement. So you just got to know those two terminologies, P and L, could be called a P and L for the profit and loss as well. If you want to sound quick, if you don't have much time, like when you're saying stuff and you want to say it fast. So then I'm going to hold down Control and zoom up a little bit. So we'll zoom into this. And then let's go back to the balance sheet. Close the hamburger, hold down Control and zoom in a bit. Okay, so the accounts receivable then has been affected. If I go to the receivable account, going into the receivable, that's the account that shows people owing us money. I'm going to hold down Control and zoom out a bit. Now, there's the one hundred, five hundred, ten hundred, five hundred transaction invoice. That's what's going to be increasing the AR always accounts receivable increases by invoices basically only. And then that's the only thing that increases them. And then there's the customer, there's the other account affected or I'm sorry, this is the account this is the split account which could include the other account, but sometimes there's multiple Council, they have a split there. If I click on this using the zoom feature, then we have our two transactions. And I think because we have two items here, that's why it had a split account, even though both those items are going to basically the sales line. So there is that if I close this back out, then the other side should be go into sales. So I'm gonna go back up top. I'm going to go back to my report, clicking this little blue button, I got to scroll up and click the blue button to go back to the report. Then we'll take a look at the income statement. Income statement there's 1500 on the income statement under services increasing the revenue account. And there is now notice here it broke it out into two transactions because we have two separate items included into one invoice. And that's why it showed that split instead of just one other account in the accounts receivable detail. But if I click on it. It's got to go to that one invoice that had those two items within it. So it's kind of breaking out the items even though it's generated both items generated by the same form, the same invoice. So I'm going to close this back out. So there's going to be the two sides here. I'm gonna go back up top, go back here. Now if I go to the first tab again, our balance sheet, this balance sheet report shows us who owes us money. We also want to know who owes us money. And we saw that basically in the customer tab, on the sales tab or in the Customer Center, you can search for it there. We also have another report that can give us the detail note when I go into the report that detail by zooming into it, it doesn't give us any more detail that we really need. It gives us detailed by date. We need detail not by date of transaction, but by who owes us the money so that we can harass them endlessly until they pay us. So what we're gonna do is right-click on this tab up top again. Let's duplicate it again and make another report. This is going to be supporting the accounts receivable report based on who owes us the money. So I'm going to go down to the reports again. And remember all other reports other than the major financial statement reports, balance sheet and income statement, in other words, are supporting in some way or another, a line item on the balance sheet or income statement. So if I go down to who owes you money, we're going to say I want to see the customer balanced. Let's say summary report will go to the summary one. Now let's go to the detail one. I should've hit the detail. Well, I'm gonna go back. I hit back. I changed my mind. Sorry. So I'm gonna go down to who owes you money. And let's go down to the customer bounce detail. That's the one I want. I'm not going to change it. That's 10, that's the one. So there we have it now we've got our information by customer up top. And I think this is this is our new customer one there it is there. And the total down here then should tie out that 678152 ties out to the balance sheets right there, 678152. So that's what we wanna see. So then if I go back on over here to our first tab, Let's make a little bit more complex type one here. Now with inventory, we're going to put something in there that has inventory, which complicates the balance sheet or the calculation a lot. So if you do not have inventories, your invoices are fairly easy because you may not be dealing with sales tax, then you maybe you don't have to track inventory. If you track inventory, then it's going to be a bit more detailed. And notice, again, if I go back to the flow chart over here, if you track inventory, the question is, do you want to track inventory on a perpetual system or do you want to track it on like a periodic system? If you're if you're doing a perpetual inventory system, then you're going to have to record the inventory when we, when we purchase the inventory, you'll typically use some flow assumption. The QuickBooks Online, I think, uses a first-in, first-out flow assumption, whereas the desktop uses a weighted average assumption. And then every time you sell something with an with an invoice or sales receipt, it will have to decrease the inventory and record the related expense called cost of goods sold at that time, which complicates the transaction a lot, but it gives you that real-time information or you can basically do it in a periodic way in basically record. The invoice without doing the cost of goods sold and inventory side do a physical count of inventory at the end of the day, week, month, and then and then record the adjustment or decrease in the inventory of that that you sold based on the physical count and the related expense, cost of goods sold periodically at the end of the day, week or month or something like that. We're thinking about now doing a perpetual system, meaning we're tracking the inventory in the system in some way. When we then create an invoice, we're going to have to decrease the inventory at that point in time because that's what we're selling. So I'm gonna go back on over and say, all right, well let's make another one and pretend we're going to be decreasing the the inventory now. So I'll make another invoice. And I'm just going to call this well, let's keep customer one. That's fine. Customer one. And I'll keep it on the same day here and everything. But then down here on the product, I'm going to set up a new one. I'm just going to call it inventory. Inventory item, which we would probably want to be more descriptive in terms of what we're selling. But I'm going to sell an inventory item. That's the point. I'm just going to call it inventory generic. I know I should be better, more detail. I got to put some inventory on hand. So in practice, we would purchase the inventory and then sell it here. So if I didn't have any on hand, I couldn't track the inventory. I'm going to put some on hand at this point time just to practice with. So the initial quantity I'm going to say is 500 units. As we're going to say, I'll say the beginning of 2021 reorder point. I don't need that, not gonna do it here. We'll get into this in more detail in a future presentation how to set up these items. And then we have the inventory asset that's going to be the account that'll be affected when we purchase it. The sales price, I'm not going to put anything for now. I'll add it when I create the invoice. And let's add it now. I'll add it now let's say it's, let's say it's 2000. And then the sales product income, and it's going to be a taxable. So this one's going to be taxable. That means it's going to be subject to sales tax. And then the purchasing information will be here. And the cost, I'm going to say we're selling it for 2000 and it costs us, let's say 500. Well, let's say it costs us. Let's say it costs us a thousand. So we're, we're buying it, let's say 1500. So we're selling it for 2 thousand, were buying it for one hundred, five hundred. That's how much it costs us. So then I'm going to say, All right, save it and close it, save it and close it. So now we have that one item there of a quantity 1. We could change the quantity if we so choose. If I had two of them. So now we've got 4 thousand here. And that's going to be our basic inventory item that we're selling. Now this is going to be a little bit more complex. If a transaction, what's going to happen in this transaction will have the same starting point. Invoice means accounts receivable is gonna go up. It's gonna go up by the total amount, including the sales tax of the 4,320. The other side is going to go to revenue, the sales line item, but it's only going to go up by the 4 thousand the amount that we actually charged, the difference, the 320. Is not going to go to the income statement because we didn't really charge that. In theory, the government is charging the customer, not us, it's not our sales. We're not going to record a sale and an expense related to it. We're taking it off the income statement entirely, that 320 then increase in the balance sheet account for sales tax payable, a liability accounts, some type of liability taxes payable. And then we also have cost of goods sold that is affected by an amount that's not on the statement because we don't want to show it to the customer, but the system knows about it because we set it up in the inventory item. Just as you would expect if you went to a grocery store and someone or you bring up or someone else ring up their groceries, you only see the sales price, but the system is also recording the cost of goods sold, the expense of the thing that is being sold. That's the same thing is happening here, but you can't see it on the forum. And then the other side is going to be decreasing the inventory. Once again, for the cost of the inventory, not the sales price. So let's, let's record that and just check that out. Let's save it and close out. And so the voice is, if you sell inventory and have sales tax, the invoice is actually somewhat of a complex form. There's a lot of things going on and it's not as transparent to know what they are because some of it is not on the actual invoice. So if we go back to the balance sheet, we can say, okay, well, I know the accounts receivable should be affected. So if I go into the accounts receivable, we see that 4 thousand 320, that's for the full amount including sales tax. If I drill back down on it, I'm going to sit there and there's the 4 thousand 320. That makes sense. The other side should go to sales, to the income statement or profit and loss. I'm going to scroll back up, go back to our report summary, some back to the balance sheet. Then I'm going to go to the income statement on our tap to the right and say, Okay, what happened to the income statement then? I need to refresh it. I think so. I'm going to refresh the income statement. And notice on the balance sheet, if I go back to the balance sheet, notice I had the 11101 now. So before I drill down on the on that number, it probably wasn't 11, 10, 1 because I had refreshed the screen. So now that I've refreshed, it's not that that 11101 profit and loss I had to refresh because this isn't a separate account, another income account, but a separate one, sales of product. If I then go into this, I see that 4 thousand. That's not what we are ultimately charging because we had to include sales tax. So if I go into that, we see the the 4 thousand. Now, if you know debits and credits or if you want to think about debits credits, you don't have to, but if you want to, this would be a credit, the receivable would be a debit. And this only went up for 4000. The other one up for the full amount of the 4000, 320, the difference is 320. Where does that go? That goes on the balance sheet because it's a liability, because it's not ours. We have to have to pay it to the government. They just used in us to collect their money for them and then we have to give it to them. So then we're gonna go back to the first tab and say, okay, that should be a liability, then it should be a liability down here. There should be some kind of taxes payable that we gotta pay to the government. And it looks like it's down here in the Board of Equalization payable. Now I wish they would just call it sales tax payable or something like that, but they actually list who you gotta pay the government agency that you have to pay, which might. You know, be a useful way to do it if you have multiple sales tax items. But it can be a little confusing. But if you go on there, then then you've got the sales tax. There's the 320. So that's what we've gotta pay to the government, right? We're paying that to the government because they made his collected and pay it to them. We didn't want to, but we had to. So then we have the inventory should be decreasing. So if I go back up to the inventory, here's the inventory items. I'm going to select the inventory items here and say, All right, So then we got our inventory. We have that decrease of the 3 thousand of inventory that that 3000, if I click on it, is not on the actual invoice that was used to generate it. How does the invoice know what that 300 thousand is? Because that's what we set up the cost to be for 1.5 of that was one of these items, 1500 for each one of these inventory items. So there is that side, and that's decreasing the inventory. I'm going to scroll back up, go back to our reports. The other side then go into the balance sheet. So I'm going to, I mean, sorry, the income statement, the profit and loss. Profit and loss or income statement in the form of cost of goods sold. There's the 3000 in the income statement, cost of goods sold. Drilling down on that, we get once again back to our source document that being in this case, the invoice. So I'm going to close this back out. Scroll backup. What's the impact on the income statement then? It's going to be the increase of the 4000 minus the cost of goods sold of the 3000. That's the net increase on the income statement. What's the net increase on the balance sheet? It's a little confusing on the balance sheet. You've got the accounts receivable for the full amount, including the sales tax, but then that goes is negated by a liability. That that is the sales tax, which is a liability on the sales tax. And then we decreased the inventory by once again that 4 thousand. Now also note that this invoice will will if we're tracking the inventory, we have another report that would track the inventory so you can go into your inventory reports or think about them. I'm going to go to the tab to the right. And then you can go down to your reports and have supporting reports related to the inventory. So if I scroll down to the to the inventory, it reports. So we have well, let's just type it in here. Inventory reports. We've got the inventory valuation detail, the inventory valuation summary. Now I'm not gonna go into those in detail because we're kind of running a little long here, but those reports then should tie into then the amounts that we're gonna be seeing up top basically in the inventory line item here. That's going to be the invoice. Obviously, the next step that we would have after we enter the invoice is going to be receiving the payment, I'm jumping over to the desktop version. We're going to go to receive payment. So we expect to receive a payment like in the male you can imagine, I think that's the easiest way to imagine. If I go back to the first tab, then I'm going to select this item. If I go to the receive payment line item, then receive payment and then I type in customer customer one. Then you see those two invoices that we just generated here would be in the receive payment. We'll talk more about that receive payment form and the effect on the financial statements balance sheet and income statement of it in future presentation. 19. 1.35 Receive Payment Form: Quickbooks Online 2021, receive payment form. Let's get into it within two. It's QuickBooks Online 2020, one. Here we are in our Google search page. We're going to be searching for QuickBooks Online Test Drive. Then we're going to be selecting QuickBooks Online Test Drive from Intuit. We are not a robot, but we would like to be and we're hoping QuickBooks can help us out with that process. Continuing on, who we are in Craig's Design and landscaping services test file, we're gonna go to our new tab on the left-hand side. Last time we took a look at the form of the invoice. This time we're going to take a look at the receive payment form. These two forms being intimately related, Let's see that intimate relationship. I'm going to click off of it over here by going into the flowchart, which is on the desktop version. You don't need the desktop version to follow along, but we just want to take a look at this flowchart. So in the prior presentation, we talked about entering the invoices. Invoices will be entered if you had to do work and then you're billing for the work for work that had not yet been paid, that then increases the accounts a receivable, the accounts receivable, the other side then go into sales. It may also have an impact on inventory cost of goods sold, sales tax if those things are applicable. But we here focusing in on the increase in the accounts receivable, then we're going to have to receive the payment in some way, shape, or form. We're gonna get paid from the customer. Hopefully, what happens when we get paid, we know that this receive payment form then will be decreasing the accounts receivable. The accounts receivable representing money owed to us once paid, we no longer have the asset of accounts receivable that goes down, but we have a better asset, that being the payment typically some form of cash. Now this is where the confusion often lies here, because the default setting would be to put this then into an account called an deposited funds. The reason that's a little bit confusing is it's kinda like an added step than what many people would learn in like a theory type of class for accounting. Meaning, when you learn accounting theory, you would typically just debit cash and you're not really breaking out between the checking account and other forms of cash. And in this case we have cash in our hands. It's not in the checking account yet. So in this myth, in this middle step, you might ask, well, why don't I just put it in the checking account if I got cash in my hand or if I have a check, it's going to go into the checking account. Why not just put it in the checking account at this point in time? And the reason is that sometimes the grouping of the cash when you actually take it to the bank. And if you imagine taking cash from multiple different sales that possibly you got paid from the invoice or you got paid in also sales in the store that you then walk to the bank and deposit all that cash into the bank. It's going to be grouped on the bank statement that you're going to receive at the end of the month in the format that it was deposited in, not the format that you were paid in. And if those two things do not line up, then it's going to be difficult to do the bank reconciliation at the end of the month, which is a major internal control and something that we for sure want to do. So the objective of the deposited funds is to give us the opportunity to group our money together in such a way that it'll be the same on the bank statement when we make the deposit. Now note that you might not need that and deposited funds. In other words, you might set up the receive payments to go directly into your checking account. In some cases, for example, if you had a check that was an electronic transfer and they go and check by check basically into your checking account in some way, shape, or form. And that's exactly how they're going to appear on the bank statement. Then you don't need the added step which is designed to reorganize your deposits in the same format that there'll be seen in the books and to the bank statement. Or if you get mailed individual checks and you have to check in your hand, it's not in the bank account yet, but you're just going to scan the check basically into the bank account and they're still going to hit the BankAccount one check at a time, then you could in essence still basically just put it right in the bank account, scan it into the bank account, it'll show up on the bank statement in the same way. However, if you have something like credit card payments, then because of the fact that you have that interim party, the credit card company, they may group your deposits in some different fashion. You're gonna have to work with a credit card company and the bank to make that reconciliation PaaS as easy as possible. And you might use on deposited funds to kind of help with that with that process. If also you have something like cash sales and you're grouping the cash together and walk into the bank and then depositing it. Then the bank is going to deposit it in the format of the group deposited cash that you had at the end of the day, which will not be the same as, you know, the individual sales that you made. So that means that you want to use that and deposit funds typically so that you can once again put it in the bank account in the same format as it will be seen on the books, making the reconciliation process as easy as possible. Let's take a look at some examples of this. I'm going to set up an invoice and then we'll, we'll pay the invoice will set up a couple of different examples I'm going to set by new invoice. If you're continuing along with the prior presentation, you already have some of those invoices set up. You could just use those. I'm going to set up a similar invoice here. So I'm going to call it customer one. Customer one again. And we'll set up an invoice. I'm going to say save it just a quick customer one. And we're going to say invoice date there. That looks good. And then I'm just going to set up a service item. So I'm going to call it service item. I'm going to copy that. And I'm just going to set up a service item. It's just going to be a service item here, no inventory in bold. And I'm just gonna go down and say descriptions just going to be service item price. I'll keep it at let's let's say it's going to be the thousand dollars or $1000 again, for these service item, it's not taxable. We're not dealing with sales tax here, saving it and closing it, then what's this gonna do? Invoice, increase accounts receivable, other side, go into sales. Let's save it and close it. Save it and close it. Let's check out our income statement and balance sheet and then we'll we'll receive the payment on it. So I'm going to right-click on this tab up top. I'm going to duplicate that tap so I can have my financial statements in another area. We're going to go on down to our reports down below. We're going to be opening up our favorite report that being the balance sheet report. It's not even a matter of opinion because it's the balance sheets really important. So I got to be one of our favorites and then we're going to be here. And then I'm going to open up the profit and loss to something about right-click on this item up top again, we're going to be opening up the P and L, the profit and loss, the income statement, all different names for the same thing. We're going to go down to the reports down below. We're opening up that Profit and Loss report. Let's go back to the balance sheet. I'm going to close up the hamburger. And then in the accounts receivable here, clicking on the accounts receivable as we saw on the prior presentation, we see that one hundred, ten hundred dollar increasing for customer one. And then I'm gonna go back. I'm going to use this little blue button to do so. Instead of hitting the back arrow up top, use the blue button. And then I'm gonna go to the income statement. We see that 1, 0, 0, 0 on the income statement here as well. So there's the effect on the financial statements. Now let's say we receive the payment. What's going to happen when we receive the payment to the profit and loss. Nothing because we already recorded the income here when we did the invoice on the balance sheet, we're gonna have an increase to some form of cash account, either the checking account or the deposited funds account. And then we're gonna have a decreased to the accounts receivable account, the amount that people owe us. Let's check it out. Let's go back to the first tab and say we're going to go the receive payment. Now there's a couple of ways you can get to this form. I'm going to use this method first and we'll take a look at another method. After this. We'll go to the new drop-down. I'm going to go to the receive payment we're imagining now we're getting a payment. Let's imagine we're getting a payment in the mail. It's imagined it's a check. Gotta check in the mail from customer one. Customer one paid us. It's on the same day. That's not likely, but we'll keep it on the same day here. And then the payment, we're going to say this is going to be a check. Payment methods are going to include, you know, cashed credit card check. So we're going to say it was a check. And then we could reference the check number. This would not be our check numbers. This would be the check number on the check that we received if we wanted to reference that default setting, typically putting it into the and deposited funds. Now this time, I'm going to assume that we're going to get that check scan the check. It's going to go directly in our checking account, check by check. And that's how it's going to show on the bank statement. And therefore, that's how it's going to be on our books. I don't need them. This added step of an deposited funds, I'm going to put it directly into my checking account. So we're going to do that and then I'm going to look at the invoice down below. If I check this off, It's going to pick up that dollar amount. It's going to link to that invoice. If I click on that invoice, it'll show us the invoice that we have just created. Now if we're going to get some amount that is that is less than than the amount of the invoice. I could I could make this say we got 400 here. It changes it to 400. And so then we would still have part of the invoice outstanding for now. I'm going to keep it back at 1000 here, and I want to make sure it's at 1000 down below there as well, so we're back to the full payment. So remember that when, whenever you see the receive payment, you know one thing for sure, accounts receivable is going to be going down. The other side is gonna go to some kind of checking, some kind of cash account. Maybe the checking account or maybe on deposited funds. Those are the two main accounts that would be impacted. So let's check this out. This one's going to be increasing the checking account decrease in accounts receivable. Let's save it and close it, and then check it out. So save it, close it. Let's go to our balance sheet tab up top. We're going to rerun the balance sheet tab run the report. Here we are on the accounts receivable. Going into the accounts receivable. We see it then going up and then go and down, invoice and then payment. Those are the only two forms that really affect the accounts receivable goes up with an invoice, it goes down with a payment. And then if I go back up top, go back to our balance sheet with the blue button. Let's take a look at the income statement. What happens to it when we receive the payment? Nothing. Nothing because we already recorded that 10000 when we recorded the the invoice. Now the balance sheet should be supported. This accounts receivable needs to be supported by who owes us money. And we can't get that from just clicking on this with a transaction detail report by date, but rather we need another report. So let's look at our other report. I'm going to go to the second tab, right-click on it, duplicate that tap. So we're just going to open a bunch of tabs up top. So if we haven't confused you at this point, then we'll just open more tabs. So it'll be great. We'll have tabs every where. We're gonna go to the reports on the left-hand side. And I'm going to scroll down to who owes you money. And we want to go to the customer balanced detail, customer balanced detailed report. I'm going to close the hamburger up top hold down control zoom in just a little bit. So I'm not one to five up top. And then I'm going to customize it because this is only showing the items that are outstanding at this point. So I'm going to I'm going to customize the report when it customize it. And I want to go to the filters down below. And you'll see here where it says Accounts Receivable paid. It's only showing the unpaid ones. I want to show all transactions, so I'm going to say all and then run the report. I'm going to I'm going to scroll down now. So now we've got all the transactions that would be here. And if we go down to customer one, There's our invoice and there's our payment for that particular customer. So that's not it. Here's customer on one. Here's the invoice and here's the payment, bringing the balance back down to 0. If we go down to the bottom of this report, then of course we got that 528152, which ties out to the to the amount here. If I go back to the balance sheet, that ties out to the five to eight 152 here. Okay, so let's do it again this time. Let's go through and deposited funds. So I'm gonna do it again. I'm going to hold down Control, scroll back down to 100%, which is where you really want to be when you do data input to the forums. And this time, let's add another invoice or two invoices. This time I'm going to add a couple invoices. Let's say we have one for customer one again. So I'm gonna say customer 1 and we'll have a service item down here. I'm just going to keep them all at the same date, which is a little confusing, but I'm going to say service item. And this time let's just make this one for like $350.350. And then I'm going to say Save and new this time, Save and New. And we're going to sit, make another one. This meant Let's make this one for customer to, so I'm gonna say customer to this time. And we had a service item for customer to which I'm gonna I'm gonna set up customer to a lot of secant. Let me do that. Customer to I got to set it up and I'm going to save it. And then I'm going to say that we have service item again. And let's say this one was for just like 100. And then let's make another service item that we're going to say was was 75. So now I'm going to save that one. These two things, invoices, increase in accounts receivable, other side then go into sales. Let's say we're going to save it and close it now, save it and close it. And now let's say we're going to receive the payment for those items, both of them this time receiving cash. And then we're going to deposit it into the bank account, those two items at one time. So if I go then to the drop-down, I could go to receive payments. Or you might sort this a different way. People might be going down to the sales item. And you might say, Okay, I'm going to tie out that payment to the invoice that is open so you could find it in all sales. You probably are going to go to the invoices tab if people like to search in this format, and I want to find the open invoices. So I'll hit the drop-down in the status and I'm either go into the unpaid overdue or not do in our case, we have an invoice that's not due yet. I'm going to go to this item here. And we got these two invoices down below that we wanted to take a look at. So we've got the 350 for customer one and then customer to that 175 in on the right side it says receive payment. So we can connect this to the received payment just right here. So if I just go receive payment, it's going to open up the received payment form already populate the customer. This would be the same place we would be at if we first opened up the received payment and then added the customer. And that of course, the LinkedIn voices down below. So we're linking this out. So we're gonna say this is going to be a payment. We're going to, we're going to say this is cached this time. Let's say that we got cash payment method cash. And so I'm not going to put a reference number and this time because I'm going to group it all with the other cash payments. I don't want to put it directly into the checking account. I want to group all my cash chemist together, walk to the bank, deposited there and put the deposit in the bank in the same format as it will be at the end of the day, because we were like a wheeler dealer. We're going to have a whole bunch of cash payments that we're going to collect and then we're gonna go to the bank and deposit them all at the same time. At the end of day, if we had if we had a cash all of our cash payments during the, we spend all our time going to the bank. So we're going to say that this is going to be going to an deposited funds then on deposited funds for the 300. Now let's say we only got a partial payment for this. Let's say we got like $100. So they still owe us than the rest of it. So we got the 100 that we're going to be receiving here. And so I'm going to say save it and close it. Save it and close it. So now that's going to be if I go to my balance sheet, then what's that gonna do? If I refresh this report, run it again. We're going to say it didn't increase. The checking account is increased and deposited funds, so on deposited funds got increased by that $100. And the other side, if I go back, then decrease the accounts, the accounts receivable, by the $100. There's the 100 effect on the income statement or profit and loss. None, because we already recorded that when we made the invoice. And then I'm gonna go back to the first tab. The other way you might receive a payment is instead of going to the invoices, you might go to the customer. You can say, well, I know who paid me. I'm going to go to the customer and let's say customer to then came in and paid me money. So I'm going to say all right, I'll find customer to here and I can go to receive payment here. I might go into the customer to detail to see the activity. And there's the invoice that customer two is paying us, so we're going to say, all right, let's go to receive payment right from there. We'll connect it out right there. And there's the customer two up top. Same point we would be at if we just added a received payment form, then typed in the customer, we got the invoice, then ticked off down below. And this will once again decrease the accounts receivable. Other side go into deposited funds on deposited funds. So now I'm going to save it and close it, save it and close it. And once again, if we go to the balance sheet, again, same kind of things happen in didn't go into the checking account this time it went into the UN deposited funds down here, went into and deposited funds for the 175 customer two. And the other side then decreasing the accounts receivable, decreasing the accounts receivable here. So there we have that. And then if I go back up at top, that confusing thing is then this an deposited funds. This on deposited funds means that you should have checks or something, you know, credit card payments that haven't gone into your checking account from your credit card company. If they're sorting payments in some way, shape, or form, you'd have to work with them or cash that you're holding onto that you expect at some point to hit the bank account that you're going to put into the bank account. And you really want it to go through the bank account so that you can have an audit trail. If you just go spend the cash, you can't do that. But it, it, it's not really great for accounting and you'd like it to go through the bank account so that we have the audit trail. So so typically that's what we're going to want it to do. We want to deposit that we're expecting. We have cash on hand that we're gonna be putting into the checking account at some point in time. So so that's what we're gonna do next. Well, that's what we'll do next time. But just to get an idea of that, then if we go to our first tab, I say that I want to hit the New button. And then I'm gonna go to that. We're going to make a deposit. When I open that make deposit form, it will link to those items. And these two items, I can then check these two off as being the items that we've received, that 100 and a 175 gain access to the 275. This then will increase because I haven't pointed to the checking account, the actual checking account, cash account, the other side then decreasing the deposited funds which should be cleared down to 0, it being a clearing account, a temporary account. After we enter that transaction, although these two are still in there as well. So that's what we're gonna do, but we're gonna do that in a following presentation. So stay tuned for that. It's going to be great. 20. 1.38 Deposit Form: Quickbooks Online 2020, one deposit to form. Let's get into it with Intuit QuickBooks Online 2021. And we are on our Google search page, we're searching for QuickBooks Online Test Drive. Then we're going to be selecting QuickBooks on line test drive from Intuit. We are then asked whether or not we are a robot. And according to my internal data processors, the answer to that query has been calculated with the help of fuzzy logic to be within a 90 percent range of accuracy? No. So we're going to check that off and continue. Here we are in our Craig's Design and landscaping services practice file. We're going to hit the new tab over here. We'd been working on the forums in the customer section, including the invoice, the receive payment. Now we're going to be taking a look at a deposit. Now note that deposit is over here in the other section because there could be deposits that are not from customers. We ourselves might put money into the company or we might take a loan or something like that. However, the deposit, hopefully mostly coming from clients. Let's take a look at the flowchart of this first. And for that we're going to go to the desktop version. You don't need the desktop version, but we're just taking a look at the flowchart within it so we can visualize the flowcharts we entered in a prior presentation of the accounts receivable or the invoice increasing the accounts receivable and sales than we thought about the concept of receiving a payment. When we receive the payment, then we're going to decrease the accounts receivable and put the money into either the checking account or an deposited funds. If we put the money into the deposited funds, then we're going to use the deposit form in order to deposit those funds. That deposit form will also be used to group the deposits, the payments that we have received from various formats into a way that will be in the same format with the same grouping as will be shown on the books and the bank statement for easy reconciliation processes. Now we're gonna go over in a future presentation that create sales receipt. But in essence, this is the form that would happen if you receive both the payment and you do the work at the same time. And this one, again is a situation where you're probably likely to be receiving cash. And therefore, if you have multiple sales that you're receiving cash for, you're probably going to put them into an deposited funds and then need to use the deposits screen to group those deposited funds together in the same format in our bookkeeping system as they will be grouped on the bank statement when they actually go into the bank account. So that's going to be the primary purpose of this flow of the use of deposit form. However, note we could make deposits for other types of things as well. We might make deposits for us putting money into the, into the business. Or we might make deposits on like a loan or something like that would take out a loan and increase the amount of money in the checking account. In those cases, we may use just the check register just to record the deposit. We can go right to the check register and record the deposit. We may not need the form directly itself here. This button or this use of the deposit form is most useful when we're going to be trying to group deposits together. Deposits that are, are grouping. Multiple sales items, either invoices that have been received and grouped together and had been received a group together along with or also having groupings of the sales receipts that have been made that are going to be grouped together in a certain way so that we can use this form for the grouping. Also note that if you are in a system where you're getting the deposits directly from say like gig work or something like that. You're getting it from online apps, or you're getting it from Amazon or audio books or something like that. Then right when you get that deposit, you might be getting those electronic deposits. And then again, you can basically feed those in with big feeds or inter that directly into the check register, which might be an easier way to go because you're not having to regroup your deposits in such a way that they will line up with what will be on the bank statement and what will be on the books, as you would have to do if you make deposits from, say, sales receipts, sales that were happening during the date in like a store. Or if you're making deposits from invoices that are grouped together and batched, possibly going through the credit card company or you're getting cash receipts, payments and something like that, that you have to group together. So let's see this over and work a couple of these items. So let's make an invoice and then I've received payment and then a deposit just so we can see the full process. So I'm going to make an invoice if you're still working on the same problem, same system, the QuickBooks company file that we had last time, you will already have some invoices and receive payments. You could use those if you'd like. Instead of making new ones here, I'm going to make some new ones because I've logged out and I'm going back in. So I'm going to make another one here. I'm going to say this is going to be customer one. Customer one. I'm going to tab through this. I'm going to set up customer 1, not going to set up an e-mail or anything like that. I'm just going to set up an item down below as we've seen in prior presentation. So I'm just going to call it item. So I called IT service item here. So we call it service item. I'm going to set it up as a non inventory, just a service item here. I'm going to copy the service item name, put it down in the description. The revenue account is going to be the services revenue. I'm not going to be dealing with any sales tax, so I'm going to remove the sales tax is going to be non-taxable item. And then I'm going to go ahead and save it and close it. And let's make this just a ten hundred, ten hundred dollar amount. What's this going to do? Well, it's an invoice, it's going to increase the accounts receivable. The other side then go into the sales. Let's go ahead and save and close that. So I'm going to save it and close it. And then we would have the receive payments, right, that's the next step. So if I go to the new and I go to the receive payment, now we're imagining we're getting the payment in the mail. We're going to get a payment on on that invoice that we just made. I'm going to make this from customer one again, customer one. There's our invoice, I'm going to say yep, we're going to receive that $1000 right there. I'm just going to keep the date as of today's date and I'm going to put it into an deposited funds. Now note that if I put it into the checking account, I'm basically making a deposit without a deposit form, right. I'm using the receive payment to make the transaction to go directly into the checking account rather than using the deposit form. That deposit form typically being the form that will be almost always used to increase the checking account. At that point, but I'm not gonna do that. I'm going to put it into an deposited funds. And you might do that if you have like, cash sales are often types of things that we have to regroup together and then deposit at one time. So I'm going to say it's a cash sale here. If the checks, for some reason are grouped in some different fashion, you'd have to use the UN deposited funds. And once again, if you're working with a credit card company to help process your sales, then you might have to work with the credit card company it to line up how those how those amounts are going to be showing in your bookkeeping system to what they're going to be shown as on the big statement so that you can reconcile. So I'm gonna go ahead and record this, but when I do what's going to happen? It's going to be a received payment. That means the accounts payable is gonna go down. Then instead of a checking account going up, even though we got cash because it's not in the checking account yet, we have it in our hand. It's going to be increasing and deposited funds, a temporary account, a clearing account, one that we'll then close out into the checking account once we have the proper grouping of deposits to do so, so that the amount in the checking account will then match what we have on the bank statement. So let's go ahead and save and close that. And then I'm going to make a sales receipt. Now the sales receipt just looking at the flow chart is the one up top. But I just want to show you how we might be getting money from say we got cash from an invoice, we might get money from register sales during the day. Whatever cash we get, whatever money we get, we're going to take to the bank and deposit it altogether, basically nightly. Preferably we'd like to do it every night because we don't like to hold on to the cash. You know, it's dangerous to have much cash will not do so we're going to say then we've got the New and we're going to say that we're going to go into then go to a sales receipt now. So the sales receipt form, we'll talk more about in a future presentation. But it's basically the form that you can think of like you would print out at a cash register when you get sales and you get paid at the same point in time. So this one, I'm going to say this is going to be, let's say customer to customer two. And I'm going to save that. And then we're gonna go down here and I'm going to say once again, it's a cash payment, we got cash. And therefore it's going to go into an deposited funds because we're going to group all of our cash that we got and go to the bank with it at the end of the day and we're gonna have to deposit it at one lump sum. We're not gonna go to the bank. And like say we're gonna make a 100 different deposits for all the different sales we made during the day so that it lines up to the way we deposited it in the books in our system. No, we're going to make one cash deposit and make sure we use our system with the help of an deposited funds to record it in the same grouping. And so this is going to be the service item one again. And let's say this one was for 500. And so we'll have that. What's this going to do? The sales receipt means it's not going to go into accounts receivable, but rather on deposited funds other side then go into the the, the revenue at that point in time. We'll talk more about this form later, but I just want to show how you can group both those together. Let's save it and close it. So now we're going to save it and close it. Now let's check out our financial statements before we do the actual deposit. So I'm going to right-click on this tab up top and we're going to open our two financials by going to the duplicate screen. And we'll open up the two favorite reports. Our favorite reports are the financial statement reports. So we're gonna go and that's going to be the balance sheet and the income statement. Those have to be your favorite reports. It's not a matter of opinion. You know, if something's wrong, if your favorite reports aren't the balance sheet and the income statement. And then I'm going to right-click on it again. And we're going to duplicate it again. I'm going to add another one. This is going to be the income statement, which of course, QuickBooks calls the profit and loss. And you can abbreviate it as the P and L. I think that's the only reason QuickBooks calls it the profit law. I'm going to go to the reports just so they can call it P and L. It's such a nice nickname, the P and L. The income statement doesn't have that. That IS as Doesn't sound right, P and L. So there we have those two. And then if we go to the balance sheet, I'm going to close out the hamburger up top and we'll see that in this and deposited funds. Now, we've got these items that went into the deposited funds for customer one, customer two, there's the 1, 0, 0, 0, and the 500. Now we're going to make the deposit, taken it out of and deposited funds, put it into the checking account, putting it into the checking account. So that's going to go up top, this is gonna go down, that's going to go up one account and also just realized this and deposited funds, you might think, hey, it's a cash account, I'm holding on to cash. Why isn't it up here in the Cache kind of accounts? And that's because these cash accounts are basically the checking account institution accounts. They come with like a check register and they're also accounts that you will typically use to connect to banks if using bank feeds. And so therefore, although this is basically cash and it should be up in the cache section, it doesn't act like a cash account for QuickBooks, so they had to put it into other other assets. Which looks kind of funny because it really should be kind of above accounts receivable. But that's because the functionality of it acts more like an other asset account, even though it really is a cash account and you're holding on their money, it should be up here in terms of financial reporting. Just a funny little thing there. But any case, if we go then to the to the first page and now we're going to make a deposit. So I'm going to go to the new and we're gonna, we're gonna make a deposit where walk into the bank now with our cash that we have that we've been collecting all day, those two will go into the bank. And we're going to say this is going to go to the checking account. So the bank deposit will typically increase. Of course, the checking account I'm going to deposit on 5121. I'm keeping all the same dates. I probably shouldn't, but that's what I'll do. And this is the main reason that you would want to use the deposit for because these items here are being populated automatically from the payments that you that you have made and the sales receipts that have been made. And now I'm going to select these two that I made. These two were outstanding before. I'll keep them outstanding now. And then if I deposit these two, these two, we're going to add up to that one hundred and five hundred. So you can also use the deposit form if you were to deposit for some other reason, say we the owner, we're putting money into the deposit. Then we can we can record the deposit amount and then and then record it just simply to an account, which in this case, in that case, if we the owner put money and it would be some type of equity account or if we got a loan, then I could just put the other side here. I can put the amount to the loan account directly to an account. But the reason we really want this form is because this form helps us link. The UN deposited funds in it does so by linking the forms that were generated, the invoice linked to the receive payment, linked to the deposits or the sales receipt, like the form you would have at the cash register linked to the deposit. So you can see here we have two different kind of, those two are main two types of forms that would link over here. And now we're gonna go ahead and record this. What's going to happen when we do so, we're going to increase the bank account by that one hundred five hundred. This grouping of 1500 is how we expect to see that deposits on the bank statement from the bank that will receive at the end of the month. That's important because when we do the bank reconciliation, it'll be really easy for me to reconcile this to the bank reconciliation or if we use bake feeds, the bank feeds will come in. We have already recorded that deposit, but the bank feeds will be able to pick up that deposit and match it out, basically helping us to reconcile as we go because it'll recognize the dollar amount in at least the approximate date to do so, which is basically all it has to go on to try to match out the deposits. So that's going to be important. So let's go ahead and save it and close it, save it, close it. So we're going to save it and close it. And then if I go to the balance sheet up top and I'm going to refresh it by hitting the run that report again, it's now fresh. I only work with fresh reports. If it's not fresh, I'm not going to use it. So we're going to be up top or in the checking account, There's our deposit, there's the one hundred, five hundred. If I click on it, then of course that goes back to our deposit form here. Looks good. Other side is going to go to the UN deposited funds. I'm gonna go back up top. Then we're gonna go to the deposited funds. There's the end deposited funds which should now be decreasing by that amount. Notice what happened here is that it decreased it in two separate transactions on the deposited funds that helps us to tie out to what happened, right. I have two different things that happened, a payment form and a sales receipt form. And then although I deposited it at the same time, the same deposit form because there were two different line items. It records it as two different line items here. That's to help us, that helps us see it go in and out over here just in terms of the numbers. If I select one of those deposit items, then we can see of course, that they were deposited at the same time. And it will be shown on the bank statement as that one hundred five hundred one lump-sum deposit on the banking side of things. So let's close that back out. I'm going to go back to our summary. So that's why I would use the deposit form mainly. Now, if you're in a situation where you just don't need to do this. Meaning if I, if I go over here and let's say I'm mean gig work or something, and I don't need to go to an invoice. I don't need to create sales receipts during the day. I'm just having these companies are just automatically depositing money into my account. I'm just seeing when it happens. I'm just going into my, you know, my bank account and say there's a deposit from YouTube, whatever, Amazon or something. I just need to record it as income that I may not need to record that create sales receipt. I'm just gonna go right to the deposit form and record it there. Or I might just wait for the bank feeds. I might depend on the bank, depending on the bank in that case, might be appropriate, even though depending on the bank is kinda, kinda shortcut it a little bit because, because it's not really a cash-basis, you're kind of dependent on the bank what you really should do for a full service bookkeeping system in that case, would be to record that the deposit when like like YouTube or whatever says they're going to issue you a payment and then double-check that it has cleared from the bank, using the bank as a double-check. But You know, a lot of people will basically just depend on the bank in that situation. Wait till it hits the bank and then you can use bank feeds to record that. Or if you get a deposit for some other reason, let's say got it, You're depositing because you put money into the company. You may not need to use the deposit form. You could, but it's probably easier to do that with the check register going right to the check register. So let's take a look at that. Let's go back on over and say, Well, I just I don't need to do that process. I'm just gonna go right to the register, write to the register. So I'm gonna go to the accounting. I'm going I want to see my Chart of Accounts. And then I'm gonna go to my bank account and it says register right here. Go and write to the register. And then, and then I'm gonna go to the dropdown that says add a check and it's going to be a deposit. So it's still kind of a deposit form here, but I'm just internet. A lot more streamlined. It's not smaller form here. And I'm just gonna say this is coming from owner. And I'll just save that as we got customer, employer will save it as a customer. And then we're going to say memo, this is me deposit owner, the posit. And then we're putting money into the business of 2000. And then it's gonna go to some kind of equity account. So this is us putting money in. So it's not going to be an expanse, it's going to be some kind of equity type of accounts. Let's go on down to the equity. So we've got opening balance, we've got retained earnings. Those aren't very good. Two choices, Let's put deposit, just put owner, owner, investment. And then I'm going to set that up. I'm going to set it up as a an equity account. And I'll just call it that and I'll say save it and close it. And then I'll, I'll save that. Or we might have a loan, right? We might have a loan. So the loan, it might come from the bank. So I might say we got a loan from the bank, set them up. It's going to be deposit. And let's say this was 5000 from the bank. And then I'm going to call this loan, we'll call it loan payable. So we'll increase the loan payable. So we might have something like that. I'm just I'm not I can enter it right into into here. Or I might have a situation where I do sell to customers, but I rely on on an electronic transfer until it clears the bank. So maybe I got this from YouTube. So I got it from YouTube. I'm going to save that. And YouTube pays me. We're going to say three thousand, three thousand from YouTube. And then I'm going to hit the income account. I'll just go directly to the income account here. And I'll call it we'll just call it income. We're gonna make up another account called income. And it's going to be an income account called income. Save it and close it, save it and close it. So if we're in a situation where we're that's the situation. I don't need to make a sales receipt. I'm just wait to I'm just going to record it right into the write, into the register or depend on bank feeds. Then if you go to our reports up top, if I go to my reports and say All right, let's refresh this. This doesn't look fresh. And then we're in the checking account. So then if I go into the checking account, we're going to see those items right into the checking account here. So the loan, the income, the investment from the owner, and if I select on any of them, it'll take us to an actual full bank deposit form here, right? It didn't take it didn't take me back to it didn't take me back to the register. It took me to the bank deposit form up top, we have those items that are that are going through the sales receipt or the received payment. And down below, that's where we enter directly into another account. So the fact that it's a deposit form means it's going to increase the checking account. If we're connecting to a sales receipt or something like that, it goes up top. A sales receipt or payment item up top, those are up top. Those will be then the other side will be an deposited funds or we select some other account which will be assigned down below, in this case, the loan payable. So I'm gonna go back up, I'm going to close this back out. And then I'll go on go on up top. And that's also the same with bank fees. Just realized that when you have deposits from bank feeds, you'll see another kinda like a register shorten screen for the data input. But then when you open it, when you drill back down on it, when you audit it in essence, from the reports back on down to the source document, you're not going to get to the the register or the bank feeds deposit, but typically to an actual deposit form. So if I go back then up to the big reports, then the other side of that, I've put into a loan payable. So it went into this loan payable here. So if I select the loan payable, I should see it because that's where it went. There's the 5000 there. And so if I go back up top and then if I go to what was the other one I did equity. So if we put money in and then I put it into the owner investment, there's the 2000 there. And the other side I put to the income statement as if we're just we're just recording income and we're not using the forums, we're just putting it right in the register, go right to the register. So I'm going to run this report because it doesn't look fresh. And there it is. So there's that income account bear. And so it's coming from YouTube. And so if this is your system, then again, you might use bank feeds might be a good way to go if you don't need to use the sales receipt form or the accounts receivable. And we will talk about bank feeds basically after the full process. But just, just realized that these forms are still important because you still see that it's going to be at bank deposit forms. It's going to be the form that's going to be driving the transaction, even though your Internet in to a bank feed or directly into the register. 21. 1.40 Sales Receipts Form: Quickbooks Online 2021 net sales receipt form. Let's get into it with Intuit QuickBooks Online 2020 one. Here we are on the Google search page. We're going to be searching for the QuickBooks Online Test Drive. Then we're going to be selecting QuickBooks Online at chest drive from Intuit. We are then asked if we are a robot answer. Yes, but I'm an old out-of-date Commodore 64, so you don't need to worry about me cause any problems. So I'm gonna go ahead and check that off anyways and say Continue, here we are in our Craig's Design and landscaping services practice file. We have our new button. Let's select that new button. Over here we're looking at the forums in the customer section, in the customer cycle. Let's look at them in more detail by going over to our flowchart into QuickBooks Desktop version. Yeah, don't need the QuickBooks Desktop version. I'm just looking at the flow chart here so that we can see this visual flowchart in prior presentations. We went through this process where we had an invoice, then we receive payments, then we make the deposit. Now we're looking at a situation where we're gonna get paid at the same point that we do the work. We're gonna get paid at the same point that we do the work. And that might be something like a restaurant. We're basically collecting. You can imagine any business where you can imagine like a cash register type of situation where people are coming in, you're making sales, you're receiving payment, possibly cash and in other formats at that point in time. And then you're going to be collecting those receipts. And if some of those beam cash, then taking those receipts at the end of the day from our store, from our restaurant to the bank and making the deposit to the bank. So in that situation, the create sales receipt would work well, you can memorize that as the sales receipt form by basically saying this is like a sales receipt. It's a receipt that you would be providing someone in something like a register type of situation where you have a cash register charging someone providing them a receipt. It's going to be a very similar form to the invoice in the way it's going to be lined up and the use of items, service items in inventory items within it. However, instead of increase in the accounts receivable, we're going to go directly to be receiving payment. That payment then could be increasing, say they checking account or it might be going into that an deposited funds type of category, or it may be some kind of electronic payment where we got the intermediary for say, like a credit card company, we want to distinguish a situation where you're going to be using a create sales receipt, which you can think of as more of a cash-basis type of system because in that case you're gonna get paid at the same point the work is done. So you can think of it as a cache type system. But it's different than a system where you're basically waiting until something clears the bank. So if you have something like gig work, if you're working, so you're getting paid from like YouTube, are you getting paid from Amazon? Or you have audio books or something like that, podcasts that are paying you that revenue than you're probably wait until it clears the bank. You just get the electronic transfer and you're going to record it right as a deposit and just record the income when you deposit it. Meaning you might just put it right in the check register or you might use the bank feeds to record that. That's going to be a little bit different than what a business would typically need to do if they have a situation like a restaurant or something or any store where you can imagine a cash register type of situation where you're going to be receiving cash and possibly other forms of payment at that point in time. Because then you want to record the sales as they happen with the cash register or whatever you're using with the QuickBooks at the point in time that you're receiving the sales and then you're going to have to use that. And deposit funds, most likely to group those deposits in the same format as you deposit them into the bank, As they will be seen on the big statement so that you can reconcile those two those two items out. So you can see that difference in the two types of businesses where you'll have those two types of different scenarios, even though both are kind of like a cash-basis system. But if you're relying on the bank in something like gig work, then it's a step further and simplification then a cash-basis system because not only because then you're not using the bank as a verification of the deposits you are making, but rather you are dependent on the bank to know whether or not you have the deposit at all. It's not a double-check. It's going to come right from the bank. Okay. So let's go on over here and see what that would look like in QuickBooks, I'm going to say, all right, let's imagine we're making sales. You're imagining a situation where we have like a register in front of us or situation we're where we are getting paid at the same point in time, we do the work and then we'll go down to the sales receipt. So it's a receipt payments. You can imagine the receipt being something that you provide, say to the customer. And then we're going to say same kind of process. I'm gonna say customer one. So customer one. And we could add the e-mail address and so on and so forth here as well, similar to an invoice. I'm just going to keep it as is gonna go down to the payment method we might be receiving. Again, we've got the credit card options, check options, cash opsins. It's more likely that we might be receiving some cash options here. I'm going to say cash option. And remember that if you do have the credit card option, then you're going to have to be the credit card company is going to help to facilitate and process the payments that are going to go through. And then eventually after some fee that they take, going to have the deposits go into your checking account. And once again, you'll have that same kind of situation that you're going to want to group your sales together as they go as do you then link them to the checking account in the same fashion as the credit card company will be grouping those items as they go to the checking account. And to do that, you've got to work with the credit card companies and with the bank to line those things up. But you can see a similar process. So we're going to put them into and deposited funds. I'm just going to create the same kind of service item again, service, service item as the thing that we're selling, generic thing that's being sold here. We're selling the service item thing. And I'm going to set it up as a service item. And I'm going to say it's service item and I'm going to keep the price blank. It's gonna go to income, it's going to be non-taxable, non-taxable. And we're gonna save that. And let's start off with our trusty 10000 again. So we're going to say the 1 thousand service item. What's this going to do when we record it? It's going to be increasing. It's a sales receipt. Therefore, it's going to be increasing some type of cash account. The default will be going to an deposited funds. Now, like with the invoice, we could change this to go directly into the checking account. But with the sales receipt, it's less likely that we're going to do that because it's more likely that we're going to get payments of things like cash here at this point. So we're probably good. If we're getting cash, we probably want to put it into an deposited funds because we're probably going to have multiple sales receipts that we're then going to have to go to the bank with and put them in the bank at one lump sum. In other words, we're not going to go to the bank and make separate deposit of the cash receipts that we got, especially if we make sales of a bunch of smaller line-item things. So $1000, a pretty significant amount here. But if we make a lot of sales with smaller things, then we're gonna, we're gonna go to the bank and deposit it at 1. So I'm gonna say, and deposited funds. Let's, let's make another one here. Let's group another one in there. I'm going to say let's make another like save it and knew it instead of close, Save and New. And let's do customer to this time. So customer to customer two, quite creative with the names customer two. And then we're going to say Save. And then this one, I'm going to say we also got a cash sale. And this is going to be service item. And I'm going to say this is for let's say one hundred and sixty one hundred and sixty service item. And let's add another line. Notice, of course, you could add multiple lines if you sell multiple things just like you can imagine. You know, if you go to the grocery store and you start checking out a bunch of stuff, and then we're checking out multiple things that could be on the line item. So we could have then another service item we're going to be setting up. Let's make this forward 200. And so now we have the total of the 360 that's being constructed from those two line items. Let's make one more. Let's make one more here I'm gonna say Save it and knew it, save it. And Save and New again. And then this one, I'm going to sell an inventory item. So same kind of complication we had with the inventory item on the on the invoice. Let's check that out. So I'm going to say this is for customer three. And I'm going to save that and scroll on down. And I'm going to say this as a cache again on deposited funds. And then now I'm going to make an inventory item. Inventory item. So this is where we have a little bit more complexity because we are now going to have to add tracking inventory for use in a perpetual inventory system. Record cost of goods sold related to it and possibly have to be dealing with sales tax. In the US, inventory being more likely than serve as items to be needing to deal with sales tax. Sales tax being something that will be done on a state and local level. So I'm going to say inventory. It's an inventory item this time and description inventory item, it's going to be inventory asset account price. Let's go ahead and say the price is $50 price, it's going to be taxable at the standard rate. That means we're going to have to apply sales tax to it. We're going to keep that there's going to be inventory item on the description cost of goods sold is the default there. That looks good. I'm going to save it and close it. So now we have our inventory item. I have to add some inventory on hand. In order to do this to the perpetual inventory system. We don't have any inventory yet in practice, we would purchase inventory and then sell it. But we're just going to practice this form with the practice problem. We'll deal with that in a future problem. So let's just say we got a 100 of these as of the date on January of 2021. And I think that should be enough to practice this form. And so there we have it. So now, what's this going to do? This is a sales receipt once again, so we're going to get some kind of payment. In this case, we're going to an deposited funds. Deposited funds increasing seen by the full amount plus the sales tax, that's going to be the $54. Then the sales is going to increase on the income statement. But it's only for the amount that we charge, the $50, The difference being the sales tax. That's what the government is charging. And they're just using US. They're forcing us to basically be their tax collector. So that's why it doesn't get recorded on our income statement because it's not our income. We're just we're just the middleman where the person that's forced to do the tax collecting, it's really a tax on the customer being imposed by the government. And so that's going to be the $4 that's going to increase a liability account, which is going to be the sales tax liability. Then we are also going to have the cost of goods sold that is going to be recorded in this as well. That's going to be something that's not on this form because it's going to be driven by the item that we set up. And now that I think about it, I think I might have left the cost at 0. So let me, let me adjust this. Let's make another inventory item just to do this again. So I'm gonna say it, Let's make this inventory item number 2, inventory item number two. And let's add this one inventory item. Do a similar process. And I'm going to go down and say that's an asset inventory item number 2, taxable, and then this cost line, I don't think I put anything there last time. So let's make the sales price a little bit more significant. And let us make the sales price 500 for this one, and let's make the cost 100. So we bought them for 100, were selling them for 500. Then the amount on hand is 100. And we're going to say the date then is going to be January 1st. Okay. So inventory item to 100 on hand as of January 1st, 2020, and they were going to sell it for $500. They cost us $100. Okay, let's try that, save it and close it. All right, so now we have that updated now for inventory item 2, What's this going to do? It's going to be increasing the UN deposited funds by now. The 540 other side go into sales for the 500 Difference, go into sales tax now of the calculation of 40, then we're going to have the inventory go down by that 100, which isn't on this form, but it's driven by the, by the item we set up and cost of goods sold is going to be 100. So you can see this is kind of similar to someone checking out something at the grocery store. You could do it yourself if you've got the manual checkouts now that do your self checkout. But notice there's a lot more going on by checking out from the computer side of things than just a sales price that's being calculated. The inventory and cost of goods sold can be confusing, is basically automated. So then we're going to say save it and close it. Let's save it and close it. And then we're going to check this out. So I'm going to open up our reports, right-click and duplicate the tab. Open up our favorite two reports, that of course being the balance sheet and the income statement, because those are the financial reports. The financial reports balance sheet income statement, otherwise known as the P and L, the profit and loss. So there's our balance sheet. I'm opening it up as it's thinking, I'm just going to open the other one up, right-clicking and duplicate. And then it did that really quick. It did that fast now. So we'll open up the next one down to the reports. We want the P and L, the profit and loss, otherwise known as the income statement. And then I'm going to go back to the balance sheet over here. And then now we have the and deposited funds is increasing by those items. So if I select the end deposited funds, we see it increased by the customer 1, 2, and 3. The three sales receipts that have been increased, the 360, the 100, and the four, the 540, 540 being the one that's the most interesting because we sold inventory items there. So if I select that one, then we're gonna go to the invoice. There's the invoice we see the 540 is including the sales tax on that one. So I'm going to close this back out and I'm going to scroll back up topical back to our balance sheet. The other side of those atoms are going to be on the income statement on this tab, the other tab we made over here. And so we then have the service items down below and the inventory. So the service items, if I go into this income line item, we see the I think it was the one that we set up for customer 12 here. So if I if I look at two we have two line items, but it's the same. Invoice. Invoice, ten, not invoice, sales receipt, 10, 39. So if I select that item, then we're gonna go to that sales receipts similar function as we saw on the invoice. There's the two line items. There's the 200 and 160 to add up to that 360. And those are showing up as those two separate items on the invoice. And then if I go back up and go back to the income statement and look at the sale of the product item of the 500 notice that's on the books at 500. Now, if I go back into that invoice, we actually sold it, plus the sales tax for 540. We sold it for 50, 40, government made its charge and other 40. So the difference is going to be that $40. Where does that go? Balance sheet, just like on the invoice. So now I gotta go back to the balance sheet. It's a liability because we don't get to keep it. We're just the middle person that governments making us their tax collector. And there's nothing we could do about it. So we're gonna go down and say that's going to be in the Board of Equalization. So there it is. I'm going to select that item. And there's the $40 right there. We also know that inventory is going down. So that's the other thing that's happening with inventory. So inventory is going down. So we'll go back up top to where the inventory is because it's an asset. Going down. So selecting the inventory, we have a decrease to the inventory by that 100, remembering that that 100 is not on the sales receipt because we don't want to show it to the client. We're going to give this to the client and its knows about it. However, due to the fact that the item is telling it that that there Let's go back on up top and close this and go back to the balance sheet. And then the other side is going to be on the income statement in the form of cost of goods sold. There's the $100 in the cost of goods sold. So for the one that we sold, that was inventory, the effect on the income statement, 500 sales, 100 cost of goods sold difference being that net increased 400 and net income. Now also note that this an deposited funds amount up top. Now, just like we saw on the prior presentation when we looked at the deposit, can then be deposited as a group. Some. So at the end of the day, after doing this process, now we made our sales like at the, at the cash register. This is the desktop version again, kinda jumping around, sorry about that. And then we're gonna go over here and then we're going to make the, the deposit. So now we can imagine walk into the bank. So we're walk into the bank in your mind, the bank opened in the bank door. And then we're going to go in and we're gonna we're gonna go to the deposit. And then we're going to deposit these amounts that we collected for the day. That being this one, this one, that one, That's the 100, the 360, the 540, spent a good day. So we got the total that we're summing up here at the 10000900. So we're not going to include these last two. What's this going to do? It's going to be increasing the checking account now, checking account other side then decreasing the deposited funds, the amount that will then be increasing the checking account will be in the form of one hundred nine hundred, which is what will appear also on the bank statement, making it easy for us to reconcile our books to the bank's books. Also, if we use bake feeds, then the bank feed will come in at one hundred nine hundred. It will be able to match the bank fee to what we did. Basically helping us to reconcile the bank to our books, helping us with our bank reconciliation process. Let's go ahead and save it and close it. And then we'll check that out, save it and close it. And then I'll go back and let's refresh this. I'm not sure it's fresh and I only work with fresh reports, so we're going to refresh it. And now the deposited funds should go back down. So it's going down. Notice that it's going down and it put another even though there were three line items in the same deposit, it recorded these in three line items. That makes it easy for us to match up the deposit and the sales receipt. But if I go to any one of these deposit items, then you can see it's the same deposit, right? We did it all at one time. We checked off these three line items for the same deposit. Then on the other side it's gonna go to the checking account. So I'm going to scroll back it on up top, back to the balance sheet, go to the checking account. And in the checking account, we see it's going to be there as one line item that 1900, because that's the amount we expect to see on the bank statement. Going back over, what's the effect on the income statement or a P and L for the deposit? Nothing. Because because we recorded the item here when we made the sales receipt, we already recorded the income. So when we walk to the bank and deposited it, we're not recording anything else to the income statement at that point in time. 22. 1.42 Credit Memo Refund Form & Bad Debt Expense: Quickbooks Online 2021 now, Credit Memo, Refund form and bad debt expense. Let's get into it with Intuit QuickBooks Online 2021, who we are in our Google search page, we're going to be searching for QuickBooks Online Test Drive. Then we're going to be selected into QuickBooks online test drive into it. And then if it tries to stop you because you're a robot, you just look into it in the eyes just like this. And you say, yeah, I'm a robot into it, what are you gonna do about it? And then you just kinda push your way in like this and see here we are into its not gonna do anything. So in a case where now in the Craig's Design and landscaping services practice problem, we're going to be looking into a credit memo. Let's select the drop-down. We've been looking into the information for the customers section over here. We're now going to be considering the credit memo, which hopefully isn't normally part of our sales cycle because it's basically going to be reversing a sales transaction. I'm going to click back off of this item to see this. When we want to look at a flowchart, we're going to look at the desktop version just to see the flowchart. So you don't need the desktop version, just looking at the flow chart within it. So we saw our sales cycle here and we're trying to think about, well, where does the credit memo fit in sale cycle and what's going to be the impact of the Credit Memo. So notice to see that we have a couple of different ways that the cells can't take place. We have the full accrual type of process doing the work before we get paid, invoice, increase in accounts receivable, recording the sale, then receiving the payment, we get paid at this point in time, accounts receivable goes down and then we record the deposit or we might get the money at the same point in time that we do the work and that, you'll recall is the sales receipts type of form. So where does the credit memo fit? It kind of depends on what the credit memo is going to do with regards to where we are in this flowchart. So for example, if we created an invoice and we have not yet received the payment, then when we have a credit memo, if someone comes back in and let's just pretend that it was an inventory related item. They returned the inventory, basically reversing the sales transaction. Then we're going to basically apply the credit memo here, which would basically be reducing we would expect it to reduce the accounts receivable. We're going to reduce the accounts receivable and we have to do something to the income statement. Most likely depending on the method that we're going to use, either record bad debt expense, reversed the sales item, sales returns and allowances, or if we're using the allowance method, we might record it to an allowance for bad debt. So we'll talk a little bit more about that as we go. But the point being here that if we put the credit memo right here, we gotta reverse accounts receivable for sure. Then if we got paid, however, and we're making a credit memo, so we had an invoice and then we have the receive payments and now there's a return of the inventory or a reversal of the sales item for whatever reason. Well, now we're not going to reverse the accounts receivable, but rather we have to give a refund or provide them some type of credit for a future perfect purchases possibly. And the same would be true here because this this item up top, if we made a sales receipt, that would mean that would be kinda like the same thing as if we had the invoice and then the receive payment, we already got paid for it. So if we're going to reverse it at that point in time, we're not reversing the receivable, but rather we need to issue a payment paid, payback, or provide some type of credit for future purchases, meaning they can pay towards future purchases. So we have, so that's the first thing we want to consider. Are we dealing with accounts receivable or are we dealing with a payment that's gotta be paid back? Then the second thing, if we're dealing with accounts receivable, that means we have to reduce the accounts receivable. But then we want to consider what's going to happen to the other side because the other side of the transaction was an increase to sales. So what are we going to do for the other side of the transaction? Are we going to reduce the sales, have a negative sales transaction, which is kind of a norm that we would do. Are we going to use a direct write-off method for the accounts receivable and use this as our direct write-off method. In that case, recording bad debt. When the thing becomes, we determined it becomes bad debt. So what can record it to bad debt? Or we could be using say, an allowance method. So if we're using an allowance method, then possibly we write off the other side to allowance for doubtful accounts. We might reverse it instead of to sales to an account called sales returns and allowances, which is kind of a, a contrast sales accounts. So we have that issue. And then we also have the issue of inventory. If we're dealing with inventory, if we're receiving the inventory, is the inventory still good? Do we have to include the inventory back on the books or is it damaged in some way, or do we just not include the inventory? We're just we're not going to include or reverse the inventory process of it because the inventories not good at that point. So those would be that the things we need to consider. So let's go back on over and let's create an invoice first, I'm going to go to the New we're going to create an invoice. And I'm going to make an invoice in I'm going to make the invoice in 2020 and then credit memo in 2021. So I'm going to say this is going to be an invoice on the customer one, customer one. And we'll tab through this and I'm going to make it, we'll save this here. And then I'll tap through this. And then I'm going to make this as of 12, 31, 200, 1231 to 0. And then we're gonna go down. I'm going to make a new item in inventory items, so I'm just going to call it inventory. So it's an inventory item. And we're going to add that. We'll add an inventory item up top. So inventory, and I'm going to go down here and say that we have on hand. Let's just say we got a 100 of these on hand. And I'm going to put and I'm gonna go back to December and say they're on hand before that time period and say that 27. And reorder point. I'm not going to put anything there. Descriptions just going to be inventory, item sales price, I'm going to say is $100. So nice. Even 1, 0, 0, 0, 0, 0. And it's going to be taxable, it's going to be a taxable item. And then the cost, let's say the cost is going to be six hundred and six hundred is the cost. And that's gonna go to cost of goods sold account. Let's go ahead and save it and close it. So I'm going to say Save and Close. When we record this, it will be an invoice. Therefore, accounts receivable is gonna go up by the full amount and including the sales tax by 180, the other side's going to go to sales, but only for the 10000, then the difference AT is going to be going to the sales tax payable. And then we'll have a cost of goods sold and inventory for the cost of this item, which I think I put on over 600, I believe I remember. Let's go ahead and save it and close it and check that out. So I'm going to say save it and close it. And then let's open up our reports. I'm going to right-click on our report up top and duplicate it. So I'm going to duplicate that. And then I'm going to right-click on another one and duplicate another one. I'm going to duplicate it twice. And we're going to open up our two reports, one being the balance sheet. So I'm on this tab to the right. I'm going to go down to two the reports. And let's open up then our balance sheet reports down here. Balance sheet reports. So there we have that. And then I'm want to make this for the prior year. So I'm going to make this a 10120 to 12, 31 to 0 and run that report. So I'm in here for the prior year now. And if I take a look at this, I should have had an increase to the accounts receivable accounts receivable going up in December. So there's the accounts receivable or close the hamburger. And there it is, 180. And then I'm gonna go back up top and go back to our forums. The other side going to the income statement. So I'm going to run this report in the second tab, I'm going to go to Reports. We're gonna go to the income statement, otherwise known as the P and L, But profit and loss, changing the dates up top to the prior year of 0, 1, 0, 1, 2, 0 to 12, 31, 200. Run that report, close the hamburger. And so then we should have our income up top. Now it's going to be down here in our sales of product income. So it's going to be this item down below. So if I select that, then we have the 1, 0, 0, 0, 0 here. So I'm gonna go back up top. That difference between those two is the sales tax payable, which is back on the balance sheet. So if we go back to the balance sheet, we've got the sales tax payable, which is going to be a liability account, and that's going to go to the Board of Equalization. So that would go there. Then we have the inventory that went down. So the inventory asset is gonna go down here. And so if I selected this item and scroll down, it's going to go down by that, a 100 that we charged it for. And then I will scroll back up. The other side of that is going to go to the balance sheet. And that's gonna go into the cost of goods, I'm sorry, the income statement that's going to go into then the cost of goods sold. And here's the cost of goods sold. And that was for the 600. So let's just look at this invoice and let's just write that. So if we just think about the accounts affected, then, and I'm gonna do this with debits and credits if you want to think about it in plus and minus, that's fine as well, but I'm going to say the sales went up 100. We had sales tax that had to increase by $80. And then the receivable then I'm going to use the negative sum is going to be the one hundred, ten hundred eighty. So we have a receivable, 1080, sales went up by 100 and then sales tax payable went up by 80. And then we have the inventory and the cost of goods sold was 600. That's what happened with the invoice. Now, the way you want to think of a credit memo is to reverse that exactly. So I wouldn't try to think about what happens to the accounts in a credit memo in and of themselves without first visualizing the invoice, then reversing it in your mind. And also, I'm not going to try to put the debits on top in the credit memo. I'm just going to think of it. As the invoice, same layout and then reverse the debits and credits. So this is the way I would think about a credit memo. The accounts receivable will then be credited, the sales tax payable will then be debited, and then the sales, and this is the funny item. Sales will then basically go down, right? You gotta negate the sales that happened. And then if there was inventory that was returned, you would reverse the cost of goods sold. If that if that was applicable, then we'd have the inventory going back up and the cost of goods sold than being reversed. Now the tricky thing in here, of course, is one is going to be the sales account and the accounts receivable. Meaning if, if we already got the receivable, then it's not going to be accounts receivable, it's going to be a decrease to cash, or it's going to be allowing for a credit for someone to purchase something on credit in the future. So if we had already received the payment than this top one, would, would, could possibly be cash if you're given cashback. And then the other tricky point is going to be this sales item down here, because usually we don't reverse sales directly. Normally we would want to do something else. Possibly if we're trying to record this as bad debt, we might call it bad debt expense, which would do essentially the same thing. But now we're calling it bad debt, riding off basically the accounts receivable to bad debt. And that would be writing it off at the point in time, kinda we determined it to be PAD, which would be like the direct write-off method. You might also say this is going to go to sales returns and allowances. And this would basically be the same thing as reversing the revenue, but we're kind of reversing it to a contra sales accounts, sales returns and allowances. Or if you're using the allowance method for bad debt expense, you might call this allowance for bad debt. And this one would be a little bit different because it would actually be a balance sheet account that we would have up top. So let's think about these scenarios. Let's say bad debt expense. Let's say that's what kinda what we wanna do. So this would be the reversal direct and then we might want to change it kinda like the bad debt expense. So if I go back on over and center-right now we're going to issue a credit memo for this. I'm going to close this back out. I'm going to then go back to the first tab. We're going to go into the new plus button and we're going to go down to the credit memo. Now it might be useful to have the invoice open at the same time because you're gonna kinda mirror the invoice when you enter the credit memo, we're going to have the customer, same customer or customer one that we're going to have here. We're going to say that credit memo happened in 2000 21 now, so it's in the following year. And so I'm going to go down and say that the thing that we're going to be reversing van is the invoice I'm sorry. This is going to be inventory inventory item. So there's going to be that inventory and this is going to be the reversal. Now if I just record it like this, this will reverse. In essence, the invoice, exactly meaning will basically be at this scenario up top. So let's look at that first. So we have that issue and we also want to be able to tie out to the credit memo to the invoice, which we're not doing just when we enter the credit memo, we're going to have to do another step in order to do that. So I'm going to say save it and close it, save it and close it. And now if I go to my reports up top, we enter this in the following year. So we entered it in the following year. And I'm gonna go back up to the balance sheet events. Let's change the year now. Note that this is kind of important because if the invoice was already in place and we finalized everything for 2020, you might say, hey, why don't I just go back in and delete the invoice because it's kinda like I didn't have the sale. What happened there? But I don't really want to delete something and you certainly don't want it to leave it in the prior year. Typically, what you wanna do is keep the audit trail and add something else that will happen. So this way, all the prior period numbers are the same. We didn't change the prior period by deleting an invoice, for example. And then once we go to the current period after the cutoff, the reverse is going to happen in 2021. So let's check it out. We're going to go on in 2021. It's just up the date to a 10 or 12, 12, 12, 31 to one. And then I'm gonna run that report. And so here's the reversal transaction. We have the income as basically negative income up top, and that's that questionable line. What we might want to change it from the negative income to sales returns and allowances or to bad debt expense or something like that. There's the reversal to cost of goods sold. And that's going to be the income statements side of things. Let's take a look at the balance sheet side of things. If I go to the balance sheet, going to change the date up top once again from 100 one-to-one to 1230, one-to-one, run that report. And we're gonna say now if I go into the accounts receivable, we've got the reversal happening in the proper date in 2020 one. So the reversal happens in the proper date with the credit memo here. So then if I go back over, we also see that the sales tax is going to be affected here. So if we go to the Board of Equalization, we have the sales tax that is being reversed as well. So we have the exact reversal there. And then we have the inventory that's going to be reversed as well if we're dealing with inventory. And so if I go into the inventory, and again, the inventory is now going back up, which we would only want it to do if we if we are receiving the inventory back and it has value to it. All right, so let's go back on over. Now. The other thing that we want to think within this accounts receivable account, this is supported by the customer, the customer information. So if I go into this, we see here that we have the credit memo that is applied. And if I go back to the prior year for the detail and I could see the invoice as well. I'm going to run that report for 2020 to 2021. We see down here that we have the invoice and then these two look like they tie out and they should tie out, and QuickBooks may tie them out when you make the credit memo, but you wanna make sure that these two things are linked. So if I go back up top, then. And I go back to my balance sheet. And you can kinda check that by if I go back to my customer item or my first tab, go down to the sales items, go to the customer information up top. And we're looking at customer 1. And we want to make sure basically that this invoice that we created is reporting as paid it now we didn't actually get money if it was paid basically by the credit memo here. So if I go back into this invoice, it's now being reported as paid. So we can see here in it's in it's the amount that's being applied. So if I select this item, then we've got basically the receive payment item that has been linked to the credit memo. Now. So if this didn't happen automatically, then you'd have to go in and do that process. In other words, if that didn't happen automatically, you'd have to go back up top and then you'd say receive payment. As if you're getting paid, you know that you're getting the payment from the customer. And then this is the form where you could do that manual transaction. So if you entered customer 1 and it had not applied them out, then you'd see that that transaction. So in other words, if I go back into that invoice and then I go into this payment item and look at that. This is what you would see, right? We have the company one and then they checked off the invoice as if it were being paid. And then down here we have the applicable credit which was generated by the Credit Memo, those two things canceling each other out. So if this received payment form wasn't generated automatically, then you'd want to go through and link it together. If you didn't have a credit memo for the full amount of the invoice, it may well not have applied out automatically or if there are multiple invoices open, it may not apply automatically. So you're gonna wanna go in here and make sure to do that, do that process to link them out. So I'm going to close this back out. And then I'm gonna go back up top. Now we have our, Everything looks good. But now we have this issue where we have this negative sales, right? We've got this negative sales item. Possibly we want to put that amount not into negative sales, but bad debt expense maybe, or maybe we want to put it into, into a sales returns and allowances type of account. So let's see if we can just adjust this credit memo. I'm going to go back into it. And I'm going to just go into that that credit memo. And so this inventory item is what's going to be applying it to sales. So that's what's going to be applying it to the negative sale. So what if I create another item here for a credit memo type of items? So I'm going to say this is going to be I'm just going to call this credit memo. And so then I'm just going to copy that and we're going to set this up. I'm going to say tab and it's going to be non inventory or service items. So I'm going to make it a service item here. And then I'm just going to copy the name and I'm going to put it into the description. And the other side is going to income at this point. Now that's what I want to change. We don't want it to be going into income. I want it to be going to what I'm going to call bad debt expense now, I don't think I have a bad debt expense set up. So I'm going to set up another account called bad debt expense. It's going to be an expense type of account. So we'll set up another account is not going to be income, but rather and expense type of accounts. So we're looking at extents. And the detail is going to be bad debt. And I'm just going to call it bad debt for the description that looks good. Let's save it. Let's close it. Now, this is kind of unusual because we got this item going not to an income account but an expense account because it's a credit memo item. Now this one I'm going to set it up to be a taxable item because I'm going to reverse it out for another taxable items. So I'm going to say it is going to be taxable at the standard rate. You might want to credit memos, one for taxable items, one for non-taxable items. And then I'm going to say save it and close it. And so then I'm going to put my amount here at the 1, 0, 0, 0, 0, single. Put the amount at the end, the one up top. I'm going to remove, I'm just going to make this 10 up top. And so what that does is it gives us our same total down here. We're still calculating the sales tax. We're still at the 180. And the reason I'm not completing the first-line entirely is because this will still reverse the, the cost of goods sold and the inventory. So in other words, what's this going to do when we record it? It's going to reverse the accounts receivable. Accounts receivable is gonna go down the other side. And that's for the full amount, the 1080 plus the reversal of the sales tax, the other side would be going to the revenue item, make it a negative revenue. But instead of making negative revenue, it's now going to be making bad debt driven by this item. And then the difference, of course, is going to be reversing to the sales tax. And then we still have the reversal of cost of goods sold and inventory. And that's being driven by this item. So the fact that this items on the books, even though it's at 0, is the thing that's going to be driving the reversal of inventory. So if we're receiving the inventory back, then it's going to be increasing inventory and reducing cost of goods sold. That's why that one's still there. So then if I save and close it, your transactions are being edited to others are linked. Do you want to, I'm gonna say yes. And so there we have it. And so then I'm going to go back up top. So if we go back up top, now, we still have the cost of goods sold there, but it's not in the sales item. We moved it down here to the Bad Debt Item. So we moved it down to the Bad Debt Item. Now we could do the same thing if we wanted to set one up to be going into sales returns and allowances, which is another common area. So if we did that was just check that out was changed as one again. And I could just change this and say, all right, well, what if I wanted to make it not go there, but I want to make it go to to Credit Memo, sales returns and allowances account, which would be a contra income account, right. So I'm going to say all right, this is going to be a service item, sales returns and allowances. Here. I'm just going to then change the, the service item to another service item. Another, another Income account. And so we could still keep it as income or other or other income. We might put it into other income. I'll just keep it basically has an income account, but I'm going to label it sales returns and allowances and we can't really put it into other income because if we if we did, it would be at the bottom of the income statement. So then we have discounts refunds given here. So that looks good. We can keep it at that, but I'm going to call it sales returns and allowances. This is like a contra revenue account. So it's going to be in the revenue section, but it's not decreasing revenue directly. It's decreased in another account which is kinda like a contra revenue account. So we have the same thing. And once again, I'm going to put this in for $1000. So, so same, same kind of process. So, so same thing, but then I'm going to say save it and close it, save it and close it. And now if I go back to the report, back to our summary report, we have it now in a contra account, so it's still up in the sales items, but we're telling it, Hey, look, we don't like to reverse sales directly. We've got another account. We're reversing sales returns and allowances. So that's another method that could be used. Now you also might be writing it off if you're using a allowance method to a balance sheet account called allowance for doubtful accounts because you're estimating how much you're going to be writing off. So we'll take a look at that in a second, Possibly if we have time. But then this inventor's the other one. Do you want to be reversing the inventory? And maybe if you're not getting the inventory back and you don't want this second half to be recorded. You don't want this reversal of the inventory and then an increase in the inventory because you're not getting the inventory, you just, you just reverse in the sales side because we're just not going to get paid or something like that. So then if I if I don't want that second half, then of course, I can go back in this. And all I need to do is reverse this inventory, inventory item that's at 0. That's what's reversing the inventory and the cost of goods sold. So I could do the same process, but now just reversed that. I'm just going to delete that one. And then I'm going to save it and close it. And there we have it. If we go back on over, then we have the same situation. But now it's not reversing cost of goods sold. And on the balance sheet, it would not be adding inventory back into inventory at that point because we're just going to say, hey, we're not getting the inventory's gone, it's not we're not getting it back. I'm not going to record the inventory back. Now, the last method you might have, you might have if you know the allowance for doubtful accounts like you might have accounts receivable and then another account that you're estimating. What accounts will be uncollectable with an allowance for doubtful accounts underneath it at that time. So you could use this method then to reverse the allowance for doubtful accounts because when it becomes bad debt, then you would take it to the allowance account. So you could do the same thing here that we saw before. I can go back in and say, Okay, I'm going to make another one. And this time it's going to be credit memo, the memo for the for the allowance allowance for bad debt. And so I'm going to say tab and we'll set that one up as a service item 2, it's going to be the allowance. I'll put that here. And then I'm just going to change this income line item this time to an other asset line item. So in other asset and then it's going to be the actually it's going to be other current assets, other assets, other current assets, and then allowance for bad debt. That's the one we want right there. So I'm going to say save it and close it. And then we'll do the same process, Save and Close. And then I'm just going to type in that 1, 0, 0, 0, 0. So 1, 0, 0, 0, 0, 0. Same, same look down here. But now this other credit memo is going to be driving it to the balance sheet account as opposed to an income statement account. So I'm going to say save it and close it. And so there we have it. If I go back up top, then we go back up top. We don't have any impact on the income statement, no sales, no bad debt. And then on the balance sheet, we've got then the allowance account. If I refresh the screen, I have a refresh screen. I'll work with fresh screens here. That's why. So then we have the accounts receivable and then this allowance account down below. And that would that would make sense if you've if you've used the allowance method before, there's an estimate that would be involved in it and what not. So the credit memo can be kind of versatile and using different ways to fit in. However, you're writing off the bad debt or making the refund and inventory, of course complicates things with it a bit as well. 23. 1.50 Other Section Forms & Functions: Quickbooks Online 2020. One other section, forms and functions. Let's get into it within two. It's QuickBooks Online 2021. We are on the Google search page or searching for QuickBooks Online Test Drive, then we'll select QuickBooks Online Test Drive into it. Now I do happen to be a robot, but I'm with a non robot friend that I find that into. It's still usually lets you, and as long as you're with a non robot friend, especially if it's an attractive non robot friends. So let's check it out and try it out. And there we have it, no problem. Or in the Craig's Design and landscaping services practice file once you're inside into it doesn't typically Bob you once you're inside here. So prior presentations, we're going to the plus drop-down here. We've been looking at the items in the customer section, the vendors section. We'll take a look at the employees section in future presentations. Now we want to consider some of these other items here. Now when you think about these groupings, notice what we're talking about with the groups is typically how we want to visualize the flow of transactions. Meaning the customers are going to be like the sales cycle, the accounts receivable cycle, vendors being like the payable cycle, the expensive cycle, and then the employees, obviously the payroll cycle. And then you have these other items. Why are they here in this section? Well, they don't fit in any of those cycles completely, and therefore QuickBooks put them in the other section. However, they are important enough. They happen often enough that QuickBooks wants to put them in the main dropped down, this main drop-down that we're using most of the time. So these are things that QuickBooks obviously feels are important. So we want to go over these other items as well. Now I just want to compare this to the desktop version just so we can see the layout in the flow chart as well. So we looked at the flowchart in terms of the vendors section, most of the items in the vendor section, the customer section or sales cycle, most of the items here, we'll look at the employee section later. Now we're kind of if you're looking at it in terms of the homepage type of layout, we have like these items over here on the company's section and the baking section. Again, QuickBooks seen them as important things that we're going to use fairly often, things that you should be using. But they're not directly in a flow, or they may be in multiple different flows and therefore they have their separate kind of place over in a separate section. So let's go back on over and let's just check out a couple of these and just, and just say a little bit about them. We've got the bank deposit first. Now we took a look at the bank deposit form when we were considering the customer section over here, because we're hoping most of the bank deposits the money going into the checking account is coming from customers. But the reason we can't put it really under the customer section or why it might not be completely proper to do so, is that although most of the deposits are from customers, hopefully, we might have other deposits such as, for example, the owner putting money into the bank, where it might take a loan or something like that and put money into the bank and have a deposit in that way. So that's why the deposits kinda over here in other, but obviously it's going to be a very important form because every time you have an increase to the checking account, it'll typically be a deposit will be the most common form. Now a transfer, we could have an a transfer from one account to another. So again, that's not something that we are going to normally do in a transfers less likely to be something from a customer. And therefore we have it over here in the other section as well. The journal entry. Now if you're an accounting student, if you've learned like accounting in a classroom, and then you move to accounting software. You have a tendency to want to see everything. Or many people have a tendency to want to see everything in terms of journal entries. I want to see the debits and credits that are going to be involved. And you'll typically start to say, I want to not use these forms over here that are driving the actual transactions that are recording the journal entries, but rather just enter the journal entry directly. But notice QuickBooks is designed not to do that so much. Quickbooks is designed to set up the system so that you can then assign the information to other people and you can delegate responsibility that way and in different tasks, two different people, by making the data input forms has as straightforward as possible. So really the journal entry is the last thing you wanna do. Quickbooks almost wants to hide it. Quickbooks basically wants to say don't enter journal entries unless you cannot fit it into the system. So that means if you're talking about a transaction that's not in the normal customer cycle, that's not in the normal vendor cycle, that's not in the normal employee or payroll cycle, then your default maybe to the journal entry because all of these forms that are in these other cycles are basically creating a journal entry, but they're doing it within the structure of QuickBooks. Now we will use journal entries when we go to the adjusting entries. And again, if you have some kind of transaction that doesn't fit in the normal process, then you might use a journal entry, for example, if you purchased equipment or something like that, it's not and you purchased it for a loan, let's say, then that doesn't fall into the normal categories. Over here, the adjusting journal entries don't fall into the normal categories. And so we have to we have to go outside the normal box, the normal routine. And then and then we have the statement. We have the inventory quantity adjustment, which would only be applicable if you have an AR tracking inventory need to make adjustments to it. The pay down credit card we might get more into basically managing the credit cards in future presentations or in future sections as well. And then I'm gonna go back over to the homepage on the desktop version just to see the items that are included there that could, QuickBooks kind of things are important. So in the company section over here, we also have the chart of accounts. Now the chart of accounts is going to be really, really important. And many people will see them as a list or categorized under the category of lists because they happen to be in this drop-down. It's not really an accounting term. So there's the chart of accounts, there's the item list. These are the two primary things that if you're a QuickBooks user and you've used the desktop version for a long time, may classify under the term lists because it happened to fall into that dropdown, even though lists is not like a formal accounting term, but you'll probably hear it in the online version. They kind of brought it over in the online version, even though you don't have the same drop-down. But we'll talk more about the chart of accounts later. The reason it's not in one of these flows here is because these flows, all of these forms will be affecting the chart of accounts. But the chart of accounts is something that you're going to have to set up before you make any of the forms. It's kinda the first thing that you're going to set out. So if you're using the QuickBooks file that has already been set up, the chart of accounts is already good to go and you don't need to do much with it unless you need to go go make adjustments to which accounts are going to be affecting. So we'll get into making the chart of accounts a lot more when we start a new company file, but we'll review it more in detail. But that's going to be obviously a really important thing because it underlines the creation of the financial statements, which is our end-product, the balance sheet and the income statement or profit and loss. Then we have the items and services. We looked at those briefly. Those are the things we sell. Those are going to be the inventory items and the service items. Once again, they are not in the flow item here because they could be things that you're purchasing and inventory with purchase order. They could also affect the the sales cycle when you make an invoice or a sales receipt as well. And we set them up when we made invoices and sales receipt, we set up a quick quick items over here. These are things, once again that if you're going into a company file that's already set up, then typically they'll have this item set up and all you have to do is kinda use the items. But it's really useful to set up the items or start a company file from scratch as we will do in the second part of the course. Because then you really get to understand what needed to go into, into the process so that the data input could be as easy as possible. And part of that is this key thing. The items once set up, however, then they should be good to go and you can run your accounting system, you can delegate duties, people can do the data input forms, and they don't really need to know they'd behind the scenes items or the behind the scenes Chart of Account type of things. And then we've got the ordering check. So if you need to order checks, that's usually kind of an add-on thing. It's almost a sales type of thing because that you can purchase checks and then we have the calendar so we could set up transactions to be renewed. Transactions are memorized transactions, so we might talk about that later and you could start to record transactions and whatnot enlist when certain things need to happen. And QuickBooks can kinda gives you a reminder of that. And then down here we have the reconcile. Now the bank reconciliation is going to be a huge thing as well, and that's something that happens periodically. So these things up top are things that happen every day. Oftentimes these things are happening every day in an active type of company or payroll happens periodically, but captains possibly a couple times a month. Whereas the reconcile primer really thinking about bank reconciliations happens monthly, but it's a huge, huge internal control and therefore, they see it as important enough to put here, we will do bank reconciliations as well. You really want to reconcile the bank accounts? Yes, should do it whether you use bank feeds or not because it's still a good double-check. We'll talk more about that when we get to the bank feeds is how it fits into the bank feeds. But that's going to be an important item as well. And then, and then we have the check register. Now the check register happens to be the, the register basically looking at the checking account from a register standpoint. And we looked at that a couple times when we entered an invoice. And when we entered I'm sorry, not an invoice but entered some deposits and checks directly into the checking account. So for many times when you're doing transactions with cash, if it's if it's if it's if you don't need to use one of these forms to enter it, you might just go directly to the register. So some of those items are also found in the COG up top and we'll go over them more in the future. So you have your company information over here, your company. And then in this list Item you see that terminology that they still kind of use for the lists. So here's a list. The list includes the products and services. Those are the item lists in the desktop version, reoccurring transactions. So we can set those reoccurring transactions and it'll help us to basically set those transactions attachments. If you then go into all the lists, then it's going to give you, give you all those. So if you're used to that terminology of lists, here's where you can go to get to your chart of accounts. It's not the only place to go to get there, but Chart of Accounts, reoccurring transactions, products and services, and custom forums and so on and so forth. You can also get to that chart of accounts down here, as we saw in prior presentations in the accounting chart of accounts and reconcile. So if I go into the accounting tab on the left-hand side, I'm going to say I want to see the chart of accounts. Then this is where you can go to see that chart of accounts. This is also where you can go to get to that check register. So remember the check registers right here, any balance sheet account will have a register, the cash register, the register related to the checking account, however, is the one that's most commonly used. So you can go into that check register and see the increases and decreases to the checking account in a similar fashion as you've seen. You know, if you have a checkbook and you're recording information into the checkbook, notice you can see though, an increase in decrease in all the balance sheet accounts in a similar fashion. So we can enter transactions in that way which can be useful. And we can basically enter journal entries in a register format, which can be, can be interesting and useful as well. We don't have the register on the income statement accounts you'll see down below. So it's something that will be applied to the balance sheet accounts. Then on the reconciled tab, this is where we go for that bank reconciliation. So if we wanted to reconcile, we're going to get started maybe later. And then this is where we looked at that, that reconciliation process. And we'll go into the reconciliation process at a future point. But do you really want to do that on a monthly basis so that it's a good verification or Double-check of the books. 24. 1.53 Shortcuts: Quickbooks Online 2021 that shortcuts, Let's get into it within two. It's QuickBooks Online 2000 and 2001. Here we are in our Google search page searching for QuickBooks Online Test Drive and then selecting QuickBooks Online Test Drive. Now I happened to be a half robot due to injury sustained at, during a light saber battle with my old master back when I was but a learner. But now I am the master. Anyways, is half-human good enough to get in for Intuit here, Let's check it out and see. There we have it. No problem. We're in Craig's Design and landscaping services, a practice problem. We're going to take a look at some common shortcuts. These are going to be keyboard shortcuts. So here's a list of some keyboard shortcuts that you can work with. We're not going to be using them all the time in the course here because we want to show you where to go within the QuickBooks system. But if you're someone that likes the shortcuts, then you can utilize some of these shortcuts. Let's just test a few of them out. We're looking at the Control and Alt or Option, and then selecting our keystrokes on the left-hand side here. So we'll just test a few of them out. If I'm up here and I'm going to say I want to go to an invoice and invoice would typically be in the in the new and you go to invoice here a couple of different areas to get there. If we go to Control Alt, then I for the invoice, we're going to be populated an invoice. So there it is. Now I'm going to try to X out of this thing without hitting the X here, so we can hit Control Alt X. And that should basically take us out of the invoice like so we want to jump into a check type of form. Normally you'd hit the drop-down, you vendors and checks. So we can then hit Control Alt and then Control Alt W and jump right to the type of form. Again, if I want to back out of it, instead of hitting the X, I can hit Control Alt and then x and jump back out. The expense type form as the, as the other one that's going to be decreasing the checking account. So you couldn't have an expense type form. That's if you're not in a form already Control Alt X, basically in the homepage that goes into an expense form, you hit the same function, Control X to basically x back out of it. Once again, receive payment is usually in the customer section and you go to the receive payment here, you can hit Control Alt R for the receive payment. And there we have that control alt X to basically x out of the receive payment. If you want to go to the customers, which typically you'd be going then to the sales item here, and then two customers. And so we have our customer information on the tab up top. If I go back to the dashboard, dashboard up top, and we say Control C, Control C, it's gonna take us right to that customer section, similar for the vendors. Vendors are in the expenses area. So in the Expenses tab on the left, vendors up top, if I want to go right here directly, these are the people that we pay. I can go to the dashboard and Control Alt V. Control Alt V will take me there. Chart of accounts, chart of accounts typically found here under accounting and chart of accounts. So here's our chart of accounts hitting this to actually see the accounts. If I go back up to the dashboard and we hit Control Alt a, that'll take us then to our chart of accounts directly. If we want to see our lists, I'm going to go back up to the dashboard. I'm going to say Control Alt L. And remember this is lists, and these are the common types of things. You've got to just start to know what goes under the category of lists. If you've worked with a desktop version, then you probably have some idea of that. So then we're gonna say if we want to go to the help menu, we've got Help options up top and hit Control Alt H for the help. And that should open the Help options here. The other one I think is useful if I create an invoice up top and I actually populate the invoice and say we're gonna make it for customer one. I'm going to set up a new customer and just sample the invoice here. We've got the invoice than populated. I'm just going to select a service item at random. And then we're going to say this is going to be, I wasn't totally random. I've picked the like the top one, the ones towards the top. And so then we have that. And then if we wanted to just say Save and New, so we have these options down below, which are Save and New and save and close if we're doing a lot of these and we wanna say Save and New, I could say Control Alt S. And that should be Save and New. And then if I was to do that again, customer 1, and let's pick one that's not totally random, but kinda towards the top area. And then this is going to be 200. And then if we want to say save and send, which would be this item? Would be save and send right there. Now, we'd have to have the e-mail address of course to send it. So but that would be Control Alt M. And you can kinda memorize that from e-mail. And then it says, hey, you need an email address if you want us to send it out there. So those are some of the major keys, key items, shortcuts, again, you've got a list of them here. You probably want to work in the shortcuts just a little bit at a time. So whatever are the types of forms that you worked with most. Then if you start pushing in the shortcuts a little bit, you'll probably get used to them a bit at a time when you look at them all at once, they get a little bit overwhelming. And that could be something that you just leave alone. But if you work on some particular area a lot and you work into the shortcut into your system. I think you'll find over time that it does save time. 25. 1.60 Employee Cycle Payroll Cycle: Quickbooks Online 2021, employee cycle, payroll cycle. Let's get into it within two-eighths. Quickbooks Online 2020. Here we are in our Google search page, searching for QuickBooks Online at test drive than selecting QuickBooks Online at test drive into it. I am not a robot at this time. I only turn into a robot at midnight during a full moon when the sky is crisp and pixelated, I'll be sure to be logged out of QuickBooks before that time. So we should be good to go. Here we are in our Craig's Design and landscaping services at practice file. We're going to go to the plus button, the new tab. And prior presentations we've been taken a look at the items. Bicycle, including the customer cycle or sales cycle, the payable cycle or vendor or expense cycle. Now we're looking at the employee ease or payroll cycle. First thing we want to point out when you're thinking about payroll is it is an added thing typically. So no matter what you do if you do it within QuickBooks here, or if you pay someone externally to help you out with the payroll, it'll typically be some type of added costs. So you want to consider that as you go. If you are a bookkeeper, then you want to be considering whether or not you want to be taking on payroll within the bookkeeping function with a QuickBooks, or whether you want to be working with external payroll. Companies that specialize in payroll and help out in that way and then kinda specialize your client till to fit whatever model that you are going to be working within. Now if you're setting up your own bookkeeping within QuickBooks, you might want to get some advice about payroll and I would choose to get advice about payroll from somebody that you're not paying for payroll services so that their advice is not biased. So I would go to a CPA firm or your accountant, one that you're not expecting to pay for the payroll services, ask them, what do you think is best? Should I get a third party payroll? Should I do payroll myself within QuickBooks? Do I need more support for payroll? What are my options in either of those cases? So let's just recap that really quick and then we'll go into it in more detail when we get to the payroll items in our practice problems. But if you've purchased payroll within QuickBooks, then it's typically like an add-on type of option. And so here is our Intuit run, the Intuit site or QuickBooks Intuit site. We're looking at the payroll options here, and we have the three options at this time, Core, Premium and elite. They're gonna give you different levels of support for these items. Obviously the price going up with the more support. So for the, for the core level, you can see they have the full servers payroll on auto payroll, health benefits, 401 k 1099, File Export, and next day direct deposit. Here we have the added items in the next level up that being the premium level of same day direct deposit workers comp administration, which could be more or less complex depending on the state and locale that you are in HR support center. So once again, the payroll is kind of connected to human resources or HR. And so somethings. When I think about payroll, obviously I'm from an accounting standpoint, I'm typically thinking about the things that are going to be affecting the financial statements. How do I record the financials to make the financials correct. But we want to make sure that we're in all compliance, those that affect the financial statements and those that do not, and make sure that we're getting the overlap in there with other type of human resources source type things that need to be done that are somewhat connected. Export, Setup, review, track time and on the go, and then the full-service payroll they're adding on white glove customize setup, 24, 7, export, and track time in projects and so on and so forth. So these items would be within QuickBooks, you would be calculating QuickBooks payroll basically using QuickBooks, your other option is to look for someone outside that specializes in payroll. And the two biggest ones are two of the bigger ones, at least our ADP and paychecks. So you might work with an outside company and to kinda help you to specialize in payroll. These companies do nothing but payrolls, so they're not going to be competing with bookkeeping services. If you're a bookkeeper and you, and you decide that your model works well. If you work with other payroll professionals and integrate them into your bookkeeping in some way, then you might have that option. You can have these outside companies or some outside company that deals with payroll, specializes in payroll, help you to work the payroll. And then you're going to have to put it into QuickBooks in some way, shape, or form. You might not have all the detail within QuickBooks because that might be handled by the third party at that point. But you want to make the financials right within within the QuickBooks situation. So you then you can kind of juggle between the two as to what information is going to be in QuickBooks. The financials for sure need to be updated with a QuickBooks and what information will be handled by the third party payroll professional in that case. So that's just a quick recap on things you want to think about for payroll, you do want to consider spend some time on the payroll if you have employees set it up well, because payroll, once it goes bad, once it starts taking a wrong term, can take a lot of time to fix and reconcile. So you'd like to get it going right from the start. So then if we look at this from a flowchart standpoint, if I go to the QuickBooks Desktop, if we turn on the payroll, I just want to go to the desktop just so we can see the flowchart. Here's going to be the items and the flow down below. It's pretty basic type of flow that we see. We have the time if we're tracking time within the QuickBooks system, this would be like you can imagine someone punching in a time clock or something like that. And then we're using their time and their hourly rate possibly to then process the payroll. Now this time entry kinda method can also be used to populate, say, an invoice, because we can basically bill clients based on the time. It doesn't have to be the same payroll rate. We can track our time in here and we could try to build our clients based on the people that worked in, in the time. So that's one thing we could do with this. And we can also track the time and connect it to when we pay the employees if they're on an hourly system and then help that to pay the employees. However, this time tracking is not required and you might, you might use some other kind of time tracking outside the system and then just enter the payroll here. And then you just got to manually enter the time for your employees as you process the payroll. And then the primary thing that's going to happen is whenever you do the payroll, when you set up the payroll, you gotta see how often you're going to be processing it. Are you paying people weakly? Are you paying people biweekly, semi monthly, monthly and so on. And then once those pay periods come up, then you're going to be processing the payroll here. As you process the payroll, you'll be paying the employees either through check or electronic transfers into their checking account, direct deposit. However, you will be withholding from them payroll taxes and you will you will also be obligated to pay your portion of payroll taxes, both on the federal and possibly on the state level and local level depending on obligations of the state and local which will change. Federal will be the same for the United States. And then you're going to have to pay the liabilities that came to play, the amount that you took from the employees in withholdings and the amount that you owe for the payroll taxes both on the state and federal level. Now, this is not too bad. If you just look at the federal level type of things, it can get a lot more complex if you start adding states and if you're in multiple states and you're, you know, you have some overlap in your obligations for employees, obligations for different states and different locale that can get complex fairly, fairly quickly. So let's go back on over to our, our system here. So that information is going to be in the payroll section here. So if I in this area, we've got the payroll a tab. And so if I said select the payroll tab, we've got the employees up top, the contractors and then the workers comp. This would be similar. If I go back to the QuickBooks Desktop as the Employee Center that you can go to here and hitting the drop-down on top the Employee Center as well. So the employee center given us that similar information look and feel as with the customer center and the vendor center. So same kind of concept over here except now it's the payroll tab and now we have the employees that contractors and the workers comp. We have our list of employees down down below here. And these are going to be obviously the employees that we're going to have to input. And those will be the ones that will be processed to when we process the payroll within QuickBooks, within our practice problem, we will touch in on the payroll during our practice problem and record some, some basic transactions within the payroll. And then we might do up a longer section after the practice problem on payroll. And we have a whole another course that focuses in on payroll as well. We'd like to update it at some, at some point we might update it fairly soon, but we have another course that basically focuses in just on payroll. Because once again, payroll is kind of a topic in and of itself. It could take a whole course easily. 26. 1.69 Lists: Quickbooks Online, 2021 lists. Let's get into it within two. It's QuickBooks Online 2021. Here we are in our free test try file that you can find by searching in your favorite browser for QuickBooks, Online, Test Drive, or in Craig's Design and landscaping services this time, considering that lists, lists is one grouping or one way to group items within QuickBooks online that are often very important for the setting up of the system of QuickBooks online. And then they'll basically be working behind the scenes as we do our normal processes. Those normal processes being the customer cycle, the vendors cycle, and the employees or payroll cycle. So to get an idea of the term lists, Let's first jump over to the desktop version because that's probably where it originates. And then we'll take a look at those lists in QuickBooks Online. So if we go over to the desktop version, we've talked about some of those items that don't really fit into the flows per se. They're not part of the forms that we're going to be doing on a day-to-day process, but they're going to be very important, often underlying what we're doing. And they're often part of the setup process when we set up our QuickBooks Online, the two major things there, the two major list items being the chart of accounts and the item list. These things have been housed in the QuickBooks Desktop version for a very long time under this drop-down, which they simply labeled lists. So for that reason, note that this is a terminology thing. When you're learning the terminology of QuickBooks, you want to be careful about it and be, be mindful about what you are learning. Because when we have terminology for accountants, so people that go through a formal accounting education, they'll have that terminology that they will be using probably focusing more on like debits and credits. And then we've got the terminology for QuickBooks, which has a lot of overlap, of course, but there were some things in QuickBooks will, that will be specific to QuickBooks. We saw, for example, the income statement more often been referred to as a Profit and Loss report, a P and L reports. And then you've got things that kinda generate just from the functioning of QuickBooks, such as having a drop-down of lists here that houses these items. So many people that use QuickBooks now kinda think of these items as something that is under the category of lists. So if you hear lists within QuickBooks and even the QuickBooks Online is still using this terminology. Even though they don't have that same drop-down, then you're going to want to keep a couple of things that are going to pop into your mind. The two big things that are in the lists are gonna be the chart of accounts. And I think the one that might pop into people's mind even more so it's going to be the item lists, and those are going to be the service items in inventory items. So let's check those out in QuickBooks Online here, you can get into those items in a few different ways. But right now we want to look at the COG up top and then go into our lists. So here's the shortlist of lists, and that's going to include the products and services. Those are the item list of things that we're going to use to create our invoices in our sales receipts. We've got the recurring transactions, attachments, and tags. Let's go into the longer list of lists. Let's look at all the lists here. Now, of these lists that the ones that are going to be critically important to do almost anything to the creation of the financial statements are going to be the chart of accounts number one and then number two is going to be this product and items lists. Because anytime we make us something that we sale, if we make an invoice or a sales receipt, we're going to set up the things that we sell and those are going to be the product list and item lists. So we're gonna go into both of these items in more detail and give them their own presentation. But just realize that you want to still see them in terms of basically lists. Even though you can find them in other locations, it will take a look at that in future presentations. So we've got the chart of accounts. That's the chart of accounts that's going to be making the financial statements. Every transaction that we do, what's going to impact at least two accounts in the chart of accounts. So all the forms that we looked at have to have a chart of accounts in order to function because they're going to be then logged into the chart of accounts. Then financial statements, balance sheet and income statement will be created from the chart of accounts and then the product list down here, it's going to, is going to be the products that we looked at, setting up in a brief examples as we went, which is going to include the service items, and it's going to include the inventory items, those things that we're going to use to create the invoices and the sales receipts. Other things that we have under the list here, recurring transactions displays a list of transactions that have been saved for reuse. So transactions that are going to be recurring. If we select the recurring transactions, then we can set up basically items within our recurrent transactions. And these can be things that might be able to be automated or they might be coming up and popping up. In our Reminders section, we might have another section in and of itself that goes in more to reoccurring transactions, it can be very useful. Many people really like the feature of reoccurring transactions because one, it can save time and to remind you so that you don't miss certain type of transactions. So a custom form styles. So customize your sales form designs, set defaults, and manage multiple templates. So if we go into the customization of the forms, then we could set customization of the form. So we have the new style up top of the invoice estimate and sales receipts. And these are the forms that are going to be going or could be going to customers or clients. And so we could go through the customization of them so that we make whenever we contact with the client, we make it as as nice a contact as possible with the forms being laid out in a custom style. Again, we might go into that in more detail in future presentations after we go through the practice problems, which will be focused more on just the logistics of recording transactions. Then we have payment methods, displays, cash, check, and any other ways you categorize payments you receive from customers. So if I go into the payment methods here, when we saw the drop-down for the payment method in the receive payment and the sales receipts, how we're going to get paid. The typical items that you'll you'll have there is you can have cash and check, and then you can add other items, other methods that you want in that drop-down, which will give you kind of an informational type of form. You can make a new one up top. So you can run a new payment method basically up here. Going back to the list, then we have the terms, displays the list of terms that determined the due dates for payment from customers or payments to vendors. So if we go to the terms, then these are going to be the net terms that when we create an invoice, for example, how long from the point in time that we create the invoice, which is going to put an accounts receivable in place, meaning customers owe us money. How long do they have to pay us? So they have set up here net 10153060 day terms here you can make a new one up top, creating new terms up top. If you want to have some different type of term setting, then we have the attachment displays, the list of all the attachments uploaded. From here you can add, edit, download, and export your attachments. You can also see all transactions linked to a particular attachment. And then we have the tags down here, which is an interesting feature, fairly new feature. And the QuickBooks Online don't believe it's on the QuickBooks Desktop. And again, it's one of those things that a little bit specialized, we might go into it in more detail after the full practice problem. Not one of the core, It's not like one of the core things you need to be to be putting together your bookkeeping system. It's probably not used by a lot of people, but in certain circumstances the tags can be a neat, neat thing and they can give you some more ways to sort your information that weren't available before. So displays the list of all tax created. You can add, edit, and delete your tags here. So we'll go into that possibly more again after the full practice problem, we might dive into that a bit more to get used to it. But the main two under the Lists, Chart of Accounts and the products and services. So we'll talk more about them shortly. 27. 1.80 Chart of Accounts: Quickbooks Online 2021 chart of accounts. Let's get into it within two. It's QuickBooks Online 2021. Here we are in our free Test Drive files. You can get to the test drive file by searching in your favorite browser, browser for QuickBooks Online, Test Drive, the Craig's Design and landscaping services Test Drive file is what we are working with. We're going to go into the chart of accounts. Couple of ways we can go to get in there. We saw last time chart of accounts is one of our major lists. So you might hear it from QuickBooks terminology as something that would be a type of list. We saw that we can get to the lists in general with the COG up top. And then under the list item we can go to all lists. There is our chart of accounts. More commonly and more easily to access the chart of accounts, we will typically go to the accounting tab at the bottom, where we'll then have two tabs up top chart of accounts and reconcile. We're gonna go to the chart of accounts tab here. You may have to Kid a green item in the test drive file in order to observe the chart of accounts. The chart of accounts is going to be a really important item here, and it's often one that's going to be set up at least by default, meaning you'll have some default accounts being set up when you set up your QuickBooks file. And it's going to be used every time you enter a transaction. Because the transactions, if their financial transactions will have an impact on some account, every transaction has at least two accounts affected. In other words, if we go to this plus button up top, everything that we looked at in terms of the forms here for customers, vendors, employees with the exception of the purchase order, will typically have an effect on the chart of accounts in that it'll affect at least two accounts that will be there. So that means that the chart of accounts or something that we have to sit up before, we can basically do any of the accounting cycles for the accounts receivable cycle, payable cycle, or the employees. Therefore, it's one of those things that if you're going into a company file that has already been in use or you're working at a company, you may not see the setup of the chart of accounts, but rather you're going right into the data input. Data input is already being set up. The things that had to be done to make the data input work well, including setting up a good chart of accounts has already been put in place, and therefore the data inputs should be an easier process. But if you understand the chart of accounts and how the chart of accounts is set up, and how we can link the chart of accounts to the data input forums and then create the financial statements from them. You will become much more valuable in the event that you do need to set up a new company file or adjust the company file or fix errors or detect errors in the company file. We're going to close this backup. Then the chart of accounts can be organized in a couple of different ways here you can organize it by any of the headers. So if I wanted to organize it by name, I could do this. I can, I can adjust it by name. I can adjust it by type. When I say type, we mean account type and this is the item that we have to get most familiar with. And then we can adjust it by the detail item here or we can't adjust it by the detail item, but then we have the detail item, we have the balance, we have the bank balance and action. Now the default is to keep it adjusted by type. And I'll explain more as to why that would be the case shortly. Let's go ahead and open up our two favorite reports now that being the balance sheet report and the Income Statement or Profit and Loss report. To do so, I'm going to go up top. I'm going to right-click on this tab up top. We're going to duplicate that tab. I'm going to do it again. I'm gonna go back on over here again and right-click on it again and duplicate it again. Well, that other one is thinking. And then I'm gonna go back to this first tab. We're going to go down to the reports down below. Let's open up our favorite report that being the balance sheet report. So I'm going to open up the balance sheet report. I'm going to make it for the 2020 because most of our data's in 2020. So I'm going to make it 0, 1, 0, 1, 2, 0 to 12, 31, 200. And then we're going to run that report. And let's do the same thing for the income statement. So we're going to go to the second tab, our other favorite report, we're going to go to the reports on the left-hand side, that profit and loss, the P and L, the income statement, same thing. A 1, 0, 1, 2, 0 to 12, 31 to 0. And then we're going to run that report as well. So these two reports, these accounts that are involved in these reports are going to be designed by or they're coming from the chart of accounts. So if we, if we go to the balance sheet first, let's take a look at the balance sheet. And if I was to minimize everything with a little triangle here, going to minimize all of these items. And then I'll minimize it all the way up to the assets. I'm going to minimize it from bottom to top, bottom to top, bottom, the top, like so. So now we have our accounting equation which is assets equal liabilities plus equity. Now the asset is not an account type, but, you know, it's a general category. And then within the assets we have basically the current assets. And then within the current assets we have a breakdown of these account types. So that's why we have that the bank account, the accounts receivable here in the other current assets, these are account types. Now if I go back to the chart of accounts, you can see them here. When I create a new account, I've gotta determine the account type. We have a BankAccount, we have the accounts receivable account, we have the other current assets. So we basically order these chart of accounts, primarily by account type. And the first level of ordering of the chart of accounts you could think of as basically being the balance sheet on top of the income statement. In other words, you can think of it as assets, liabilities, and equity on top of the income statement. If I do the same thing for the income statement, I'm going to minimize everything here. Minimize, minimize, and minimize. That will minimize this and this, and this and this, and then the income statement accounts being income and expenses including cost of goods sold and then other type of expenses and other expenses here. So basically income and expenses. So you've got the balance sheet at its simplest level, assets, liabilities, equity, income and expenses. And then if we expand on that within the acids, we then have the current assets which include the banking accounts, the accounts receivable, and other current assets. If I expand the bank accounts, now we have those accounts in those account types. So this triangle is driven by the fact that they're in that account types, so that that triangle is created by the accountant types. And then down here we have the accounts receivable. Normal financial accounting, the accounts receivable would simply be a current assets. But from QuickBooks standpoint, there's different kind of things that need to be done because it needs a subsidiary ledger of this bike customer. Therefore, it needs its own account type so that QuickBooks can treat it differently than the cash accounts or the bank accounts which need their own account type. Because there could be connected to the bank feeds. So they got to be in a different categorization. So QuickBooks can then treat them differently. And then down here we've got the other current assets. So this wouldn't be every other type of acid that doesn't need any special treatment like a subsidiary ledger be linked to a bank account. And so those are going to be lining up over here to my chart of accounts, checking accounts bank account bank account, accounts receivable, other current asset type account. So all the asset accounts on top, then we have the fixed assets. Going back over fixed assets down here. This is property, plant and equipment, things, things that are going to be depreciable and land long lived type of assets are going to be going down here. Again, they need to be treated a little bit separately. One because there are long-term. So just for financial statement purposes, there'll be down here on the bottom because we can't really use them to pay off our current bills. And two, because we're going to depreciate them and therefore treat them possibly a little bit differently with regards to the account type, just the functioning of the account as well. Then if we go down to the liabilities and equity, we've got the liabilities. Under the liabilities, we have a similar structure, current liabilities, those are due within basically a year's time period, and those are going to be broken out. Now we have the accounts payable credit cards and other current liabilities, similar fashion as the receivables. The accounts payable then are another account type. And the accounts payable are going to be driven by the fact that we need a subledger again, just like the receivable this time by who we owe by the vendor. Therefore, in financial accounting, accounts payable is just another current liability really for reporting purposes. But for QuickBooks it needs its own account type. Because those accounts need to be treated differently so that we can have the subledger by vendor. Then we have the credit cards has a similar function. The credit cards need to be treated differently because we can attach them to bake feeds in a similar way that we can with a cash accounts. And therefore they have to be broken out in their own kind of category and other current liabilities, even though in financial accounting and they would simply be another current liability. And then we've got other, everything else that doesn't need a special kind of function down here in other current liabilities, then we have the long-term liabilities. Well, let's just see those on the chart of accounts. If I go to the chart of accounts, credit card, accounts payable, other current liabilities, and then all the other current liabilities. Then we have the long-term liability here. Long-term liability means it's going to be something due in over a year. So that's going to have a separate categorization. That's how it should be in financial accounting here. So that's why we need that long-term. And then equity represents basically owner's investment. So if it's a sole proprietorship, while they still use the similar terms here, we've got retained earnings, which is more of like a corporate type of term. But in any case, this is basically the owner's investment in it. And then we have the opening, opening balance equity. We'll talk more about opening balance equity. When we set up the new company file and the net income is not really a balance sheet account, but they're trying to link the balance sheet to the income statement. We'll talk more about that when we get to the reports. But notice that this net income is not on the chart of accounts and we've got the equity section here. Net income is a calculation on the bottom of the income statement. It's not part of the chart of accounts, it's a subtotal so that Ned and then in that net income flows into the income statement. So now if we look at the chart of accounts, we've got the balance sheet accounts on top of the income statement accounts. Income statement accounts, we have the category of income. So we have design income and all these different incomes for this particular company. Usually there's not a whole lot of income kinda line items because we only do a couple of things, but this is like a construction type of company or landscaping. So they have more income categorizations here. So we have the different income items, those then are going to be here. So these, they're all set up as income. Now you'll note we added some extra triangles because, because this is income, this is income, this is income. What's the deal with this indentation type of activity? So if you go back to the income statement, notice this triangle right here is driven by the fact that it's a different category. And then these items down here are still the same category of income, but they have their own triangle to collapse and expand because we set them up as sub accounts. So that's a way that we can add another level of detail of expansion. And that's going to be with the use of sub accounts. So the two triangles can be a little confusing. The one triangle driven by the fact that it's another, that's a separate account type. And then these triangles down here or driven by the fact that we created a sub account within the same account type in this case that being within income. And then if we go on down, we've got the cost of goods sold. These are the costs of the things that we sold. They need their own special account categorization. One, because that's what you do in financial accounting. But two, because the cost of goods sold has a different function, it's going to be linked to the calculation of inventory, the tracking of inventory, cost of goods sold being the cost of the things the inventory that we sell. You will only have cost of goods sold. If you sell inventory. If not, you don't have to worry about cost of goods sold. Gross profit is a subtotal, not, not an account. And then we have all the expense accounts. So the expense accounts is going to be our main categorization on the income statement. So if I go back to the chart of accounts, income, accounts, cost of goods sold, and then expenses is where most of our accounts will be the biggest category for most companies, because although our expenses hopefully will be less in dollar amount than the revenue, we'll have a lot more things that we're paying for their, for more categorization. Same kind of thing you see down here where we have Expense, Expense, Expense, this one subcategory subcategory of the auto. So Expense Expense subcategories. And so there we have that. That's going to be the basic layout of the chart of accounts. And then down below you got other income and other expenses. And these are things that aren't part of ordinary operations. Typically, we want to see them at the bottom of the income statements. So we see them down here on the income statement. So you wanna, you wanna start to visualize this chart of accounts basically as, as in order by the account type. And then try to visualize where they're going to be on the balance sheet and the income statement. Thinking of the balance sheet and income statement as its simplest form as assets liability equity balance sheet on top of the income statement, income and the expenses. And then further breaking down once you have that into the categorizations within those groups. If we wanted to edit one of these accounts, like if I go down to inexpensive count down below and then I'm going to go over to the right and I'm going to go to Edit. And then I can see the detail for editing. It's an expense account, equipment rental equipment rental being the name. This is how you would add the sub account. So if we wanted to add an account, let's just add an account and a sub account. Let's say we're going to add an account and a sub account. You could go to the new up top and import or I'm just going to say that New button. And then this is how you set up the account from here, you can also set up a new account as you do data input transactions. But realized that what you really want to do if you're setting up an account from scratch or if you're taken over another account is our first look to see if the if the account is there, if you have an appropriate account that is there for what you want to use and try to be consistent with the last thing that happened so that you have that consistency principle in place. And then if you do not have something, an appropriate account to charge two, then you can make another account as you do data inputs such as making check forms, expense forms, invoices, so on. So I'm going to make this these are these are the list of accounts, so you can see the same order. These are the account types that we just went over. We got the receivable. Other current assets, the bank account and this one special because you could have bank feeds linked to it. And then the fixed asset, other assets, accounts payable, credit card, other current liabilities, long-term liabilities, equity. Then we're into the income statement where we have income, other income, Cost of Goods Sold, Expense and other expense. I'm going to go to the expense category. And then this is the subcategory not terribly important because it doesn't really affect a lot of the a lot of the organization that we're going to be sorting by. But I wanted to choose a suitable expense category. So I'm just gonna say other business expense. And then I'm going to label up top, I'm going to label up top. And then I'm just going to say special expense, just so it stands out. So special expense. And then I'm going to make this the parent category. And the next one I'm going to make a subcategory of it. So I'm going to save it and close it. And so now we can see if it's in alphabetical order down here. And we have then the special expense there it is. Let's add another one which is going to be a subcategory of it just to see how that sub categorization works, it needs to be in the same category. In this case, expenses, if it's going to be a subcategory. And then we're going to say this is other business expense and this is the sub special expense. And then I'm going to make it a subcategory of the special expense here. And then if I say save it and close it and then scroll down, then that's how you're going to get that sub categorization, that other indent, which will result in another little triangle subtotal calculation on the income statement. Now be careful with your subtotal. Some people really liked them, but they can be a little tedious as well if you do too many of them because they make your income statement or your financials a lot longer. Because they're going to have added accounts, added line items that are going to be involved. Now if we go back up top again, notice that this is also where I will typically go if I'm going into the check register. So you notice on the right-hand side we have this option to go into the register as we saw a little bit in prior presentation. So if I go into the register here, we see our standard kinda check register and we can enter deposit, we can enter transactions in here specifically if we do not have a need for a form. So in other words, if I hit the hamburger over here and I look at the forums, if I don't really need an invoice or a sales receipt or something like that. But what I want to put a deposit in or if I want to put an expense directly into, into the register here, then sometimes it's easier, faster to go right to the register and you have your list of transactions here. So the cheque, deposit, sales, receive payment, bill, and so on and so forth. So sometimes it can be a little bit easier to go right to the register and inter transactions directly here, which I usually go into through first go into the chart of accounts. Also note that you have a similar register option for all these other items down below. And people are probably less used to use in a register type format for these items, but it can kinda save you from having to do journal entries. So if you don't know debits and credits as well, or if you'd rather just think in terms of plus and minus, then the registers can help with fairly basic transactions as transactions get more difficult, with more accounts involved, the debits and credits are the way to go. But if your, if your Internet, a lot of transactions, you can go into the register here and we'll see some examples of these. So for example, if you have a loan that you're taken out, if if there's something that involves cash, I'll use the check register. But if there's something that basically doesn't involve cash, like we have our bind fixed asset and we're buying it on account, then I can go to either the loan account or I can go to the fixed asset account. That's something that doesn't fall into the normal transactions. So I would typically in kinda need a journal entry to record that. But I can use these register format to do it as well. So I might then go into, let's say, a fixed asset account like the truck. So here's the truck and I could go okay. This is the truck register. And then I can just record the increase to the truck and the other side would then go to the loan and so forth. If there's just two accounts involved, that could be a nice, a nice way to enter transactions that are not normal to use these other, these other registers. Note that you do not have registers for the income statement or temporary accounts down below. Once you have an account set up and you have activity in it, you can't typically delete the account after the point in time there's activity in it, but you maybe you could make it basically inactive. So if you want it to say, Hey, I'm not using this account. I got this all the stuff in my chart of accounts. I want to make some accounts inactive. Or when you first set up your chart of accounts, you might have a whole bunch of accounts and you might want to trim down your accounts later. You don't want them to lead them possibly at the beginning, but the accounts that you note that you're not using, you could either delete them if they haven't been used at all possibly, or you can just simply make them inactive. So if you make it inactive, then, then it won't plot pop up here in your chart of accounts. So let's pick like an expense account down here. Let's go to penalties and settlements. And I'm just going to hit here and I'm going to make it inactive. So we'll say inactive. Are you sure you want to make it? I'm going to say yeah, make it inactive. And then if I if I go back up top and hit this car right here, this is showing the columns. And note you could basically show less columns that you, if you choose to, but mainly you're gonna go in here and choose, I want to see include the inactive items. And then if I include the inactive items, it should bring that item back in. So if I scroll back down, then I'm going to be able to see that that item here. And it says, I can make it active, right? I can make it back to active and I'm going to bring it back, making it active again. Now we have it back in action, back active status. So we can also basically run a report. If you wanted to see this in a report format, you can run the report. And then here's our report. I don't use that too much. I I'd rather run a report basically with our with our reports section, but you can't do that. You can't edit using this tool as well. If you want to edit a little bit more quickly possibly. And I'm going to close this back out. And then you have your printing option here. So we'll talk more about the chart of accounts when we start a new company file, because that's when we kind of have the first chart of accounts set up and we'll build the financial statements from scratch in a clean chart of accounts with nothing in them from that. Also note that by default, the chart of accounts does not include account numbers by default, which if you're more advanced user, you might want to turn on the account numbers. What that means is it's typically going to be in order by account type. Or you want to think about it in order by account type, it'll show up on the financials in order by account type. But then within the account type, it's going to be an order by alphabetical order. So within the expense category you can see then it's an order by alphabetical order, but the whole thing won't be an order first. And primarily by alphabetical order, it'll be in order by type first. Now you can't change that, but you'd want to kinda think of it in that way because that's how it's gonna go on the income statement as well. If you wanted to turn on the account numbers, you can hit the COG over here. And then we're gonna go to the Account Settings. And then you can, you can go down to the Advanced and then, then you want to turn on the account numbers right there so you can edit that one and enable the account numbers and then save that. Now we're not going to enable the account numbers in our practice problem. But we might go into a special, special section to just look at the account numbers. They can be a little bit tricky to set up, but they do give you that added amount of control with the account numbers. So now if I was to add a new account, for example, I've got my number up top. 28. 1.84 Products & Services List Item List: Quickbooks Online 2021, products and services list or item list. Let's get into it within two. It's QuickBooks Online 2020, one. Here we are in the free QuickBooks Online Test Drive file, which you could find by typing into your favorite browser, QuickBooks, Online Test Drive, or in Craig's Design and landscaping services. So we'll look in another item that can be classified under the category of lists. So one way to get there would be go to the COG up top. And then under the list here, we're looking at the products and services. So that's one way you can get into this particular list. Fairly quick way to get into it. I think more often or at least more often for me, I would go into it by going to the sales item here on the left-hand side and then the product and services tab up top. Now note that the terminology for the products and services will be a little bit different than a desktop version. And although it's more descriptive, it's a little bit longer to say. So I think many people might still be just simply calling them items. For example, if you went to the QuickBooks Desktop version and you're looking for the equivalent to type of thing. It would be under the law, dropped down, which is where I would typically go to find it in the desktop version, and then it would be the item list. So when we're talking about items, typically for the desktop version, we don't have many here, we've just got the one item. But when you're thinking about the desktop version and you're thinking about the things that you sell will typically be listing those as items. And then when you're thinking about them in the online version, you're probably going to still hear that term, but it's going to be under the category which is more descriptive of products and services. So it is what it sounds like here. These are the things that we sell. These are the things that need to be set up so that we can then populate our forms as easily as possible, particularly the forms related to the sales items or the sales cycle that being the invoice and the sales receipt. Because these forms are going to be utilizing the things that we sell, the products and services. Services being non inventory related items, products being those that are inventory related. Now we saw in prior presentations that you can basically set up these inventory items as you go so you could add another another product or service as you set up an invoice or sales receipt, but you probably want to set them up beforehand. You want to set up your products and services so that the data input for the invoices and sales receipts are as easy as possible and then it's more easy to delegate those tasks somebody else as they're going to be more simplified data entry type of tasks. These are the products and services that have been set up already. If you wanted to edit the product or service, you can go to the item on the right-hand side and we can edit the data input screen. So we have the name, we have the category which this is going to be an optional field to categorize these items. You can see there in these subcategories here. Then we have the description down below the sales price. They put 0 on the sales price. This would be the standard price of it. If you have 0, then there you get populate the sales price when you create a sales receipt or invoice. And then we have the item being taxable or not. This has to do with the Sales tax when we're talking tax, but we're not talking about income tax. We're talking about the sales tax, which again will be populated. Oftentimes, when you create the sales receipt or you create the invoice in the United States, the sales tax will typically be something that is done on the state and local level. And therefore, they're going to change from place to place and we'll talk about how to set them up later. They're often also apply typically to the inventory type of items and not so often to the service type of items. So if you're setting up a service item, something that does not involve inventory, less likely to have sales tax in the state, and more likely if you do so, inventory. We can also see those headers up top here, inventory, sales description, sales price and cost. This is a nice quick way to see these items, especially the cost, because the cost is something that may not show up in some of the documents that will be created. Some of the forms like the invoice and sales receipt. Let's take a look at an example of an invoice or sales receipt to do so, let's duplicate the tab. I'm going to right-click on the tab up top, duplicate that tap so we can keep our products and services open while we test out a document such as an invoice, I'm going to go to New. We're going to then be creating an invoice. This is something that would be billing basically the client. Then down here, this is of course where our products and services would line up. And let's just pick that one that we had here with the inventory. So that was the rock found. So we have a rock Fountain. That's nice. I want, I want a rock Fountain. So we have a rock fountain. And so that populates here and you can see the rate then of course populates here. And that's driven by the inventory items so that when I do the data input now, it's as easy as possible for us to do whether it be taxable or not has already been assigned out as well. And then what is not here is the cost. So the cost then I would have to go back. I can go back here and say, oh, they the cost of it is that that 125? If I was to sell this inventory item, then I can determine from this that it's going to have an impact on accounts receivable at the 275 in this case. And then the other side go into sales and then we'd have possibly inventory decrease in by the cost of it, as we saw in prior presentations in prior examples. So I'm going to close this back out. And do you want it do you want to leave? Yes, I do. Without the Saving. Going back to the first tab now, in the COG up top here you can do some more categorizations. You can see the columns, you can add more columns here to be displayed. Obviously, it would take up a lot of room if you had all the columns there, but you can have that option if you so choose if you want to see different columns in that page. You can also group by category or compact. If you wanted to manage these, these items in Excel, then you can export items to Excel here you can also use the printing option up top to add a new item. You can import the item so you could hit the drop-down and import them. So if you're taking it, say from, if you're moving, like from QuickBooks Desktop to online, you have an item list, say in some format and you wanted to import it, you can do a mass import. We might talk a little bit more about that when we do our new company file and setting up items, you can also manage your categories over here. So Manage Categories and run reports. So here you've got your categories. You can then edit and you can add new categories. I'm going to go back then to the products and service. And then if you added a new item up top, then the primary categories of the item, our inventory and then services. Those are typically the things that we're going to be sale, selling either inventory and services. Now, note that if you're thinking inventory, then you're usually thinking about a perpetual inventory system and tracking the inventory in some way, I believe online using the first-in, first-out inventory tracking assumption method. That's different by the way, than the desktop version which typically uses the weighted average inventory tracking method by default. Note that if you're going to be tracking inventory, then you're kinda thinking right there of a perpetual inventory system. You want to think about whether you want to track the inventory items within QuickBooks or whether you want to use kind of a periodic system and then basically make the adjustment for inventory based on a physical count, possibly in a periodic fashion. If you're going to be setting up the inventory unit up top using this item. Then we were talking about using basically a perpetual inventory system. And then this item down here is a service item. So anything that's going to be service related or not selling inventory, we could set up then as a service item and we don't have to worry, of course, about the tracking of inventory. And again, in the United States, less likely then to have the sales tax that would be applicable to this service items that we sell. Whereas more likely with the inventory items that we deal with sales tax. And then we have the non inventory items. These are products you buy or sell, but don't need to or can't track quantities. For example, if we have the bolts and nuts and bolts, then we might not be tracking the inventory units, say, using a first in, first out method, but there's still going to be inventory kind of items here. So main categories, inventory, service items. And then you can have basically these non inventory items that are kinda like inventory items. But we're not going to be tracking the perpetual inventory system using the first-in, first-out method. Then we have the bundling, which is a collection of products and services that you sell together. So then you can take some of your items basically, most likely like inventory items are or service items and put them into a bundling type of option. And then you could sell them in basically a bundle type format. So the easiest one to set up typically will be service items. Let's just take a look at these setup screen. We would enter the name of the items, let's just say service item. And then we have the SKU number, stock keeping unit, and we will only need that if applicable, not a required field category. Again, only if you have the category set up, would you need to be applying them to the category if you don't have any categories in once again, optional field down below. And then I'm going to put the same name down here in the description and then the sales price. If, if their standard unit sales price, we can put this here. Now you might be thinking if you're talking about like a law firm or a bookkeeping firm or something like that, that you're going to charge hourly and you could do that, you could set up basically an hourly rate and then multiply times the number of hours. I do suggest, however, that if you are a bookkeeper, for example, or a law firm. That these try to do, try to set it up in some other fashion because it can be a little more straightforward and it can be easier than kind of trying to count to your hours. So for bookkeeping, for example, we'll take a look at some reports as we go that can help us to count the number of transactions that you have. And you might do your billing based on how many transactions there are or whether you're in a category of transactions. And that's going to be a little bit easier for you to do your billing and it'll be easier than to talk to clients and say, Hey, you know, if you fall into this range of transactions, this is what we're going to charge you. It's a little bit more straightforward. Then we're going to charge you this many hours. And then they don't they don't know exactly how many hours there are. But you can use it our earlier you can you can try to bundle things together. That's just a suggesting. So if we put a 100 here, then the income account is going to be what is going to be hit on the income statement when we make an invoice or sales receipt for this item. So typically this is going to be a service item here, so we'll keep it at the service item taxable. And I'm going to say that this one is going to be non-taxable due to it being a service item. So we'll keep it at that. We could have a picture of it as well. This might be useful for people to kind of visualize what it is when they're doing basically the data input into the invoice, they can say, oh, that that's the thing that I need to be adding right there. So then I can say Save and Close. And then we have our service item down here that has been included. Let's just take a look at an inventory item just so we can populate that one. If I go to the new tab inventory, we've seen a couple of these in prior presentations, but this is an inventory item, which of course we would want to make more specific than that. We have a similar option here, which is not, not required but if needed, if it's in our system to use that, then we have the categories if necessary. If we're using those, then we're going to be tracking the inventory. So here, if I add another inventory item, if we want that inventory item on hand, then we're going to use this on both the purchasing side as well as the sales side. So we'll use that to populate invoices and sales receipts, but also purchase orders and bills. So if there's an initial quantity on hand, we can add that here, which we might do when we first start our company file. But after that, then you're probably going to want to add the item and then purchase them with purchase orders and bills. And then we're going to say it's the inventory we have to add here an inventory asset. So when we purchase them, if we're tracking the inventory, we're not going to expense them at the point in time that we purchased them, but rather put them on the books as an asset. So the acids, what's going to be hit when we enter the bill, when we purchase the inventory. Now I'm just going to add the description here. And then the price. Let's say this is the sales price was put like 500 for the sales price. And then this is the sales of product income. So that's going to be our income account. So, so that's good. And then we've got the tax. This one will typically I'm going to say it is taxable at the standard rate because inventory items were often be taxable. And then the cost is going to be what we purchased them for. So it's going to be something typically less than the sales price. I'm going to put 300 on the cost. When we sell it. The cost is going to be reducing the inventory that's being tracked in inventory and then record the related expense called cost of goods sold. We can also assign a preferred vendor here if we so choose to set this up as well. So we could save and save and close. And then it says the initial quantity on hand. I'm going to say we have 0 on hand at this point in time. And then see if it'll let me then do then. So then if I scroll back down, there's going to be our, our service item and we have our inventory item here. It's at 0 units at this point. So that's gonna be that, those are going to be the, the main two that we would then be setting up. The non inventory item is going to be similar basically to the service item. And then the bundle down here, you could basically set up a bundle name. And then you could set up the, the multiple types of things that will be included. Bundles, we have concrete we're going to include in the bundle. And then I can add another item in the bundle and say we're going to have installation included with the concrete and then we're going to add another item and so on and so forth. And we can sell it basically in a bundle type of format. Now, let's just think about how this would then populate to our forms. So if we go then to our forms, Let's look at the inventory item because we looked at it on the sales side, it would also be populating, say, a bill. So if I went to the bill here, then we could say that we're going to be purchasing. And let's just pick a vendor. I'll just say this, probably not going to buy these from the burger joint, but let's just imagine we are. And then we're going to say the category is going to be the inventory item. In inventory, actually, not the category items down below. We're going to be purchasing items down below. And I'm going to say it's an item, not a category, inventory item. Let's say we purchased ten of them. And that would be on the purchasing side. This would then increase inventory. So we're buying the inventory, it's going to increase the inventory by 3000. And it's going to be also tracking the units of inventory tin that we're buying of this particular inventory item. So then if I say save it and close it, and save it and close it, then the other side of things, of course, would be the sales side of things. So if I went to the invoice here, we can then go to our invoice. And we're gonna say we're gonna sell this to customer one, which I spelled wrong. I'm not sure I care customer one. And set that up. And then we're going to say that this is going to be an inventory item, inventory item. And we'll sell two of them. So there's our 500, There's our sales price. And this thing is driving the sales price, which will then now record it to revenue, which is driven by this item here. And then the other side is also going to be decreasing the inventory and recording the cost of goods sold, which isn't on here. But we know that it has been included because it's driven by that item. So that item, I think we set it up at 300 for the cost. So we took a look at an example of that in a prior presentation. So I won't go through the full process here, but that's how to set up those items. Now we'll get a better look and feel for these items when we set up the new company file. And then we set up all of our items and then we will use those items as we track the inventory and record sales and whatnot. And then we'll create financial statements from scratch with our data input for two months of transactions. 29. 1.90 Help & Support Options: Quickbooks Online 2021, health and support options. Let's get into it within two. It's QuickBooks Online 2020, one. Here we are in our free QuickBooks Online Test Drive file, which you could find by going into your favorite browser and typing in QuickBooks Online. Test Drive were in Craig's Design and landscaping services practice file, thinking about support options. When thinking about support options, we went up, break out the category of the support option that you're looking for, and then go to the best resource out there. There's a whole lot of different support options. Now for QuickBooks Online. So it's almost overwhelming to think about the support options that you could go towards. So first I would think about is it's something that is a technical thing in nature, or is it something that's a bookkeeping type of question? If you if your answer is it's a technical type of question, then you might want to go directly to intuit the owners of QuickBooks to solve that problem. Something about your account settings, something about like a glitch that you think just isn't working right within QuickBooks Online, then you probably want to troubleshoot that with QuickBooks itself. If it's something that's going to be on the bookkeeping side of things. Then I would first I would further break down your thought to say, Hey, is this something that's just some little thing that I don't know how to do. I understand it well, I understand conceptually what I wanna do, but I don't know how to actually do it. Then you probably can just look for an answer on that. And that's when you might want to go for the help option up top. And you could also go to the QuickBooks Online website to look for forms in there to help you out. And you could just Google search or form because QuickBooks is quite a large software, so you could just find answers in that way as well. You can look online and YouTube and whatnot and find answers to specific technical questions. If it's a bookkeeping question and it's a larger question about something that's going to affect a greater impact on your, on your system. You have a question about what to do that, what would be right for your business from a strategical bookkeeping standpoint. Then I would think about going either to your accountant, an accountant in some way, either an accountant that is specializing in bookkeeping in QuickBooks, or possibly to your tax firm or accounting firms. So if you have a tax firm or CPA firm, and it's more a question that could impact your bookkeeping kinda overall. And you don't know exactly what to do? I would go to your tax and accounting firm or possibly to a QuickBooks professional, a bookkeeping professional. And you could find one of those here by, by looking through into its experts as well. Obviously, there's some overlap there as well. So you might have some support from people that are bookkeepers, who are your tax preparers. You might have some support from bookkeepers who are not your tax preparers. And you want to make sure that if you have multiple levels of support that are giving you advice on how to put your books together, that they're on the same page so that you can make things as easy as possible going forward. So again, if it's a technical nature, you might want to actually go to into it, you know, go to your account, look up your account and contact into it about something like this glitchy in the software. If it's something that you just look at, what should be done or how do I fix some problem or inter one type of transaction when I know what I wanna do, probably this help option is your best choice. It's an easy navigation option up top. So you've got some of your Categories down below, but you could be searching for payroll and search in that format. So it's got a lot of good information. This is probably the first place that you're going to go. Probably the first place that into it would lead you to go. But for those types of questions as well, you could go to the to the Intuit website. So into it, remember is the owner of QuickBooks, you can also go to, I would typically start by going to QuickBooks here. And then you could then go to the support options. Options here. You could call them, obviously, this would be the sales line, but they could probably track you to the support line from there. Notice there's the support option up top. I usually go down all the way down and make sure I'm in the right product which is QuickBooks online. I think it's going to take me to the same spot though. I'm going to go to QuickBooks Online here. And then I'll typically go to the support, which I think is again the same, the same general area. And then you've got a lot of support options here. Many of this could be similar to what you'll find in the help menu, but it's kind of laid out in a different format might be an easier way to look through it. So you got the QuickBooks support here. Get Started. Different topics, account management, baking expenses get started. Quickbooks, commerce reports, and so on. They got the community community home. Quickbooks, Q&A, discuss your business, community basics, Champions program, and then resources. You could have live bookkeeping resource. So it might be worth looking into if you, if you have a specific question that you think it's a bookkeeping question, again, I would If you have a tax preparer and Accountant, then I would make sure that the bookkeeping support that you're getting is in parallel in alignment with whatever your overarching accountant plan would be as well. You want to have those things on the same page. So if you get advice about an overarching type of thing for bookkeeping from a bookkeeper, then you probably want to run it by your accountant as well. If there's different, find an expert. And so you can actually find an expert and these, when you find an expert within QuickBooks, it'll be something that they will typically be some in some way, shape, or form QuickBooks certified so that they have some kind of level of competence that they have proven in some way, shape, or form for bookkeeping within QuickBooks, which can be a good place to start when you're looking for bookkeepers. So resource center and then the QuickBooks blog. So if you scroll down here, some of the resources notice it's on QuickBooks Online here, account management, banking, expenses and vendors and so on and so forth. So the actual website is a great place to go. And again, QuickBooks is quite a large type of software in its, its area, in its marketplace. Therefore, just simply searching for QuickBooks Online or QuickBooks Online. I'm like a YouTube search as well. You will find oftentimes a lot of support to help you out with particular type of questions. But again, if you're looking at overarching questions, I would go to your accountant or professional. Now you can also find that here you have your, My experts here as well. So you can connect with your accountant Pro or find one on our network. So you could try to look for an accountant to help you out and support you in that way as well. So I'll just keep the overarching theory of if it's a technical issue, possibly go to into it. If it's going to be something that I just need to know what to do. I know what I want to do, but I just don't know quite how to do it. Then there's a whole lot of resources starting probably at the help menu. You could Google search, you could do YouTube, youtube videos, and then you can look at support within the community as well on their webpage. And then if it's an overarching change, which you think it's going to have an impact for a long period of time. And you want to make sure that you implement that correctly, then I would talk to book-keeping experts, which you might be able to find here and make sure that they're in alignment with your overarching plan that she would get advice from if you have a tax preparer or CPA firm that she at least dude, you're in tax preparation with if they couldn't get in alignment with that as well. So you want to make sure everybody's on the same page with those big ticket items, those things, you can have a large impact. 30. 1.92 Reports Overview: Quickbooks Online 2020, one that reports overview. Let's get into it with Intuit QuickBooks Online 20011. Here we are in our free QuickBooks Online Test Drive file, which could find by searching in your favorite browser for QuickBooks Online test drive, we are in Craig's Design and landscaping services practice file looking at the reports which will be on the left-hand side. So we're gonna go down to the reports on the left-hand side. Up top, you have the standard we have the custom reports, we have the managed reports. Then down below you've got your favorite reports up top. Favorite reports can be brought up top by selecting the star next to any of the reports. So you can see this balance sheet was brought up top with the little star there. So if I wanted to bring, say this report up top, I click the star to make it green. And that should pull it on up top here. So now we have it up top as well. Now, I'm going to take only the balance sheet and profit and loss as the favorite report for now, just to prove the point or just to show the fact that these two are the major financial statement reports. So you may customize them. You may want to see them a little bit differently, but some format of the balance sheet and the income statement, otherwise known as the profit and loss, should be your favorite reports and it's not a matter of opinion. Those are the financial statement reports if those aren't or some format of them, your favorite reports, you're not seeing things correctly. And so what we want to do is say, those are going to be definitely reports. We're going to work out all the time because those are the financial statements. Also note that the statement of cashflows is a major financial statement report as well. But that's basically going to be an alteration or adjustment of the balance sheet and income statement numbers. In other words, to get to the statement of cashflows, you typically take the balance sheet and income statement, make those first, and then construct the statement of cashflows from it. So the balance sheet and income statement are basically all the accounts that are in use that we're using from our chart of accounts are going to be on the balance sheet and the income statement. So the way you want to think about it is balance sheet income statement. Those are our major financial statement reports. And then all other reports in some way, shape, or form in general, will be supporting some line item or multiple line items on our major financial statement reports that being the balance sheet and income statement. So when you start to think about the reports, what first you want to do, what you wanna do is get really familiar with the balance sheet and the income statement. And then start looking at all of the other reports and see how their variance, how they're expanding on providing more information to some line item or multiple line items on the balance sheet and the income statement. So let's go ahead and open those two reports up first, and then we'll come back here. So I'm going to duplicate this tab to do that. And this is what I would typically do even when I'm just normally working in the system. If I'm just doing data input, I want to have the balance sheet and income statement open or alternatively a trial balance. If you're used to seeing a trial balance and we'll talk more about a trial balance later. And then every transaction that I enter into the system, I want to kind of visualize, I might as well think about it, what's happening to the balance sheet and income statement whenever I do that. And that'll help me get a better and better understand it just by doing the data entry work, just by being a little bit more engaged when I'm doing the data entry to have the balance sheet and income statement open and think about the impact on them as I do the data entry. So I'm going to go up top, I'm going to right-click on this. I'm going to say duplicate that tab. I'm going to do it again. I'm gonna go over here, right-click on it again and duplicate the tab again. And then we're going to be opening up our balance sheet and the income statement. So I'm gonna go down to the reports. Down below. We're going to be opened up the balance sheet. So my favorite reports, the balance sheet, these are everybody's favorite reports, not a matter of opinion. And so we're going to say the profit and loss balance sheet income statement. I'll change the date ranges then. We're gonna make it for 2020 because that's where most of the data is. I'm going to go 0, 1, 0, 1, 2, 0, 1231 to 0, and then run that report. I'll remove the hamburger here, see if I can scroll in without messing up the other ones as well. And then I'm going to go to the profit and loss. And I'm going to close the hamburger here and make this a 1, 0, 1, 2, 0, 0, 2 1231 to 0, and run that report. And there's the profit and loss. The profit loss is the activity report. How we did overtime balance sheet is going to be where we stand as of a point in time. We'll talk more about that possibly when we when we break down those reports in general, but now we're just going to give an overview here. So I'm going to scroll back down to 100%. I'm going to close the hamburger. And then if we just think about some of these other reports, how they relate, I'll just go over them quickly here. So we got the business overview, so we've got the balance sheet comparison report. We can construct some of these reports also from the balance sheet. So this is going to be doing some kind of comparison from period to period on the balance sheet. Balance sheet detail could give us more information on the balance sheet. Balance sheet summary report. That's going to take the balance sheet numbers and break it down and condensed it. So when you're presenting the balance sheet, oftentimes you want to be taking the summary balance sheet report. And then if you're not overwhelming the person you are giving to the report to wait for them to ask more questions and then follow up with it with a standard balance sheet or detailed balance sheet report in order to answer the more questions rather than hitting someone over the head with a detailed balance sheet report. If they're not, you know, someone that likes to look at reports and overwhelming them. So that's why the summary balance sheet will break down the categories. A lot more condensed format. So then we have the business snapshot. We've got the, which is kinda like a balance sheet, a snapshot of the business, the profit and loss as a percentage of total income, profit and loss as a percentage of total income. So now we're going to have percentage type reports. When you look at something from a percentage basis, There's certain advantages to that than looking at it from a dollar basis. It helps you to compare, for example, to other companies, oftentimes, when they have a different dollar amounts. But the percentages and comparisons could be very useful. So if you've ever done any kind of comparison on, on anything sports or jobs with sports are just people's jobs, right? That's their job. We're trying to measure how well they're doing. So that means you got to use stats in order to do that, and that's percentages. So profit loss comparison. So now we're on the profit and loss reports because when the business overview, so profit and loss comparison, that's going to compare period to period. We're looking at, at reports that are performance type of reports. Now, this of course, just being a variant of the standard profit and loss. Here's the profit and loss detail. Profit loss, year to date, comparison, Profit and Loss by customer. So we can see our profit and loss by who we got the money from by customer, which can be useful profit, profit loss by month. So we can break out how we did from month to month and profit and loss, profit loss by TAG group. We may talk about tags more in the future. It's an interesting, interesting feature that QuickBooks has not the main feature that's not fundamental to the recording, but could be a good tool to break down more information. Here's your standard Profit and Loss report. That's where you're gonna go to most of the time. Quarterly profit and loss summary. And then we have the statement of cash flows, the statement of cashflows being or other main report besides balance sheet, income statement. In other words, it's a financial statement reports. But again, it's kind of a variant of the balance sheet and income statement. You'd make the balance sheet income statement first. Then you do the prophet in the statement of cashflows, which takes it basically from an accrual basis and puts it more on a cash flow, obviously, typefaces, then you're down here. And in the who owes you money. So now, when you're thinking about who owes you money, what What line item on what report are we mainly talking about? Well, one line item for sure is the accounts receivable on the balance sheet. Who wills you money accounts receivable. That's the report that we're typically looking at. And what do we think it about with reports about who owes us money? We're trying to say, hey, that's what people owe us. I want to get the money. I want the money, not the IOU here. I want to collect on it. So what we're trying to think, how can we how can we collect on this? Yeah, who's paid us? How overdue as it can we get paid by that. So we have the accounts receivable aging detail, which will help us to determine how old something is supporting that accounts receivable number. All these should kinda tie into the receivable number, accounts receivable, aging summary, which will, will not have the detail, but these two reports are very common. And if you work in an accounting department, that for a larger company, you may just work in the receivables department and you'll be working with these reports all the time. Then we have the collections reports. So we're looking to collect on the receivable customer balance detailed report. We're breaking down that accounts receivable number by who owes us money, customer balanced detail or summary report. So instead of having all the detail about all the invoices that were involved in each category will simply just have a summary. The invoice list. The invoices are the forms that create the accounts receivable. That's the form that we use to bill customers with. So the invoice invoice and received payments. So we're breaking down that number again because we're looking at invoices, the thing we use to make the receivable and then the payments that we got for them, open invoices. Those are the invoices that we made which we have not yet received a payment for. Therefore, that's kinda what makes up the accounts receivable statement lists, terms, lists. And so these are kind of more there's a kind of a more minor report. These are terms that we might use like for the receivable unbuild charges. So these are charges that were set up to be billable in that, but we haven't we haven't billed them yet, so we set them up that we pay for an expense and then we haven't yet charged into an invoice. Unbuild time, same type of concept there. Then we have these sales and customers. So when you're talking about sales and customers, you still have the customers. And when you're thinking customers, you're still thinking kind of accounts receivable here on the balance sheet. But when you're thinking sales, that's a term for like income or revenue. And so you would think that that would be lining up and supporting items on the income statement, a performance statement related to revenue. How well did we do over the time period? How much did we generate revenue type of records? So we have the customer contact list. That's going to be a list of our customers who we get revenue from. We've got the deposit detail. So most of the deposits were hoping we're thinking are going to be from customers. Deposits, the increase in our cash account ultimately columns you would think from customers mainly we hope estimates and progress invoicing. So the estimates processing, if you're in a situation where you have estimates and progress invoicing kind of a specialty area. We might touch on that later. Or maybe you have a separate course just to kinda go into that in more detail. Estimates by customer. So once again, we're dealing with the estimates here, income by customer summary. So now we can break down the income, the line item on the income statement by who we got the income from the customers. So inventory valuation details, so we can now value the inventory when we're thinking about these inventory reports, now we're thinking about items that are on the balance sheet. And we're supporting this account here on the balance sheet, breaking this out and on the income statement, that related report is when we sell the inventory is cost of goods sold. So these reports kinda have to do with those those two accounts, the inventory valuation, inventory summary, payment method lists. So methods of payment lists, physical inventory worksheet. So we can actually kinda count the inventory and say what the physical inventory, product and service lists. These are the things that we sell to the customers, to things we sell or the services we have to make money sales by customer detail. So now we're taking the sales that we make, the income number on the income statement and we're breaking it out by who we sell it to, buy customer sales by customer summary versus the detail. So the detail will give us more obviously detail which would be like what how we sold it, like the invoice or sales receipts summary, just the total sales by customer type in detail. So sales by product service, we can also break down that sales item, not by who we sold it to, but by what we sold. So we're taken once again, that line item on the income statement thinking about what we sold and breaking it down in that format. Now, notice these reports are, are good to know because on the income statement here, you'll have a tendency, like new people that work on the incomes. They have a tendency to want to say, I want to see everything on the income statement and you might start making accounts if you were to think that way, like income from a particular customer. Or you might make an account say, saying it's going to be income from a particular thing that I sell. But you might want to do that a little bit on the income statement, but not too much because what you want on the income statement is the summary. And notice these reports will help you to break down that detail. If I want to know my sales by customer, I can go to this report. If I might want to know my sales by thing that I sold or service that we did. We can run this report. I don't need to make another account on the income statement for everything that we sold in every customer we sold it to, that would be way too much. So time, activities by customer detail, transistor transaction list by customers. So these are actual transaction, transaction list by TAG group. There's those tagged groups again, we might talk about that in a future presentation. So what you owe when we're talking about what we owe, what account is that going to be line up to the balance sheet account of accounts payable primarily, accounts payable represents us consuming something on account. We have not yet paid for it. So then I need to break that down by who we owe it to. And then if you work in the accounts payable department in a larger company than you could spend all your time just saying, Who do we owe money to? How how can I, you know, who do I have to pay or which amounts can I not pay without being penalized for not paying? So we have the 1099 contractor detail. So if you have to 1099 people, meaning contractors, then we have that those reports that we will need for the year end, we have the accounts payable aging, similar to the accounts receivable aging, breaking down the payables that we owe by how outstanding they are. Accounts payable, aging summary. We have the bill payment lists. Remember that the bill is the thing that creates the account payable. Because when I put it in a bill, that means I'm putting in a bill for something I have not yet paid, but I have consumed something typically at that point. So bills and applied payments. So bills and the payments that are applied to it means the bill has now been paid, accounts payable goes down at that point. Unpaid bills. So the unpaid bills are of course, what makes the accounts payable. Accounts payable is basically the bills that have been put in place that have not yet been paid. And remember when we think of bills were not thinking about the bills that we give to customers. We're thinking about for, for QuickBooks bills is a one-sided term. That's that's something that we'd received. The bill might say invoice on it. But the invoice was an invoice from QuickBooks perspective by the person who sent it. It's an invoice to them. It's a bill to us if we're the one that has to pay it. And then we have the vendor balanced detail. So the vendors are who we pay. So the balances of the vendors that we owe, which again is the accounts payable in essence, and then the vendor balanced summary. Then we have the expenses and vendors. So when we're thinking about expenses, what do we support in here? The income statement. So now we're looking at the income statement, expense side of things down here. And the income statement is performance report really has mainly two categories, either income and expenses, right. And so now we have the 1099 transaction detailed report. Once again, if we have to report the 1099, the check detail, the checks are usually the things are one form that we might have that would be generating the expenses and then we have the expenses by vendor summary. So now we can look at our expenses by who we paid, kinda like we did on the income statement. We want to think about the expenses by not by category possibly, but now by who we paid. Then we have the open purchase order lists. So we had the purchase orders, you'll recall, do not have a financial transaction. This is the exception to the rule. Those are requests for inventory for which we have not yet paid and we have not yet received. Therefore, there's no financial transaction, but we of course want to track the requests that we have. So we have these purchase order lists and then the purchase order detail, and then we have the purchases by product service detail. So we can break out our purchases by product and service. We have the purchase by vendor detail so we can look at our purchases by who we paid the vendor. And then we have the transaction list by vendors. We can look at our actual transactions. We're talking financial transactions, look at it by vendor who were paying two. And then we have the vendor contact list. So now we're looking at our vendors, that we're looking at them in terms of their contact list information. Then we have the sales tax information. So the sales tax information are obviously the tax is imposed. Remember the tax for sales tax is the government imposing a tax on the customer, but they're forcing us, the business to be their collection person, right? We don't have any choice. They twist their arm. So we have to collect their taxes and pay it to the government. So you can think about those reports basically as the balance sheet reports supporting the balance sheet report or a balance sheet account. And the liabilities down here, these payables represent taxes or this payable, these two, I think. But this one is the only one with no number in it represents taxes that we have collected on behalf of the government that we owe to the government, right? And these reports can help us with that sales tax liability report, taxable sales detail, and tax sale summary. Then we have our employee ease reports. Now, obviously payroll has a lot of impact on the financial statements here, so we'll get into more of that later. But we have the employee contact list, that's obviously our employees recent Edit time and then the time activities by employee detail. So we could get into more employee reports and requirements and whatnot. Just remember the the main thing. If it wasn't for payroll taxes and all the complications, payroll, then if you look at the income statement, you would just have basically payroll expense down here. And then on the balance sheet you would just have cash. But because you have all the withholdings and whatnot, you also are going to have balance sheet reports that will be payable reports for for payroll taxes that you're going to have to deal with the payroll taxes. You could have 401 k plans and whatnot that you're going to have to deal with. So we'll talk more about payroll that at a later point and the, and the reporting specific to it. Also note that you could kind of really have have different setups on your payroll. Because if you work with a third party payroll, like an ADP or a paychecks. They can help you out with some of those more detailed reports that you need for a W2 reporting and whatnot. Whereas what's in your QuickBooks system might be more simplified. Whereas if you run payroll through QuickBooks, then QuickBooks is the one that's going to have to generate all the detailed reports, which is going to do more than what is necessary to simply report on the financial statements. So, so you have different needs for that report. But anyway, we have a whole course on payroll we might talk about, we will talk about payroll a bit here and then it's a whole topic in and of itself. So for my accountant. Now these are things that are kind of grouped in the accounting item down here. And that's usually because they have debits and credits involved in them. But some of these reports are really useful, whether you're an accountant or not, whether you want to look at debits and credits or not. So we have the account list. So that's the list of the accounts that could be useful. And then we have the balance sheet comparison. So balance sheet comparison, we have the balance sheet, which of course is the standard balance sheet. We've already seen that. We've got the general ledger. Now, the general ledger is basically could be a huge report because it's breaking out the detail of the transactions for a period. But the transaction details reports that we looked at we look at is similar to a general ledger. So files it's just like click on the checking account. This transaction detailed report is kinda like the GL transaction detail report, the general ledger, kinda like the general ledger for that particular account and that time period. So if you just print out the entire general ledger, then you're looking at all of the account detailed reports and one time. So then we have the journal. These are going to be like journal entries, things that we entered basically as, you know, seeing things in terms of a journal entry, debits and credits. And then we got the profit and loss comparison. We've seen that before. We've got the profit and loss, we got the recent automatic transactions. We have recent transactions which might be useful to see the recent transaction, the reconciliation reports. So those could be useful as well, especially a bank reconciliation at and you probably want to print the bank reconciliations as we go. We'll talk about them later. Recurrent templates, statement of cashflows we seen before, transaction detail by account, transaction detail by date. This is the one I'm always looking for. This one right here can be really useful for your billing process if you set up your billing in that way. So if you're a bookkeeper and you say, I don't want to charge hourly, but I'd rather charged basically using some other method yet might charge by, you know, you charge so much for if you fall into a range of transactions. And you can you can then count the transactions that have happened per month or per week or whatever with this transaction detail report. And you can have a concrete thing that you could show. Somebody could say, Hey, look, it's not just the hours, this thing, like how many hours I spent and you can't really verify it. You could say, hey, look, here's the transaction detailed report and this is how many transactions we agreed on. You pay me this much per fall into this range of transactions. Here's the trend. It's more concrete of a thing. There's still problems with it because anyway, but it's worth looking at transaction lists with splits and what we'll take a look at that later too, and then we have a trial balance. This is a really good report to look at as well. We'll work with it later because it basically puts the balance sheet and income statement on top of each other and removes all the subtotals. So if you're good at looking at the trial balance, then you can it's a lot faster. It's a lot faster to look at for a lot of things. And then we have the payroll information, which is basically summary information we saw before. Notice up top and that customer reports, we can make custom reports. We'll talk about that later. The manage reports is a tool for us to kind of display the reports and we may do a special section just on that. It looks like it's a neat tool that you can put together for presentation purposes and put together a kind of like a formal grouping of the reports that you would want to then present possibly to a client or to manage man or something like that. 31. 2.10 Balance Sheet Report Overview: Quickbooks Online 2021, that balance sheets report overview. Let's get into it with Intuit QuickBooks Online 2020 one. Here we are in our free QuickBooks Online Test Drive file, which you could find by searching in your favorite browser for QuickBooks, Online, Test Drive or in Craig's Design and landscaping services practice file. We're going to go down to the balance sheet by going into the reports down below. The balance sheet should be one of your favorite reports, one of two favorite reports, not a matter of opinion. If it's not one of your favorite reports, then your favorite thing is wrong. It should be one of them. So we're going to be opening up the balance sheet, and then we're also going to open up the income statement and a trial balance as we analyze these items. So to do so, I'm going to open up a balance sheet here. And then I'm going to duplicate the tabs. I'm going to go up top. I'm going to right-click on the tab and duplicate it. So now we have another balance sheet tab. I'm going to right-click on it again and duplicate it again. So I'm going to right-click on it again and duplicate again where we can open up the profit and loss, which is our other favorite report. These two reports that have to be favorites, favorite sounds like an opinion thing, but it's not in this case, like these two have to be, they have to be there in your favorites. And then we're going to open one more and that's going to be a trial balance. I'm going to right-click again. And we're gonna go to a trial balance, right-click and duplicate. Again. We're gonna go to the trial balance. The trial balance is something that has debits and credits in it, but it's really useful report if you get used to it because it just simplifies things a lot. And so we're gonna go to the reports and this is in the accounting section, so I typically just type it in their trial balance. I would recommend putting it in your favorite reports as well, although it's not a requirement, as is the balance sheet and the income statement. Now let's change the dates up top. We're going to go up top changing the dates. So I'm going to make it from to 2021 because that's where most of the data is. I'm gonna make him from 0, 1, 0, 1, 2, 0, I'm sorry, 2020. 2020 to 12, 31 to 0. We're going to run that report for the trial balance. We're gonna go back to the profit and loss. Do the same thing. I'm going to say 0, 1, 0, 1, 2, 0 to 12, 31 to 0. We'll run that report for the P&L profit and loss, otherwise known as the income statement and then the balance sheet, Let's do it here to a 101 to 0 to 12, 31, 200, and we will then run that record. One other thing I want to have open over here, that's going to be the chart of accounts. So the chart of accounts, I'm going to go down to the accounting tab down below. And then we're going to be taking a look at the chart of accounts. I'm going to say, yeah, I want to see the chart of accounts. So this is going to be our list of accounts here that we looked at in a prior presentation. Remember, this is the building blocks on which the forms will then be delayed in order to build than the financial statements, the major two being the balance sheet and the income statement, which can be summarized as basically simply the trial balance as well. So we've got these items, we're going to go to the balance sheet. Our focus here then is going to be on the balance sheet. I'm going to close the hamburger. I'm going to hold down Control and zoom in a bit. So we're at that one to 51 to five. So let's break the balance sheet down. And as we do so we're going to talk a little bit about the balance sheet in general. Compare and contrast the balance sheet as it's reported by QuickBooks to what you might see in a balance sheet and like financial reporting. And then just the logistics on how the QuickBooks kinda works to build the balance sheet. So I'm going to do that. I'm going to close everything out. I'm going to close all these little tabs up first. Close all these tabs. And we're going to then close up these tabs and go into small at the top. I'm just going to close everything up here. Close up the tabs. All the triangles need to be facing the same way. So there we have it and close that up. And then we're going to close this and then we'll close this up. So there's going to be our assets equal liabilities plus equity. That's our accounting equation. The balance sheet is the accounting equation. And notice you might ask, Well then how does the income statement fit into it? The income statement, as we'll see, is basically part of the liabilities and equity section. And so we'll talk more about that when we get to the profit and loss. But you want to see these two things are linked together. And that's why when you look at the trial balance over here, then you see the balance sheet accounts on top. It's just basically balance sheet accounts stacked on top of the income statement accounts. So that's what we have basically on the trial balance. That's why the trial balance is really useful because it has all the accounts that are affected at a point in time that or the range of time that you're that you have selected. And they've removed all the subtotal. So you can count, just see the balances themselves. So if you want to see the impact on the accounts of themselves without the subtotals, that trial balance is really useful. So then going back to the balance sheet, let's start to open this thing up then. Now remember that this represents where we stand at a point in time. What does that mean? That means we have assets here and that's what the company owns were measuring those things in cash, although many of the assets aren't cash, but we have to measure it in dollars. That's our unit of measure. The liabilities and equity is just the flip side of the coin that represents who has claimed to the assets, either third party folks, those being liabilities, or the owner represented by the equity. The equity than sounds a little bit ambiguous because it's equity the owner, the reason that's a little confusing is because the owner, the format of the owner could change based on the format of the company. If it's a sole proprietor, you only have one owner. Pretty straightforward. If it's a partnership, you got to owners and then you need to break out that equity ownership between the owners as well who may have different ownership interests. If it's a corporation, then the owners are called shareholders. And it's actually somewhat easier than a partnership in some ways because the stocks then are cut up into standardized units, which is the point to make it kind of easy to figure out who owns what. Whereas a partnership, you got to basically track everybody's equity accounts separately and they're not all going to wind up. Okay. So then if we go into the assets, this is what the company has. We break that out. Normal financial accounting. We'll we'll have it broken out into current assets, fixed assets, and possibly other assets. That's normal financial accounting, not just a QuickBooks type of thing. The current assets are going to be the more liquid assets. And so when you talk to a bank or something, they want to know the current assets and compare them possibly to the current liabilities to see if the company is able to pay their current obligations with the current assets, fixed assets, large things, buildings, land, equipment, those things can't typically be used as easily to pay off current liabilities unless you take a loan against them or something like that. So how, how liquid is the company current assets? Now if I go into the current assets, we've got these other subcategories which aren't typical financial accounting. We may not break things out into bank accounts. We might break them out into one category and a financial statement called basically cash. But we're not typically going to call them bank accounts. Why does QuickBooks call them bank accounts? Because this is an account type, as we saw when we looked at the chart of accounts. If we go over here, these are account types, bake account types. For QuickBooks. They need to say it's not just a cache for financial reporting purposes, but it's driven by the fact that these accounts have special needs, meaning they might be connected to a bank feed. So if you want bank fees, you gotta connect it to a bake type of account or a liability like a credit card type of accounts. And you might want to format them with a register. So these things have special needs function wise within QuickBooks. So this drop-down is going to be based on the fact that these are a certain type of class, or this drop-down means to certain type of class. And then these are the two accounts that are within that class. Accounts receivable again has its own kind of dropped down. That seems weird for financial accounting. Why would I need a drop-down? Because usually you only have one accounts receivable. Why do I need this drop-down thing happening? Because QuickBooks basically needs another category for accounts receivable because it too has special needs. This drop-down is tied to the fact that it's a separate account category. And then we have the accounts receivable. What's the special need for accounts receivable? You need to track who owes you the money. You need a subsidiary ledger by customer. So we have all these reports that are kinda variants on tracking the receivable by customer, by who owes us the money, and then everything else that is not does not have a special name. Function wise with a QuickBooks goes into these other current lab, other current asset accounts. So that's going to be the inventory and the deposited funds are going to then be down here. So that will give us then our total current assets, which is basically a financial accounting term, which means these are assets that are going to be consumed closely or used, or they're more liquid, they're closer to cash. And then we've got the fixed assets. If I click this item here, now fixed assets is going to be a financial accounting term. You might hear it called property, plant and equipment, PP and E, or depreciable assets. Different name for basically the same concept. And then underneath that you have your different types of fixed assets. Now here we just have something called truck that might better be called vehicles and whatnot or you might include it here, building, land. These are things that are long-term assets, things that you can't really, they're not liquid, but they're good assets are using them in order to generate revenue. But you can't. You know, just use them to pay off a debt unless you take a loan against them or sell it, which is typically not the point, it's not really what you wanna do. So that's why we're breaking out between these and the current assets. So that gives us our total fixed assets, our total fixed assets here, and then our total assets. So now this is what the company owns. Remember this is measured in dollars of course, but we only have certain amount of actual cash dollars. We have to measure everything else such as the truck in terms of the unit of measure that being the dollar, then the liability and equity is on the other side. This is the balancing of the balance sheet, and this just represents who has claimed to these assets now. So either a third-party liabilities or the owner equity. The owner being either sole proprietorship, owner, one owner, partnership, multiple owners that we then have to break out or corporation, which is broken to stocks that represent the ownership of the equity in standardized units. So then if I open this up, we're going to say, all right, now let's take a look at the liabilities, what we owed a third party people opening up the liabilities. We got then a similar breakout. We've got the current liabilities. These are liabilities that have a specific characteristic for financial accounting. They are due within a year, so you've gotta pay these within a year. We want to group them together so that we can compare them against like cash and other kind of current assets to see whether or not the company or we as the company, pay off these liabilities with the funds that we currently have or expect to have in the near future. So if we open this up, then I'm going to, I'm going to close these items. We've got the current liabilities. Then this is a financial accounting category. And then once again, these categories down below are broken out, kind of buy QuickBooks because of the special needs of QuickBooks. So now we have, in other words, accounts payable. Why did we have this drop-down? Because accounts payable has special needs for accounts payable within the functionality of QuickBooks, even though we don't usually only have one account in it, we have to break it out as a different account type when we set up accounts payable. Because we need to know not only what the balance is in the dates that make up that balance, but breaking it out by who we owe in a similar way as the accounts receivable by who owes us in that case. So we've got to break this out by vendor. We're going to have all those other reports. That's why we need to separate breakout here or the separate category. Credit cards. Same thing. In financial accounting. We would just call it credit cards and we would group them together typically. But we have special needs for the credit cards here because we can actually use the bank feeds on the credit card side of things as well. And therefore for the tracking of that, we need a special category because that type of account is going to have special needs there. So QuickBooks breaks it out and that's why we have this drop-down. And then we have the other current liabilities. These are all other current liabilities that don't have that special need kinda components and therefore need to be breaking out in their own areas that we have these liabilities that fall in here, there's the total current liabilities. Then we have the long-term liabilities. These by definition, are liabilities that are going to be due after a year. In this case, we have the notes payable. There's usually kind of less of them, but they may be larger dollar amounts because they're typically going to be loans. And so we'll talk, we'll talk more about that in our practice problem, but that gives us our total liabilities. Now if we were to take what the company owns, one out the trusty calculator here, I'm pulling up a trusty calculator. It went to the wrong screen. I'm pulling it down. If we take what the company owns in terms of assets, which is that 23 we're saying we got 23.29436. And then what we owed to third parties, what we owed to third parties or all these liabilities minus the 31.33097. That's means we have a negative equity and which isn't good. So we owe liability is greater than in this case, the assets that we have. So not only do the the the equity section, not have a claim, but they're kinda like the owner's owe money in this case, usually, it would be the other way around, we would hope, meaning hopefully the assets up top or greater than the liabilities down below, resulting in a positive equity, which would be the owners claim to the assets down here, but we have a negative equity here. And if I, if I select this item, the items in owner's equity or equity. Now if the names down here and equity are usually the things that confuse people. So if it was a sole proprietorship, we might want to change some of the names to these items to be instead of retained earnings, we just call it owner's equity because you have one owner or owners equity. If it's a partnership, we might simply change the names of these items down below to be partner, one partner to partner for, a partner for or whatever the names of the partners are. However, if it's a partnership, we have to take the earnings that have been generated, distribute them in accordance with the partnership agreement, which is another level of complexity. If it's a corporation, then we use this terminology typically about being retained earnings. Retained earnings is the corporate terminology. And that's a little bit easier than a partnership in some ways because again, we just break out the equity basically by, by the number of standard units. We've kinda like units of dollars. We've got standardized units of stock that we can then break out. And then whoever owns however many stocks gets a standard unit of ownership basically. Okay, so that's the equity now. Now how is the, how is the balance sheet and the income statement related? We've got this net income, which is something that is not typically on financial accounting statements. Net income is an income statement number. But we know that the income statement is related to the balance sheet because the income statement rules into the balance sheet, feeds into it. So if I look at the income statement, performance statement over here, performance statement. The bottom line of the income statement is in this case, for that same time period that year, 167, 646, that number rolls in then to the balance sheet of that 16, 7646. So that's part of the equity. If I go up top and I change the data up top to 2021, 2021, and then run that report and go down to the equity. We could see that that net income number has now rolled into retained earnings. And that's where kinda should go on the, on the balance sheet. But they're trying to connect the net income and show you how the income statement is basically related to the balance sheet. So that's gonna be, that's gonna be that. Now note that that relationship, if I go back up top and I bring this down, it may not. And I go and I run that report. That relationship may not hold if you break it down month by month. Like you might expect the monthly net income to roll in here in the same way. It may not it may. Yearly basis, it works well. So whatever your urine if you have a December Year in and you run the report for the entire year than the income statement numbers should, should basically roll in here to the balance sheet and tie out if you're doing some other, some other intervals other than a full year might be a little bit different. Also note that if we go up top, if you see the report up top here, the balance sheet is reported as of December 30th, 31st, 2021. It's only got one date than in other words, whereas the income statement here you can see then says it's profit loss of January through December 2020 meeting. There's a range here. So we did the same range of dates up top when we entered the dates, but we have a different label having a range on the profit and loss, but not arranged on the balance sheet. Why then do we have a range up top? Why did I need to put it from January to December on the balance sheet? If the balance sheet is only as of 1 in time. In other words, if I change this up top, like the knit, the bottom line of the balance sheet is 23 436. If I changed the beginning date to like the same day, 1231, 200, let's say. And run that report has no impact on the balance sheet. It's the it's the exact same. So what what does this first date matter like why why do I need this first day at all? Why don't I just have one date as they kind of do on the on the, on the desktop version. And that's really to help you to drill down on the data. If I want to go down here on the checking account and do what I often do, which is to drill down on the data to use the zoom feature. If I only have one data on it and I zoom in, I don't have any detail until I change the date range. So so by changing the date range up top, it has no impact on the financial report itself. Felt. But if I changed it from 0, 1, 0, 1, 200 and run that report, no change here. But when I zoom into it and look at the detailed report, I don't have to change the date range to see the detail that I want to see. And that's often what we do in practice. When we look at this report, we go back and forth and, you know, drill down on the detail. So also note that this report, if you look at the trial balance over here, if you wanted to test your totals by going back and forth in the trial balance, we have the same accounts up Topsy. These are all balance sheet accounts. It's just they took out the subtotals and they have the debits and credits involved if you don't want to if you don't want to deal with debits and credits, this report still can be useful because you still see the totals in it, whether it be a debit or credit type of account or not. And so down here is basically the balance sheet accounts, and then you have the income statement accounts down below. So the trial balance is basically the balance sheet on top of the income statement. So if you're entering something like an invoice and you're trying to figure out you want to see what happens in terms of the financials. You can open the balance sheet and the income statement or profit and loss, or you can simply open this trial balance and then you can check both sides at one time. Meaning I'm gonna say, okay, it's a balance sheet, account, accounts receivable went up. I can double-check that here and then I can go to the income statement which is on the same report and just scroll down to the income statement items which start where to start. They start down here. So here's all the income statement items and I can check the other side down here on the same report. Rather than jumping back and forth, rather than having two tabs open, I might be able to have one tab open and still practice testing what happens to the financials by using the trial balance every time I do something that will involve a financial transaction, every time in essence, I enter one of these forms. 32. 2.15 Report Formatting Basics: Quickbooks Online 2021, report formatting basics. Let's get into it within two. It's QuickBooks Online 2020, one. Here we are in our free QuickBooks Online Test Drive file, which you can find by searching in your favorite browser for QuickBooks Online, Test Drive or in Craig's Design and landscaping services practice file. We're going to practice formatting of reports and customization of reports from the basic or standard reports. We will do so with the balance sheet report. But many of these things can be done to many other types of reports as well. So we're going to open up a few different reports as we go. So I'm going to go down to the reports on the left-hand side. We're going to be looking into the balance sheet. So we're going to open up these standard balance sheet reports. Going to open that up. And then I'm going to duplicate the tabs. I'm going to right-click on the tab up top. I'm going to duplicate the tabs. So we have our balance sheet again. I'm going to duplicate it again and open up the income statement, and then I'll open up the trial balance just so we have those items open as well. So I'm going to right-click and duplicate. And then I'm going to duplicate it one more time. I'm going to open up a trial balance too. So I'm going to right-click and duplicate. So my goal here, one tab on the left that we can go to if we want to just check out other forms and whatnot the balance sheet, which will be here, the main one and we will be looking at then we'll have the income statement and then we'll have the trial balance. So I'm going to open those up and I'm gonna open this up, go to the reports down below. This one's going to be the trial balance. I'm going to type in up top to find it. Trial balance. Trial balance. And then I'll change the dates up top. For 2020. I want the year of 2020. So 0, 1, 0, 1, 2, 0 to 12, 31 to 0. We're gonna go ahead and run that report. And then I'm going to close the hamburger up top, give us some more space. Scroll up just a bit holding down Control. And at the 125 percent, the one-to-five, I'm going to close the hamburger here. I'm on the second tab now. So I'm going to open the hamburger. This is the income statement that I want here. I'm going to go to the reports down below. We're going to look at for the profit and loss P and L. Otherwise, no one has the income statement changing the dates up top here as well to a 1, 0, 1, 2, 0 to 12, 31, 200. Gonna go ahead and run that report. Then I'll close the hamburger. So now we've got our profit and loss. Here's the main report we're going to be focusing in on the balance sheet and scrolling up once again, changing the dates up top from a 1, 0, 1, 2, 0 to 12, 31, 200, and then run that report. Then I'm going to close the hamburger up top here as well. Now the balance sheet reports where we're going to focus on, but many, many other reports have similar kind of functionality in terms of adjusting the reports. Now, remember, you can kinda think about these baseline reports like a balance sheet or income statement as your starting point from which you can do a lot of different things too. So you can start to think about adjusting them, having a comparative balance sheet, comparing period to period, or simply format the balance sheet in different ways to give him your own style for them. The differences or the adjustments that we can make it to the reports will be up here. Some of them will be in this top ribbon area. You also have this ribbon down below that can have some adjustments. And then you have the customize range up top. So right now we're gonna go into the ones that are in the ribbon. And then we'll go into these items up top. And then we'll talk about the customization options in future presentations. So I'm gonna go up here and start adjusting some of these items. Note as we do that, you've gotta run the report after each time you adjust the item. So just remember you got to refresh the screen. So the first is the date range. Now I use a custom date most of the time because I like to have control over how much data will be there with a custom date range. It doesn't take me a lot of time that just enter the dates. But these are useful too. If I go then, for example, to the date today and run this report. Today happens to be January 7th, 2021, and then you can see this date, this information. As of that date, the total assets you can see down here, 23 for 36, 29. If I was to change this to say this week and then run that report, I got a little bit of a change because it went to the ninth. But if today's the seventh, you would think there wouldn't be much data, you know, in the future. Some still out that 23 436, 2009, which I think is the same number. In other words, there hasn't been a change even though we have a different range up top. So you might say, well, why? Why would I care what the range is? Why don't I have just one date here on the balance sheet. What are these ranges do for me on the balance sheet? Because if I change it, again, if I changed to this month, let's say and run that report and scroll back down. Now we're at the month we're still at the 23 436, even though I have a different range up here. What this range does for me on the balance sheet, it doesn't change the report itself if the end date is basically the same or if there was no activity after the endpoint that was input. But what it does for me is that when I zoom in on it, when I use the zoom feature, then I get I get the zoomed information according to the date range. So the zoom feature, we'll be made a lot more efficient if you use the date range. Otherwise, if you just want to run the report doesn't really matter what the beginning date it is. It matters what the Indian date is because that's the date that the balance sheet will be reported as of now on the income statement, it's different. So all activity reports will be different if I change the range of period because it's a performance report over time, it will then change how much revenue did I generate over time? That'll, that'll have a different impact. So that's going to be these atoms are going to change it back to 2020. So I'm going to go 0, 1, 0, 1, 2, 0, 2, 1231, 200, and then run that report. So we're back then to 2020. And now if I drill down on this data, zoom in on it. Because I put the range from January to December. I have all the activity in here for the entire year. If you have a very large company that might, you know, if you have a lot of data, that might be a lot of information, you might then want to limit the range for say, just December for example. And then that'll allow you to drill down on this data a lot more efficiently without having to change the range every time you do so. So that's going to be the ranges we have then the total over here. So the default for the balance sheet is to display in total. But you can display it in other ways. Some of the more common ones would be by month. So what if I picked by month and ran that report? Now it's showing as of at the end of the month. So this is a nice report that kinda it'll show us where you stand as of as of the end of the month. And this is another reason why the range up top will be helpful. Because if I change the range, if I change the range up top say to November now 11, 0, 1, 2, 0. Run that report. It now has an impact showing up comparison of November and December. And that's doing that because I'm showing it in terms of months and then I've limited the range up top. So if I just look at December 12, 012 0, and then I change this from month to like wheat, and then run that report. Then we can get a nice comparison from week-to-week. Now this is as of remember, this is as of a point in time. So we're comparing where we stand as of these these points in time as opposed to an income statement. If you were to do a similar process, they would show you the performance, income and expenses that were accumulated during those different time intervals. So then I'm going to, I'm going to bring it back. So usually the balance sheet, I'm going to, a normal balance sheet will be total, but you can see how we can start to generate these comparative reports. I using some of these functionalities and some of the other reports that QuickBooks actually provides. As as added reports are just simply customized reports that you can do yourself to just build them by just adjusting these settings to them, to the standard reports. So I'm going to run this report, bring it back to the standard balance sheet. Then we have the active rows. So we can, we can show the rows we have active all and non-zero. So what this means is if we're, if we're looking at rows, so we're looking at the rows we have here. If I was to I don't want to see rows if they're not having an impact on the financial statements. So if I if I go back to the first tab, for example, and I go to my Chart of Accounts here, and we take a look at the chart of accounts. We have all these accounts set up, but not all of them have have items in it. Some of them are 0. If I have a 0 item, I don't need it to pull over to the balance sheet as a 0. Because that'll, that'll just muddy up the balance sheet, right? So if I show it here and I just show the active items, then it's going to remove all the items that weren't active. So you would think you'd have non-zero, right? You'd have non-zero items. That means I have nothing on here that's going to be a 0 in it. Non-active is a little bit different. If I go to, if I go to active items, I could, I may still have a 0 in that case. So if I say I want to see active items here, may still find something with a 0 like this one. Why would I have that one there? If it's 0? Well, if I drill down on it, then I might have detail. So it doesn't in this case, but you might so you might have an an item like that, like an deposited funds will typically be like that, right? You'll have an deposit funds which is a clearing account. Oftentimes will be at 0. But I want to see the detail. And if I'm jumping back and forth from data input to the balance sheet, I want to see those 0 items so that I can see the detailed even though it's at 0. So if I'm reporting, if I'm showing it to somebody else that I probably want to say, get rid of all the zeros. And if I'm using it internally, I want, I might want to see the active items even if there is 0. So I can drill down on it, for example, the deposited funds, or you can choose all here. And that's going to have all of the all of the items in it, even the accounts that basically aren't are not used very often. I'm not sure they all refreshed itself, so I refresh it and I added a test account just to show that here's a test account was 0, was 0 in it now so these categories, so you don't really want these, of course, showing up if there's no activity, if there's no activity in the account at all. So typically so that's why normally you're going to say I want to see the act of accounts if you are using it or if you're if you're giving it to someone else, you're probably going to say non-zero accounts. The show columns will behave in a similar fashion, but we don't have any columns right now. So it's not going to be that useful for us. So we'll go to the next item here. We have the, the selected period. Now this is a great tool because it'll allow you to do comparisons from period to period and also percentage calculations as well. We'll do this in more detail when we actually just build a report specifically comparing period to period. Some of the custom reports that are already made for you buy into it by QuickBooks or actually just basically using a standard report that they are there then changing for you and then make it into standardized report. You can do similar things by simply customizing your report, memorizing it, and saving it in that way as well. Some of these comparisons are similar to what we saw when we like compared the months in this way. But it's a little bit different, so it's a little bit more tricky. It's useful for us to use these instead of the custom date range. So I might pick a, pick a date range up top. So I might say that I want to take a look at this month, for example, and then say run that report. So now it's defined as of this month. And then if I go to this selected period and I say I want to compare it to the previous period. Then I'll compare it to the previous period. And then I can run that report. And so now we've got this comparison. It's a little bit different than what we did before here. Because one it has, it has the current month first, which is often a formatting that people like. It's a little weird because you first would think that the oldest month would be first going from left to right, then the newer month on the, on the right. But compared by most important data than it would make sense to have the newest month first. The other thing that's really useful in the thing it's different than, than doing it this way with the Month column, is that we can then do our percentage change. Then you can say, Okay, I want to see the percentage change between these two periods. So if I just have two periods, then I can subtract the two columns here obviously. And we could just run that report. And so now we've got, now we've got the change between the, between the two periods. There is no change here because there wasn't much activity in the following period it looks like. But, you know, you've got that change and we'll take a deeper look at that when we get to, when we get to creating reports in the future. But then you also have if I go up top, we have the percentage change that I could pick up the percentage change and we can run that report and we have the percentage change. Now this gives you that percentage change, which again isn't very interesting at the report date range I ran here. But the percentage change can give you a lot of information when you do comparisons like with other companies. So if I hit the drop-down again, you could do a similar kind of thing for the previous year if you're comparing year-to-year percentage of row, percentage of columns. We might take a look at that in the future, but you've got that functionality there. I'm going to remove it for now. Take it back to where we were. So let's run this report. And then I'm going to take the date range back to 0, 1, 0, 0, 1, 2, 0 to 12, 31 to 0. I'm going to run that report. Then we have the cash versus accrual. Now many people kinda see their system possibly as a cash basis and they'll one-off toggle over to a cash basis all the time. You don't I wouldn't recommend doing that. I wouldn't recommend changing your settings to a cash basis even if functionally you run kind of on a cash basis. So talk to your accountant if you're kind of thinking that you want to go over to the cash basis. Think in most cases it would not be something you'd want to do it. Let me just try to explain that real quick. If I go to like the desktop version just to look at this flowchart here. Notice that even if you're using like the bank, the bank in order to record the transactions like using bank feeds, like say you have gig work and you're just recording your books basically on the bank. Then when you receive the money, say from like Amazon or say you're receive it from from some kind of app store or something, then you're just depositing it and you're recording it as revenue, which is basically a cash-basis method. But you don't need to change your accounting system to be cash-basis because an accrual basis would record the same thing, meaning you're still using an accrual basis. It just happens that the type of transaction you're recording has the same result under both a cash basis and accrual basis system. So you'll end up with the same result in that case, whether you put it on a cash basis or an accrual basis. Anyways, so you don't really need to change it if you keep it on an accrual basis, then when you do something that's necessary for an accrual basis, such as an invoice and half accounts receivable, interrupt Bill have accounts payable that will be involved. And even like putting machinery, equipment on the books is really kind of an accrual type of thing. It will then be there. And then you won't have the non accrual things because your system is simply not non accrual. You don't need to toggle to a cash basis in order to enter the data. Basically in, in a way that is basically a cash basis. And the same recording what happened either way. In other words, like if I if I made a sale here of let's say a food truck made sale. They gave the food at the same point in time and got paid at the same point in time. Both the cash method and the accrual method would record the same thing for two different reasons. The cash method would record revenue at that point because cash was received, the accrual method would still record the revenue at that point because the work was done. And so you'd end up in the same place. So I would think that most of the time you want to keep it here, but you can, you can toggle back and forth in and take a look at it. And then we have the collapsed column. If we run down here, we can collapse the columns. Now notice what happens is, you might say, well all these triangles, I would expect them to be collapsed if I do that. But it's only collapsing the ones that are the sub accounts, the ones that you make. If I go back on over here, and if I made a sub account, the ones that are indented, it collapses. The triangles that are there because they're by category or by Accounts type are not, are not collapsing. You can create other reports that like a simplified balance sheet that has less information. The things that are collapsing, like the truck down here. If you put your eye on that truck and I expand it again, then you can see down here you've got now this collapsing it and expand because that's a subcategory. The other ones didn't collapse for that. If you want a more crunched up or simplified balance sheet, you can run another report, which is the balance sheet. That's going to be a simplified balance sheet, which we'll scrunch up some of these columns, right? And then we've got this sort, this is the default you probably want on the default most of the time, but you might want descending order and what will happen here? Hopefully it'll keep the categories the same because I don't want the balance sheet changing category by the total amounts. But like for example, down, down here, you've got this category of, of these three items you might want the largest one on top within the other current liabilities category. So you might be able to do that up top by using this sort feature and say I want descending order. And then if I, if I go down here, so now I got the loan on top. So that's kind of useful. You can do, you can do more. This is formatting with account numbers, like within this particular group. It'll sort them by alphabetical order by default. But you can use this, this ascending and descending to help. And you can also use that account numbers to further adjust that. I'm going to bring it back. I'm going to bring it back up to the norm, the default settings. So I'll say defaults, and then you can add notes here. So you can add notes at the bottom. You've got that option, and then you can edit title. Now this is pretty neat as well because some of these titles aren't as standardized for financial accounting. So these ones assets, you probably don't want to change that. But bank accounts like you might just want to call these cash, cash accounts if you're going to use it for reporting purposes to external users. Quickbooks calls them bank accounts because again, that's kind of an internal help because that says, Hey, these are the accounts that you can use. Bank feeds on accounts receivable. Other current assets, fixed assets might be called, you might prefer to call it property, plant, and equipment, or depreciable assets if you're giving it to somebody else who like a finite like financial accounting might be more comfortable with that term. You have to use fixed assets when you set up the account type because that's what QuickBooks used for the term to set up the account type, other assets, liabilities, liabilities, accounts payable, credit cards, other current liabilities, long-term equity. Now this, if you are a not for profit organization or something like that, you can then change the name of equity, which could be useful because that's one of the problems with it. Not for profit organization, the terminology is going to be different. If you're a sole proprietorship, you might call it owner's equity. If you're a partnership, you might call it partnership equity. Retained earnings. If it's, if it's a sole proprietorship, you might call it to owner's equity here, right? And I could, if I save that, then we might be able to change some of these, some of these headers. Now it said, it said that it's gonna take a while to save it. So that's that. I haven't used that much in the past. But for reporting purposes that could be a neat feature. It's not it's not an automatic is taking a little bit of time for it to adjust that. But I would take a look at that. We might take a look at that more when we start to, when we start to memorize our reports and they custom reports, then we can e-mail our reports here. We can print our reports here. We can then export to Excel, which we'll do, we'll practice that these also are great tools to export them to excel. And once they're in Excel, we can then use them as a baseline to do whatever else we need to do with them within Excel as well. And then we've got the display in compact form or you can compact the form here. So those are going to be our general settings and then we'll get into more detail on the Customize settings in future presentations. I just want to point out one more thing before you can also edit the title down here, you could do it in another location, I think as well. But if you need to edit the title right there, you can actually do it with that, with that pen or pencil or marker. 33. 2.20 Report Formatting Basics Part 2: Quickbooks Online 2021, report a formatting Basics Part 2. Let's get into it with intuits, QuickBooks Online 2020 one. Here we are in our free QuickBooks Online Test Drive file, which you could find by searching in your favorite browser for QuickBooks Online, Test Drive, or in Craig's Design and landscaping services practice file. We're going to open up the balance sheet to look at some more formatting of the balance sheet, most of which can be applied to other reports as well. Going down to the reports down below, we're looking at the balance sheet, which should be in our favorite reports. It's one of all of our favorite reports. We're going to then duplicate the tab up top. I want to open the income statement and the trial balance as well, just to observe them as we go through this right-clicking on the tab up top, duplicating that tab, I'm going to do it two more times so we can have two more reports. So I'm going to right-click again, duplicates the tab. So this is going to the first tab, then it's going to be where I go if there's any other things we want to do to take a look at this tab is going to be the balance sheet. This tab is going to be the profit and loss, and I'll open one more for the trial balance. So these are the main three reports. I would have either these two open and or the trial balance open whenever doing data input just to kind of see what is going on as we go. So this one's going to be the trial balance. I'm on the far right tab. I'm going to make this into the trial balance. It's under the accounting section down below. But I'm just going to type it in here. Trial balance, trial balance, just like that. And so there it is. There's our trial balance. And then I'm going to change the dates up top to 2020. So I'm going to say 0, 1, 0, 1, 2, 0 to 12, 31 to 0. Then we're going to run that report. There it is. Let's close the hamburger for it makes me hungry. And then we're gonna go to the second tab, and this is going to be the Profit and Loss tab. Let's go down to the reports down below. We've got to change it because right now it's the balance sheet. Gonna go to the reports. It's going to be the P&L profit and loss, the income statement, changing the dates up top from 0, 1, 0, 1, 2, 0, 2, 1231, 200. Well, 31 to 0. We're going to go ahead and run that report. There's our P&L profit and loss income statement, closing the hamburger. And then we're gonna go to the balance sheet where our main focus will be changing the dates up top from a 1, 0, 1, 2, 0 to 12, 31 to 0 there as well. Let's go ahead and run that one. So we're going to continue on with our formatting. If we scroll up, we saw the ribbon last time we went through basically everything on the ribbon and then we went through basically these items up top. Now we're gonna go into the Customize button here. Note that some of these will be duplicates to what we have down here in the ribbon. Simple point that out. And then there'll be, of course, some new items here as well. So these are grouped in the general, we've got the rows and columns, filters and headers and footers within the general sections, we're gonna open up the general section. The similar kind of process we saw before in terms of innocence, the same process for the reporting period. So same items we saw here. So I won't go over that in detail. We got the cash versus accrual that was also on the ribbon. So we don't need to take a look at that again. Here's the new stuff. Here's the new stuff. We've got the number formatting. So this one says divide by 100. So that means that you can format your report to take off basically three or three zeros on the report. If you hit that one, then you're going to say run that report. It's going to divide by 1000. So that'll, it'll be easier to read. So if you have large numbers in your reports or even if you just would like to cut down the numbers so you can hit that one note that it's still put the pennies involved here. The sense which doesn't really make sense. It's due, you're going to be rounded by 1000. So what you wanna do there, if you're going to do that, is go to customize reports. And also you want to remove the sense. Remove the sense now that the report doesn't make sense, but you move in the pennies, the sense, the sense. So then we're going to say run that report. So there we have it. So we're dividend divided by 1000 wouldn't make much sense with this report. But again, if you have some larger numbers, that might make it easier to look at one backup to the customized report. I'm going to remove that division. We're going to put the pennies back. We also have options for negative numbers here. So you could put the negative number represented with just a negative sign. You could also put brackets around it. I kind of liked the brackets. I think they're easier to see if you're in a location that likes to have the negative after the number, then you could put that there as well. I kinda like the brackets here, and then you could show them as red if you so choose as well. So in any negative number will show as red. If I say run that report, I'm not sure we have any negative numbers. We should have accumulated depreciation. We do a couple of negative numbers that are really standing out boldly there as they should, since the equity is negative, which is troubling, kinda worried, little worried, but that's okay. We're gonna go back up top and go back into the Customize. That's going to be the general items. Let's close that tab. Let's go to the row and column items. So row and column items, these are the same activities we saw down below here. We have that here and here. So I won't go through those again. If you have questions on those, you could take a look at the prior presentation. If we expand this item here, we have these two, these we saw in the prior presentation. Those are also on the ribbon, so you can take a look at those in a prior presentation. I'm going to close this backup. Close this backup. Let's go on down to the filters. Filters are filters may not be as applicable here on the balance sheet, but you'll see how they work. And then when we go to other types of reports will start to use these filters. They can be very useful depending on the report that we are looking at. So our filter options here, customers, vendors, products and services. If we select the drop-down we have all or we can select some of these items so we can kind of select some of our customers, for example. And then I'm going to say run that report and we have an adjustment up top. Believe you saw a change to the checking account and probably the receivables. If I go into the receivables. The I'm drilling down on it. This is basically a transaction detailed reports were that kind of filter makes a little bit more sense. So now you can see obviously if I was to look at these customers, these are the customer names. If I go back up top and I go back to all with my filters, go into the filter and we're going to go to the customers will say all this time and run that report. Then we should pick up all the customers will have a longer report here. Once again, if I filter it, if I use my filter by customizing and I say I want to, I want to filter it down here to customers. Let's say just to choose one cool cars. That's a cool one, 2s. And there we have it. Okay, so then if I go back to the balance sheet and we're gonna go back up top and say customize. And then I go back to my filters. And let's say that we're going to say all here back to the default of all. And then if I did the same for the vendors, let's say we chose like one vendor. There's our famous Bob's burger vendor that we selected like a 100 times. Let's pick that one. And then I'll uncheck this one altogether. So vendors is now selected, if I say, okay, so then we can go down and you would suspect that, you know, up here and the accounts payable within the affected, there's nothing there. There's a big change happened with that filter. So let's go back up top and then customize. And I'm gonna go back to the, the vendors. And let's say we picked a couple of vendors here and say run that report. Now again, you probably wouldn't do this on the face of the balance sheet. But once you're in once you're in like the accounts payable report, then you can see how these filters will become useful. We see these, these filtering options that are showing these filters. If I, then let's go to California telephone. Let's filter on that one, California telephone. So I'm gonna say filter and we'll say California telephone is the only one we'll put on there. And then say run that report just to see how it specifies down. Now, obviously you'll have different filtering options for different reports. Now I'm in the transaction report when I drill down on the balance sheet. And we've got, if I go down to the filters, we've got the transaction type, account name, customer, employee. So where there's a whole lot of things that we can adjust this type of report for because you could filter by basically every field. Let's go back to customize and take the filter off. So I'm gonna unfilter, un-filter. And then I'm going to run that report. And you can see now you've got the date, you got the transaction, you've got the number, you've got names which are vendors, memos, accounts, the split account, what not. So there's a whole lot of stuff that you could basically used to use your filters on this particular report. So customizing back down to the filters vendor transaction. So when we look at the transactions, we've got the credit card check invoice, so that's the transaction type that we can have. We've got the district distribution account. We have the account that we could be selecting. So all accounts name, customer, employee products service. So this can be very useful when you get into these kind of detailed type of reports. So I'm gonna go then back to the balance sheet and then I'm going to scroll back up top customize reports. I'm going to remove the filter. So I'm gonna go back up top and say, let's take that filter off, run the report again. So we're back to our standard balance sheet. Then we'll customize one more time or at least one more time here. And we're gonna go down to then I'm gonna unfilter this. We're going to go down to the headers and footers. Headers and footers, that company name. If you wanted to change the company name, you could do so here if you want to change the report title and this may seem like something like you wouldn't want to do all the time change the report title. But if you alter the report, meaning you start with a balance sheet report and then you do like a comparative report. You compare one period to another, month to month, week to week or something like that. Then, then you might want to change the name of the balance sheet to represent that it's a comparative balance sheet or accustomed balance sheet in some way, shape, or form. So then you can have the report period, which you could basically have removed. So if I select that and say run that report, the report period which was right there, has disappeared. Now, it would be nice. It'd be kinda nice if you could edit the report period instead of just simply deleting it or putting it back in place. Because like I say, if you make a comparative report, then you might want to change the date range or or say something else to it, but if that date ranges no longer appropriate, because if it's a balance sheet report, for example, what's gonna say with this date range? It's going to say as of 1 in time 12, 31, 2020. And if you show in two months of data, then that date is no longer the proper date. So if I put if I put this back on report period, then it says as of December 31st, 2020. So if you if you change that in some way than than that no longer is appropriate, I'm gonna go back up top. And this vendor filter keeps on going back on there. So I'll take that off. So then we have the footer so we have a date prepared Time prepared report basis. Let's just check that out. So I'm going to say, okay, and then if we scroll down, you have these items that will print on the bottom of the report. If you don't want that, then you can go back up top and say I'm going to remove that, customize the report, removed date, time, report basis, and just take them off altogether. So I'll just remove those altogether. And it keeps on putting this filter back on to the vendors. On all they're all I'll just say, Oh, okay. Put that on, I'm going to go back down. So that's that's been removed. Now at the bottom there. Once you do some of these changes too, you can start, you can memorize the report, saved, the customization. We'll talk more about that later. But just so you know that for now, if you save the report, you can save it and customize it. If I go to the first tab and go to my reports, then you can start to put your, your Saved Reports in your custom reports area over here. So once you do these changes, once if I if I never wanted to put my footer on the report, I could save the report. So we'll save the customization balance sheet. I'm just going to say custom balance sheet. And then you have a group here we can add, we'll talk about that more later, but I'll just save it for now. So we're going to save that report says it's been saved. And then if you go back to the first tab, I'll do this in the first tab. And I'm going to refresh the screen for my custom reports. Now for some reason when I go back over here, it's not pulling up. But if I duplicate this tab, right-click and duplicate the tab, then you can go find them in the custom reports and they'll show up there. So let me check that out. Let's go down to the reports here. And then instead of going to your first half for the standard reports, you're going to go on over to the custom reports and then you have it all set up for. You. Just need to change the dates once you get that setup. So once you get the customization that you like, then you can start to memorize your reports. You can also customize or sort your reports in those custom reports and that can be a good tool we'll talk about in the future. Let's go back to the customization and go down to the header and footer and look at these last item on the alignment. For the alignment we got left align, center, and right. So I'll say left align just to test it out. The footer, the same. I think we remove the footer but left on the footer. Let's put the photo back and then say save that report. And you can see that it'll change the alignment of the header here and the footer down below. Also note that you can change the name up top as well with your item here that will change those items. You can't change the date, however, but as we saw, you can put the date back in, removed the date if you so choose when you're doing these custom reports. 34. 2.35 Comparative Balance Sheet Creation: Quickbooks Online 2021, comparative balance sheet creation. Let's get into it with Intuit QuickBooks Online 2020 one. Here we are in our QuickBooks Online Test Drive practice file, which you could find by searching in your favorite browser for QuickBooks Online that test drive where in Craig's Design and landscaping services practice file we're going to be constructing comparative balance sheet. So we're gonna go down here to the little ports on the left-hand side. We're going to be creating that comparative balance sheet from a standard balance sheet. Before we do that, however, just want to point out that some of the reports down below are actually basically constructions from a normal balance sheet reports, It's useful to know how to construct from a balance sheet or an income statement or basic type of reports. Because that gives you a lot of flexibility on what you can do with the reports. So for example, if we go down here to the business overview, we opened up the compassionately balance sheet comparison report, which is provided for us. We note that this is in essence just a normal balance sheet report and they're using this tool that we will use here, which is comparison to the previous year. So that just checking this off the previous year comparison. And then they changed the name from simply a balance sheet to a balance sheet comparison report. Note that they left the date here as well as of January 8th, 2021, which is a little not quite right. Right. Because what we have here is as of January 8th, 2020, 1411 component, but it's also January 8th, 2020. So you'd like to be able to possibly either remove this date range as it's not applicable really, and the dates are going to be down here or possibly adjust the date range. So that's something we can consider as we go through this as well. I'm going to copy this tab over and then we're going to construct our own comparative report. This will be a month by month comparison rather than the prior year. And we'll do that for my standard balance sheet. So I'm going to right-click on the tab up top. Let's duplicate that tab. And then we're gonna go back on down to the reports, opening up our standard balance sheet, which of course is at least one of the two favorite reports, one of our two favorites. It's going to be the balance sheet. So we'll open that up balance sheet report. And this is going to be the baseline that we're going to be working with. Now we want to be at doing a comparison. I'm going to be comparison comparing November and December of 2020. So I want to compare November and December of 2020. We looked at some of these options in a prior presentation when we just looked at these options in general, if you just wanted to month comparison, you could do it this way. This is one way that you could do it. You could say, okay, let's just make the range from 1, 1, 0, 1, 2, 0 to say 1231 to 0. And then note that that's not going to do enough. Let's see what that does right there. If I run that report, then I'm and I'm going to close the hamburger over here just so I have more room and I'm gonna hold down control and scroll up a little bit. So I'm at, I'm at let's make it the one-to-five, the 125 percent up top. So notice down here it didn't really do much because it's still really as of December 31st, 2020. And remember that the balance sheet report is not a timing and report. It's an as of a point in time report to the beginning date doesn't really matter for just this normal balance sheet. It will matter when we do some of these comparison items. It does matter when you drill down on the data. So that's not going to do it. What else do we need to do? Well, we could go to this total columns and make it now months. So I say, hey, I want to make it months and then run the report. And now we've got our comparison. We've got the prior month to the left and the current month to the right, which is kind of how you would expect to read it normally. But oftentimes, you might want the most current month first because that would make the most current data lining up first. And so we'll see a weight to do that. Now if you wanted to compare three months, this is a great tool because if you compare three months, then you're not, you're not really doing any difference calculation. Like if I compare two months, my natural next thing I wanted to do is say, well what if I just subtract those two columns? And I look at the difference of where we stood in November vs December, and then possibly a percentage comparison. That's just naturally what's your mind might start thinking if you're analyzing your financial statements and you're comparing period to period two months at a time. But if you want to look at three months at a time, then you can use this tool and this is a great tool. Do it if I, if I then take this back to 10, 0, 1, 2, 0, for example, run that. So now we've got our three month comparison. Obviously we can't really subtract 11 to the other because we're running three months, which is kind of visualizing the three months. If we go back to two months, back to the 11, 01, 200, run that report and I'm comparing two periods, then I kinda like this column on the other side saying, Give me the difference between the two on a line-by-line basis. So that's what we'll do next time. That's what we'll do this time now. So now what I wanna do is compare the two. So I'm not going to use this tool. I'm going to bring this back to the total. And I'm going to change the beginning date to 12, 0, 1, 2, 0. So we've got the month of December 2020, run that report. So now we're back to this one column over here. And then I want to do my comparison instead of using this item, using this item over here, select the period. I want to see the previous period, and we have the custom period here. Now the custom period is nice because if you're using a date range like I did here where we're manually putting in the date range. Then what you want is that is the custom periods so that you can make sure that you're picking up the proper period. In other words, if I was to use this drop-down and say I was using the current month and then comparing it to the prior month, the system will do that well, if or if I'm doing one-year and comparing it to the prior year, the system will pick that up well, but when you're comparing, say, January to February, there's a different number of days in January and February. So if you're using a range that you had to manually put in, even if it's a month, the system can kinda mess up how many days are in each period. And if you're doing a month by month comparison, you're basically saying, Hey, I want to compare a period that's January, even though it has 31 days to another period that might only have 28 or 29 days in it because I want to do a month-by-month comparison. So the fact that you have a custom period calculation down here is nice. So in this case, I'm comparing December 1st through December 31st. And then I want to match that up from November to November 30th because there's only 30 days in November. And this becomes more important when you look at the income statement reports. We're the beginning date matters because your mat you're measuring timing over time. And we'll take a look at a comparative income statement or profit and loss reports in a future presentation. So let's just take a look at that first. So I'm going to, I'm going to click off of it and then run that report. So there we have our comparison. So now we have as of December 31st, 2020, and that's the current period or the most current period upfront. So now we've got the most important period or the latest period upfront and the prior period then to the right. This is very typical of financial reporting because that kind of gives you the information in order of importance now as opposed to inorder of chronological order starting from the beginning. All right, we're starting from the end. We're starting from the data that's the most current and therefore most relevant data going back to the prior data, which is less relevant. So we have our comparison now we just laid these out side-by-side. Remember this is as of a point in time. So this is saying this isn't a performance report. This is where we stood as of December 31st, 2020 versus where we stood as of November 30th, 2020. Now the next natural thing we would want to do is say, okay, well why don't I just subtract those two like each row, I'll just make a column of subtracting each row. So that's going to be our next option. So we're gonna say our animals do that, that would be nice. And we'll do the dollar change. That's what the dollar changes. So we'll run that report dollar change. And now it's just subtracting these two out. So we were at our current period, 1, 0, 0, 0 to 0, 1, and prior period we're at 4321 for the difference being a negative amount or decrease from the prior period to the current period of 3000, 120. So now we have our difference here of where we stood before and where we stood now. And you can see that in the balance sheet, this difference column will basically be imbalanced too, right? So if I look at this difference column, and I look up the total assets here, that total assets adding, adding up to a difference of the two thousand, five hundred four hundred twenty three. And then the liabilities and equity difference adds up to the 2000 50 for 23. So you can think of the difference between a prior period and the current period as basically one big journal entry. If you want to think about it that way, right? You can consolidate the difference in the balance sheet down to basically a big journal entry. It's so it's a transaction that's going to be imbalanced or all the transactions that took place in that month, you can think about as as being one consolidated difference or one journal entry. In other words, the change has to be in balanced. Okay, so that's what we have now this is going to be useful for internal use. But if I want to compare it to like us, another kind of company that I might want. The percentage changes, we're going to go up to the percentage changes and grew up top and say, let's get that and say we want the percent change as well. Why not? Why not? So we'll pick that up and that's going to be calculated if we pull up the trusty calculator, there's the trusty calculator and then I'm going to make it a little bit smaller. And we'll say it now, the difference you'll recall was the 4.4321 minus the 1, 2, 0, 1. And so we've got that difference. It's a negative, but it's, uh, 312 to 0.4. If I take that difference now, the, change, the difference and divide it by the prior period, our starting point, which was the 3.421. Then if I move the decimal over two places, we've got about 72.21, rounded to 21 right there. 72.21% decrease. Now this is going to be, these percent changes are really nice if I wanna compare it to like another copy of it. Let's say I'm comparing to another landscaping company or something like that and they're larger than I am or me know, if you'd like a burger shop and you're comparing to McDonald's or something like that. You can't, you can't take your dollar change means nothing to compare it to them. But if you take your percentage change in some of your performance datas, and this will work quite well on the performance reports, like income statement reports. Then you can say, okay, well, what is there? What is their cashflow doing in relation, right? They're going to have a lot more dollars, but was their cashflow doing in relation to mine? And you can make, and you can take a look at these changes. You can see this kind of analysis working when people try to mirror something like investment companies on the balance sheet side of things, they look at good investor, a successful investor like Warren Buffett or something. And I say, what kind of change did they have in their cash fund or their stock, this stock fun, How much did it go up and down by? I have a much smaller thing going on here, but I can kind of see what's going on in their portfolio versus mine. The balance sheet is kind of like the business portfolio within the industry that you are in. So you could do similar type of comparisons and similar kind of benchmarking to other companies that are of a much larger size. And you're typically looking to companies that have a larger size because you're looking to people who have been successful and try and join the mirror, you know what they're doing some way, shape or form. And notice any kind of performance measure, whether it be in baseball or whether it's just basically a form of someone's job, right? That's their job. Baseball players or any kind of sport player or your own performance in whatever industry you're in, you have to use kind of these Ratio Analysis so it's useful to get accustomed to those. So okay, anyways, there we have our, our ratio change. Now if I look at this report, then this looks pretty good. But now it's not really a balance sheet, it's kind of a comparative balance sheet now, so I'd like to make it possibly a comparative balance sheet. Then this date range doesn't really apply anymore because it's not as of December 31st, 2020. It's as of December 31st, 2020. And as of December 31st in, as of November 30th, 2020, it's a comparative balance sheet. So I might want to remove that. And then typically down here, and I might say I might do my normal formatting of basically making negative amounts with brackets instead of a negative number. Just do a little bit more customization. And then I might want to remove these items down below. I'm going to make that as my kind of routine type of type of stuff that we're going to, we're going to do so I'm gonna go back up top and say, all right, let's do that. Let's go ahead and customize this thing. And I'm going to then go down. To the, let's say the general looks good. We're going to go down to the header and footer. Let's go ahead and remove the date, time, and report basis. So I'm going to remove the footer completely and then the header, the name looks good, but the balance sheet, I want to make it a comparative balance sheet. So let's change the name of top to a comparative. Say if I get my fingers on the right key, comparative balance sheet, I hope I spelled that right. If I didn't spell it right, I apologize, but I'm going to keep it at that comparative balance sheet. And then this report period, which is this right there. I don't want that because I have the dates down here and that's kind of not quite right to me. So I'm gonna go ahead and say no report basis. Let's take that off. And then on the the fonts of the number up top, this is in the general area. Instead of a negative, I kinda like to have brackets. I like brackets, a little picky brackets, and then let's make it red. Just make them red brackets for negative numbers. So I'm going to say it, Let's run that report. Run that report. And so there we have it. So now we've got our changes. The negative change is standing out with the red and then we're scrolling down. And that looks good. So that looks pretty good. We've got the footer down here is gone, and we removed the date up top. So that looks pretty good. So now we've got a notice how much more flexibility you have with this. So if I was to use their custom report over here, then I really don't have that much flexibility because all they did was pick, was picked the previous year comparison. But if you know how to construct it, then you, then you can construct any period you want, any range that you want prior year to the current year, prior month of the current month and so on and so forth. You have a whole lot of flexibility once you construct the reports that you want to construct for yourself, that you can prepare for yourself or for say, a client, you can memorize those reports. Now as I'm going to show you how to memorize here, but just note because we're in the sample file every time I log back in, its gonna get lost, right? We're not gonna be able to save them, but if it was your file, you can then save the custom report. It says comparative balance sheet. Add this report to a group. I'll talk we'll talk more about groups and whatnot possibly in a future presentation, but I'm just going to save it as is for now. And then I'm gonna go ahead and save that report. And then sometimes when I save the report, it doesn't refresh like in the prior tab. So I'm going to duplicate this tab just to show you that it's saved properly hopefully. So I'm going to right-click on this tab and then duplicate it. So right-click, Duplicate. Hold on a second. I did some funny there. That's not what I wanted to do. Let's try it again. I think I pinned it. I append it instead of duplicating, which I've never done before, I didn't even know you can pin the thing like that. So but in any case now we're going to duplicate it. And then we're gonna go down to the reports down below. And then within the reports, we got our custom report now. So there's our custom report. So if I open this backup, then now I have my own custom report, which I mean frankly is better than the pre formatted report that they had for us, which is not actually that good. This one looks or not. I think it's a lot better. So now we have our own custom report. Now next time what we're gonna do is we're going to think about emailing, printing, and downloading and exporting to Excel this report. We're going to construct it again really fast next time just so we can start from scratch. But if you don't want to construct it again, don't logout, go to the next, go to the next one as you go. And then we'll practice basically exporting this option. It's really, you want it, you want to make these things look kind of really nice because presentation is half, half the job, whether you're an employee and you're given this to a supervisor or something like that, or if you're working for a for a client for sure. And if you're if you're batching this stuff together to provide to the client, I'll like a monthly basis or something like that. You want to batch it up as nicely as possible that you can. So we'll talk about you can email it, we can print it, and then we have some really neat options to export it to Excel, not just to open in Excel, but then we can also use Excel to, to batch are our reports together in a way that's more convenient also. So we'll talk about that next time. 35. 2.36 Print, Export to Excel, & Create PDF from Reports: Quickbooks Online 2021 now, print, export to Excel and create a PDF from reports. Let's get into it within two. It's QuickBooks Online 2020, one, here we are in our QuickBooks Online Test Drive file, which you could find by searching in your favorite browser for QuickBooks Online, Test Drive were in Craig's Design and landscaping services. We're not going to be generating a report and we're going to be exporting, printing and saving as a PDF. Keeping in mind that we want to basically organize our report in such a way that it'll be as easy to read and open for either our supervisor or our clients or ourselves In the event that we need to get back into them in the future. To do that, we're first going to be setting up. I'm going to go actually to the desktop here. I'm going to set up a folder where I'm going to put these reports. We're going to be saving these reports. We're gonna make the I'm just going to call it QuickBooks Online reports. Within that folder, we're going to have the part one, which is going to be the navigation for me. That's part 1 of the course. That's going to be the navigation part of the port course as opposed to part 2, where we're going to be creating a new company file. So we'll practice saving our report in here. Obviously, in practice, you would set this up by basically as client files or if you're working in a particular company and not in multiple companies, then you might want to set it up as reports and then something by date, most likely. So keeping that in mind, we're now going to go back on over to QuickBooks. And as we generate new reports, will go through this process of saving the reports that we can think about, just basically organizing them. So I'm gonna go down to the reports then. And I'm going to generate a balance sheet. And then we'll create the same balance sheet, that comparative balance sheet we did last time. And if you already have that open, you could just save that one as well and then we'll save those to our reports. So I'm going to go to the balance sheet down below and I'm going to take a look at this in as of December. So I'm going to make this as a 01, one to 0 to 12, 31 to 0. And then I'm gonna run that report. And so then let's close the hamburger up top. I'm going to hold down control and scroll up a little bit. So I'm at like one to five. That's what I like to be one-to-five. That's perfect. 125 percent. Then we'll make a couple adjustments to this, our standard type of adjustments. I'm just going to do the balance sheet first and then we'll do that comparative balance sheet. So I'm going to go to the customize up top. I'm going to then just simply change our normal changes on the header and footer. I'm going to remove the date, time, and report basis on the footer. And then in the general area I'm going to make negative numbers bracketed and read. So that's going to be some of our standard type of formatting that'll do most of the time. I might forget sometimes, but most of the time. So there we have it. And so we have no footer down below and the bracketed numbers, or the negative numbers are bracketed. Now let's consider giving this to somebody else and remember the presentation of giving it to someone else, whether it be a supervisor or whether it be a client, is half of the work here. So we want to make it look as nice as possible. So up top we could email it, we could email actually directly through the Intuit system. And we might be able to email where we have multiple different reports as well, either through the QuickBooks system or by downloading these items as a PDF file and then attaching those PDF files to an e-mail, sending them out. Now one of the downsides of that is that if you have a lot of reports, if you have more than five reports and you send an email to someone with five different attachments, that becomes a bit tedious for them to basically download that information and then do anything with it. So another way you can solve that problem is one, you can actually put this on the Cloud in some way if you want. So if you have like a Microsoft 365 type of thing, you can use the you can use the Microsoft Cloud Store, which I believe is called OneDrive, and you can give them access to the Cloud Storage. Cloud Storage, you've got Dropbox that you can give access in some way. Google, that kind of cloud storage where you can save it on the Cloud and then provide them access to it. That could be a great solution as well. If you want to email it, another solution would be that you can basically take those five or five plus forms and then consolidate them into one zipped or compressed folder file that you can then attach to the email so that they can just download the entire compressed file, which is a little nicer. Or we'll take a look at another option. We can actually put them all into one PDF file with the help and use of Excel and then printing tool that we can use. So those are the options that we will happen. We'll focus in on. So you can email it, you can print them. We'll take a look at printing them as a PDF file, and then we'll take a look at exporting them to excel and putting them all into one PDF file for one attachment. When we create the one PDF file from an Excel document, we're going to do so with the help and use of a printing tool which basically uses your printer, but it's going to print it as a PDF. I highly recommend having some kind of printing tool like this. And we'll see how it works when we, when we push forward and that part of it problem. But just note, I believe there's a free one and this is the one I typically use. It's called qt PDF. If you just Google search PDF printer or cute PDF printer, you should be able to find it. What will happen is basically you will install the PDF as like a printer. And, but instead of sending the thing to a printer, it'll actually printed as a PDF, a document but a PDF type of document. This is useful if you are not given the option for some reports to export as a PDF. Or if you just want to print a screen of any type of screen and you don't have that option, whether it be an into it or QuickBooks or not. The PDF printer can be quite useful. Okay, So let's go through those options. If I was to print here, if I go to the printer, these are going to be our printing options. We have once again, we could save it as a PDF here, or we can go to the print option here. We have how it's going to look in the printing field, the display of the print, so that, that is a nice feature. On the left-hand side, we've got the Orient, the, we've got the orientation, which could be portrait or landscape. Landscape is the first thing you wanna do if things don't fit on the screen because they're going to be too wide. So you have some ability to adjust them within QuickBooks. We also have these smart page breaks, so it's going to give you some help in terms of the page break and repeat page headers. That means if you go down to the second page. We're two pages that it's going to repeat the header. So if you want the header to be basically kept as you go down, you have that option. Now this is somewhat limited in the, in the printing options if you export it to Excel and you have a more detailed report, then of course you have a lot more in terms of formatting that you could do to the reports and more, more principle options. So if you get to longer reports that are very detailed and you want to organize them and print them in such a way that they can be displayed to somebody else. Then it might actually be useful to once again export it to Excel and do your formatting there and look at the other printing options that you have there as well. So then we can go to the printing option. If we go to the Print, then once again have the display of the print. It actually prints it as a PDF file. And from here then we can print it to a printer, or then we can download it in this format as well. I'm gonna go ahead and download it. It's going to ask me where do I want to put it? I'm going to put it on that folder that I just set up on the desk. So I put it in the QuickBooks Online report part one navigation. Now I've got it labeled as the balance sheet. Oftentimes you might want the date as well and you might want the date upfront even if you're going to be sorting by date. And sometimes if you're going to have multiple years in one folder, you might actually want the year first. So you might want like 20. And I have to put a dot instead of a dash, so it will save it in Windows system. So I'm gonna say 2012 and then 31. And that'll, that'll basically save it by year first and then the month and then the day. And that'll help you with your sorting system. If you have multiple years in one folder, if you're starting a new folder for each year, then you don't really need the date in that format. You could just do the month, the month and day possibly, but just keep in mind you're sorting system, so we'll save that. So that'll be saved over in that format. I'm going to close this back out. Close this back out. Now we're going to use our export to Excel Options. I'm going to hit the drop-down here. I'm going to and export it to Excel. And if you have Excel, obviously you'll need Excel for this to happen, for this to work. Then it'll generate this item down below. This item down below is in Chrome. So I'm using Google Chrome, the browser. That's why it pops up down here. If you're using Firefox, you might have something up top here. If you use an explorer, Microsoft and you probably have a yellow ribbon or something. So if I open this up now we've got our report basically in Microsoft Excel now. So this is a nice tool to have. Now this isn't something that you'll probably be exporting or given to a client basically in this format. But it can help if it's a starting tool that you will then use to other things you want to do with the report. And it could be useful as well as we will see if you have multiple reports that you want to combine into one PDF file. So what I'm gonna do is I'm just going to save this now. I'm going to say File Save As I'm going to browse. I'm going to put this into as well, the same folder. And I'm not going to name it balance sheet because I'm going to put multiple reports in here. So I'm going to call this I'm going to call those financial statements like so. And again, you might want to put the date up front, but I won't put the date and this time because we'll have multiple reports in here, so I'm going to save that. So there is that report. And then I'm going to minimize this item. So now I'm back into the QuickBooks system. Now I'm gonna make that comparative report that we looked at last time and we'll do a similar process and save the comparative report. So I'm gonna do this fairly quickly. If you if you want to look at the detail on it, you can look at the prior presentation, but I'm going to change the date range up top from 1201 to 0 to 12, 31 to 0. And then I'm going to change that this item here. I want to take a look at the previous period. That's going to be from 11, 1, 2 1130, 2020. Then I'm going to go ahead and run that report. And then I'm just going to change the name up top to a comparative balance sheet and remove the date here. So I'm gonna go back up top, customize this reports. I'm going to change the name in the header and footer to a comparative balance sheets. I'm going to come to the balance sheet and I'm going to remove the report period, remove it that date, running that report. So there we have it because the dates are down here. So now I just want to do the same thing with this report. I'm going to I'm going to save it or print it, or save it as a PDF last time I printed it and then save it as a PDF. This time I'm just going to go to the drop-down here and say export to PDF. So if I wanted to make it into a PDF, export to PDF, we once again have that same basic window here. And then I'm going to say save as a PDF. And now it's going to populate down here as the saving. If it does that in Chrome. I can then open up my, my window that I want to save it to. And if I have these things kinda side-by-side here, then I can just pull pull this one over. I'll just pull it in there like that. So hold it in and then I can rename it. So I'm going to make these look bigger. I'm going to go to the View tab. I want to look extra large, not just large, extra large. It's not get crazy. And then we're going to say right-click. Rename this thing. And once again, I'll, I'll call it 201231 comparative. And I'll put a space between the balance sheet. So there we have that. And so that one is saved as a PDF. Now, now let's export it. I'm going to be the exporting thing again. So I'm gonna go back up top and say Now I want to export this. Actually I should have done the differences too. I should also go to this drop down and say, I want the dollar change in the percent change. That's what we did last time. So I should have that. I won't save it as a PDF again, but I'll export it matte format. And then I'm going to export it. So we're gonna go to the drop-down and we're going to export it to Excel. Now, let's export it to Excel. So there we have it dropping down here. Now I'm not going to drag it in. What I wanna do is open this up and then save this information to my other Excel worksheet I already have open. So I'd like to have these two tabs then on the one Excel sheets. So here's the new Excel sheet that I have. And I'd like to save that tab in the prior Excel sheet that we save. So this is my financial statement Excel sheet. I want another tab with that new information in it. So I've got my two workbooks open now, there's a couple of different ways you can do this. I want to get it in. I want that tab to be included on this one. I got this one open. This is where it's coming from. So one way you can do that as I can. I can right-click down here and say I would like to move or copy. And then I get this little toggle up top. And so notice up here I'd say I'm want to move it to the financial statement. So I'm gonna say financial statement. Now instead of just moving it, I'm going to make a copy in case there's a problem with it. So I'm going to try to move it to that other one which she's in a total other workbook instead of the same workbook. So I'm going to say, Okay, and so there it goes. It moved it right over there. So now it moved me over to the financial statement item here where we have our second tab, which is nice. Now if there's any problem with that, with it doing that, you could create a new tab here like this. And then go back on over and go back to the, to the prior one. And then hit the triangle up top copying the entire thing. You want the entire work sheet to be copied. And then make sure you're in cell A1. If you're not, it won't be able to paste the entire worksheet or select the entire worksheet again and Control V or paste. So sometimes the formatting gets a little bit messed up. If you do it that way, it would be better however. So I'm going to delete this right-click Delete. It would be better if you can kinda export it the way we did it here or copy the whole tab on over. And then all the kind of formatting should be much the same. So there we have it. So now I'm going to double-click on this one and I'm going to call it a comparative balance sheets. So I'll say comparative, I'm going to abbreviate. So we don't have huge names down below comparative balance sheet. Now you can test how it will look by going to this tab over here. And we can kind of view and notice there's a, there's a problem because part of it's now printing on another on another page. So if I was to print this, I'd have to like tape the thing together in order for it to work. I don't mind it being two pages long like this, but it is a problem if it's two pages wide. So then to save that, to fix that, you could adjust the columns if I can now, now, if it was way out of, out of reach, what you're gonna do is you're gonna go to orientation and make it landscape first and then adjust it. But this one looks pretty close. So what I'm gonna do is try to shorten this column up a bit c, and now it's within its, within that range. So now we have this, so we can save it in this format as well. Now, what we have thus far, if I go to my reports here, is we have these two reports to reports are not too bad to save as a PDF file. But if we got like five or more and we're trying to attach them to an email, it can get somewhat tedious. So how can we make this better? Well, we could save it to the Cloud in some way. Once again, save it to like a Dropbox and get someone else access or, or a Google Cloud or something like Microsoft 365 type of cloud with the OneDrive. Or we can zip the file. Let's try that. I'm going to right-click on this item. I'm going to make a new folder, and I'm going to call this financial finance statements. I'll just abbreviate this and then I could drag these two items into it. Now I can't attach this folder, but I can zip this folder and then attach it. So if I right-click on this folder and then zip the folder, so I'm going to send it to compress it. This zipped folder I can attach to an email. So now instead of having like five attachments in this case two, but if I had more than five, I can say okay, now I'm going to zip it and have one attachment. The other thing I could try to do is try to use this Excel document to make one PDF file with multiple forms in it. So this Excel document now, I probably don't want to send this Excel document, but I can use it to then, to then create one PDF file with multiple reports. Let's try that. We're going to go to the File tab, we're going to go to the printing option. And then I want to print it to this cute PDF printer. This is where this comes into play. I'm going to print it to the cute PDF printer here or some type of PDF printer. So I'm using the printing option, but I'm not printing to the, the printer. I'm printed to this cute PDF printer which will make a PDF form of it. And then down below it says print the worksheet, that's the default. It prints only the worksheet you're in by default, I want to print the entire workbook. So I want to print the entire workbook, so make sure you have those two uploaded and then it'll print it in this format. The formatting might be a little bit different and you can adjust the formatting for it. So like this is on two pages. We can talk about how to put the header on both pages and whatnot. But two pages long isn't really a problem for me. Two pages wide is typically a problem, right? You need to fix that two-page long. Not really bad. So then if I go down here, we have that. And then the second report is right down below. And there's the second page of that report and there it is. If I print this, it's going to print it to the PDF printer. So we'll save that. Then I'm going to put it into my my same folder. I'm just going to call it financial statements and say save it. And so there we have it here. So now instead of, instead of having a zipped file with a bunch of folders that they have to unzip and what not. I can take it one step further and just give them this one attachment which will have multiple files in it. So here's our one attachment now. And it's got it's got these multiple files that are inside it in one folder. This is also kind of impressive because most people don't know how to do this. So if you can, if you can do this, it gives you a kind of a little bit of a step up because again, presentation is a lot of the process when you're, when you're working to display this information. So that's one way you can get them. You can make it look really nice, right? So, so there we have that. And you could get in a lot more into the, into the formatting. One other thing I just want to note over here on QuickBooks is if you open up this tab, Let's make another tab. I'm going to right-click on this tab and duplicate it. And then if we if we're presenting our reports each month and we're giving them to a client, then we could we could step up the formality as well by basically using this manage reports area here. And this could be another way for us to kind of group our reports and make them look more professional and whatnot. And so we may do a section on that in and of itself. But if you're just doing some reports, report to report, and you're just kind of attaching the reports, then the options that we're looking at here are the are good way to go if you're trying to put in put them into like a monthly or yearly or quarterly type of report basis. Then you could go into the management reports and that gut level it up even a bit more to make it like a formal, more formal look in documentation for financial reporting on a periodic basis like monthly, quarterly, yearly. 36. 2.38 Balance Sheet Vertical Analyses: Quickbooks Online 2020, one balance sheet, vertical analysis. Let's get into it within two. It's QuickBooks Online 2020, one, here we are in our free QuickBooks Online Test Drive practice file, which you could find by typing into your favorite browser, QuickBooks Online, Test Drive, or in Craig's Design and landscaping services. We're going to go down to the reports on the left-hand side. We're going to start off with our basic balance sheet again, our favorite report or one of them. And then we're going to be modifying it this time for a vertical type of analysis. To do that, I'm going to close up the hamburger up top hold down Control, scroll up to that one-to-five. That's why I like to be the one to five. And then I'm going to change the dates up top from a 1, 0, 1, 2, 0 to 12, 31 to 0. And then let's go ahead and run that report. This is going to be our starting point. And then we're gonna do the vertical analysis on the balance sheet. So the way to do that as we go up top, I'm going to go into the select the period we're going to scroll down and we want the percentage of the columns. We're just going to select the percentage of the column and then go ahead and run that report. And then we have our percentages on the right-hand side. So once again, this is another format, format of the percentage calculation. Instead of comparing one period to the other period, which is kind of a horizontal type of analysis. We're comparing one period to itself. We're comparing each line item to what you could think of as kind of like the total line item or the most important kind of line item within the financial report in this case the balance sheet. So to see this, we're going to say, all right, we're, for example, that checking account up top is the 121 and we're going to divide that by the total assets. So the total assets, that being the 23000, so divided by the 23.29436. That's going to give us, if we pruned the decimal point over the five-point 12 percent, about, about 5.12%. Now you can see this, you'll see this in like investing type of scenarios as well. So if you have a portfolio of you got your millions of dollars and that you're going to be put into stocks and bonds and what not. Then you might see in the portfolio you might be doing a comparison, for example, to someone like a famous investor like buffet or something like that. And you can't compare the dollar amount once again. So we have that situations that I can't really compare the dollar amount because I'm probably trying to benchmark or compare myself to somebody who has more than we do, but we can't compare the percentages. So if I was comparing my portfolio such, such as my individual investments to someone who has a lot of money, then I might, I might be able to do this percentage breakout. And I'd say, well, I only have this much, but I'm, I'm kinda mirroring the amount of cash in comparison to the total assets as someone who's doing quite well. In a situation, the similar process can be done for a business as well. If I'm trying to compare, say, my hamburger shop to McDonald's, I cannot compare the dollar amount of cash that they have to what I have, but I can't say Well, how much of their of their assets are they keeping in cash as opposed to putting into something like property, plant, and equipment. That What's that comparison that they have? Because the balancing act for many companies will be. I want to put money into the property plant, and equipment because these are the things that are generating my return. But I want to have some portion in cash and other liquid assets possibly so that I can cover any kind of expenses that are going to be coming up in the near future. So we've got a similar kind of comparison. These are the assets that we have. This is the percentage of those assets as compared to the total assets. We could do a similar breakout down here on the liabilities. So on the liability side of things, we can compare the, the, the liabilities and equity. So we've got, for example, the accounts payable 16 0 2.67, divided by the total liability and equity, 23.29436, which of course is the same thing as total assets. So I can divide that by the 23 4.2936. And that's going to be, if we scroll back up about, if I move the decimal two places over 6.46%.84 about. So if we think about the ownership of the assets, the other side, liabilities and equity representing the flip half of the coin assets, what the company has, liabilities and equity who has claimed to those assets? The accounts payable is 6.84%. So this is one of the basic kind of interests that basically ratio type of analysis. So when we're doing these kind of comparisons, which you typically will do more on a, on a managerial type of situation. Is these ratio type of analysis to get better insights about how well are healthy the company is doing. You're gonna get those insights from the basic financial data, primarily from the financial statements of the balance sheet and the income statement. So we're gonna do our same process here. I'm going to, I'm going to print this report just like we have in the past. And, and to do that first, let's format it. So I'm going to go up top and I'm going to go to customize. And let's do our standard customizing. I want the negative numbers to be bracketed, show them as red as well. I'm going to go down to the header and footer. I'm going to remove the company name, the report title, and I'm sorry, I'm not going to remove those. That's not what I wanted to I want to remove the date prepared, the time prepared, and the report basis. And then up top, I might call it say a vertical analysis balance sheet or balance sheet for VR to go on analysis. And now as I spelled that wrong, but I totally did it on purpose so they can show you that they give you this little spellcheck and analysis. That's why I spelled that wrong. So there's a balance sheet vertical analysis. So I'm gonna go ahead and run that report. So there we have it. So now we've got the balance sheet vertical analysis here we have this, if this is something that we want to be printing out all the time, then we might want to save this or memorize it. It won't be saved if I go back into the report in this practice file because every time I go back in and we'll restart, but you would then customize it up top and then I can save it here and then save that report. So that would then show in our memorized reports so we would not have to regenerate it every time. Then when we make our financial statements, we can e-mail to somebody if it's a singular report, we can print it if we so choose as a PDF file. We can export it as a PDF file or we can print it as a normal printing file. And then we'll export it to Excel and then update our Excel worksheet as well. So we can have one PDF file with our multiple reports on it. Let's first export it as a PDF file. So I'm going to say export as PDF. So here's, here it is. I'm going to go ahead and save it as a PDF. It's going to show up down here because I'm in Google Chrome. And then I'm then going to just pull that over. I'm gonna pull the screen over and I'm just going to pull that into the folder that I want it to be in. Hold on a second. I gotta open the folder. This is the folder I want it to be in. So now I'm going to pull it in there. Now I'm going to pull that into the folder that we want it to be in. Let's actually put it into this folder. I'm going to I'm going to remove the zipped folder because now I got new stuff. There's new stuff now, I'm going to make the View tab. I want to see this large icons and then there's the new item. So I'm going to rename it. I'll do the same dating thing. I'll call this 20 1231. So I put the year first and then I deleted the name. This is a balance sheet with two e's Vered to go on now. So we'll have that. And now we'll export it as, as an Excel file. So I'm going to then export it as an Excel file. So let's close this out. And then I'm just going to go up top and say Now I want to send it out to my Excel file. Once again, because I'm in Google Chrome, it's going to create it down here. So I'm going to open that one up. So there it is. I'm going to, I'm going to enable the editing now so I can edit it. And I want to put this in to my other Excel worksheet where I have my reports already. So I'm going to minimize this tab, this one I don't want to have open here anymore. Then I'm going to go into my folder. So there's my folder. I'm going to go into the folder, I'm going to open the other Excel sheet with all the financials I want on it. And then I would like to include this one on this worksheet. So I'm going to open up this worksheet. There it is. I got to tap balance sheet, comparative balance sheet. Now I want to include this balance sheet on it as well. So I'm gonna go back on over now last time we did it this way, we right-clicked on this tab. We went to Move or Copy and we have the option down here. Now notice I don't see my other workbook in this option at this time. And I think it's because I opened the other workbook after I open this workbook. So if I don't have that option, I can close this up and reopen it and try to do it that way. Or the other option we can do is to go into the prior tab. I'm just going to make up a new worksheet by hitting this plus button down below. I'm going to go into then go back to my prior worksheet. I'm going to copy the entire worksheet by putting my cursor on the triangle or hitting Control a, Control a over here, that'll be the entire worksheet. And then right-click and copy it. And then I'm going to go back to my other worksheet now I can't be anywhere except on A1. If I try to paste it down here, It's not going to fit because I copied the entire fairing last time. So I either have to highlight the entire worksheet or put your cursor on A1 and then say right-click and paste. And it should work, so it pulls over that way. Then I'm going to double-click on the name down below. I'm going to call it balance sheet, verb for analysis and we'll call it back. And then I'll check the, the formatting to see if it fits on one page typically by going to this tab on the right. This is the second view option. And then I'll go back to the normal view options so it does fit on a page. So there is there. Now I'm going to use this to print these three reports on one PDF file by going to the File tab, then going down to the print option. And I'm going to use my cute PDF printer, which we talked about downloading before, or some type of PDF printer. Then I'm going to change that workbook to show the entire act it I want the entire workbook, so print the entire workbook, that's what we want. So that looks good. So now we've got multiple pages here, six pages. That looks good. Let's go ahead and print it. And then it's going to print it to the PDF printer, going where I want it to. I'm going to overwrite this other file here. So I'm just going to double-click on it and override it because now we just add it to it. And then I'm going to close this back out. And then in our data now if I, if I wanted to attach this, I can zip this file. If I want. I could attach attach three copies if we so choose. Or we can open up just simply this and attach this one PDF file, which have all the, all the documents in it. So we've got the balance sheet now. We've got the, the comparative balance sheets, and then we have the vertical analysis. Now hopefully you're starting to see that even with just a few reports, there's a huge amount of combinations of reports that you can't put together. So when you're working with a client or a supervisor, you're going to want to think, you know, what type of package of reports do I want to do? Standardize them on either maybe a billing cycle, weekly, monthly, different reports for a monthly reporting, different reports possibly batched together for a yearly reporting. You can completely go overboard with it. You can add a ton of reports, all these different balance sheet reports and variants on it. Or you can try to keep it, keep it simple just depending on the needs that that you're looking into. You try to impress them with a ton of reports. Or you could try to, try to simplify things to make it as readable as possible at whatever level it is that you're dealing with. Also note that if you're presenting these reports to somebody, you actually plan on presenting them, then you probably want to start with a simple report and then expand on it. You want it, you want, you don't want to start with a really big detailed report. You want to get them engaged with a few simple key points. And then like three key points, boom. And then, and then zoom into more detail with the more advanced reports, having them ready for those questions that will come up. 37. 2.40 Summary Balance Sheet: Quickbooks Online 2021 summary balance sheet. Let's get into it with intuits, QuickBooks Online 2020 one. Here we are in our free QuickBooks Online Test Drive file, which you could find by searching in your favorite browser for QuickBooks Online at test drive or in Craig's Design and landscaping services practice file. Going over to the reports on the left-hand side, we will be considering this summary balance sheet. But first we want to compare and contrast that to the standard balance sheet. So let's open that up first. We're going to be opening up the balance sheet here in our favorite reports. There's our standard balance sheet. Let's change the dates up top from 0, 1, 0, 1, 2, 0 to 12, 31 to 0 and run that reports. So there's the standard. Let's right-click up top again. Let's open up the summaries as I'm going. I'm going to right-click and duplicate. Right-click and duplicate. I'm going to open a summary balance sheet up here, and then I'm going to duplicate it again. So we have one more tab open. So I'm going to right-click and duplicate again. And so now we've got three tabs. The first half I'm going to use if we want to go back and look at anything other than our reports. The last tab is going to be the balance sheet reports. This second tab, that's where I'm going to open up the summary balance sheet. So we're going to scroll on down to the reports. Again. We're looking for the summary balance sheet and that's going to be in the business overview here. Or you can search for it in your search options up top. So we've got the balance sheet summary, that's the one we want opening up then the balance sheet summary. I'm going to close now the hamburgers and we'll close the hamburger hold down Control. Scroll up a bit to that one-to-five. That's where I like to be, that one to 5% going to change the dates up top once again from 0, 1, 0, 1, 2, 0 to 12, 31, 200, and then run that report. So here we have the summary balance sheet. Now, obviously it's similar to the standard balance sheet, except for it's going to be a lot less detailed for it. The summary balance sheets, a great report if we're going to be providing it to somebody else or presenting a report, then you might want the summary balance sheet first because that's where you can get your main points across and try to get the most comprehension and understanding, even from those who don't really understand the financial statements that well. And then when asked questions about the summary balance sheet, you can then jump into like the standard balance sheet, which is going to be the one that will have more detail that we were usually concentrated in on. Also note that the summary balance sheet is a good one to use for demonstration, but probably not the main one you're going to be using to analyze transactions as you jump back and forth from the data input, the balance sheet and the income statement. Remember that as we enter transactions, for example, if I hit the hamburger up top, all of these items that we looked at, these will affect the financial statements. I would have the balance sheet and income statement open or a trial balance if you're if you wanna get used to that. So that you can practice the data input and see what the data input will look like. The summary trial balance you would think would be a good place to go, but it's not as good because you can't see all the accounts there. It's going to be grouped by basically the accountant types. And therefore you can't get down to the detail. So you want either a trial balance or both the balance sheet standard and Income statement open so you could get down to the actual accounts here and drill down on the data using the zoom feature to see what is actually going on as you do the data input. So for example, if I wanted to get into the checking account here, I can zoom into the checking account and on the normal balance sheet and I can get that transaction detailed report. If I scroll back up, I'm going to go back to the balance sheet. I cannot do that so much on the summary balance sheet. Go into the summary balance sheet because I have all bank accounts here. If I select the item in all bank accounts, I do get the detailed report, but it has two accounts in it. They're kind of on top of each other for the savings and the checking account rather than being able to get into one account at a time. So going back to the summary balance sheet, how is the summary balance sheet broken out? It's bright. It's basically broken out by grouping the classes together or grouping the major categories together. So in other words, if I go back to the first tab and we go down to our accounting, and we take a look at our chart of accounts. And I'm going to see the chart of accounts down below. You'll recall that we enter the accounts when we talked about how they're going to be set up by basically classes here. So that's going to be one of the driving factors that QuickBooks uses to create these reports. So if I go up to the Craig's Design at landscaping, now we have the assets that's not going to be a class in and of itself, but that's a normal financial accounting kind of formatting. And then we've got the current assets. Now that's the normal financial accounting grouping of things in the current assets if you're making like generally accepted accounting principle financial reports. And then in there we have then the, the classes now the classes now are grouped in the total. So in other words, instead of having, if I go to the balance sheet, the breakout in the triangle for the classes to give us the detail or less detail. We're gonna go over here. We don't have that triangle here. We just have that one line item for the bank accounts, which is in essence grouping together the cash accounts. And then we have the same for the accounts receivable. We don't see that breakout because this is another account type. We just have that one line item. So that's good for demonstration purposes. And then we've got the other current assets, which over here included these other accounts. That could be a fairly large grouping of accounts that are now grouped into simply other current assets here. And then we've got the fixed assets all grouped into one categorization down below. Then we have the total assets and then on the liability side, similar thing. Liabilities are broken out into simply the current liabilities, which is a normal financial accounting droop. And then the account types, instead of having each account in the account types in a header of them, such as accounts payable, credit cards and other they're all in one line item, multiple accounts then grouped into that one line item to get us to the total liabilities and then long-term liabilities. This being total current liabilities, long-term liabilities, total liabilities. And then you can see all equity accounts are now grouped in here as well. So that would be like the owner's equity account, the retained earnings in this case, the capital accounts would all be grouped together as basically one line item. And there we have our summary report. So again, really good report for presentation purposes and that kind of a starting out of the conversation type of report. Let's do some standard formatting to it. Now we're gonna go back up top and then customize this thing. So we have the customized, we're going to go down to the header and footer. Let's go down to the header and footer. We're going to remove the date prepared Time prepared report basis. So we remove those balance sheets, summary, that's an appropriate name, so we'll keep the header at the balance sheet summary, I'm going to make the negative numbers up in the general category to be bracketed as has been our custom. We're then going to say show them as red as well. So red and bracketed negative numbers, run that report. So there we have it. We've just made some slight adjustments to it. Also note that this edit titles tab is an interesting feature here because if you're, if you're displaying this report, might, you might change some of these titles, which are basically the groupings of the, of the category groupings of accounts. So the accounts receivable acids, those are typically standard bank accounts. You might change that TSA. Cash. Cash would be more appropriate than bank accounts. Typically, when you're presenting financial reports in general, accepted accounting principles of normal financial accounting language. You won't typically say these are all our bank account. So say this. These are the things that fall under cash and cash equivalents or something like that. And then the fixed assets again, this one you might call Property, Plant and equipment, which is, which is common there or depreciable assets are two other common names that you might prefer to name that. And then on the credit cards, you've got the credit will keep the credit cards long-term liabilities and the equity is another one where you might call it owner's equity, stockholders equity, partners equity, and then the retained earnings, you might call that categorization. You might call something other than retain like owner's equity or something like that. And these two are, if you can change these, It's really nice Also if you are not for profit organization. Because when you process reports for not-for-profit organizations, they often use terminology, of course, that indicates the fact that it's not profit oriented. And that's going to change some of these categories as well, which you can often change what you can't do it if you used to not be able to do it as much in the desktop version, you can't really make these changes. But, but it's nice to be able to do that so that you can reflect the terminology that they don't affect the functioning. The reason you can't change them normally is because these account types have been set up as part of the function of QuickBooks. So you can't really change the name of the account type because when you add a new account once you put it in on the account type and these reports are being generated from the account types. So the fact that you can kinda change these is pretty nice. So that's just something to keep in mind. So now let's go out of this. Let's go ahead and print this like we have been before. We're going to, we're going to save it as a PDF file and we're going to add it to our Excel document so that we can have that one PDF file with all the reports that we have done thus far. Now note if you're presenting this or giving this to someone else, and this is probably the report that you want on top because they're going to see that and say, Oh, that's, you know, that's something that's not overwhelming to me. My eyes have not glazed over by simply looking at this report hopefully. Because then if I go into the other reports which are now going to do comparative reports have percentages on it and whatnot. My eyes will most likely glaze over, right. So you want to Draw people in whether you're doing a presentation or presenting the report with something that's going to be simplified and get right to the main point that you want one to three points or something like in a presentation typically. And then, and then drill down on the detail. If you have an audience that wants to, It's gonna go detail. So then let's go ahead and download this. So we're going to export it to a PDF file. So it will save it as a PDF file. And then I'm just going to save it as a PDF. And then it goes down here because I'm in Google Chrome, if you're, if you're in Microsoft Edge or Explorer or whatever, it'll be up here. And then if you're in like Firefox, it'll, they'll be able to drop-down up here. And I'm going to then go into our folder. So our folder is right there. So I'm going to double-click on the folder and try to do they'll drag thing, dragging it where I want it to go. Dragging and dropping, which is sounds the easiest to drag and drop. I just wanted to say drag and drop really. So then I'm going to drag and drop. And then we'll rename this thing. I'm just going to right-click on it and rename it. And we'll put the same date, which is 200 dot 12, 31, balance sheet, balance sheet summary. That'll do it. And then let's export it to Excel. Now this time I'm going to open up the Excel that I want. So my, my other Excel report, I want to get it into this Excel report right there. So I'm going to open it up first and maybe that'll make it easier for me to copy over the tab. So I got these three tabs. I want to add that other tab like right there. So what I'm gonna do then, my plan, this is my plan to do, to do that. What I'm gonna do is I'm going to close this out. And then I'm going to go export it again to excel. And that's going to open it up down here like normal in Google Chrome. Open up the Excel reports in this opens up a whole another workbook. But I want to put it into that other workbook that I have open. So now I'm going to enable the editing. So now like I have two workbooks open, like that one and that one. And I want to take this work sheet and put it into the other workbook. So I'm gonna see if this works now that to right-click on this tab. And then I want to move it, move or copy. And it still doesn't show the other it doesn't show the other workbook open at this point in time. I think if I saved it, I saved it and open them both at the same time. It'll show it there, but it's not showing it. So what I'm gonna do then is I'm going to go to the second workbook where I want it to go. I'm going to make a new tab. I'm going to hit the plus button, make a new tab. I'm going to go back to the prior workbook, copy the entire worksheet by hitting the triangle because that copies the entire thing. Right-click and copy. And then I'm going to minimize this and I'm going to put my cursor in A1 or select the triangle to have the whole entire worksheet thing and then paste it. So there it is. I'm going to then call this the summary balance sheet. Balance sheet some Maria, I'll start to abbreviate here. And then I'll typically go to the second view, the page layouts and make sure it fits on one page. It should because it's like a condensed report. So I get should fit on the page. And then now I've got all of these reports. I want to print them all on one PDF file. So I'm going to use my cute PDF printer to do that by going to the file and then print, and then I want to print the entire thing. So I print the knot. I want to print the entire workbook on printing it to the acute PDF printer. And so now I got seven pages. Let's scroll through it just to make sure before I printed, I like to check it first, so it looks good. So then we're gonna go ahead and print it by hitting the button that says print, Like in it. It's going where we want it to go or where I wanted to go. I think you wanted to go there too. That's where we want it to go. It's going to go into the financial statement reports. I'm just going to overwrite that one because we added another thing to it. And then I'll close it. And then I'll, I'll save it. And we can't save because the file is read-only. Well, that's strange. I'll save it later, but in any case, I'll go back on over here for now. I'll fix that problem later. Okay? And then I'm going to go over here and now, so, so now we can right-click on this item and zip it. We gotta, we gotta for reports now, so it's getting kinda long to attach one at a time. Or we can have this one PDF file with all of our reports that we have thus far. So that. And then so we have that. And might be the easiest way to kinda, kinda show that to somebody else. 38. 2.45 Memorize Report: Quickbooks Online 2021. Memorize a report. Let's get into it with intuits, QuickBooks Online 2020 one. Here we are in our QuickBooks Online Test Drive file, which you could find by typing into your favorite browser, QuickBooks Online Test Drive. We're going to be taking a look at the memorizing of reports function. To do that, let's go to the reports down below. And we'll see that the normal tab that you will be on will be the standard tab. You can make the reports favorite of the reports that have already been made by putting that star next to them as we have seen, which will move them up into the Favorites area. You also have more flexibility with sorting nerve reports with this second tab, the Custom Reports tab. So nothing is in there at this point in time, we're going to think about saving our reports to this custom reports area. A couple of things you want to keep in mind. If you have multiple users when you're saving the reports, then you might want to save the reports for yourself, where you might want to share them with particular other users or everyone. One thing that kinda keep in mind, if you have more than one user, who do you want to be sharing these reports with? And then two, how do you want to group the reports? Once again, if you have multiple users, one way to group the reports will, of course d by name, you might want to say, Hey, these are the reports that are most important to me. I will sort them by name. You may also think about sorting your reports by flow system, meaning possibly if you're in the accounts receivable department, you have different favorite reports or custom reports then you would have in accounts payable or payroll. So you can think about the system or the flow systems that we thought about when thinking about the, the different forms, meaning customers that were receivables, vendors payables, and the employee kinda cycles. The other way you can think about reports is grouping them by wind, you need to display them. So you might have, say for example, external reports and internal reports. Those that you're going to use internally to help you when you actually create the financial statements and then external reports that you will then grouped together as you provide those reports either to your supervisor or two clients as needed. And that's going to be the scenario that I'll kind of run down at this point. So we'll make some reports, will memorize them. We'll think about having a report that would be internal versus basically an external type of report and sort our our reports in that way. So what I'm gonna do is I'm going to duplicate this tab. I'm going to go back up top right-click and duplicate this tab. And then we're gonna go down to the report. So we're down in the report. I'm gonna go to the standard reports. Now I'm going to start to look at those types of reports that I'm going to use most often just with my internal use of first. So I would put those under, we're going to say a balance sheet report. And I'll start off with the basic balance sheet report. I might then want to make some adjustments to basically this balance sheet report. So if I go back up top and I customize this report, then I might say that I want to remove the pennies, for example, maybe I don't need to see the pennies most of the time. And then I'm going to make the negative numbers as we have seen in the past. I'm going to show the negative numbers as red. And then down at the bottom, I'll keep them these items to date prepared and the time prepared and so on for the internal reports because maybe that will be useful for me internally and I'll just basically make these minor changes to the report itself. So if I run the report, there, we have it. So now we've got these changes that we have been made. So I'm assuming that now this is the type of report I like to see when i then inter-data say here. And then I jump over to this report on an internal basis. Therefore, I'm going to save this report just under my name, where you might save it as internal reports, where you might try to group the report has internal reports like financial reports and so on. But I'm going to go ahead and save it now I'm going to go up top and customize this report balance sheet. And I'm going to say internal report. So there's a balance sheet, internal report. I want to add a group. I'm just going to put it in this case under my name Robert. And so then we can share it. Now. We could share with other people, everyone, or if we had particular people that were using other users of the QuickBooks with a cheer with particular people. Sure, we reports with community, you can share with the community as well. You share only your customized report structure and not the financial data. So if you want to, you know, if you make a really nice custom report, you want to share it with the QuickBooks community, but not the personal data, just obviously the setup of the report. You can do that as well. So we're gonna go ahead and save that. Now sometimes when I, when I go back over here, it doesn't refresh how I'd like to go to the first tab and then refresh here now, now in the reports and I'm in the custom reports and I should see it pop up here. I'm going to try to refresh up top and see if it does pop up. If it does not, then I go ahead and duplicate this tab and it'll pop up, I believe so. I'm gonna go ahead and refresh this hitting the Refresh button. So I'm going to go into the custom reports and there we have it, we have it, the balance sheet here. However, it didn't add the report group. So what I'm gonna do is edit it. I'm going to go to the editing and I'm going to say I want to add the report a group. So I'm gonna go to this drop down and add a group. And I'm going to try to put my name here again. Robert. Robert. And okay. And so when you add this report to the group, it will follow the schedule set for the group. Okay. I'm going to say save it and close it now. Okay, so now we have this little drop-down and then we have that report. That's going to be our internal report. Obviously, the other report we would want is basically an income statement. So we would do the same thing possibly for an income statement. I'll go back on over here, reports standard tab this time I gotta go back to the standard tab, profit and loss statement. I would do the same thing up top. I'll customize the report up top. I'm gonna go then down, I'm going to take away the pennies, negative numbers bracketed and negative. I'll just run that report. Then I'm going to save this report as a custom report, profit and Loss. I'm going to say internal report. And then I'm going to put this under my name as well and we'll save that. So there we have those two. If I go back to the first page and I look and I refresh this page, hitting this little refresh icon, then it should show both of those. So there we have it. So now we've got those two items. So let's now think about external reports that we might give them to on a monthly basis or yearly basis. I'm going to think about those two different scenarios. We're gonna have month and reports. And basically you're in reports. So let's try to, try to do this again. I'm going to go down to the reports and say, all right, let's let's go to the first report. We would we would want once again a, a starting point of a balance sheet reports. Now I'm thinking of it as an external type of report. So I'm gonna go to the customized reports up top. And maybe I want to remove the pennies. I'm going to make it bracketed and read. And then down below I'm going to remove these dates. I don't really want these on the external reports and I'll think that's useful. So I'm going to say remove that, remove that, and remove that. And so that looks good. So I'm going to say, Okay, now I'm going to say this is going to be my external report now the standard balance sheet report, I'm going to want both on my month and reports, and I'll also want it on my year end report. So I'll save these under possibly two groups for to batch together my month in reports, in year end report. So I might see something like this customize, I'm going to add to a report group. I'm going to say month and reports. And then I'll try to say it. Well, let's do this, this way. This way, add a new group, new group name, month, and report. So it should work that time and then share with others know I'm going to keep that as is. So I'm going to I'm going to add that. And then this is going to go to month and report, okay? And then I'll save that, I'll customize that and save it. So there we have that and then I want to save it as a year end report as well. So then I'm going to customize again, not customized. I'm going to save customize the report. And then I'm going to say month in report. I'm going to add a new group for year in the report. And then add that group. And then I'm going to save this to year in reports as well. So we'll put it there as well and save that. Then go back to the first tab, refresh the tab again. So now if I go into here on my my custom reports, now I've got my internal reports under my name. I've got the month in reports up top that I could use for my month end information in my year in reports. And it didn't save the month in report. So let me try that again. I'll go back over here customized reports and put this into a month and report as well. Save it. I'm going to change the name slightly less time and save it. So if I go back to the first tab in the reports now I got two month in reports. So I'm going to try to edit this one and put it into the year end report. So I'm going to edit that. I'm going to put year. And so this is a balance sheet at year end, and I'll say year end. And then I'll put this into the year and a report, save and close that. So there we have that. I think I finally got it straight here. So then let's go back to the first page again. Now on the month in reports for example, you might want like a month-by-month comparison. Whereas at the year end report, maybe you don't want, maybe you want a year over year comparison. So for example, on the month and reports, I might do something like this. So let's, let's put this back to our 1201 to one to 1231 to one. I'm going to run that report. And then we'll do our report where I'm going to take the prior period in this case, the prior month, so November. And then I'm going to look at the percent change and the dollar change, your dollar change and percentage change. And let's run that report. I'm going to change the header to make our comparative report again as well. So and I ran it for 2021, so there's no difference. We ran it last font time for 2020. But it doesn't really matter because what we'd really want is just a formatting of the report and then be able to change the dates later. So if I go back up, then I'm going to I'm going to customize. I'm going to say that this is going to be on the header and footer side of things. This is going to be a comparative balance sheet. Comparative balance sheet. So it's a month over month comparative balance sheet. And then I'm going to save that. And so, and then I might want to remove that date right there as well. So let's customize it one more time and say I'm going to remove this report date. And so then I might save this as basically my monthly report, which I'll do a month over month comparison, but possibly for the year and report, I'll do a year compared to year comparison. So this one I'm going to, I'm going to save, save, and I'm going to save Balance Sheet. I'm going to call it a comparative balance sheet. Comparative balance sheet. And this, I'm going to just call it year and, and then I'm gonna put this into the onside. This'll be month end month and I'm gonna put this into the month end reports. And then on the year end, I might want like a year over year comparison. So if this was as of 0, 1, 0, 1 to-1 running that report for the year in reports, I might want to compare a year-to-year kind of report. So I might go back in instead of doing the previous period, I could do the previous period for a year now, but I want to say the previous year now. And then I'll run these two items. And then we'll have that item as well. So this will be a slightly difference for the year end reports. And you can kind of think of how this will work. I've obviously, you're going to have if you think about the reports are grouping together and your reports you want to present say to a customer or to a supervisor or something like that, you want to think about, okay. If it's within the quarter, for example, January and February, you might have month and reports. On the quarter end report. You might have a different package that we'll be having some different reports for the quarter end type of reports. And then you might have different reports basically for the year end type of reports, which could include more reports that she might need for a year end type of information. And obviously, when you're looking at comparative reports compared prior periods to the current period, you might have different comparisons from month to month, or quarter end or your end. They're all going to be based on the same kind of outlook or, or information. But again, you might want to look at different comparisons or emphasize different comparisons as you group those reports together. So, and if you put them all in, into a memorized list, then you can have them all basically in one place and you can generate them fairly easily. So I'm going to save this one, then I'm going to customize this one. This is going to be a comparative and this will be for the year end. And so we'll go ahead and save that. And that should be enough just to give us an idea of this. So then if I go back to the first tab and we refresh this tab again. So now on our month in honor month and reports and I didn't get everything in the year end report down here, but this one I put into the month end again, didn't I? Let's edit that. I can edit that. And I want to put this into the year and this time, sorry about that. And I'm gonna say Save and Close. Check the report period for this report. Okay, so there we have it. So just to give you an idea how you might do this. So at the end of the month, you might say these are external reports that I that I formatted for external use. And they might look, you know, obviously different than the reports that we might have for internal use. The reports for internal use, you know, obviously are going to be geared towards us wanting to jump back and forth and verify what we need to do for internal use. External reports being used for presentation purposes. And then as you present the external reports, they might have different reports for simple month in report. Or possibly you're doing this every week. You're doing data input every week and you want to give some weekly reports, monthly reports, quarterly reports which might be different and more comprehensive. You might have more reports. Yearly reports might be more comprehensive and you might need more reports for things such as payroll or other urine information, 1099 type of reports and things of that nature. This is just one way you can outline the reports. However, if you have a larger company and you have a lot of different people working in QuickBooks. Then again, you might just sort the reports either by cycle. The cycles as we talked about before or by person that is using that particular our report. Or you might run the report in some other customized way. There's a lot you can do it by date or something like that. There's a lot of different ways that you can set up your customized reports. But again, they can be a really good tool. And like I say, if you'd like to go back to your reports and look at them a specific way, such as putting brackets are just read in brackets around the negative numbers are removing the pennies. If that, if it's easier for you to look at it that way, then it's really easy to set up these custom reports and just set them up. And then those are the ones that you can always go to without having to reformat your reports and half and look and feel just like you want them to. 39. 3.10 Profit & Loss, P&L, Income Statement Overview: Quickbooks Online 2021 now, Profit and Loss P&L income statement overview. Let's get into it within two. It's QuickBooks Online 2020, one. Here we are in our free QuickBooks Online Test Drive practice file, which you could find by searching in your favorite browser for QuickBooks Online, Test Drive were on Craig's Design and landscaping services practice file. We're going to go into the profit and loss or income statement by going into the reports down below, we're going to be opening up this standard profit and loss, which should be in your favorites because it is a favorite report. Profit and Loss report, otherwise known as an income statement, sometimes called or referred to in short as the P and L. I'm going to right-click on that report, right-click on the tab up top, duplicate that report. I'm going to duplicate it. Duplicate it a couple more times. I want to see a balance sheet as well open and then a trial balance. I'm going to right-click on it again, duplicate it again. And then I'm going to copy it again, right-clicking on it again and duplicate again. So the first tab, if we want to go back to anything other than the reports, will be here. Second tab, that's going to be the primary report that we are looking at in the P&L profit and loss. Third tab will be the balance sheet. Fourth tab, trial balance. Okay. Let's open up the trial balance, hitting the reports down below, I'm going to type in trial balance to find the trial balance, trial balance. So there we have it. I want this open because this is a report that basically has our two financial statement reports, balance sheet, income statement on top of each other. Good report for reference. So I'm going to put this up DHAP to the dates a 1, 0, 1, 2, 0, 2, 1231 to 0. We're going to run that report. I'm going to close the hamburger. Then we're gonna go to the second tab, second from the end tab. And this is going to be we want this report to be a balance sheet reports. I'm going to go to the reports down below. This is going to be our other favorite report that to financial statement reports, the big two, this being the balance sheet. This is going to be as 0, 1, 0, 1, 2, 0 to 12, 31 to 0. Let's go ahead and run that reports, closing up the hamburger. And then we're gonna go to the second tab. And this is going to be the income statement or profit and loss, where our focus will be at this time, changing the dates up top from 0, 1, 0, 1, 2, 0, 2 1231, 200. We will run that report as well. Closing up the hamburger up top four makes us hungry, holding down Control, zooming in. I like to see it at that 125. That's the perfect setting right there at the 12 5. So now we're going to be taking a look at the P and L. This is one of two of the major financial reports. Now you can also think, of course, the statement of cashflows as a financial statement report as well. But when you create the financial statement reports and think about them being constructed from the data input you are constructing with the data input. In other words, with these forms were constructing in essence the balance sheet and the income statement. And then we could use that information to construct than in a different format, a more cashflow formats. The Statement of cashflows. So these two reports are always the two reports you want to keep going back to when doing data input to better and better understand what is happening. However, you can't shorten that process by going to the trial balance are our last report over here, which is basically the balance sheet on top of the income statement showing all the accounts that are involved, removing all of the subtotals, making it a lot easier to look at and glance at quickly when you just want to see the impact of a certain transaction on multiple accounts. Let's go back to the income statement. Now, the income statement, if you compare it to the balance sheet, is a little bit different down here just in the title because it says these range of dates. So notice what it says here, January through December. So it has a range of dates, whereas when we looked at the balance sheet, it just says December 31st, a point in time. In other words, balance sheet is as of a point in time. If I was to ask you about a balance sheet account like cash, how much money do you have at this point in time? You can actually look at it as of this point of time in the checking account and say that's how much I have. If I ask you on the income statement about an income statement type of accounts such as how much revenue do you make? You can't just look at something and find the answer you have to say, what do you mean? Do you mean per paycheck, per month, per year? You need a range in order to answer that question. So this is a performance report. This is a range type of report. As we go through these reports to, we're going to be thinking about the differences between normal like financial accounting terminology, QuickBooks terminology, and then the functions of the reports, how the reports are put together, and how they link to what builds the report, that being the general ledger as a foundation and then the financial transactions as we construct them. So the first thing, of course, to stand out here is the profit and loss is not the typical name that you will learn in financial accounting, which will be the income statement. So income statement, profit and loss, in essence, same thing. So the second thing is, and also note that if you're talking to someone that's not a QuickBooks user, but who has an accountant that, you know, when doing the counting in some other area, they will probably say income statement. And they may not first register or completely understand profit and loss until they get used to that terminology. It just depends where they are at. And then the term down here, January through December, that's a little bit strange as well because normally if it was a year end report, it would say for the year ended. And possibly if you use these custom reports, it might change it might change the wording a little bit as well, but typically you would have for the month ended, for the year ended. And that will that will mean if it's for the year ended, the range is the beginning of the year until the end of the year. So then let's go down to the format of the report or the accounts that will be involved in it. Now this is more sub accounts than you might be used to in some reports. But if you break down the income statement to its two major components, you're talking about revenue and expense. Those are the two major components. To see that, let's take all these little triangles from the slowest one to the highest ones. And then, and then, so we can collapse them. Is that what it's called? Collapse them. That's what I'm trying to say. I'm going to collapse the triangles. Triangles are collapsing before your eyes one at a time. Okay, So they're all collapsed. Now at its simplest level, the income statement will typically be just income accounts and then expense type of accounts. And the income statement is measuring performance. So the, so the goal we can think of, the primary goal from an accounting standpoint of the business is revenue generation, not necessarily cash because the cash flow will follow revenue generation, but the cashflow may take a different route. The timing could be different for the cashflow and revenue generation. That's differences between the accrual method and the cash method and so on. But we can think about the income statement as revenue is the measuring tool in terms of how we're doing. We're trying to generate revenue. And then the expenses, of course, are the things that we had to consume in the same time period. In this case, this year, December 2020 or last year, in order to generate that income. So those are the two subcategories that you want to think about. Everything else is going to be basically a subcategory to give us more detail. So it's gonna be kinda like a stop along the road. In other words, you can think about net income as being simply revenue minus the expenses as one category of expenses, one category of revenue to get us to the bottom line, which would be net income. But then in order to give us some more detail along the way, we'll have some more pit stops along the way. We're going to add, for example, if we have inventory, this, this account called cost of goods sold, and then we have a pit stop along the way. We've got income minus this account, which is an expense type of account, specific expense type of account related to the use of inventory to get to gross profit, which is just a subtotal along the way down and get down to net income. Then we have all the normal expenses, which is just another kind of pit stop. Those are where most of the expenses will lie to get us down to gross profit minus those to get us down to the net operating income. And then we've got the other expenses, which again is handling another pit stop along the way to get us down to the end. We've got the net other income to get us down to the net income. So that's going to be the pit stops that we have, but you can just think about it as revenue and then the expense type of accounts. So let's talk about these major pit stops then. Why do we have these major pit stops? They're going to give us some more information when we're trying to read the report. So whenever we're thinking about these reports, the more kind of like stops along the way we have, the more information, the more detailed information we may be able to provide, but also the more complex the report becomes as well. So if we have the income accounts and then we say, hey, I would like to group in a whole separate category, the cost of goods sold. Why would we do that? Because the cost of goods sold, if you sell inventory, is a huge expense. It's one of the biggest expense. So the relationship between cost of goods sold and income is one that we want to keep a close eye on. Therefore, the cost of goods sold, we typically will have another subcategory. And then we'll have this other group of gross profit, not to be confused with net income. Gross profit just as the total gross income minus the cost of goods sold. Then we're going to take all of our other expenses, the normal operating expenses, all the normal things that we expend money on. And those are going to be going into this group to get us down to the net operating income. Now this would be kind of like normally net income unless we have types of items that are that are we want a group underneath the income statement. So the reason we would have these items, the other expenses and other income type of items is if we have items that we don't expect to be part of our normal operations. They are things that are hitting the income statement, but they're not part of normal operations. So we might have like interest income, for example, could be down there in other expenses because the interest income isn't part of our operating income. It's just there because we had to finance something. And therefore we have this interest income cost. But it's not part of kind of normal operations. Or if you have some particular expense that you think is a onetime expense, you had it this year, but you don't think it's going to happen next year, then it might be something you're saying, Hey, look, this is an unusual item. I don't think you should take it into consideration when projecting out into the future because it's kind of a onetime item. So possibly you put it down here in the other expenses. So if we expand on these, then I'm going to say the income accounts, if I expand on them, we have the groups. Here was just a design income discounts given this is like a contra income type of account. And then they have another group for land escaping. And this is because this is kind of an industry that might have more variants in the income statement accounts. Many companies might only have one or two kind of income statement accounts, but then we have the job materials that are recorded up top as well. Again, this might be a little bit more unusual of a layout given the type of industry that we are dealing with here. But any case we've got these are the income accounts. If I then go to the chart of accounts back to the first tab and we go down to the accounting, take a look at the chart of accounts first tab and see that the chart of accounts. Then we're scrolling down to the income type of accounts, income statement accounts may close the hamburger. This is going to be usually displayed as balance sheet type of accounts on top than equity income statement accounts. So here's our income statement accounts which all have this income type to them. Notice in the landscaping accounts, we have an income statement account. This is also an income statement account, but it's a subcategory. You can see it by this indentation. And these are subcategories of that income accounts. Same with the labor account down here subcategory. So if I go back to the income statement, you see that this drop-down right here is due to the fact that it is a type of account. All of these are in the same account type. It's not driven by subcategory. This one, however, is driven by subcategory. We made an account up and said specifically, it's going to it's going to have these going to have a subcategory accounts to it, meaning these are the subcategories to landscaping. So if this is a subcategory account and these all fall into that subcategory account. Same here. These are all still income statement accounts, but they're in a subcategory type of format, as we can see here, with the labor. And then we go to the cost of goods sold. This is the cost of goods that we sell. It has to have another category, even though you may only have one cost of goods sold account. But like some of the accounts we saw on the balance sheet, like accounts receivable and accounts payable, which also typically only have one account. We still need this kinda dropped down. A QuickBooks still provides that dropped down because that drop-downs being driven by the fact that it is its own account type. So we have this drop-down for this account type for the cost of goods sold, the cost of the inventory that is sold. Now, this a little bit strange for this one again, because the industry we are and if you are, if you're buying goods, marking them up and selling the goods, then of course, the cost of goods sold would be very significant and related very closely to your income number. It would be possibly your biggest expense account. It would also be something that we would have to tie to and connect with if we're on a perpetual inventory system and tracking inventory through QuickBooks to that tracking process. That gives us our gross profit, that's going to be a subtotal most of your expenses. And if you're doing a fairly simplified income statement, then, you know, pretty much all your expenses will be in a category of just simply expenses. This is by far for most companies, the largest category of account types, not the largest category for the amount in the expenses. Hopefully revenue accounts will be greater, but the number of accounts in this category will typically be the largest in the expense category. So we have, we have all the expenses. These are all the things that we pay for in order to help us to generate revenue. The reason we have less revenue type of accounts, it's because we typically specialize in one thing to generate revenue and we pay for everything else to help us to do what we need to do to generate that revenue as we specialize. So here we have all of our expense accounts. Now, this company notices using a whole lot of subtotals in the expense accounts. Some people really liked the subtotals and some people don't like them as much, right? And it really depends on how much detail you want. Notice these subtotals can give us more information in the accounts, but they can also make the accounts a lot longer as well. It can make your income statement, in other words, a lot longer. There's another option to make him subtotal accounts as well, and that'll be classes. So if you have different departments or different industries or something like that, you can have a whole another row which will be classes, which will be another way that you can kind of group this stuff. It's a more of a specialized area. We'll touch in on classes at the end of our practice problems. And we have a whole course on different ways that you can apply the tool of classes if you so choose. But on the expense side, if we go down after the income accounts, you've got your expense accounts down here. And notice that the expense accounts will be down here all in the expense accounts that are grouped by order of account type. But once you're in this category of expense accounts, then it's going to be grouped by alphabetical order, as you can see in the subcategory groupings, right? It's an alphabetical order. You can't change that to some degree by going up top and saying that you want to sort it by. Here it is right here, sort by. Descending order, for example. And then now you can see within these categories, you should have the highest one on top. So that can be a useful way to kind of give a little bit more control on your income statement. The other way to get some more control inside of a category is to use a count numbers, which again, we won't do by default because it's easy to, to, to get frustrated with account numbers or have the kind of mess things up. But if used properly, they can be a good tool. And we might have a whole section just on the use of account numbers. But in any case, you can see here that all these are expenses. This is a subtotal. So this is driven by the fact that all of these items down here are under the expense category. This is driven by the fact that we have a sub account. This is driven by the fact that we have a sub account, sub accounts here, the total for the sub account. And then we've got the sub account total for the sub account. These are all expenses sub account, sub account. And then the total for the sub account. You can see how much longer this report is due due to the sub accounts. And then and then that gives us our total expenses and our operating income. So there's our operating income. This is kinda like the normal income. And this is what you want to think about is like this is the income that you should use to kinda really judge your performance possibly, and then possibly use to project forward. And then the stuff down below that we're going to say are things that are not things that you should rather they judge their performance about in one way, shape, or form for some reason or another. The other one they have down here as miscellaneous, which I'm not sure exactly why miscellaneous would be down there because it just means they haven't categorized it. I would put miscellaneous up here and something that was non-recurring transaction or possibly like interest income or something else like that down here, That's going to be the total other expenses. And then we have the net income to get us down to the net income. Now remember that this net income line, you might say like How does this fit into the double entry accounting system when I don't have assets, liabilities, or equity here, meaning the double-entry accounting system can be represented with the accounting equation, assets equal liabilities plus equity. How does this income statement fit into that? Because the balance sheet, where we have all of those, those account categories, remember that this number here is going to flow into the, to the balance sheet. So the balance sheet right down below, there's, there's the 16, 76, which is kinda weird because the balance sheet will not always have net income like represented in it. But the net income will be part of the equity section of the balance sheet. So the net income is part of the double entry accounting system. Basically it's a breakout of the information on the balance sheet. In other words, the balance sheet is thought of as the assets where we stand as of a point in time as of 12, 31, 2020 in this case. And then who has claimed to those assets, either third party people, liabilities, and equity. And then if we want to know performance, I want to know something about timing. I want to know something about how the company did not just where we stand. Then we're going to break out the portion of the equity section to a certain timeframe in this case, normally a year. So we're looking at the prior year. That's basically given us the story of how we got to this point in time. So it's basically just breaking out the detail of a component of the balance sheet to give us more information on a performance measure. Balance sheets showing us where we stand at a point in time. 40. 3.15 Custom Income Statement: Quickbooks Online 2021, custom income statement. Let's get into it within two. It's QuickBooks Online 2021. Here we are in our free QuickBooks Online Test Drive file, which we could find by searching in our favorite browser for QuickBooks Online, Test Drive were in Craig's Design and at landscaping services practice file. We're gonna go on down to the reports down below. We're going to be creating a custom income statement. We're going to build that from our standard income statement. Therefore, we will open up our favorite reports, one of the two, at least that being the profit and loss P and L, or otherwise known as income statement. I'm going to copy this tab up top. I'm going to right-click on the tab up top and duplicate the tab. Duplicating the tab. Not just copying the tab, but duplicating it. And then we'll change the dates up top from models. Make it 0, 1, 0, 1, 2, 0, 2 1231 to 0. And then I'm going to close the hamburger up top. I'm going to hold down control and scroll up to that one-to-five. I'm going to actually run the report, so it'll run the date range that I just put up there. And then we're gonna do some standard customizations to the report. And then we'll save the report and printed as we've done in prior presentations. So we might do some customizations to, to a standard income statement and a little bit of tweaks have to the income statement might make it a little bit stand out of a type of report than other type of bookkeepers possibly. So if we do a couple of those changes, for example, if we change the profit and loss to say an income statement, which is a term that some people might understand or better like just depending on whoever you're providing the report to, but it can't provide some distinction between your reports and somebody else. So it could be a good thing to try. We can take off the pennies, for example. We might want to take off the pennies. We might want to make the negative numbers bracketed and we might want to be removing then the footer at the bottom. So let's do those things and then we will save the report. These things we took a look at on the balance sheet in more detail. So we'll do them quickly and then we'll just save this report. So I'm going to customize up top to do this. We're going to say I'm going to remove the pennies that I'm going to make the numbers bracketed for negative numbers. I want to show them in reds will make them read up top. And then in the header footer thing and the header footer, I'm going to change it from a profit and loss to an income statement. Income statement I'm going to make a statement about the income and then the report, period. I'll keep that we're going to remove then the date prepared Time prepared report basis on the footer of the report. And that looks good. Let's go ahead and save it and close it. So now we have our income statement. Everything looks good. We, we remove the pennies negative numbers now being bracketed. So we have that, that looks good. Also note that you could customize report possibly by using the edit titles area as well. So if some of the titles that you would prefer another name, then you can go into some of these titles. Now it might be interesting as well. I think these are more standard type of names than some of the names you might want to change on a balance sheet, like like the equity section, you could change to partners, equity owners, equity in that kind of thing. However, if you are not for profit organisation or something like that. Then it might be useful to go into these terms and change some of them because that's going to be one of the major differences of a not-for-profit. You want to, you know, they typically will use terminology that doesn't imply profit. If it's a not for profit, even though the accounting will be a double-entry accounting system in a similar fashion. So I'm going to close this back out. Now let's go ahead and save this report. And then we can, we can save it. We can customize it, and then we can save it. Imagining we're providing it to someone else. So you might then save it as a custom report for example. And I'll put income statement. And then you might make a group and put it into a group and save it there so that you can always go back to it. Now, if you're going to rename the report like income statement, that might be something you do for external reports. Maybe it's something you don't feel you'd need to do for internal reports, again, you can kinda separate the formatting of an external or internal reports. We're now going to save it as a PDF file and export it to Excel and then add it to our other worksheets that we had been working on as well. So I'm gonna go and hit this drop-down. Let's export it to a PDF file. I'm going to save it as a PDF because I'm in Google Chrome, it's going to pop up down below. I'm then going to minimize the window or make the window smaller. And so I can open up my other reports here. So I'm gonna open up the reports that where I want to put this item, try to put these side-by-side so I can use the Google dragging and dropping method just so I can say that where I'd like to say drag and drop. So I'm going to put it in here with our other balance sheet reports. And then I'm going to pull that. I'm going to click on it, left click and then drag it and drop it, drag it and drop it. Drag-and-drop. So View tab, such a fun thing to say. So then I'm going to change the name here. I'm gonna, I'm gonna change the name. I'm going to rename it. And then I should put for the year ended, but I'll just say the same date, 12201231. So I put the year first and then we have that. Now let's export it to Excel as well. Export it to Excel as well. We're going to hit the drop-down here and export it to Excel as well. Okay, and then also I'm going to open up my prior one. This is where I want to put it in that Excel sheet that we've been putting all our other Excel documents. And we will use that then to make one PDF file with all of the wonderful reports that we have made thus far. So I'm going to open up this Excel document. This is where we have put all of our balance sheet reports. And I want to add like the income statement on a tab right there. I'm circling where I want to put it right there, that's where it's gonna go. Then let's go back on over to our item here. So there we have it. I'm going to open this up. Let's open this one up. And there we have it. I'm going to enable the editing because that lets me edit it. And then I'm going to right-click on the tab down below and let's see if it does that move or copy thing. If it doesn't have my other workbook VET or something, I can't do it that way. So I'm going to go back on over to the other tab. This is where I want to put it right there. I'm going to add another one. Another worksheet that is what I mean with the other one. That's what I meant by other one. And then I'm gonna go back on over to this one. This is our new one. I'm going to select the entire sheet by clicking the triangle, right-clicking on the, on the sheet and copy it. Then go back to the other sheet. I need to be on A1 or selecting the entire worksheet or else it won't have enough room. And then paste this. Now I copied it again. Alright, and if you mess up like that, what you do is you go back and you do it again, copy it again. And then you go to A1 and paste it the right way this time. Paste it the right way. Don't mess it up this time. And there you go. And then I'll call this an income statement down below, I'll just call it income statement. So now I'm going to use this Excel worksheet to print all of these reports on one PDF file with the use of R cubed PDF printer. So I'm gonna go to the File tab over here. We're gonna go to the printing option. And then I want to print it to my cute PDF printer, which will actually print it as a PDF file, which is just amazing. And then we're gonna go to the print active sheet. No, we want to print the entire workbook. The whole workbook is all at one time. So we have the balance sheet and then we have this other balance sheet. And then we have this other kind of balance sheet report, then the summary balance sheet, and then the income statement. So it looks like it all fits on the way it should. So I'm gonna go ahead and print that then. Because I'm using the QT PDF printer and not an actual printer. It's going to be printing like as a PDF file. And it's going into the folder I want it to go to. I wanted to overwrite that file, so I'm going to double-click on that file, so it does so. And then close this out, and then let's just double-check that it does what we want it to do. And I'm not saving properly again, but I'm not going to worry about that now. I'll fix it later. I'll fix it later. And then I'm gonna go back on over to the folder. And then I'm going to open this one up. This is where we saved it to. So now we can attach this with one attachment if we so choose to give it to a supervisor or a client. So we got our balance sheet report that we did. We have our other balance sheet report that we did. And this is the comparative one. And then we have the other balance sheet report that we did. And then the summary balance sheet report that we did, and now the income statement. So you may not want that mini balance sheets, so you kinda, kinda pick and choose, but this is how you can put them all on one sheet. So there we have the income statement. And so I'm going to close this back out. Now you could have just the formatting, of course, in an Excel and that formatting, I won't get into the formatting now, but you could then give this to somebody else by zipping this file right here and attaching it all as one, you could put it all on a, on a Cloud Drive service, or you could attach that PDF. Look at the formatting difference. However, if I open up this PDF file that just has the income statement, it looks a little bit different here. So you do have a little bit different a formatting if you have more control in some ways in Excel, if you wanted to, to kinda change the formatting once exported. But of course, once you export to Excel, if, if you, if you change the formatting in Excel, you'd have to do that every time when you, when you export it. So just keep that in mind when you're kind of thinking about what the best practice will be for presenting your reports. 41. 3.20 Comparative Profit & Loss, P&L, Income Statement: Quickbooks Online 2021, that comparative Profit and Loss, P&L or income statement. Let's get into it with Intuit QuickBooks Online 2020 one. Here we are in our free QuickBooks Online Test Drive file, which you can find by searching in your favorite browser for QuickBooks Online, Test Drive. When Craig's Design and landscaping services, we're going to go down to the reports on the left-hand side and take a look at a comparative profit and loss. We're going to construct one from a standard profit and loss for. However, before we do so, if we scroll down to the business overview section, we see that we do have a profit and loss comparison here, which is basically taking the standard profit loss reporting. Open that up. And then I use in some of the tools that we will use here. So we have this comparative Profit and Loss report. And what they're doing is using this tool in order to construct that report and then just provide it to us as kind of a default report. But if we know how to build these comparative reports, we have a lot more flexibility and we can do more than just a year by year comparison. Let's go ahead and duplicate that tab. I'm going to right-click on this tab. Duplicate that tab. I'm going to duplicate it again. So I'm going to right-click on this tab again and duplicate it one more time. Then we're going to be working in this middle tab. This is going to be the one where I'm going to create the new profit and loss reports. This is the one where we will have the comparative profit and loss reports. Let's go ahead and close the hamburger up top. I'm going to change the date range sheets for 2020. So I'm gonna make this a 11 to 0 to 12, 31 to 0, and go ahead and run that report. And then we'll go to the prior tab. This is where we will run the current Profit and Loss report. So let's go down to the reports down below. And we're going to be opened up just a standard profit and loss this time, just a normal one. Profit loss P and L income statement, changing the dates up top from a 11 to 0 to 12 31, 200. We're going to run that report. This is going to be a similar process that we had with the balance sheet. Now to do this comparison reports, I'm going to close up the hamburger up top. Now notice this range here now means something. It's going from January to December. Whereas on a balance sheet report, even though we have a range, it's really as of a point in time. So this information down below is showing what has happened over time. So one way we could do the comparative reports is, for example, to hit this total item and then say I want to see it in terms of months. And then we can run that report and that'll break down a month-by-month comparison. If we just want to two months of data, then of course I can change the date up top to 11. 0, 1, 2 0, 1, 1, 0, 1, 2, 0. That's her. I did it right. And then we got our two month kinda comparison. Notice this is different than on the balance sheet because now you have a two month comparison and then they total them up. Which is nice because it's telling you what the balance was at the end of two months. That's one thing that you would think of to commonly do on an income statement report where you have multiple periods as opposed to report on the balance sheet where that wouldn't make any sense because the two columns represent a point in time. So this total column does not appear if you've run the same report as we did so in the balance sheet report. Now the other thing we might want to see, like we did with the balance sheet on a subtraction between the two. Instead of adding the two, I might want to compare and contrast them. So this would be saying this is the November, December. Here's how we did in a two month time period. So let's try it the other way. I'm going to say, let's bring this back to the total here. Going to bring this back to total. And then we're going to be changing it this way. Hit in this report I wanted then take a look at the previous period. Now I have the custom period down below, and it's showing 91 to 1031. So what I wanna do is change the dates up top here. So I'm going to change the dates up top. Before I do that, I'm going to change this to make it well, a 120. So just the month of December. So 12 12, 12, 31, 2020 running that report. So there we have it. And then I still have that comparison. Now, if I hit the drop-down, we're going to be comparing the previous period, which is 11, 1, 2, 1130. Now note this is a little bit, we have to be kind of careful with the ranges once again, because because I have a range up top and this has 31 days, it might default sometimes to just pick up 31 days or try to match the 31 days in this case, the other month of course, has 30 days. So the fact that you have a custom range can kinda help you to make sure that you're matching up what you want to be matching up, the exact number of days or more typically, the actual full month. Let's look at that first. And so if we run that report, Let's go ahead and run that again. So there's going to be our side-by-side comparison of this time. We have the current month up front, which is typical or very common when you present reports because that is presenting not from the beginning of the story, but from the most relevant data. So we're going from the most relevant data back in time to the lesser of relevancy in the data. So now let's do the next thing, which of course would be, instead of adding them up, Let's subtract them out. So we're comparing two periods. Let's subtract them out now. So I want to see the change. We want the change, the difference. And so there we have it. So now that we're just subtracting the two, now these are performance reports, remember? So we're saying, Hey, this is the income. This is how we did for the month of December. This is how we did in terms of revenue generation for the month of November and the change between the two. As opposed to a balance sheet report for satelite cash, which is saying this is how much cash we had where we stand at a certain point in time, not how much cash we got, how much cash we had versus how much cash we had at a different period of time. So bit different, different comparison. Now we want the percentage change as well, percentage change and we'll run that. But this is kinda like a horizontal type of analysis. You might hear it to be called. Let's see how we're going to calculate that. This is a very important calculators. They shouldn't for measuring anything. So the normal calculations going to go, I'm taken the current period one to 75 minus the prior period 975. That's going to give us the difference of 300. Divide that by the prior period, the starting 0.975. And that's going to give us, if we move the decimal over two places, 30.77, about. So that's how the percentage is going to come about. And that's going to be our percentage change, which makes a lot of sense with a with a report like this, because this is a performance report. So it's similar if you're trying to measure performance of a work performance or like an athlete or something like that, baseball or something. You're trying to see how they are doing. And so we're trying to see what the change was and we might be able to compare a dollar change here to prior periods. However, sometimes the dollar change does not apply. So if we're trying to measure our growth rates compared to another company, probably a bigger one that we're trying to benchmark to or copy or imitate in some way to increase our growth. Then we can't really compare the dollar amount, but we might be able to say, Hey, look, we're growing at this rate that's mirroring that rate that they have as well, right? And if you have job performance things, it's the same type of thing. When you're looking at performance, you look at someone's, how many hits they had. If you see the change with a growth in their hits versus somebody else, you might be able to compare that, but then you've got to say, well, how many at bats did they have and what not, you know, you gotta, you gotta look at more and you're going to have to end up, you end up using of course ratios to try to come up with some type of performance measure that gives you some type of data. This is kind of an intro into the basics or the basis on which ratio analysis will kind of be, be built. So in any case, then we'll do some changes up top. I'm going to change the profit and loss to a comparative profit and loss. We can remove the date right there because we've got the dates then down below. So this date isn't really correct because now we have December and November, not just December. So let's do it. Let's do that. We'll do our customized changes up top. And I'm going to say, I want to remove the pennies because I don't like the pennies or just I don't need them. They're not happen. My decision-making process going to put the brackets around it and make the bracketed numbers read as well. Take a look at the headers and footers. Let's make it, let's make it an income statement this time just to change something up, let's make it a comparative income statement. And we're making a statement about our income. And then I'm going to copy that because I'm going to put that in my memorized report to and then I'm going to get rid of the date, prepare time prepared report basis, and I'm also going to remove the report period. There. Get rid of that. Don't want that either. Let's go ahead and run it. Then let's run it, see what happens to it. So we've got it, we've got the comparative income statement, and then we've had to December and then the prior period. Note that something kinda changed with the prior period limit. Take a look at my custom period over here. I want to make a custom range. So I want it to be just November. Let's try that again. Let's go ahead and run that again. So there it is, December and November. And then we've got no pennies, we've got the change, then the red to stand out for those negative numbers, which is nice. That looks good and there's no footer down below. So that looks pretty good and that looks pretty good. Let's go ahead and then let's save this thing. So I would then save it as our memorize report, right? We'd go over here and say, I want to memorize this thing because this thing is nice. So comparative income statement and then I'm not going to make a group, but you would typically save it here. Obviously it's not going to say for too long. And our practice problem right now is we go back in and out of the practice file. But that's what I would typically do in practice. Now let's go ahead and export this thing as a PDF file. Save it to our Excel worksheet and then add it to like all of our other reports that we've been putting together thus far. So I'm gonna hit the drop-down up top. We're going to export it to a PDF file. Let's go ahead and save it as a PDF. So we'll save it as a PDF. It's going to populate down there. So I want to use my dragging and dropping drag-and-drop feature. So I'm going to minimize this. I'm going to pull up our other window. And that's where I want it to go. That's where it's gonna go and open this up. And then we get to do the old drag and drop, grabbing it, left-click and on it, dragging it and then dropping it. Got to drop it sometime can't drag forever. You got to drop it. So then we're going to say Rename. I'm going to call this 20 1231. It's going to be a comparative income statement. So that looks good. And then we'll save it to our Excel worksheet here as well. So I'm going to save it to this Excel worksheet. Our goal to create a new tab over here, put our new comparative income statement in it, and then print this all out at one PDF file. So that's our objective. Let's do it. We're going to close this out and we're going to then export it. Exporting again, this time to an Excel worksheet, which will populate down here because we're in Google Chrome and that's where Google Chrome, like does stuff like that. It populates down there. If you have some other ones, it'll be up in the right, such as Firefox or explorer. And so there it is. I'm going to enable the editing because that lets me edit it. And then if I right-click on this thing and try to move or copy, see the other ones still not there right now. So I'm just going to copy the whole sheet. I'm going to put my cursor on the triangle up top and take the whole sheet, right-click on that cheat and copy the entire thing. We're gonna go on back to our other report. This is where we wanted to put it. You'll recall that was our objective. I'm going to hit the plus button. There's a new sheet and we'll put this in a one's got to be an A1 or you have to highlight like the whole sheet with the triangle and then right-click and paste it. So there's our comparative income statement. I'm going to double-click on our tab down below, double-click on this kinda call it comparative income statement like that. And then let's see if it fits on one page by going into the page layout view. See if it's fitting on one page. I just want to make sure it fits one page wide, which it does. So I'm okay with that. It's a couple pages long. That's okay for me. We could get into more formatting here, like on the header and stuff, but that gets into Excel stuff. We might talk more about that later, but just want to show you then of course, that we can then save this into our PDF file with it all on one PDF file with the help and use of the cute PDF printer or some kind of PDF printer. You don't have to use that one, not trying to promote it or anything. It's a free thing, I'm pretty sure. But any case we have acute PDF printer. And then we want to see the entire workbook, entire workbook where we have 11 pages at this point. So we got like balance sheet reports up top, balance sheet reports, balance sheet report, balanced cotton. There it is. There's our comprehensive income statement. Perfect. It looks perfect. So I'm going to print it. We will print it. And then it's going to ask me where do we want to put it pretty soon and there it is. And then I'm just going to overwrite this financial statement reports, going to overwrite that like so. And then close this out and I'm going to save it. And then I'm going to minimize this. And then I'm going to double-click this is where we saved it. So now we can attach this with one attachment if we so choose if we wanted to do it that way. So we've got our balance sheet. We've got another type of balance sheet, a comparative balance sheet. We've got another balance sheet, vertical analysis or something. And then we've got our summary balance sheet, which probably should go on top really. And then we've got our income statement. I'm not really organizing is just showing them we can put them all on one sheet here at this point. And there's our comparative income statements. So there it is. 42. 3.25 Vertical Analysis Profit & Loss, P&L, Income Statement: Quickbooks Online 2021 now, vertical analysis, profit and loss, P and L, or income statement. Let's get into it with Intuit QuickBooks Online 2020 one. Here we are in our free QuickBooks online practice file, which you could find by searching in your favorite browser for QuickBooks Online, Test Drive, or in the Craig's Design and landscaping services. We're going to go down to the reports down below, modifying another P&L profit and loss income statement. So we'll open up the good old P&L profit and loss income statement. Let's duplicate the tab up top gonna go up top right-click on the tab and duplicate it. So we're going to duplicate the tab. I'm going to close up the hamburger and then we're going to change the date range up top. So we're gonna have arranged change range change is going to be 0, 1, 0, 1, 2, 0, 2 1231 to 0 for the date range. Let's go ahead and run that report. Now, last time we took a look at a comparative income statement comparing one period to another period. And then we can do a horizontal kind of comparison, comparing one column to another column in a horizontal fashion, row to row. This time we're going to do a vertical type of analysis comparing something to the income statement itself on the same line item in the same column. We did this on the balance sheet. When you see it on the balance sheet. For example, we compared each line item of assets to the total assets, which you can imagine in like a pie chart type of format, similar to what you might see it in like an investment portfolio type of analysis on the income statement. It's a little bit different because we're not going to be comparing two, not the total down below because it's a subtraction thing here. Subtraction problem, revenue minus expenses. We're going to compare everything to what we're trying to do in the income statement and that is generate revenue. So we're going to compare everything basically to income in our vertical analysis type of calculations. So we're gonna hit the drop-down up top. In this item, we want to say we want to compare everything to income, percentage of income. We want to see everything as a percentage of income. We'll run that report. And so now we have our percentages on the right-hand side. So what this means then let's pull up the trusty calculator. Again. Trusty calculator, we're comparing everything to the total income line. And you can see that because of course, the total income line is where the a 100 percent is, just like when we did the balance sheet, the a 100 percent with that total assets because we compare total assets, the total assets, and it became a 100 percent. So total income 10,200 points, 77 divided by 10,200.77 is 100%. If we compare everything else to it, then we're gonna say like this line item 22 500 divided by, then we're picking up this one, tend to 0.770. Move the decimal two places over, we get that 22.06 about. So that's going to be the income, the percentage of income line items. So we can compare that to the total income and that could be useful. And then down below, when we compare the expenses, we're not comparing expenses, total expenses, but also to what the expenses are used for. We're comparing the expenses to income. And this is quite common. So we're going to be saying then. The, for example, the cost of goods sold for 05 divided by the income tend to 0.770. And that's going to give us our three points, 97 about now, obviously cost of goods sold, if we were talking about a retail store or something like that would be much higher. Oftentimes it's going to be a really key number here because it's a little bit unusual circumstance with the landscaping. It's not as high as a number that you would see in other kinds of companies that have inventory. And then we could do a similar comparison with all of our expense accounts. And these are basically comparing the consumption. We used these expenses in order to generate revenue in the same time period. That's why it's going to be irrelevant comparison. And then you could do things like, like seen obviously your larger comparison line items. And thinking about whether it's worthwhile for those expenses or not. Also, of course, this type of comparison will work well if you're benchmarking to somebody else again. So if you're benchmarking to another company, most likely one that's larger than you are. Because you're trying to, you're trying to mirror them, you're looking up to them. You're trying to benchmark to them, then they're going to, their dollar amounts are going to be higher than yours. Most likely you can't really compare your dollar amount. You're going to be saying, my incomes terrible compared to their income. My net income is not lining up. But you can then look at your percentages and say, Well, am I spending in the same kind of ratio, the same format? They are in relation to income. And that could give you some information to, to improve upon. So you could look then at this column, the percentage is actually and compare that to a similar kind of calculation on a larger company. And that'll give you more relevant information oftentimes that you can actually take action upon. So that's going to be this one. Let's go ahead and do our normal kind of changes now. And then we'll, we'll save this thing. So I want to change the name. I'm going to call it an income statement again. Just to do that change, I'm going to call it a vertical analysis income statement. Let's get rid of it. Well, we'll keep the date here. Then we'll get we'll do our similar things with the negative numbers in that stuff. So I'm going to say, let's customize this report. We're going to customize it. We're going to get rid of the pennies, going to make the negative numbers bracketed as we've seen in the past, make them red as well. On the header and footer, we're going to go to the header. I'm going to change it from a profit and loss to a, a. Let's say, we'll say vertical analysis, Alice's income statement. And note that I've spelled these two things incorrectly on purpose to show you that you do have the spellcheck option in here. So at the risk of looking like I don't know how to spell I did that on purpose just to show you that feature. Then we're gonna go down. We're going to remove the footer for the date, prepare time, prepared, and report basis so that we have that and that looks good. And then I'm going to run that report. So I'm going to hold Control and zoom in a little bit, bring it up to 125. I kind of wish I had it there the whole time but I didn't. So it's there now. So there we have our our dates up top. We've got the negative numbers are bracketed. So there we have. That looks very nice. The footer has been removed. Let's go ahead and save this as a PDF file, export it to Excel and then add it to our group of Excel worksheets here so we can save it to one single PDF file. So I'm going to go to our exporting option here. Export it as a PDF file. I'm going to save it. And then it's going to pop up down here because we're in Google Chrome. And so I'm going to minimize this so we can do the good old dragging and dropping. And we get to say drag and drop multiple times. We're going to open this up, open this up, we want it in our financial statements, then we're going to drag that left clicking on it, drag it, and then drop it, dragging and dropping. And then I'm going to right-click on it and just rename it. Right-click and rename. Put the data up top 20, 12, 31, then I lost the name. When I do that, sometimes I'll just delete the whole thing so it can't save it. And then I'll do it again. Right-click Rename. And then I'm going to say it's going to be 20 dot 12 DOT 3, 1. And then vertical analysis, income statement. Perfect, Perfect. To moon. Do just like Mondo would do it. It's perfect. So I'm going to close this backup and then I'm going to save it as a P, as an Excel. Let's export it as an Excel file as well. We want Excel as well. So then we've got our other Excel file we have here. I'm going to open up this one. I'm going to make a new tab. Just gonna make a new tab right there. And that's where I want to save this data because we want it in Excel as well. So I'm going to open up the Excel document or Sheets workbook that we have, that we have the new one. And then I'm going to enable editing. Enabling editing enables me to edit the worksheet. I'm going to save the whole worksheet. I'm going to put my cursor on the triangle to get the whole worksheet, right-click on it, and then copy the entire worksheet and then go back into my other worksheet and then put it in a one. It's got to be an A1, or you've got to select the whole sheet and then right-click and paste it. And then I'm going to see if it fits on one page. By going to the Page Layout View, it fits on one page. Why that's all I care about. It's more than one page long, doesn't concern me whatsoever. And then I'm going to change the date, the name down here from sheet. I'm going to double-click on the sheet and we're going to call this vertex. And now income statement for the abbreviation. And then let's print this entire thing to a PDF. So we have all these forums on one PDF document that we can attach to an email if we so choose, choose so. And so then let's go to print and we're going to use our cute PDF printer once again to do it. So we have to have some kind of PDF printer. I've got a cute one. And then we're gonna go to the dropdown down here. And we're going to say this is, we want to print the entire workbook. Entire workbook, which is now 13 pages. I'll scroll through it just so you can admire it. We can admire it together. So there, and there's the vertical analysis. So there it is. Let's go ahead and print it. It's going to ask us to save it as a, save it somewhere. And so I'm going to overwrite this financial statement file, double-clicking on it. Let's go ahead and overwrite that. I'm going to save this one. I'm not going to close it this time. I'm going to close this one. I don't need that one. And then if I go back in here, we got, we can zip this file. I'm going to make these big icons, not super-large, not extra, but just large. And so then we can zip this file and attach it. We've got a lot of files now. We could send an Excel document if we want, but then we made this PDF file from the Excel document. We can further formatted if we, if we want to make it look a little bit different here as well, but you have that option. Let's scroll through it again so we can admire it again. It is something worthy of admiration and admiring. Take it in, take it in the beauty. It's full of wonder. Otherwise known as wonderful. And those are vertical analysis income statement. 43. 4.05 Statement of Cash Flows: Quickbooks Online 2021, that statement of cash flows. Let's get into it with Intuit QuickBooks Online 2020 one. Here we are in our QuickBooks Online Test Drive file, which you can find by searching in your favorite browser for QuickBooks Online, Test Drive, or in Craig's Design and landscaping services. We're gonna go down to the reports down below, opening up the other report, that's going to be a financial statement report, but not really our two favorite ones. The two favorites being the balance sheet and income statement. The other financial report being the statement of cash flows. And we're going to be opening up the statement of cash flows. I'm going to right-click on the statement of cashflows and duplicate it. I'm actually going to duplicate it two more times because I want to have the balance sheet and income statement open as well. So I'm gonna go back up top and duplicate it again, right-clicking and duplicating. And this is because the statement of cash flows is kinda like the third report that we're going to create. Meaning if you're going to build these from scratch, you're going to typically build a balance sheet and the income statement or balance sheet and income statement. And then the, the, I'm going to duplicate this again, statement of cash flows, which can be constructed in port from what you have already built in terms of the balance sheet and income statement. So the first tab is where we're gonna go if we want to look at anymore data input. Second tab is going to be our statement of cashflows. Third tab, we'll make our balance sheet. Fourth tab, then the income statement or profit and loss. Let's open up then the profit and loss over here, going down to the reports on the left-hand side, we're going to be then opening up that P and L, otherwise known as the profit and lost. And let's change the date range. Range change up top from 0, 1, 0, 1, 2, 0 to 12, 31, 200. Running that report. Closing the hamburger up to the right, holding down Control. Now scrolling up to get to that favorite part where we'd like it to be at the one-to-five. That's like the best place. And then I'm gonna go to the second tab. We're going to then open up what do we need here? Balance sheet, we need the balance sheet here are going to go to mount into the reports to open up the balance sheet. Then we're gonna go to the balance sheet. And then I'm going to close the hamburger scroll back up top. We want a range change. Range change from 0, 1, 0, 1, 2, 0 to 12, 31 to 0. Let's run that report. And then finally, let's look at our, at our statement of cash flows. I'm going to close up the hamburger up top that the statement of cashflows do the range change again, which is going to be from a 11 to 0 to 12, 31 to 0. Let's run that report. So here's our statement of cash flows. Now, the statement of cashflows in theory makes a lot of sense. One of the more confusing reports basically in practice however. So the statement of cashflows is basically trying to take our financial statements and put it on the cash flow type of basis. Why do you need to do that is in our financial statement already on a cash flow basis? No, Typically it's on an accrual basis, right? And now we've got to change it to kind of a cash flow basis. And the cash-flow basis then allows us to have, or the statement of cashflows allows us to have kind of a best of both worlds. The accrual basis being better for normal comparison purposes and making it less easy for people to distort or the income statement to be distorted by cash adjustments. The adjustments of when we're going to receive or pay cash. And then still have the statement of cashflows to see obviously the cash-flow, because the cashflow is going to be an important activity. The statement of cashflows didn't have three basic parts. We're going to have the operating activities, investing activities and financing activities. So operating, investing financing, typically the operating activities will be the longest as they are here and can also be the most confusing. When you're thinking about the operating activities. You can kind of be thinking about the income statement here, the performance report over here, the Profit and Loss report that is being converted from an accrual basis to a cash basis. That's what we're thinking of in essence, when we're looking at the first part of the statement of cashflows, that being the operating activities, then the investing activities are going to be those types of transactions that have cash related to them, but then typically don't affect the income statement right there investment type of items. We're going to put them in there in a separate type of category. Now you could have stock and bond type investments, but one of the most common things that will be here or investments in large assets, such as property, plant and equipment, in this case being the truck. So when you think of the term investment, it could be a little confusing because you can use it in a more restrictive way. Thinking about stock and bond type of investments and in a more inclusive way as we are here, by investing in assets, long-term assets in this case that being property, plant and equipment, and those kind of cashflows, inflows and outflows related to those types of investments. Property, plant, and equipment will be included here. Then we have cash flows related to financing activities. This would include things like notes, payable loans that we get if we take a loan out and get money, that would not be something normally hitting the income statement on on our normal financial statements. And if it doesn't hit the income statement on the normal financial statements, then you're thinking it's not going to go up here in the operating section, but somewhere else. Those would then go down here in the financing activities. If we had distributions or something like that, which is probably what this opening balance equity is coming from, then those could be in the financing activities as well, like draws for a sole proprietorship or dividends for a large company. Now, up top, this is where the main activity kind of happens up top. And once again, it's mirroring what you would think of on the income statement except on a cash basis, however, it's a little bit backwards, meaning if you went to the income statement, you'd probably say, Okay, if I'm going to put this on a cash basis, what I would like to see, what would be most intuitive to me would be to say, hey, why don't I take all these income line items and instead of recording the income when you earn it, record it when you receive the cash record all of the transactions on a cash-basis method with the expenses down below and just show me in essence and income statement that is on a cash-basis method. That would basically be the direct method. And we're not using the direct method here, we're using the indirect method, which is the most common method, one because it's going to be required oftentimes by some regulatory agencies. So you have to do it anyways. So, so that's why they kinda use it. And two, because even though that would be more intuitive, the direct method to just take the income statement and make it a cash basis. It doesn't have a key component that the indirect method has. And that key component is the fact that we can, we can reconcile. Meaning I want to, I want to take the net income on the income statement, this number down here. And then basically reconciled to what it would be on a cash basis. I want to see the difference. If I simply reconstruct the income statement, I'm not going to have that kind of reconciliation. But if I start with the net income here and I make that my top number up top. And then I show the differences, all the changes that are resulting in the accrual method from the cash method. And then at the bottom line, show the, show the net cash provided by operating activities. Now I have a reconciliation. So for that reason, we typically use the indirect method, which is less intuitive to look at. So bottom line here, this is kinda like net income on a cash basis, but we kind of backed into it instead of just going straight through the income statement and reconstructing it. So how did we do that? We take the net income, that's going to be our top starting point. That's the bottom line on the income statement, top line of the balance sheet. And then what's kinda funny here is, as I said, we said this operating section, it's kind of mirroring the income statement, but most of what is in it is actually coming from a comparison of the balance sheet, prior period and the current period. And so the reason for that is because the change in the balance sheet accounts represent and the activity on the income statement. So I won't go into that in a lot of detail, but we have a course on the statement of cashflows. And if you understand the construction of the statement of cashflows, you're getting a good understanding of double-entry accounting system. But let's take a look at it just a briefly. By going to our balance sheet report, I'm going to make this a comparative report. Now let's do a comparative reports by going to the drop-down, up top. I'm going to compare it to the previous period. And we're gonna do this a little bit different. I'm going to hit the drop-down up here and go to the last year. And that should take me to the to the to the last full year, run that report. And then I'm going to go up top and hit I want the previous year and then the change in the previous year and run that report. Then we have our comparative report. This is typically the kind of worksheet you'll have if you were to build a report, a statement of cashflows from scratch. And now if I look at the differences here, not the difference in cash, but I'm gonna start with accounts receivable. Now obviously there wasn't much activity in 2019, but I'm looking at the change from the prior period and the current period, which would be that 52, 81 50 to that 528152 is what's being constructed here. And the reason is because if you think about it, you're gonna say, well, what is the accounts receivable being made up of an invoice, which would increase the accounts receivable and the other side would be going to the income statement. All right? And so the income statement is what we're backing into. And then the thing that would decrease it would be a received payment where the accounts receivable would go down at that point in time and cash would be affected. So the change then kinda gives us a net impact that we can basically reverse into what would happen on the income statement. And that'll that'll back into our our numbers up top to what we need them to be. In other words, you can also think about this, this change. Like if we did, if we found the difference on all the balance sheet accounts, except for the change that happened on all balance sheet accounts except for cash. Then we would have backed into the change in cash. And that's kind of the theory that we would be doing on the indirect method. Again, if you want to learn more about that, we have a course on it, but that's kinda the idea. So that's why you've got all these balance sheet accounts here, which are basically backing into the activity by taking the difference of the change of what is happening on the balance sheet to back into what happened on the income statement during the last time period in this case, the last year. And that'll give us our net cash provided by operating activities, which once again is kind of like it's kind of like the income statement or net income on a cash basis. Then we've got the investing activities. This is going to be due to the change of what happened in the in the truck account. And this would be like sales of trucks or purchase of truck. Looks like a purchase here. So the truck account went up. The assumption is that we paid cash for it. You could sometimes need adjustments to these accounts depending on how complex the transaction was, but I won't go into detail on that now. And the financing activities, like we say, would it be things like the payables to loans and then things like the draws that would come out from the owner or dividends. So the notes payable here, it looks like an increase to cash and notes payable went up. So if I go to the, to the balance sheet is to check that out just to see it we've have in the current period, 25000 in the prior period, nothing. So the assumption is that we got we got a loan of 25000 which would increase cash. That's why we've got an increase in the cashflow. The operating balance, equity opening balance equity is an account that shouldn't really be there, like we should clear that out. So that's kind of an issue. But you would think that that would be due to draws or due to basically draws or dividends. However you want to think about it, whether we're sole proprietorship or a corporation. We'll talk about the opening balance equity more when we create a new company file and why I would suggest clearing out the opening balance equity account because it's kind of a an account that you don't really want on there. It's used for construction of the financials when you first build them typically. But any case that's going to give you the net cash provided by financing activities. And then if you add up the cash flow between the three activities, investing, financing, operating. If we add those up, we're gonna say operating, we have the 1.02896 minus 213495 plus the 1, 5, 6, 6.52. That gives us our change of the four oh, 63. Now basically you would typically compare that to beginning to the beginning balance. But because there was no beginning balance here, if I go back on over where we were looking at cash up top, is this the balance sheet? I'm looking at the balance sheet. Yeah, cash, there was no beginning balance so that the ending balance for cash will be that 2000, 0, 0, 2. But it looks like there's also an deposited funds. So you would think then that this number would match out to this number here. Let's see if there's any other kind of cash accounts. We have an deposited funds that is this 200 6.522 plus the 200 one. It's going to be the 406, 352. So there's the 406352. So when, so this should tie out to the cash on the balance sheet, the bottom line of the statement of cash flows. The statement of cash flows should tie out to the cash on the balance sheet. And you gotta be careful when you do so. However, because this an deposited funds represents cash that we're like holding onto either cash in our hands are checks in our hands that we need to deposit. Why isn't it up here in the Cache kind of area, into the banking area. Because these bank accounts need to be set up a little bit differently within QuickBooks because they're going to be linked to the bank. So they need their own account type. And the way the UN deposited funds functions means that it doesn't need to be up there and therefore it's down here and in other assets. But if we were to group them together for normal financial accounting purposes, we would put them all together under a category of typically it's just simply cash. So that's going to be our, our statement of cashflows. Let's go ahead and print this thing out and save it as we've done in the past with our other reports. So I'm going to hit the drop-down here. We're going to, we're going to export it to a PDF file. And then we're going to save it as a PDF. It opens up down there in the left-hand side in chrome, going to minimize. So we can do the old drag and drop. And then I'm going to take it, I'm going to drag it over here, drag it. It didn't want to go, but I dragged it anyways. And so we're going to drag it over and then you dropped it and then I'm going to right-click, rename it. This is going to be 200, 12, 31, statement of cash flows. And then I'm going to open up my other Excel sheet and we want to add another worksheet right here for this one. So I'm going to add another worksheet so we can put this one here. And I'm going to maximize the screen, close this item out. We're going to export this then to excel as well. We want to do that as well. Excel. I'm going to do that as well. We're going to open up the Excel document or worksheet or workbook, which will have a worksheet in it. I want to edit it so I'm going to enable the editing so that I can do so. Going to copy the entire worksheet by hitting the triangle up top copy in the full thing, total thing copied, right-click and copy. Then I'm going to minimize this one and we're going to paste it here. It's gotta be on sale A1 or selecting the whole worksheet. And then I'm going to say Control V this time pasting it right there. Then I'm going to go down, Double-click on our sheet tab. I'm just going to call this statement cash flow like that. I'm going to make sure it fits on one page. By going to the view screen, it doesn't fit on one page, so I'm going to need some adjustment. Good thing I checked gonna go back to the normal. I thought it would fit on one page. And then I'm going to just grab this column right here, and I'm going to drag it to the left and see if it fits there. It is. Not quiet. Not quiet. I thought that would do it, But no, I'm going to make this one smaller too. That does it. So I didn't make some change. I should have changed the negative numbers to be bracketed. I'm not going to go back and do that now, but I should have made the bracketed numbers, bracketed and red and all that kinda stuff, but I didn't do it, but and I'm not gonna do it now. So in any case, I'm going to go to File tab up top. We're going to print this thing. We're going to, we're going to use the qt PDF printer. I want to print the entire the entire workbook. Print the entire workbook, which is now 14 pages. And let's scroll through it, observing the pages. Make sure I didn't make a mistake. And I never do. But I'd like to check anyways. So just in case other people good practice for other people. So I'm going to print it now let's go ahead and print it. And then it's going to ask me where I want to put it. And I'm going to, I'm going to overwrite this one. We're going to overwrite that. I'm going to save it, and then I'm going to minimize this. So now we've got it linked into our reports over here. And if I open up this PDF file, we should have all of these on our R1 PDF file again. So if I scroll down, we've got all these reports together, which should either overwhelm and, or impress possibly both. So we'll scroll down as news of balance sheet, income statement reports, income statement reports. And then we have the statement of cashflows down here somewhere, not quite yet. One more, one more round. That it is a statement of cashflows, which isn't formatted the perfect when it has a footer on it, which I don't like, but we're not going to change it now. 44. 4.10 Accounts Receivable Aging Reports: Quickbooks Online 2021, their accounts receivable, aging reports. Let's get into it within two. It's QuickBooks Online 2020, one. Here we are in our free QuickBooks Online Test Drive file, which you can find by searching in your favorite browser for QuickBooks Online, Test Drive were in Craig's Design and landscaping services. We're going to go down to the reports down below. Now we're going to look at some supplemental reports. All other reports recall other than the balance sheet and income statement will typically be supplemental to some line item on the balance sheet and income statement. We're going to scroll down now to who always You type of reports and the who owes you type of reports will be supporting the accounts receivable line item on the balance sheet. So some of the more common types of reports we will have here are going to be the accounts receivable detailed report, the accounts receivable aging reports, and then the customer balanced detail and customer balances summary reports. So I'm going to start out with the accounts receivable aging detailed report. Accounts receivable aging detail report. I'm going to go up tap. We're going to change the date range to end in 1231, 200. And then I'm going to run that report. So you can see this reports given us basically our date ranges up top and then it's going to give us some of the detailed information related to the accounts receivable and how past do those receivables are? I'm gonna go back up top. I'm going to right-click on this tab, duplicate this tab. We're going to duplicate it again. We want to have basically the balance sheet income statement open and then have this report and then another tab over here where we can then go to the detail. So I'm going to right-click on it again and then duplicated another time. So right-click and duplicate. And then I'm gonna do it again. I'm going to right-click and duplicate. So I'm thinking, we're thinking now balance sheet here, income statement here, the accounts receivable report, and then we're going to open other reports in this tab to the left. So I'm going to go over here. I'm going to say the balance sheet report go into the reports dropped down or the reports on the left-hand side go into the balance sheet. And so there's going to be our balance sheet report will will range change up top from 0, 1, 0, 1, 2, 0 to 12, 31 to 0. Let's run that report. Let's close up the hamburger. Holding down Control. Scroll up a bit to get us up to that one to five, up to the one-to-five. Then we're on the we're gonna go to the second tab. Let's go to the income statement reports, reports on the left-hand side, profit and loss or income statement report is the one that we want to open. Now, closing up the hamburger up top range change up top from 0, 1, 0, 1, 2, 0 to 12, 31 to 0. Let's run that report. So now we've got the income statement and the balance sheet. And then in the first tab, closing up the hamburger, we've got our accounts receivable aging detail. I'm gonna go back to the first tab again and compare and contrast this from the accounts receivable aging summary report. So I'm going to go to the reports down below, scroll back down. And let's go to who owes you. And now let's open the summary report as well. And then I'm going to make another tab for this one so that I always have some open tab over here. So I'm going to right-click and duplicate that tab as well. So we've got the summary report, we got the agent report, then we've got our financial statements and we have another tab up top and the front in case we want to open up any other reports which we will. So now I'm going to close up the hamburger. So here's our aging summary type of reports. So you can see what the summer we report does is it's gonna give us our customers on the left-hand side. Let's change the date up top from two, let's say 12, 31 to 0. Now you can see it only has one date up top because this is a report that supports the balance sheet account of accounts receivable and therefore is basically an as o of type of report as opposed to a range. It's not measuring performance. It's measuring where we stand at a particular point in time, given detail based on who owes us the money. So in other words, accounts receivable on the balance sheet all the way over here, represented by that 5 thousand to 8152. I need more detailed by who owes us the money. If I simply drill down by using the zoom feature here, I get more detail, but it's a transaction detailed report by date, which is similar to a light like a GL general ledger report, but it doesn't give us the information by who owes us the money. And that's why we need these supplemental report, which we're going to have over here in different fashions. Now this one's going to give us the detail and it's focusing in on how past do these amounts are. So we're concentrating on these up top items. We have the current amounts. We've got 12, 30 days past due 31 to 6061 to 90, and then the over 90 periods here and obviously the more past do something is, the more concerned we are and we want to see if we can get collection on basically those items. So somebody that works in a larger company or mid-sized, a larger company might have simply an accounts receivable department that will work in a report such as this all the time. And you can see down here, there's 528150 to that vendor is going to tie into this number here. Now when we think about a report like this, we might also use this report to determine an estimate how much of our receivables we think we're not going to be able to collect. Because obviously it within business. Sometimes we're not gonna be able to collect on some of them and we'll have to basically make that determination as well. Now if I look at the accounts receivable, detail, aging detail reports, we have a similar kind of layout here, but now you can see the 31 to 60 days past due in this section, the one to 30 days past due here, and then the current portion then on the bottom in this format. And then of course it's going to give us the more detail in terms of the items that are included. The items of are included are all invoices because the invoices that transaction that will be increasing the accounts receivable. If the accounts receivable, the accounts receivable is also affected by the payment. But once the payment has been made, There's no open amount. If the invoice has been closed, then then there's no open amount there. Now this one is nice because then once we like determine the overdue items, so these ones are probably the ones we're most concerned with. We can then go right into these invoices and drill down on them, hopefully, following up on the open invoices that are going to be in this report. So they're going to give us that more detailed. And if I scroll down, we get to that same total down below. Let's open a couple of the other accounts receivable reports up. So I'm going to go to the first tab over here and go to the report. And let's just take a look at a couple other reports. If we go back down, who owes Owes you we've got the customer balanced detailed report. Let's open that one up. Customer balanced and detailed report. I'm going to right-click on that one, right-click on the tab up top and duplicate that TAM. So we'll right-click up here and duplicate. I'm going to close then the hamburger up top. I'm going to change the dates. So we got all dates. I'll I want to keep accustomed and I'm going to make it a custom date as of 1231 to 0 as well. We'll run that report. And so now we've got our information by customer, right? So now we've got our customer detail information and it's giving us the detail of the activity, the invoice here. So now we can break our information out by basically who owes us the money. So if we scroll back down in, if we were to add this whole thing up, we're getting down to that 5000 to 8152 again. Now you can get to similar data. If I go to the first tab over here, and we go down to the sales item on the sales tab and we go to the customers tab. Then you can find the similar information here about the customers and who owes you money by sorting your items up top. And you can go into each individual customer. So this is another place that people in accounts receivable will work a lot. But it's nice to have this report because you can see that it ties into a major item on the financial statement. This report will break it all down and you can say, Okay, does this tie in to what I have on the balance sheet? That's going to be useful. Because oftentimes if someone's reading your financials, if you bring this to management or if you bring this to your, to your client, they're going to say, Oh, people always 5280 one. Then they're going to want to know who owns that money. And it's nice to be able to provide a report that adds up to that bottom line number that will be on the major financial statement report. So that's going to be this one gives us that that detail, but it doesn't break it out by date. And then these two items give us, this one gives a little bit more detailed, breaks it out by date, and this one will give us kinda that that summary sorry. This one will give us basically that summary type of report. That that is a common type of report that'll just give us the totals broken out into these categories up top. You can alter those categories up here. Days per aging period, number of periods. So if you want a more detailed report, this is a fairly standard layout for most companies. But if you want to change those columns, you do have the ability to do that here. Let's go ahead and print this one out. I'm going to print this one out, and I'm going to print this one out and save that to our, our Excel worksheet and as a PDF file. So I'm gonna hit the drop-down here, export it as a PDF. We're going to save this one. It shows up down here in Chrome. I'm doing this fast because we've done this a few times, but I want to have all of our reports down here. We're going to use the drag-and-drop, then dragging and dropping. So there we have it. I'm not even going to rename it. I'm going to keep it the way it is there. And then I'm going to open up my Excel file. The Excel file is here. This is the old one. I don't want that one. This is the new one. I'm going to make a new tab with this plus button. And then we're gonna put our new, new information on the new tab. So I'm going to maximize this, we're going to close this up and then let's export this to Excel as well. So export into Excel as well. We're going to open up that Excel worksheet. Notice I could've done some of the formatting again, I didn't do that. I didn't do some of the formatting that I've been doing in the past, but I'm going to keep it as is. I'm going to enable this. And then we're going to copy the whole sheet with the triangle. Right-click on the sheet and copy it. And then I'm gonna go back to my other sheet and we're going to put it in A1 and paste. You're going to check to see if it fits on one page. By going to the layout view, it does fit on one page. I'm a little shocked, actually, pleasantly surprised by that. I'm going to double-click on this item then this name. And we're going to call this an AR aging summary. We'll just call it that. And then I'm going to remove the last one we did. Let's do it. Let's do the same thing for the other report. I'm going to close this one. I don't need to hold on. I closed the wrong one, but I fixed it. Now I got a little word there, but now it's OK and now it's OK. Ok. So now we're gonna go back and do the same thing for the other report. So let's go to this report and let's do the same thing here. This one maybe I'll do the customization like we should be doing every time or I should be doing every time. Because I think I just, that's what I wanted to do. And so header and footer, I'm going to remove the day prepared in a time prepared. Let's run that. All right. Let's save it as a PDF file. Pdf, Save As there it is. Let's do the drag and drop thing. We're going to take that thing, going to left-click on it, drag it over here whether it wants to go or not, and then just drop it in the folder. There it is. And then we'll export the Excel. Let's export the Excel as well. Excel is exporting as well. We'll open that up. It's opening up down below because we're in Google Chrome. And then we're going to save this into a new tab in our master Excel worksheet. I'll enable the editing. We're going to hit the triangle up top right-click on the selected area, copy the whole thing, and then go to our other sheet. I'm going to create a new sheet here and then be an A1 Control V, Control V. Let's see if it fits on one page. Not quite this time. Not quiet. That's okay. I'm just going to drag this column and a little bit. So I can see my dotted line that's telling me it doesn't fit. So I'm going to drag it in and then it's within the dotted line. You gotta color, you gotta make sure your color within the lines. So now I'm going to rename it down here. We're going to save this as a customer balanced deal. Customer Biao De tail is do that. And then I'm going to print this as a PDF file. So I'm going to save it for print it. We're going to print it the entire workbook using our cute PDF printer, 15 pages. Let's scroll through them, make sure that they are lining up to what we think they should look like. I'm completely positive they are. But I just do this for the fun of it really. And then I'm going to print it. Let's print it. It's going to be printing to the cute PDF printer. So it's going to ask us where we want to save it now. It's, that's what it should do. There it is. And then I'm going to double-click, I'm going to overwrite this report. And now we have all our reports in one place once again, which you should be impressed by. It should be impressing you. If you're not impressed, you have a problem. There's something wrong with you because this is impressive. So let's go ahead and that's not the one I want to open. Let's open up the there is the financial statements and then we'll just we'll just admire them. So I'm going to scroll down and this is what we can attach this of course, to an email and have all the reports on the one PDF file. I'm going to scroll all the way down to the new stuff, whereas the new stuff I've seen this before. Income statement, we're looking for the accounts receivable details stuff down at the bottom. Balance Sheet detail. There's, there's the new stuff, beautiful. 45. 4.16 Accounts Payable Aging Reports: Quickbooks Online 2021, accounts payable, aging reports. Let's get into it within two. It's QuickBooks Online 2020, one. Here we are in our free QuickBooks Online Test Drive file, which you can find by searching in your favorite browser for QuickBooks Online, Test Drive were in Craig's Design and landscaping services. Going down to the reports on the left-hand side, we're going to be thinking about now the reports that are going to be supporting the balance sheet account of the accounts payable. So let's go down to our reports. We're going to be scrolling down through the reports here. Who owes, you know, that's not what we want. We want the ones where we owe somebody else this time considering the payable items. So we have our common reports, the 1099 contractors, which are kind of specialized to contract or type of reports. We're going to be considering the accounts payable aging detail, accounts payable aging summary, and then the vendor balanced detail and vendor balanced summary mirroring to some degree what we saw on the balance sheets side of I mean, I'm on the assets side of things with the accounts receivable type of activity. So let's first open the accounts payable, aging this summary reports. And then I'm going to be copying and duplicating some tabs. So I'm going to be right-clicking on the tab up top. Duplicate to the tab, I want to have the balance sheet, income statement, and then a space on the left for other things we want to open. So I'm going to copy this tab a few more times. I'm going to right-click on it again, duplicate to the tab. And then I'm going to go over here. Well that one's thinking, right-click on it again and duplicate again. So we want balance sheet, income statement and then the report we're looking at, and then another tab in case we want to open up some other type of report which we will. So let's go back over to the first one. Let's open up Balance Sheet up over here. So I'm gonna go to the reports drop-down or the reports on the left. And we're going to be opened up the standard balance sheet reports changing the date range up top range change from a 10120 to 12 31, 200, running that report. Closing the hamburger up on the upper left, we're now going to be supporting the account on the balance sheet down below in the accounts payable. So that accounts payable represents us owing people money. And then the question is, well, who do we owe? When do we owe it? Then it can we delay the payment some way because I'd like to pay it later, is as our normal questions. We can't get that by simply drilling down on this number because that will only give us the detailed by date in terms of when the transactions happen. We need them by vendor. That's why we need the subsidiary reports. And then let's go to the next tab. Profit and Loss report, opening up the Profit and Loss report here. Not totally sure we'll need it, but I like to have it around just in case the P&L profit and Loss report. Let's do a range change up top there as well. 0, 1, 0, 1, 2, 0 to 12, 31 to 0. The date range has changed. Run the report to represent the change in the range. And we'll close the hamburger. And then if we go back to this is the report that we're actually looking at now I'm going to close the hamburger here. Let's do our date change up top again, this is going to be a 131 to 0 and then run that report. Hold on a second. Hold on a second. This should be 1231 to 0, the end of the year. Try it again. Okay, so now we have a similar data as we saw on the receivable side of things. But now we're taking our payable side of things and we're breaking out by how old or past due the payables are. This is one way that we can sort out and think about the payables that basically we need to be paid. So similar kind of break out. We've got the current items, the one to 3031 to 6061 to 90, and then the over 90. And then we've got our totals down here. The total of the 16, 0 six 67 will then match what is on the balance sheet. 16 0 six 67. Quickbooks basically forces that to take place by whenever you have some transaction affecting the accounts payable, forcing you to then add a vendor so that QuickBooks can then properly put together these reports that are going to be breaking the payable out by vendor. So when, when QuickBooks force it, when they give you an error, when you're trying to enter something and they're like give me a vendor, I'm not going to I'm not going to record it. Your tendencies to get mad at the system at QuickBooks, but it's for a reason they're trying to, they're trying to help there and it's actually, that is actually helpful most of the time. So let's go to the first tab and then let's open it. Another payable report. Scrolling back down, we're going to scroll back down to who owes. You know, that's not the one we want. We want what you owe. Let's do the accounts payable detail this time. Similar transaction, but it's going to give us the detail. And I'm going to duplicate this report, right-click on it up top, duplicate it. So we still have that tab to the left that we can go back to when we want to open up other stuff. I'm going to close the hamburger up top. We'll put the date, the date up top again at 1231 200 and run that report. So we have a similar breakout. We got the 31 to 60 past due up top. These are probably the ones that were more concerned with. We see the actual activity that's constructing these reports. The form then that being the bill the bill form is the form that increases the accounts payable, then we pay the bill with a check or an expense payment type of form. But once we pay the form, if the bill is no longer open, it's no longer included in the accounts payable. So these reports are typically made on pretty much exclusively by the bill items that are still open. So we have the bills here and and then they'll give us the date range of the bill and then we have the vendor. And then of course the total once again is that they're 16, 0 to 67. So now we can actually drill down on the data a little bit more easily to the, to the bill that we want to be taking a look at. Let's go back to the first tab again. Let's go back to the reports down below. Take a look at some other accounts payable related type reports. So we're going to scroll back down to what you owe. Now the other report, I think it's going to be most relevant or one of the most relevant ones is going to be down here and the vendor balanced detailed reports. So I'm going to get the vendor balanced detailed report. We'll open that one up. And then I'm going to duplicate the tab again, right-click on the tab up top and duplicating it just in case we want to do something on the tab to the left, so we have it there for us. We will once again close up the hamburger, change the date up top. Let's, let's make this a custom date just so we make sure we tie and this is going to be 12, 31 to 0, and then run that report. So now we've got our information by vendor. So we've got the breakout of the vendor information that is outstanding. We've got some of the activity at least down here, and then we've got our total of that one, 667, which once again, if I jump on over to the balance sheet, ties into our balance sheet item here. Going back to that to that report, notice this is similar to information you can find in the Vendor Center. So if I go back to the first tab, for example, expenses on the left-hand side, and then we go into the vendors up top. We could search around for outstanding balances basically by vendor, by looking at the overdue open bills and so on and going through this information, however, the report is useful to have and useful to know because once again, the report, if I go back to the Reports tab, will tie in to what's on the balance sheet. So if you have a question, if someone, if you're, you can imagine a situation once again where you're working for someone, either a supervisor or a client that says, Hey, yeah, we owe people money. One hundred six hundred two hundred sixty seven, How much do we owe them? It's nice to have a report over here that tells us who we owe and also gives us that total subtle can tie into the balance sheet. So another useful report, Let's go ahead and print these ones out. So we're going to be printing out like the summary. Let's print out the summary one here. And then this report that we just took a look at. So we'll go over to this, this API, a gene summary and do our standard thing. We're going to save this to our Excel worksheet. We're going to print it as a PDF and we're gonna put it to that one giant PDF thing as well. So I'm going to hit the drop-down. We're going to export to the PDF, save it. And now we get to do our drag drop thing is we'd like this point. So we're going to put this over here. And then we're going to open up our folder. I'm gonna put it into this folder where all the other stuff is. And then we're going to drag it and drop it. We're going to drag and drop It's down here because I'm in Chrome. So I'm going to drag and drop it where we want it to go. Then we're going to open up this Excel worksheet because yes, we want it in Excel as well. So I'm going to open up that Excel worksheet and it's going to look like this. I'm going to add a new tab. We're going to add this new stuff to the new tab. New stuff goes in the new tab. So I'm going to close this out and we're going to export it to Excel now, exporting it to Excel, which opens up down below, opening up a new Excel worksheet because I'm in Chrome. If you weren't in Chrome, it might be up top. If it was in like Firefox or something else. So I'm going to enable the editing. And then I'm going to copy this whole sheet by putting my cursor on the triangle up top right-clicking the copied area, copying, right-click in the selected area, copying the selected area. Then going over, you gotta be an A1 or select the entire sheet and right-click and paste or Control V, whichever you prefer. Then I'll change the name down here, double-clicking on the name. I'm just going to call this API a gene. And then let's see if it fits on one page. By going to the Page Layout View page. It does not. I was expecting it not to do so this time, but that's okay. We're going to fix it now so I can see my dots, which is the page break. So I'm gonna make this column a little bit smaller. That didn't quite do it. I was hoping that would do it, but no. So now I'm going to select that. Did it done? I'm going to delete this because I should have deleted it before. And then we'll save that. That's that one. Now I'm going to do it again. Let's do this whole process again for that other report. That's the wrong QuickBooks Online QuickBooks. Then the other reports going to be over here. Let's do it for this one too. Let's save it as a PDF. Export to the PDF. It's going to show up or save it. Then it shows up down here. Then we get to do the drag and drop, the drag and drop. I'm always excited when that time comes that we get to do dragging and dropping. So then we're going to left-click on that and drag it, and then drop it, drag and drop. And then we're going to add it to our Excel sheet. So we want there as well in Excel as well. So we're going to then make a new tab. So we've got the new tab, then I'm gonna go back and we're going to export this thing to Excel as Whoa. So we'll hit the drop-down here, export it to Excel, opening that backup, opening up that Excel document. And then I'll enable the editing so that I can edit it. And hope QuickBooks didn't try to infect my computer or something. I'm going to right-click and copy it. So I'm going to copy this thing, whole thing. And then I'm gonna put it right here on this new tab. Once again, right-click on A1 and paste it. There it is. Let's see if that fits on one page. Does that fit on one page? No, it doesn't. Let's change the name down here before I fitted on a page. This is going to be the Venn door bound detail, report, vendor balance detail. So then I can, this one's a little bit more challenging here because there's my red dot. I'm going to hold down Control so you could see it a little bit more because it's like a challenge here. So we're going to pull this one in a little bit right there. This number column, don't even need it, right? There's nothing in there. I'm just going to delete Column D altogether. I'm going to right-click and delete it now it might not do it. Now notice this verge, these merge cells can kinda mess things up sometimes, but we were able to do it, so I won't talk about that right now then. So that looks good. Let's save it. And now let's export all of these reports to our PDF file. So I'm going to go to the File tab. We're going to print this thing. We're then going to print the entire workbook. That's what we want. The entire workbooks going to be printed using the PDF, cute PDF printer. There's 17 pages. Let's just scroll through them for double-check. So we'll double-check. Checking once, check in twice. Doubling up. The checking check has been doubled. Alright, two checks have happened and we're going to then go print this thing. And we're going to print it. It's going to save it to the PDF printer. So I'm going to overwrite this financial statement because we just updated it basically. I'm just going to save this but not close it. Minimize, minimize. There's our, there's our PDF file that's open it up. This is like a triple check. We're gonna put three checks on this thing and we'll scroll down. But this one, we can see it a little bit better because it's the actual PDF out. Now this is the one that we can of course attach to the an email with the entire worksheet on this, with all this stuff on one report, which should both overwhelmed and impress. It should overwhelm and impress. We're looking for a little bit of a combination between the two. Sometimes when we're printing out the reports, you can't do other formatting, of course in Excel on these as well. So, and then so here's the a PhD in summary, there it is. That looks good and there's the vendor balanced detail. 46. 4.20 Sales by Customer or Income by Customer Reports: Quickbooks Online 2021, sales by customer or income by customer reports. Let's get into it within two. It's QuickBooks Online 2020, one. Here we are in our free QuickBooks Online Test Drive file, which you can find by searching within your favorite browser for QuickBooks Online, Test Drive, or in Craig's Design and landscaping services. Going down to the reports on the left-hand side, we're going to be opening up reports for sales by customer. This is going to be supporting a line item on the income statement. So let's scroll on down. We're looking for the sales type of reports. So we're looking for these items, sales and customer type reports. We have the sales by customer detail and the Sales by Customer Summary. Let's start out with the Sales by Customer Summary report. Going to open that up. Then I'm going to change the dates up top, adjusting the range of 1, 0, 1, 2, 0 to 12, 31, 200. And then let's run that report. Now I'm going to I'm going to duplicate the cells up top or duplicate the tab up top so that we can then open up an income statement and compare it to the income statement. I want to more tabs. So I'm going to right-click on this tab up top, duplicate it once. I'll go back to tap the left. Well, that one is thinking, right-click on it again, duplicate it again. I'm going to look for the income statement here, then our report we're working on, and then we'll have this open in case we want to open another report or look at some other item. Gonna go to the to the item to the left or the tab all the way to the right. I mean, and then we're going to open up the income statement or profit and loss, just the standard P and L go on down to the reports on the left-hand side it to do so. And then we're going to open up our favorite report that being the P and L, the profit and loss, the income statement. And then we're going to adjust the range. Have arranged change up top 0, 1, 0, 1, 2, 0, 2, 1231 to 0. Let's go ahead and run that report. Here's our income statement. I'm going to close the hamburger. I'm going to hold down Control scroll up just a bit to get up to that one to five because that's like the perfect spot and the zooming range. And then we're gonna go back to our Sales by Customer report. Let's close the hamburger here. And now we have our information that's going to be broken out by customer. So this is going to be a really useful report and it's something that we want to keep in mind when you're thinking about adding accounts and when you're thinking about doing the data input in general, for example, if you're going to be coroutine, creating your company file from scratch, and you're thinking about how things are going to be on the income statement, how they're going to be looking on the income statement. You might start to say, hey, look, these income line items, I would like to have more detail on the income line items here. And then you might start thinking, well, it would be nice like I have some large customers. Maybe I should put that more detailed directly on the income statement by, for example, and making a line item for a particular customer. If I have like a one big customer, I might say this is income from the big customer. Now usually, you don't typically want to do that for most types of businesses. Because if you were to add like income accounts here that were designated to particular customers. Then your income statement can get quite long. And the idea of the income statement is it's kind of a summary report. We're trying to get a fairly quick idea of basically income here and then the expenses by general category to get on down to the net income. And then we're going to think that we can get that more detail of things like customers who we sold too, but not have that directly on the income statement. Instead, having it on a supporting reports such as this one, That's this sales by customer. So that's the idea that you want to kind of be thinking of when you're constructing the income statement, you want to keep that in your mind. Would you start to think when you start thinking, I'm going to add accounts to the income because income, the income line item over here usually doesn't have that many things that we do because we only do a certain couple of things. And usually the income line item will be described by the thing that we do, not by the customer we sell to. There are exceptions to that rule, and we may look at some when we do bank feeds, for example. But that's kinda like the general rule. And then you're going to go over here and break out that more detail in another report so that you have it there. But but you can have the more detail over here because if you can see if you made another income line item related to each of your customers, you'd have a very long income statement which would kind of defeat the point of having that separate report that can break up a detail for you. So in any case, here's going to be all of our customers that we have here that these are the people that we sold to during the time period, in this case, this year, the year range that we are in. And of course, the bottom line of it should then tie out to the income statement. 10 thousand to 8005 does not tie out exactly to this number here. And the reason that is sometimes that will not tie out if you record something, say to income and you do not add a a customer to it. In other words, most of the time when you record something to income, if you're using a full-service accounting system, then you're going to be doing so with an invoice or you are going to be doing something with a sales receipt item. Now in some cases, if you're just increasing the income, for example, and you're doing it from like bank feeds or just taking the deposits that are going through the bank statement and just putting them directly into the register, for example, is possibly to do it's possible to do that and then put the account towards the income account without assigning a customer. In that case, with these two forms, you have to assign a customer. So if all your sales are going through these two forms, then it's almost your, your, your statement should match out. But if you have something like like I said, you gotta deposit from somebody. You recorded it as revenue, as income, but didn't assign it to any customer, then it's possible that you have something in the income account here on the income statement that is not assigned to a customer and therefore it cannot be made into a subsidiary ledger account. Also, if you do adjusting entries at the end of the year like a journal entry to adjust revenue for some reason. And you do not assign a customer or something like that. That's another reason why those two things could be off. So this is a little bit different than you'll, you'll recall on the balance sheet, will look like accounts receivable, the amount that was owed to the company. And that. Basically had to match out and almost always matches out in QuickBooks. Because the thing that makes the accounts receivable is an invoice only and you can't really hit you can't really put in an invoice without assigning the customer. And even if you try, if you put a journal entry to accounts receivable, QuickBooks will typically say I'm not going to let you record it unless you give me a customer. Not quite the same way with the revenue. You can't typically hit a revenue account. Meaning you can record a journal entry or put something into the register, for example, to increase the revenue account without assigning a customer. However, normally by default you'll will assign that to a customer if you have a full-service accounting system because you will be increasing the revenue account when you make invoices and you create these sales receipts. So that's going to be the general idea there. Now let's just take a look at the other report. If I go back on to the left here and we go to the reports down below. And we scroll down, scroll on back down here. So we'll go into the sales by customer. Well, let's go down to the sales by customers. So we're going to say sales by customer detailed report, selecting that item. And then I'm going to duplicate the tab up top, right-clicking on the tab up top and duplicating it. So we have one to the left of it there. Once again, let's have a range change up top from a 10120 to 1230, 31 to 0, and then we'll run that report. So now we've got, I'm going to close up the hamburger. So we have a similar kind of report, but now of course we have the detailed information in the sales items that we made, so we have it broken out by customer. And then within that detail, we've got the items or the activity that happened. This can be a good report or useful report. If someone was to ask you certain customer was to ask you about information because then you can break out this report and you could drill down then on the details, say the invoices and the credit memos and so on. Of course, you can also find that type of information if you go to the first tab over here and we go down to the sales items, the sales that tab. And then you are going to go to the customer information. And so we would actually look at that particular customer. So if I imagined a customer then contacting us, then we can go into that particular customer and we can look at the detail of the activity this way as well, which is probably the main way people would, would go into it. But again, if you're looking at the reports and trying to support the information on the reports. Report is nice to have because then you can sum everything up nicely in the in the totals down below and see how it ties in to the financial statements. Also note that you can't filter this report as well. So if you wanted to see this by a particular customer or something like that, you could customize the report, go down to the filters, and then you can filter on this one. Possibly the customer filter would be one of the most common filters. And you can select multiple customers that you can then filter by. For example, run that report. And now you've got your filters for a couple of customers within it. I'm going to go back to the first tab. Again, we're going to take a look at one mother other report. We're going to go to the reports drop-down and then. In the reports, we're going to scroll on down through the reports here where the sales and customers, and we want to look at the income by Customer Summary, income by Customer Summary. Going to open that one up, I'm going to duplicate the tab up top by right-clicking on it, duplicating it. Then we're going to have arranged change up top for the date range. Range change from 0, 1, 0, 1, 2, 0, it's a 1231 to 0. Then let's run that report, closing up the hamburger up top. So this is going to be a similar kind of layout, the income by customer, but now we have the related expenses that are going to be in there as well. So if we look at the we still have the customer layout. If I go to the bottom line, what the 10,280, which is basically the same as the sales by customer report, which should tie into basically the sales line item or all the income line items on the income statements. A little bit different as we saw and we discussed why. And then we have the cost of goods sold, which is pretty small at this point, at the 400 five. But then if I go back on over here, we have the expense line items. Again, it's a little bit different here, but you can see how that would have the expenses that are going to be applied out as well, which basically has the net amount that are applied to the customers. So in other words, if I look at this income statement, the income line item is obviously applied to a customer because that is done with the invoice or sales receipts typically. And then this cost of goods sold, if we sell things, will typically be assigned to the customer as well. If we're using a perpetual inventory system, tracking the inventory through the system using items than to record the use of the inventory in the form of an expense of cost of goods sold. And so that then can be applied to a customer as well. And that's an essence what this report is doing. Applying those two things out. Okay, let's go ahead and save some of these reports. Let's go Let's just do the sales by customer summary report and possibly this item over here, the income by Customer Summary. And so we'll do our standard process. We're going to save these and we're going to export them to Excel. So I'm going to hit the drop-down. Let's export to a PDF file. We're going to print as a PDF file. It's then going to pop up down below. So I'm going to start to minimize the screen or make it hit that square thing and then hit that square thing. You know what, I'm going to hit the square thing. So I'm gonna go ahead and drag and drop now. So we're going to left-click on this, drag it and drop it. You can hear it screen when it falls, it goes there it is, and it fell right there. And then I'm going to open up this green again and then close this out. Now I'm going to, I'm going to want the, the Excel as well, of course. So we'll open up the Excel sheet. And we're gonna take that Excel sheet, it's opening up down here. We're going to put that into our other Excel worksheets. So I'm going to open that up, this Excel worksheet gonna open that up. Then we're going to open up a new tab with a little plus button. So new tab plus button. And then we will go back on over and open this Excel sheet up, which we're going to copy the sheet and then paste it over to that other place. But we wanted that. We made the sheet one here. To do that, Let's enable the editing. Let's select the entire worksheet by selecting the triangle control, I'm going to use the keyboard this time Control C, closing this out and then I'm going to paste it in control a for the pasting. Once again, I didn't change the numbers and I still have the footer here, so I should have done some more formatting to it. But again, I'm not going to, I'm not going to change it now. So we're going to say Sales by Customer Summary. Let's keep it at that and then let's do the same thing for the other ones. So I'm going to I'm going to delete this report so it doesn't confuse me. So I only have one Excel worksheet open at a time. And then let's do the same for the Craig's Design and landscaping for the income by customers summary. Let's do that one as well. And so again, I should probably customers do the customization. What I should have done last time, I'll remove the pennies, I'll make it bracketed and read numbers. And then scroll down for the header and footer. And then I'm going to remove the Date, Time report basis. And I think that's what we normally do is I'm going to say, Okay, then let's export it to a PDF or export to the PDF. Save it as a PDF. That I'm going to hit that box again. That's not minimized but that's like make it small. I forget what they call that. I'm going to double-click here and I'm going to drag and drop. So we're going to drag it, grab it, drag it over, screaming and doesn't want to go, but then I'm going to drop it. He just goes and then it lands right there. So then we're going to open this backup again and do the same thing for Excel as well. So what we're then gonna go to the dropdown and we want the export to Excel. And let's open that up. We will enable the editing and then hit the triangle up top and right-click and copy or control C, whichever is better, whichever you want. And then I'll hit the plus button in our tab on this worksheet. And I'm going to put this in cell A1. In cell A1, double-click on the tab down below, I'm going to call us and let's just say income statement to merge some Murray income statement customers. So similar sound and report. I'm going to save it. And then let's go ahead and print this as the PDFs that we have all these reports at one time in one place. So we're gonna go to the printing option and we're going to use the qt PDF to print it. I'm going to select the entire workbook, the whole thing. The entire workbook, which is now 19 pages. 19 page workbook. Let's scroll on down, see if it looks appropriately. If we have anything that's kinda more than one page wide, which hopefully that last report fit on one page because we didn't double-check it. Probably should have double-checked it. But I think we're going to be okay. I live dangerously. Print it. Not even care. Yeah. So yeah, there it is. It fits on a page. I knew it. And then I'm gonna go ahead and print it. And then we'll save it here. I'm just going to overwrite this other PDF file and then save it. And then let's go back on it and open it up. So I'm going to check it out, open it up, check it out. So we'll open it up. So we can check it out in the PDF file. Obviously, we can attach this one huge giant PDF file with all of our reports in it to both impress and overwhelm. You know, at the same time, a little bit of both perfect mixture to create the effect that we're looking for. Halfway through the scroll in here, halfway through the scrolling, we haven't got to the new stuff yet. Neuchatel shadow on the bottom, new stuff on the bottom. We are on the customer balance detail. And a P vendor balance detail. Sales by customer. There it is. There's the new stuff. There's the new stuff. Should have got rid of that, kinda disappointed, shouldn't have that there. But that's okay. It's going to go with it. And that looks good. 47. 4.25 Sales by Item Reports: Quickbooks Online 2021, sales by item reports. Let's get into it within two. It's QuickBooks Online 2021. Then here we are in our free QuickBooks Online Test Drive file, which you could find by searching in your favorite browser for QuickBooks Online, Test Drive were in Craig's Design and landscaping services. We're going to go to the reports on the left-hand side, scrolling down to the reports that are going to be related to the income statement, including the sales and customers types of reports. And we want to take a look at the sales price, product, and services, which we have two reports. We will first be taking a look at the summary reports. So we're in the sales and customers sales by product slash service summary. This would be similar to a sales by item report if you were in the desktop version, recalling that we kind of have that difference in terminology by the things that we sell being called either product slash Services, which is a little harder to say, but more descriptive, or inventory items or service items which would be used on the desktop version. So we're going to be opening then that up. Let's do a range change up. Top range change from 0, 1, 0, 1, 2, 0 to 12, 31 to 0. Run that report. And then we're going to do some tab duplicating. So we're gonna go back up top and right-click on the tab duplicated. And then we're gonna do it again. So I'm going to go on that tab again. Let's go to the first tab. Well, that one's thinking, right-click again and duplicate again on the tab to the far right. I'm going to want the income statement and then we'll have that one report that we are working on and then we'll have the other report here in case we want to open up anything else which we will in the future. So let's go to the tab to the four, right, let's open up a normal income statement, profit and Loss, P&L type of report. So here's going to be our profit and loss type of report. Gonna do a range change up top for that one that's going to be going from a 11 to 0 to 12, 31 to 0. Let's go ahead and run that report. Then I'm going to close the hamburger up top, hold down Control scroll up just a bit to get to that one to five, which is not preferred viewing range. Then we're gonna go to the sales by product, and we're going to then close the hamburger there as well. So let's first analyze the income statement and see how this will fit into the income statement. So if I go back to the tab to the right, we're looking at the income line item now there's a lot of different things and the income line item for this particular company, because of the type of industry they are in, I'm going to collapse the income line item just to recognize that generally, you're not going to have a whole lot going on in income as far as a line item goes. Although in terms of dollar amount, you should hopefully we'll have a whole lot going on and can have a, hopefully a good dollar amount going. But the number of accounts should be fairly small for the most part. Now, like we saw with the customers, you might have a tendency to try to want to put more information in the profit and loss or income statement. So in last time when we thought about how you might have a tendency to think about doing that by customer. And then you kinda want to resist that urge so that you can then run another report that provides you with that detail so you don't muddy up your income statement. Same kind of thing that you can think about by product or service. So these products or services are the things that we sell, inventory items, service items. So we might have a tendency to want to have our biggest things that we sell as a line item on the income statement. Or you might have a tendency to say, Hey, every time I sell a particular thing, I want a different line item for the thing that I am selling. But you don't really need to do that and you don't want to do that to any big degree. Because if you do, you're going to end up with a huge amount of income accounts, which is kind of defeating the point of the income statement, which should give you a pretty good quick summary of what is going on. Instead, what we wanna do is have a couple of line items up top on the income statement and then be able to go to another report that's going to break us out that more detailed, that of course being the sales by product and services. So instead of adding another line item on the income statement for everything, every product we have or every service we do. We have another report that will kind of summarize those items. So there could be deviations to this rule. Remember, like if I go back to the first tab here on the income statement, you might have like two line items. If you sell goods and you have services will basically break out two line items. And that means that you'll you'll have a line that of, of income That's all breaking out all the income line items. And that might be worthwhile to do, right? That is pretty good. Breakout. And then you're going to have the other side will be all of your all the things you sell, like inventory type of items. So you could break it out like that. You may also use classes to do a breakout like that, which could be interesting or useful to do as well. We'll talk more about classes in, in a future presentations after the whole practice problem. You also might have some major categories. So if you sell inventory, you have major categories of inventory that you want to group in, then you might have some accounts that are going to group by category, but you wouldn't want to break out every inventory item that you sell. So there are times when you want more groupings of income, but you want to be careful on those groupings of income. And when you do group income, you want to keep in mind that you have this other report which will break out the more detail and then think about how you can integrate what you want on your actual income statement, which should be more consensus and concise information. And then how you can then use the supplemental reports over here to break out the more detail. So this, of course, this is going to be the sales price product report. So we have then the information and things in terms of things that we are selling here. So we've got this information now, this information is going to tie out to the products and services that we have created. In other words, if I go to the first tab and I go down to the Sales tab and we take a look at then the products and services. These are the items that we set up and these are the things that we set up that we actually sell when we create a invoices and sales receipts. So now we're basically creating then you can see I'll QuickBooks creates this report when we sell stuff. If we're using a full QuickBooks inventory system or we're using a full sales cycle, whether we have inventory or not, if we use service items as well, we would be making then for those sales invoices and sales receipts. We're going to be making those invoices and sales receipts with the use of the items or the product and service items on them. Now note that if you do not use these items, for example, if you're taking your information directly from the bank statement or from bank feeds and you're just taking the deposits and putting them right into the bank, then you're not using the items in that case. And so as these items won't be able to be used to drive this information. So if you're using kind of a cash-basis system or relying on the bank and not creating these reports, the invoice and the sales receipts, then you're not going to have this added kind of level of detail because this is being generated through the full-service accounting cycle with the help and use of the reports, note that if you are in a cash-basis system, you'd still be using these reports if you were using the whole accounting cycle because you you would be using the sales receipt report. But it would if you're going a step further than that and just simply recording the deposits as they go through it like with bank feeds and just recording them to income, then you may lose the level of the detail here on the items. And if you do not add the customers as you do that, which you may not because you might not know the customers. If that's your system, then you'll you'll lose some level of detail on the other added report as well that we saw last time with the customer, that customer balanced detailed report by the Sales by Customer report. Okay, let's go back to our report. Then. We have the quantity here, we have the amount. And then this is going to be the percentage of the total sales over total sales are going to be down below a 100 percent. So the percentage of sales is just taking this line item divided by the 10000 to 80. That's gonna give us our percentage. The, we have the average price and then we've got the cost of goods sold, the gross margin and the growth margin per cent, which would only really be applicable if you are using inventory, if you're tracking inventory items for those items. Now if we go down to the bottom of this report, then of course, we see that we have that 10 thousand to 80.05 that then ties out to or should tie out to the the line item for income. It's a little bit off for the same reasons we talked about before because it's possible for you to hit an income account or record something to an income account with say, a deposit that you put directly into an income account that you didn't use a form for, such as such as an invoice and a sales receipt. However, if you are only using those forms to record your income than they should basically tie out, but it's not forced to die out. And the same way that a subledger for like accounts receivable basically as our accounts payable, those sub ledgers In the customer. The accounts receivable by customer or the AR aging detail and accounts payable aging detailed tie-in to the balance sheet, accounts of accounts receivable and accounts payable almost every time because QuickBooks is way more stringent in allowing you to record anything to those accounts without using that. They don't do that. Same restriction to the income line. Because there are times when people may want to post up into income without a customer. They don't they don't force you to have a customer every time you do. So let's open up the other report. If I go back to the first tab here and go down to the reports again, and then we go to the other one. That's by item that detailed reports. So we're gonna go down to the sales reports once again. And now we want the sales by product serve as a detailed reports. Let's open that one up. I'm going to right-click on the tab up top and duplicate it again. And then we'll do a range change on the date range. So we'll have a date range chain. We'll take it from my let's see. 0, 1, 0, 1, 2, 0, 2, 1231, 200. Go ahead and run that report. Let's close the hamburger. We have the same kind of information. These are the things we sell. And now of course we could see them more doc documentation or the forms related to them. When we sell these items, we sell them with sales receipts and invoices. So we have that detail. We can drill down on this detail if we want to use the zoom feature. So notice that this report once again can only include items that were recorded to the income line items, income accounts, with the use of invoices and sales receipts. Again, if you've recorded something without an invoice or a sales receipt just with a journal entry or deposits directly to the sales line item. You're not going to have this detailed report with it because we didn't get to assign an item for it in that case. So that's going to be this information and of course it will, it'll tie up or an add up to the same information at the bottom. Let's go ahead and then just print out this report. I won't do the other one. Let's customize it. So this is going to be the sales by product. We're just going to then do our standard process customizing. And hopefully that should have been my standard process. We fit, we skipped customize it a few times, but now it should be the standard process. We're going to customize it. Then we're going to download it as a PDF and Excel document and put it into our extended Excel worksheet. So let's go ahead and customize. We're going to say, let's remove the pennies. Let's make some negative numbers here, bracket ties those negative numbers and make them red as well. Going down to the header and footer, we're going to be removing that. They prepare time, prepare a report bases, go ahead and run that report. So there we have it. That's going to be our standard report information once adjusted, remember, you might want to customize our memorize the reports, save the report. I won't do that now though. So I'm going to then hit the drop-down. We're going to export to a PDF file. Then we're going to save the PDF file. So there it is, down here in Chrome, I'm going to hit this box, which is going to make the window smaller. I'm going to look up the name of that, what that's called again because it's kind of bugging me that I can't. But anyway, then I'm going to drag down, I'm going to pull this over and drag and drop it, drag it and drop it. There. We have it going to go back up top again. I'm going to close this back out. We're then going to be opening up our, our, our Excel worksheet because we have this Excel worksheet. This is the one I want to save it to with all our information down at the bottom. So I'm going to make another another worksheet on this one. And then I'm just going to copy and paste it into this item. Let's go ahead and download the Excel worksheet as well. So, and then we're gonna go ahead and open that enable the editing up top, we're going to select the entire worksheet by hitting the triangle. And then I can say Control C. If I so choose Control C, get a minimize this tab. I'm going to paste this in cell. I'm going to put my cursor in A1, Control V, and paste it there, we have it. Then I'm going to double-click on the tab down below and rename it. And I'm just going to call it sales by Frodo's, something like that. And let's see if it fits on one page now we should test that out by going into the page layout view. Does it fit on one page? Yes. One page wide. It fits on it could be more than one page long, but it's not fits on one page wide and one page long. So we are okay. They're going to then save it. And then let's go ahead and print this as a PDF file by going into the printer, the File tab on down to the printing information. And then I want the entire workbook to be printed. So I'm going to print the entire workbook, which is now at 20 pages. We have a 20 page workbook. Let's scroll through it. Make sure everything is looking appropriate. Here it all fits on one page. We don't have to take anything together or anything like that. So scrolling down the new report down at the bottom here, and it fits on one page. Looks good. Let's print it's going to be printing it, which is going to save it to the PDF printer. So it's going to save it as a PDF because we're using the QT PDF printer. I'm going to overwrite this file, double-clicking on it, saving it to that file. And then let's open that file up and just double-check it. They're going to put two checks next to the checking with doubling up the check. So then we're going to scroll down. And so this is everything we have so far. So it only, it only say I only have one thing here. Hold on a second. This is the wrong report. This is the report I want. This is the one that's y. And then I'm going to, now let's kinda scroll through this thing. We've got the balance sheets going to scroll all the way down to the 20 pages, down to the new stuff. So we've got all this stuff on one report. Because of acute PDF printer and export into Excel combination, fairly easily done without the need for Adobe Acrobat, fancy reader. We just needed normal Adobe. So we can do this and then our new report down sales by customer. That's what we did last time. Sales by income, by customer. We did that last time. And then here's the new ones. Sales by product and services. We did that this time. 48. 4.30 Form 1099 & Expenses by Vendor Reports: Quickbooks Online 2021 now, Form 1099 and expenses by vendor reports. Let's get into it within two. It's QuickBooks Online 2020, one. Here we are in our free QuickBooks Online Test Drive practice file, which you could find by searching in your favorite browser for QuickBooks Online Test Drive, we're going to be looking at our reports down below, looking at 1899 report, you could simply type in the search menu for 1099. And I'm going to locate it down here by scrolling down and scrolling down. We're not picking up these two. We're going to pick up this one down below. It's in the expenses and vendors section looking for the 1099 at transaction that detailed reports. Opening that one up, we're going to do a range change up top for the date range, I'm going to pick the last year for an uppercase B in 2020 by selecting the drop-down up top. We're going to go down to the last year. So last year running that reports. Now we're also going to change some filters just so we can pull this information in. I'm gonna go to the customized reports up top. We're going to adjust the filters. And I'm going to adjust the filters so that we have the 1099 contractor threshold. I'm selecting the 1099 contractor below threshold. And then I'm gonna go to the payment. And I want to say all here for the payment. So here's our here's our items. This one was already checked off the vendor the type of contract or vendor 1099 below the threshold payment is going to be all. So I'm going to then run that report. And then we have our item then down below here, I'm going to then close up the hamburger, closing up the hamburger up top. And that's what we have thus far. Now I'm going to open up a couple other tabs. So I'm going to go up top. I'm going to open up both the balance sheet and the income statement and then another tab so that we can then have a tab in front as well as this report. So three more tabs open. Right-click, I'm going to duplicate the tab. Going back to the tab, the left, I'm going to right-click, duplicate it again. Going back to the tab, the left going to right-click and duplicate it again. Then I'm gonna go to the one all the way to the right. I want to open the balance sheet up with this one. So I'm gonna go down to the reports down below, opened up our favorite report that being the balance sheet report. And so we're gonna go on down balance sheet, clicking on it to open it. And then we'll do a range change up top date range change a 10120 to 12 31, 200. Running that report. Closing the hamburger, holding down Control scroll up just a bit to get us up to that one-to-five. That's where I like to be. Then we're gonna go to the income statement second tab over we want to look at the income statement, go into the reports down below, go into the income statement, the P and L, the profit and loss open in that one out, close it up the hamburger range change up top a 101 to 0 to 1231 to 0. We're going to go ahead and run that report. And then we have the report that we already ran. This tab. I'm going to close up the hamburger. Now let's just kinda think about this 1099 report. First. What is it doing? And then we'll get into the details with it. Remember that all of these reports that are supplemental to the to the financials, the balance sheet and income statement are basically giving more detail about some line item on the balance sheet and income statement. That 1099 report is unique, however or different? Possibly not unique, but different in that it's going to be a report design specifically towards a kind of requirement as opposed to a report that's trying to just give us more detail on. Under the expanded account. So for example, if we go to the income statement over here, I'm going to minimize the income up top. Remember that the income that we have up top of course, is going to be something that we are earning. And for tax purposes we're going to have to be paying taxes on it. So for tax purposes, income is actually kind of bad. Everything is inversely related and we're gonna have to pay taxes on it. We're going to have possibly getting 1099 from a tax perspective to tell us, as well as inform the IRS that we are generating that income and therefore need to pay the taxes related to it. All the expense items down below are going to be items that we are extending, paying other people for in order to generate revenue on it. So from an IRS perspective, they're concerned about us to make sure that we are reporting to our income. And so they may require other people basically to issue 1099 to us based on our structure and on in from us. The 1099 may obligate us then to issue 1099 to others. Now, how does the IRS able to do that kind of force us to issue the 1099. They're basically going to look at the people who are paying people, the people that are making the payments. Because payments, in other words, expenses are basically deductions for tax purposes. So that's where their leverage is. So they're going to go to the person that is pain. And they're basically saying, Hey, do you want a deduction for this? And we're gonna say yes, we want a deduction. And they're going to say, well that's great. Then you need to tell us who your pain. Because whoever you're paying at two, it's going to be income to them. So if we're going to give you a tax benefit by having a deduction, you have to tell us where we can go, collect our money, give us their name, their address, their social security number, so we can go over there and get our money there. And that's basically what's happening. So if you, if you think about the payments that you make then which are income to somebody else, we can put them into two main categories. One, wages. If they're an employee, we pay them wages. And, and of course, the iris is going to say that's a big expense that you're taking right there. Not only do we want you to tell us who your pain, but we want you to actually physically take the money out of their check and pay it directly to us. So with the W2 is we have a big obligation to pay that and we have payroll taxes on top of that of ourselves. Now if they don't fall into the category of a of an employer, ie, we may still have an obligation to the iris to report the income and that would be if they fall into a contract or something like that. Then again, the iris is still going to say, okay, well, they're not an employee, we won't make you actually withhold their money from them and tack on payroll taxes on top of that butt. We still want information about them from you so that we can go to them and make sure that we're collecting our money over there. So then we've got to say, Okay, well, who in if you don't, obviously, we might penalize you and whatnot. So so then we're of course like, okay, well, I don't want to be penalize and I would like the deduction and what not. So what do I need to do it logistically, how does this work? Who do I need to issue a 1099 for? So the people that we need to issue a 1099 for typically people that are not corporations. It's because the iris is basically thinking if they're above a certain threshold, if they're incorporated. The iris is not so much worried about them because they're going to use other means to coerce them to make their tax payments, right? But if they fall below a certain threshold, the iris is concerned about them because they might be below the line below the radar. And the iris would like some other information on them to make sure that they're picking them up and they can make sure that they're paying their taxes and whatnot. So that typically means that we're not talking about incorporated people like C corps and S corps possibly, but people that are not incorporated. And then there's a dollar limitation. So if you paid them under a certain threshold, it's pretty low threshold, it's like $600. If you paid under that, then you don't typically need to issue the 1099. If they're not incorporated and you're paid over the $600, then that's when the iris is saying that we want a 1099 for them to make sure that we're picking up those people that might otherwise kind of fall under the radar and not be reporting their taxes. So obviously, what's going to be on the 1099, we have to then give the IRS This is who we paid and they're going to want us also to collect on them the EIN number, which could be their social security number if they don't have an ear, like another EIN number, which is awkward to collect from somebody. But hopefully, even if they're a contract with no employees, they're going to get a social EIN number which is separate from their social security number that we can pick up and then we need their address so the iris knows who they are, knows not just their name but their number. And then they know where they live so they can make and go take them out if they don't pay their taxes. So how did we do this logistically it so that's when we have this report over here. So all these expenses that were paid were painted the vendors, right. And that's what this report is going to be basically generated on over here. We can also, in essence create the 1099. So you may have to pay extra through the Intuit to software. Now note that you could just kinda generate that what you need to pay and then by the 1099 and print them, that might be cheaper to do or fill them out. You can purchase the 1099 forms and then fill them out. But you may be able to actually process them through QuickBooks as well, which probably would be the easiest way to do, although could cost more. So then the question is, well, how do I mark off the people that I need to pay? What do I what do I have to do in terms of who, who I need to be paid? Well, if you go to your vendor list over here, if I go back on over to my first tab and I'm going to go down to the expenses. And we're gonna go then to the vendors tab up top, we go into the vendors tab. Then these are all of our vendors now. Basically, like we said, it's going to be people that are not incorporated. So if you're talking about a large corporation and what not like your utility bills and what not, you don't have to 1099 them. So in a corporation usually is like a C Corp or an S corporation, if there are sole proprietorship or something like that or not incorporated general partnership possibly, then you would need to then issue that 1099. So what you wanna do is go through this list here and think about the people that are not incorporated. And then there's also that $600 threshold. But the $600 threshold is pretty low. So I would go through this list and basically it just pick up all the people that, that are not incorporated in what would fall under the first requirement. And then think about sending them basically that the W9, which is a request for the taxpayer identification number and certification. And then if if you send this out to someone who was a sole proprietorship, hopefully they'll give you the information necessary. If you send someone out, something about accidentally or that you didn't need to send out. Then you go ahead and send it out anyways and they can tell you, Hey, look, I'm a C Corp or an S Corp or whatnot and check off possibly. And let you know, give you more information to know whether or not they need the 1099 to be issued or not. And so then if we do need to issue the 1099, we've got the Social Security and Employer Identification Number requirements down below that we will need and then the address information for the issuance. So if you haven't gone through as you've added these these vendors and added them as whether or not they need a 1099. As you go, you can actually go through that and do that at a later time. Now you might be saying, hey, I got a whole lot of vendors and some of them, I don't use it anymore because they're inactive and I don't want to go through the entire list, including inactive vendors. So in that case you might want to go through the list and basically make the, the, the vendors that you don't use any more inactive. So in other words, you could go into the vendor here and then edit the, the vendor. And you could make them inactive if you so choose. And that could shorten up your list, be a good thing just to clean up your vendor list in any case, but that takes time as well. So if you don't want to do that, then you can, then you can use these reports possibly to kinda make a list of your vendors and see who you actually paid during the year. And that can make the job of selecting the vendors that you need to pay a little bit easier as well. So we'll take a look at that in a second. Now once you're in this vendor, you could add the tracking of a 1099 down here. You would need to take off the 1099 and then you would need to be adding their number here, which is going to be there, their identification number. Which if you don't have, then you might want to issue the form of W9 for it because we need to we need to have the address and we need to have the the number which would hopefully be there, EIN number. If they don't have that, then we would want it. We'd have to request their social security number. So I'm gonna go ahead and add this one. So if I add this one over and then go to my, my 1099 reports and let's go ahead and update this one. Run the report again. No more activity yet. Let's go back on over here. And let's add a couple more. I'm going to go back and say we'll add a couple more of these and I'll make this a 1099 vendor by going to Edit and make this a 1099 at that. So this one, Let's go. Not the phone company probably add this one. And I'm going to say Edit. And I'm going to add it as a 1099 bender. Obviously, anyone with just a name. Might be a might be someone that we would need a 1099. So I'm gonna go ahead and edit this one and add a 1099 for that one. And then I'm going to add a transaction to one of these just so we can see it. So I'm going to say, let's sit the New button up top. I'm going to add an expense item. So we'll add an expense item, I'm going to say to be there. And I'll just say it's going to meals. Meals. And this is going to be for, say, 1 thousand. So it's definitely over the 600 threshold and save it and close it. And so there we have it and I'm going to say close that out. And then if I go back to my second tab and let's see if we can refresh this one that's customize. Let's run the report again. And so there we have a little bit more activity in our report. Now notice we have bills and checks in here. And you would think that basically we're using we're looking more on a cash basis method most of the time when we're looking at the payments. So you could run this report like on a cash basis and run the report. This bill is still here. Notice that if I go into it, however, it's been it's been paid. So if I go back up top, this bill has then been paid. And so that can give you that can give you some detail. Now, if you're looking at if you're trying to find the people that are not included as 1099 vendors yet and you're trying to run a list to see whether or not you'd need them to include it and you want the numbers over here. In order to see how much was paid, you can go back up top and say, all right, let's try to customize this report again. Go into the filters and we'll take a look at at the contractor. And the contractor is not marked as 1099, I'm gonna say the ones that aren't marked as 1099, run that report. And now these are the people that haven't been marked as 1099. You can go through here and say, okay, these have activity there in them, not marked as 1099 or any of these people, I need to then mark as 1099. So you might say this one, for example, you might say maybe that one is what I need to put a 1099 for and then go back on over to the first tab. So CH this one say okay, that they need a 1099 maybe and we'll edit it. And then we'll go over here and say We need to 99 that one and run that report. And so then we can go back to the report and run it again. Customize, not customizer. Refresh the report. And there and there we have it. So now they should be removed from this one. And then if I customize up top and I say that I want to look at the the contractor's here and run that report. So now we should have that one added. So we have that added here. So that's how you can, you can kind of you can use the same report to give to help you to track the 1099 if you're at a point at the end of the year and you're trying to go through all your activity. And see whether or not you need to be 1099, people who you need a 1099 and then who you gotta send out, possibly a W14 or requests in some way, shape or form for the EIN number or tax identification number and their address so that you can fill out that process. Now, once you have all that, then you could process the 1099. So I won't go through this in detail here, but you could then use QuickBooks to help you out to process the 1099. So again, it might cost more to do so. So then we're gonna go back up to the expenses tab up top and you'll see up top here it says prepare the 1099. So we've got the pair of 1099. I'm gonna go ahead and that item. And then you can go through this kind of interview process, which is pretty straightforward. So if you have everything entered in there fairly properly, then this is a fairly straightforward process. It'll allow you to then add the necessary data if you're kind of missing anything as well. So this is for the tax ID. I'm going to have to add the tax IDs, let's say 234567. And then I'm going to say Save. And let's go to the next item and then select the box for the types of payments you made. Then select the expense cat accounts you use for these payments. So most common types, this is probably the non employee compensation, probably the most common type. And then you may just choose basically all of these accounts for anything that you paid. Meaning I want you to any expense account that I allocated to, I'm gonna say is gonna be qualifying or any account. I'm just going to say it's going to be qualifying just for the demonstration purposes here. So I'm just going to select everything. I'll go through this whole thing and select all of them. There's kind of a lot here on the expense accounts that we have taken longer than I thought it would. Just select all the accounts. Doesn't seem like we're using this many accounts. All right. So I've got them all. I'm going to go down there and then other other payment types, these would be other types of forms 1099, Miscellaneous for fishing, medical payments, direct sales. I'm just going to keep the example that we have up top. Federal tax. If you withhold federal tax from your from your contractor, select the accounts used to do so. This option is uncommon. So usually you don't withhold from the contractor, you withhold from employees. So we're going to then go to the next item and it says review review your contractor, so make sure your contractor details are correct to see which contractors meet the 1099 threshold. So we have your vendor or company name is missing. That's kind of a problem. And then the end anyway, I don't have an address and we're missing the tax ID. And so we can then try to edit this center. And so this is a contractor, burger joint. I'm going to say it's a business. We're going to say. And we're going to call it bobs burger joint. If it's a contract or a lot of times it will be an individual, basically, maybe the server. And it could be doing business ads. But I'm just going to add something just to go, we'll put an address, 70 Beverly park, the early par, the world Hills, California, 9, 0 to 10. And then we'll save that one. That's just a made-up address. And then we're going to say, let's do this one. Edit this one. And this is, I'll say, I'll just keep them as businesses just to make it easy. So there we have that this isn't going to be 123456789. And then we're going to say this one is at 275 Allison Dr. Beverly Hills, California. California, 90 to 10. Save that one. And then this one, we'll edit this one. And I'll just keep it at that. So save this and that looks good. This is gonna be 3456789. This one's going to be at eight O three North London derive, Beverly Hills, California. 90 to 10. Save that one. And then next one. Let's edit this one. We'll call it a business to business. And 1, 2, 3, 4, 5, 6, 7, 8, 9. And let's save that one. And we'll call this one a business. That's a name, actually. Call out a name, let's say. And that's it. And that looks good. So I'll save that. And notice it's forcing the difference between the business and individuals to Social Security number versus the EIN. So if they give you an EIN, you'll basically going to say, it looks like business for the data input here. So I'm going to then go okay, and that looks good. Let's just go next just to check this out. Only those contractors you paid above the threshold using $600 get a 1099, need to add or edit payment. Third party payments such as credit card, PayPal, excluded from 1099. So here we have this one item here and notice it didn't pick up the Bobs burger one because I put that to 2021, that $1000 amount. So if I if I pick the ones that are below the threshold here, it looks like it's picking up the proper amounts. They're all under the 600. If I pick up the amounts that are above that meet the threshold, then we have that item. If we compare that to this report here, notice we have the similar breakout. This is the only one that's above the threshold and basically this is picking up everything it looks like here. So we're picking up the ones that are above the threshold and below the threshold. And again, that $100 amount for the bombs burger isn't included here because it was in the 2000. So let's just say what would happen if we killed a finisher will go to finish and then you got your bill or so E file or early bird pricing 1299 we filed with the IRS. We sent contractors digital and paper copies of their 1099. We pay contractors with direct deposit or print and mail. You you order a 1099 print kits, which you'll have the 1099 forms with it. You print and mail 1099 forms to the IRS. You print and mail to 96 summary forms to the IRS. You print and mail 1099 copies to your contractors. 49. 4.35 Inventory Reports: Quickbooks Online 2021, the inventory reports. Let's get into it within two. It's QuickBooks Online 2021. Here we are in our free QuickBooks Online Test Drive file, which you could find by searching in your favorite browser for QuickBooks Online, Test Drive, or in Craig's Design and landscaping services. Going on down to the reports, we're going to be opening up now, inventory reports which you can't find in which I probably will be looking for in the future by simply typing in inventory in the search field. But for this time, let's see if we can find it in our menus. We're going to be scrolling on down to the, we're in the sales and customers and we're looking at these two reports here, the inventory valuation and the detail and summary. Inventory valuation, both detail and summary. So let's go ahead and open the summary first. Let's take a look at the summary first. And then I'm going to copy these to copy the link or copy the tab, duplicate the tab, I should say, by going up to the tab, right-clicking on it, and then duplicating the tab. We're gonna do it again. So we're going to go up top, right-click on the tab, duplicate the tab once again. And let's do it one more time, right-clicking on the tab, duplicating the tab. Now we're going to be opening up the balance sheet, the income statement, then the report that we are currently focused in on and have another tab that will be open in case we want to go back to it, open up another report and, or check-out some other data input function. So we're going to be in the tab all the way to the right. Let's open up our balance sheet in this tab. Go into the reports on down below on the left-hand side. It's our favorite report here that being the balance sheet report, opening it up, we're gonna do a range change up top for the date range from 0, 1, 0, 1, 2, 0 to 12, 31 to 0. We'll run that report. Close the hamburger hold down Control scroll up just a bit. So without that one-to-five, That's where I like to be in terms of the zoom there. And we'll then go to the second tab. We're going to open up the P and L, the profit and loss, the income statement in this tab, our two favorite reports here, balance sheet P&L range change up top from a 1, 0, 1, 2, 0, 2 1231 to 0. We're going to go ahead and run that report as well. Let's close the hamburger. And this is the report that we're currently looking at, the inventory valuation summary close on the hamburger up top with it, checking the date up top. We want to make this as of the end of 2020. So let's put this as of 12, 31 to 0 as well. We'll go ahead and run that report. Now remember all other reports other than the financial statements, are going to be basically typically supporting some line item or multiple line items on those financial statement reports. So when we're thinking about something related to inventory, the report, the accounts we're considering are going to be the inventory account. So obviously, inventory is an asset account. Notice it's basically an accrual type of account as well. Because if we sell inventory and we're putting it on the books as an asset, that's because when we purchase it, we're not expensing it at the point in type of purchasing it, we're putting it on the books as an asset, then we will expense it when. When we sell it, when we consume it, when we use it in order to generate revenue in the form of the expensive count of cost of goods sold. So the other side then it's going to be on the income statement that's kinda linked to inventory. We probably don't first think of this one, we probably think of inventory first, but the cost of goods sold is obvious. Let us consuming the inventory and then reducing the inventory, recording it on the income statement now as cost of goods sold, also note, if you do not have inventory, of course you don't have to worry about the inventory reports. Even if you do have inventory, then you need to decide whether or not you're going to be tracking inventory through the system using a perpetual inventory system. Or rather you wanted to use a periodic type of inventory system, in which case it can kinda simplifies the bookkeeping, but you have a little bit less detail involved in that. In other words, we talked a little bit about this on the flow when we talked about the flow before and the different flows, customers and vendor kind of flow assumptions. When you, when you have the inventory, if you buy it and put it on the books, then we're going to have to record it using the inventory items. And we're going to use typically a cost flow assumption. The standard cost flow assumption in QuickBooks Online is first-in-first-out cost flow assumption. And then when we sell things, invoices and the sales receipts, those things will help us to reduce the inventory, recording the cost of goods sold at the point in time that we record those transactions. However, those transactions becomes significantly more complex. The other way you could do this is simply not to track the inventory in the QuickBooks system in that way, but simply count the inventory tracking outside of the QuickBooks system and then do periodic adjustments. That would be a periodic type of inventory system. So we're thinking here, obviously a perpetual inventory system where QuickBooks is then tracking the inventory. It typically using a first-in, first-out inventory flow assumption to do so. So if I then go to the balance sheet, then our inventory is at 596 25. Now this company is also a little bit unusual for inventory because it's a landscaping company. So it's not like we're buying and then marking up and then selling inventory, which would be more of that kind of a straight-forward type of inventory system. Inventory is kinda wrapped in with some of our job cost system, but we have a similar process because we're tracking those inventory items. Are inventory items then adding up to that 596, 25. So that ties out to the 526. 95. Here are five, 596 25, sorry, I 596, 25. Sometimes I get things backwards still, but that's okay in any case. So then we've got our items. These are going to be our inventory items to pump, the rock fountain and then the sprinkler information. We've got the SKU, which is going to be standing for the stock keeping unit, which may not be always used. You might not have a stock keeping unit number or you may. Then we got the quantity that is currently on hand, so we're actually counting those. So notice that the inventory report is not simply recording in dollar units the amount of inventory, which is what we need on the financial statements, but also on the reason we have this supplemental report counting the units. We know how many units we can physically go to. The inventory and should be able to count the units and support that information with what is in the QuickBooks system. And then we've got the asset value and then the calculation of the average here. So in other words, if I was to pull out that trusty calculator, let's blow up. The trustee will obviously, we've got the quantity of the 25 and the asset values that two hundred fifty, two hundred fifty divided by the 25, is gonna give us that $10 average value. And then we've got the asset value down below, and that's going to be the 596 25. So now let's look at the more detailed type of report. So now I'm going to go back to the first tab. I'm going to then go down to the reports down below. Let's look at the inventory detail reports. We're going to scroll on down, scrolling down, scrolling down here we are. We're in the sales and customers. We're looking for the inventory valuation detail. Let's take a look at that one. And then I'm going to duplicate the tab up top so I can have another tab still open in case I want to do someone else over there, right-clicking on the tab, duplicated in the tab. We're going to take that hamburger and closing up the hamburger, got to have that top bone on the hamburger or else you can't eat it without your hands getting sticky. So any case we're going to change the date range, change up top range change a 10120 to 12, 31 to 0. We're going to run that report. And so now of course we have a more detailed reports. So we have the same kind of information with the pump and the rock fountain information. We have the transaction detail That's going to include the activity for that. For those inventory items, we once again have a number related to the transaction, the name, then we have the quantity, we've got the rate, and now we've got the first-in-first-out cost. So now we have the first-in, first-out flow assumption costs. I'm going to hold down Control. Scroll down a little bit. And then we have the quantity on hand and then the asset value. Notice because this example problems all the unit costs are the same. So we didn't have even went, we didn't buy the same inventory at different or varying prices. As we know that prices can vary over time. And if they did vary over time, then basically this is using the first-in, first-out method as opposed to like the desktop version, which I think uses the weighted average. Does it use the weighted average method? And if you have more questions on inventory flow assumptions, you do want to have an idea of inventory flow assumptions and what not when you're, when you're doing the tracking the inventory within the system, we have a course on that, so it's worthwhile that just kinda understand inventory flow with a periodic inventory system. What's a perpetual inventory system? So if you need more work on that, it's worth doing if you're tracking inventory. And then of course we've got the information related to the inventory. This is an inventory quantity adjustments, so they just basically adjusted the inventory here. Then we have a check, and the check obviously indicates that we're purchasing inventory. So the level of inventory units then going up. And then we have a bill. The bill is going to be a purchase of inventory as well. So we paid cash for it. The other, we bought basically on account. So the inventory is going up here. We have an increase in the inventory if you want to look at it in units, obviously we have the 16 plus the 3 is the 99, plus the 8 is the 27. And then we've got the rate here at the, at the $10 and then the average going up. 160 plus the 30, the 190, and so on. And so then we have the invoices. Invoices B, we sell stuff. What did we sell here? We sold inventory. So now this is a selling inventory that we sold one unit here that was included on that invoice. So we have the $10 decreasing now from 27 minus one unit and then the $10 to 270 minus the 10 given us that down to that 260. So you can see all the detail kinda works here. This will be a similar process for the other inventory units, of course. And then bottom line, we've got the quantity. We've got the first-in-first-out cost, and then we've got the quantity on hand and the asset value for each of the items. Report doesn't give us the total of all of them. So if we go to Reports are nice in combination, so flat, I want to tie into the inventory report. There's going to be the asset value, the 590 625 back over here. If we take a look at the asset value, it would be the 5 plus the 9, 16, 25, which of course is the 596 25. And that of course should tie out to the balance sheet for the assets of in 596 25. Now just remember that as you are adding the inventory, if I go back to the first tab and we go down to I usually go into the sales item and then we go into the products and services. They're being being driven by the products and services. So if I go into this account, then these are the inventory items. So these are the inventory items that we set up. And then when we purchased the inventory, we need to be marking off these inventory items. That means of course, that when we purchase the inventory, we are either using a bill or a check or an expense type of form. And when we do so, if I go into one of these, we're not selecting simply the account of inventory up top. We're not just going into the inventory account, but we're going we're going to the items down below and we're choosing an inventory item. If we do not choose an inventory item and we just record it to an account up top, then the QuickBooks system will not have a way for us to tie out the inventory to the subsidiary report, which will be tracking the inventory by inventory item. And it is possible to do that. So remember, like the classic category of of our of our subsidiary accounts, these are these extra reports. Subsidiary reports are going to be the accounts receivable and accounts payable. Those accounts basically force us to have either a customer or vendor, respectively for receivables and payables. So these things almost always tie out to the the subsidiary report. That's going to be a report by customer or report by vendor. But when you're looking at the inventory, it is possible for us to record something strictly to the inventory account. Quickbooks doesn't force us as strictly not to do that. And therefore, if you do do that, if you record something to inventory, then it's possible that your balance sheet report does not tie out to the inventory report. So it got to be a little bit more careful there if you do adjusting entries at the end of the year that affect inventory, you've got to make sure you do reverse and interests and what not so that your inventory report lines up. Also note that if you're not doing a perpetual inventory system and you're tracking inventory by using a physical count, either nightly or weekly or monthly outside in like Excel or some other software, then you may well just be recording it to like inventory in the QuickBooks system. And then making a periodic adjustment, decreasing inventory, recording the cost of goods sold, either nightly or weekly or monthly, as the case may be. 50. 4.40 Payroll & Employee Reports & Bank Reconciliation Reports: Quickbooks Online 2021, payroll and employee reports and bank reconciliation reports. Let's get into it with Intuit QuickBooks Online 2020 one. Here we are in our free QuickBooks Online Test Drive file, which you can find by typing into your favorite browser, QuickBooks Online Test Drive, or in Craig's Design and landscaping services. We're going to go down to the reports down below and we're just going to give an overview on Pedro reports in general. We might go into them in more detail in a future part of the course. And we might have another section in a whole another course if you wanted to take a look at that, that will be focused in on payroll. We also want to take a look and just touch in on the bank reconciliation reports, which are kind of like a report, but they're a little bit different in function than the report. Once again, we'll get a lot more into depth and detail about the creation of a bank reconciliation and the reports related to them in the bank reconciliation section of the course. So first let's open up our standard reports, a balance sheet reports, and then the profit and loss reports. I'm going to open up a balance sheet, right-click on the reports up top. Duplicate the report up top. I'm going to duplicate it again so that we could then open up our income statement, profit and Loss report as well. So I'm going to keep the balance sheet on the one all the way to the right. Then let's open up our income statement on the one in the middle. So I'm going to scroll back down and go to the Reports. Let's open up our income statement or our P and L, or our Profit and Loss report. Then let's go back to the first one in the balance sheet. I'm going to close up the hamburger. And I'm going to do the range change for the date range and go to from a 1, 0, 1, 2, 0, 2 1231, 200 that we're going to go ahead and run that report. Hold down Control scroll up just a bit. We're already there. We're at the one-to-five. That's where we want to be. Then we're gonna go to the second tab. This is our Profit and Loss report going to close up the hamburger here and do the range change up top from 0, 1, 0, 1, 2, 0, 2, 1231 to 0 as well. This test drive file doesn't have any payroll recorded within it, but we can still use it to take a look at the financial statements and consider the type of things that would be needed to run the payroll through QuickBooks and then the reports related to them, as well as what would happen possibly if we'd ran the reports outside of QuickBooks. So to get an idea of the payroll reports, just remember that if payroll from a financial statement reporting standpoint, and that's typically the view that we will be taking a look at because we're looking at the construction of the financial statements. But also note that we have other reporting requirements that are kinda linked to human resources with regards to the payroll. But from just getting the financial statements correct perspective then if it wasn't for all the other laws and what not with payroll. Payroll would be pretty much as easy as any other expense. So that's the first place to start about when you're thinking about what payroll is and what kind of reports are going to be required for it. So in other words, if you were to just pay people, if I shook hands with somebody and said, Hey, I'm going to pay you so much our earlier so much weekly, then obviously every time we pay them from a financial transaction standpoint. At the end of the week or biweekly, weekly, semi monthly, whatever we agree on, would then simply be reducing the checking account. And the other side would simply be going into a payroll expense type of account and that would be it. No, No problem. That would be very similar to any other kind of expense type of calculation. What makes the payroll more confusing, of course, is that we do have a lot of other regulations that are going to be involved in it. Some of them are going to have an immediate effect on the financial statement. The one that comes to mind most will be the fact that we need to withhold from the employee. So the employee needs to have a W4 form that they're going to tell us and that's going to tell us how much that we need to withhold on it. And that's going to add some complications to the payroll. So that's one thing that we're going to have to basically add into our our payroll system. When we then record the check, we're going to be decrease in the checking account at the time we processed the payroll. But the net check That's going to be given to the employee is going to be net. It's not, it's not going to be what they earned. And then what they earned is going to be over here as an expense, even though we didn't give them the full amount of the money. Why didn't we give them all the money? Because we took out of their earnings, the amount that they owe for the federal side, that would include federal income tax, social security, and medicare, then we have state taxes that would further, you know, could be further items that we need to take from them. And so the fact that we took them from them, that means it's it's kind of like the sales tax. We touched on them a little while back. The IRS is basically taxing the employee. We as the employee are just the ones that are forced to be the tax collector. So we collected their taxes before they even see the money. And then we're going to pay it directly to the IRS. That means that those withholdings that we took from them are going to be recorded as a liability here. So then we're going to have liability accounts down here related to payroll taxes that are a result of us taking money right out of the employee's paycheck because we're required to do so based on the rules for the tax law related to federal income tax, social security and medicare, at least for the federal side of things. And then on top of that, we're also going to have to pay our portion. There's payroll taxes that we have to pay over and above for the federal side, that would include the Social Security and Medicare kinda matching type of format. So then we would have another expense over here related to payroll taxes, which would really only include our portion Federal portion of the payroll taxes because the employee portion of social security, medicare, and federal income tax would be included in the line item for payroll expense. And so that would increase the payroll taxes that we would have to pay as well. So that would be the most basic kind of payroll taxes because that's only the Federal taxes. Then obviously the state, depending on the state, will have different rules and regulations related to state taxes. And if you're in multiple states, then those could get quite complex quite quickly. Then there's also the federal unemployment tax, which is a little bit smaller, but that's also a federal tax that we have to deal with on the employer side of things. So just for the reporting standpoint, we gotta do those journal entries. And you could think of those journal entries, that's kinda like a lump-sum journal entry because for the for the reporting of a financial statements, I don't need that information broken out. Check by check employee by employee. I just need my financials to be correct for external reporting purposes. Okay. So then what we need to level up on that, however, is the fact that we also have reporting responsibilities for the for the tax forms, the 940 ones quarterly tax forms, the urine formed 940 any tax state tax forms. And we're going to have to report also, according to the law, this information to the employee on a paycheck stub. So I have to report to each employee every time we pay them, even if we have a direct deposit information. The information of, here's how much you earn gross, here's how much we took from you because we were required to do so. And this is your net check. So you can see that in total, like if I was to record everything and total to make the financial statements correct. And that would be a lot easier than the amount of detail we have to do to report the year to date information and the current paycheck information per employee, per paycheck that start. So that starts to really compile how much we have to do there. And then also of course, we have other kinds of benefits that could be withheld from the payroll as well, including health plans possibly. And we could have then the the health plans, then we could have a 401 k plan and other kind of benefits garnishment and this kind of thing could also be stuff that's going to come out of the page role, which could add to the level of complication and the reports that we need to be reporting for them. So the two ways that you could do that within QuickBooks is of course, you can set up payroll within QuickBooks and run all those reports and you'll get a substantial amount of added report. So if I go back on over to the first tab here and scroll on down to the reports at the bottom. We don't have the all the payroll set up here. So like we said, the reports would doubt be down here. And we might go into this in more detail. But again, we have a whole another course on, on payroll. And it really deserves its own course because it's, it can be quite a lot, but it would be in its own section down here. So we've got the employee list, the recent Edit time actions, and the time activities. Again, we could have a lot more reports related to the payroll that will be in there if we were going to process payroll through the system. So but know that you can also do this in set this up and imagine it to be set up as instead of running the payroll through QuickBooks, you don't have to do that. You could say the payroll is going to be done basically outside of QuickBooks. And maybe you hire someone, the biggest ones or some of the bigger ones would be paychecks or an ADP to help you out with payroll and human resources. And you can imagine how that breakout would kind of look because then you're basically dependent on them to some degree, to a high degree, most likely for the helping you out of of processing the 941 quarterly reports and for making sure that the employees have the added information that's at the detailed more granular level, breaking out each employee by basically their gross pay and net pay and the withholdings and all that kind of stuff. And then setting up all our system within QuickBooks to basically get the. The financial statements, correct. So in other words, I'm getting my actual accounts correct. For my payroll liabilities, my payroll taxes expense, and my payroll expenses? Correct. And what not. But I don't need all that granular detail in report format within QuickBooks, possibly. If I can depend on that more granular detail in the employees getting that information from the third party, that way I can make my financial statements correct and rely on the third party that's a professional payroll company and human resources company to, to do some of the more detailed kind of analysis. So that's just what I want to kinda pointing out out in on the payroll, you have a lot of detail on payroll That's kind of added or more than what you would need just to make the financial statements correct. For basically reporting purposes at the end of the year to do like your taxes and what not. And that more granular detail or requirements that you need to put that together in order to make the 940 940 quarterly reports for payroll and to deal with the employee information. And there's different ways that you can divvy that up. And once again, I recommend talking to someone that you're not planning on pain. So not QuickBooks directly and not like an HR, like an ADP or paychecks, but like a CPA firm and just pay them an hourly rate, not to do your payroll taxes, but to give you advice on what do you think they think Do your best course of action would be? Sometimes your CPA firm. If you do a tax firm or something like that, they may have a system that works really well for them. And if you're working with them to do your taxes at the end of the year, it might be best to work with whatever whoever works with them. If they work with another company or something like that, or if they like to give you advice and run it within payroll, run it within QuickBooks. It might be worth while to get the independent advice. And it's only independent. If you're paying someone for the advice, not someone who's trying to get the job of your payroll for a long point in time into the future. Okay, So that's just an overview of the payroll, will talk more about payroll in future presentations. And then the other report that is that I just want to touch it on that's a little bit different is the reconciliation reports. And that's going to be mainly the bank reconciliation. So if I scroll down to the reconciliation, they got reconciliation reports here. Again, there's they don't have a lot of the reconciliation done and here's the practice file. But just realize that it's a little bit different of a report because it's not it's not something that's it's more of an internal control type of report that we're going to be doing when we do the reconciliation. In other words, most of the reports that we're putting together, if we take a look at the flow chart over here, this is the desktop version. I just wanted to take a look at the flowchart. Most of the other reports are being constructed directly when we do these these transactions, these transactions being financial transactions, those then having an effect on the financial statements directly. And then the reports are basically reflecting those. When we're talking about a reconciliation report. We're talking about a report that's comparing what we have on our books to the bank statement. So it's, it's a report, but it's not really the same kind because it's more of an internal control type of report. So the bank reconciliations then of course there's going to be you're going to be down here we could do in the accounting section. And if you go to the reconcile, what we would do is basically run a reconciliation. So we would do a reconciliation would took a quick look at this in a prior presentation. We'll do a lot more of it when we get to the bank reconciliation portion. But you'd reconcile the checking account basically just comparing everything on our books to what's on the bank statement. And right after you reconcile that, let's just take a look at a quick example. If I said the balance ended, I'm just going to make up like 6000. And then I'm going to put a date will put the date for December here. And let's start a reconciliation report. And let's just pretend we reconcile this thing. So I'll just check some of these off. Are you sure you want to want to select all? No, I don't. Let's just check a few of these off. And here we go. And then let's pretend that I'm going to reconcile this thing. It's not reconciled right now, but I'm going to kind of force it to reconcile. So we still have a difference of 1, 4, 6, 8. But obviously we would be comparing to the bank here. Once done, I can kind of force it to reconcile. Now I don't recommend doing this and we'll talk more about how to do it correctly later. But hold on. Your difference isn't 0. And then I'm going to say add the adjustment just to, just to do the reconciliation and say Done again, do not do that in practice, but I'm just running it now. And then reconcile and account. So we have that then reconciled. Then if I go back to my reports reports drop-down, we go to the accounting. I'm sorry, we go to the Reports and then we wanna go to reconcile. Reconciliation or it can wreck conciliation reports if I could spell. So there we have our reconciliation report and I can then view that report. So there we have it. And this would be a report basically comparing, once again the bank statement to our numbers. Now this report is something I would recommend basically printing out when you do the bank reconciliation. Because if anything changed in the future, you kinda wanna have a static copy of what happened at this point in time. It just in case anything gets messed up basically in the future point. But this is going to be a really important internal control. And again, you can see it's built from something that's not really part of the normal financial transaction, but rather something that's a comparison reconciling from our books to a third party, that being the bank. So it's going to be a really important total control though, however, and we will go into it in a lot more detail in a whole section in and of itself. For the bank reconciliation process. Once you do the first bank reconciliation, it gets a lot easier to do the second. And going forward from there. 51. 4.55 Transaction List by Date Report: Quickbooks Online 2020, one transaction list by date report. Well, let's get into it within two. It's QuickBooks Online 2021. Here we are in our free QuickBooks Online Test Drive practice file, which you can find by typing into your favorite browser. Quickbooks Online Test Drive were in Craig's Design and landscaping services. We're going to go down to the reports. On the left-hand side, we're going to be taking a look at a transaction that detailed report which you may be able to find by simply typing in up top, which we may do in the future. But for now, let's scroll on down so we could see it in the categorizations that we have here. Let's bring this down to 100%. And it's going to be down in the accounting area. So we're going to be down in the accounting, my accountant transactions and we're looking for the transaction detail now, be careful here because there's a transaction detail by account. We're looking for the transaction detail by date. So we're going to open that one up and then I'm going to close up the hamburger up top. We're going to change the date, adjust the range of 1, 0, 1, 2, 0, 2 1231 to 0. We're going to go ahead and run that report. So here we have the information down below. We're going to be opening up both the balance sheet and the income statement as well. So let's go up top right-click on the tab up top, duplicate that tab. I'm going to duplicate it again, right-click and duplicate it again so that we have the balance sheet and the income statement. We'll do it one more time. Right-click and duplicate one more time. This is our standard format. We want the balance sheet income statement, then what are the other report we're working on? And then another tab in case we want to open another report or have some other data that we want to go back to without kind of deleting the item that we're currently in. So I'm going to go to the tab to the right. We're going to be opening up the balance sheet by going into the reports on the left-hand side, favorite report, the financial report, balance sheet reports. Then we'll have arranged change up top on the date range from a 11 to 0 to 12, 31, 200 run in that report. Closing the hamburger on the upper left, holding down Control Scroll and up to get to that one to 5%, that's where we'd like to be. Then we're gonna go to the second tab. We're going to do the same for the income statement, profit and loss go into the reports on the left-hand side. Then I'm going to open up the P and L Profit and Loss report, close the hamburger and the date range range change, range change 0, 1, 0, 1, 2, 0 to 12, 31 to 0. Run the VAT report. So there we have that. And then we have our transaction detailed report closing up the hamburger here. Now, if we think about this report, it's going to give us all the transactions that have happened in a, in a set period of time, in this case a year. But you might run this report I periodically as well. And this is a great report for bookkeepers. They want to basically charge people by transaction rather than by just hourly rate, which can be a really good option because you could set up your, your rates here instead of telling someone ham going to charge you hourly. And they're kind of skeptical as to how long it's gonna take. And when you build someone, your hours changed from time to time, then you might have questions about why the Hours changed from period to period. And you just, you know, your hours may vary just based on the speed of your work that you're doing and if you have other people working on it and what not, that can be a kind of a hard system to track to some degree and somewhat tedious to track. It could be a little bit easier if you're able to basically build on some kind of Standard set of items. And one way you can set up a standard billing set would say, I'm going to charge this much per range of transactions. So if I do between 5000 and 50 transactions per month or something like that, then I'll charge you this amount. If I go over that into the next range of transactions, I'll charge you this amount and so on and so forth. And then if you do bookkeeping either weekly, monthly, oftentimes monthly because then you do the bank reconciliations or quarterly or yearly, then you can actually run the transactions here and you can count the transactions and then you have a concrete verification. You can actually run this report provided and say, hey, look, there's a there's a number of transactions. This is what we based our our report on. Now there are some other reports you can use for this as well that would actually calculate the complexity of the transactions a little bit more. So you can do a similar process with like a journal report, which will actually give you the all the accounts that will affect it. Because like payroll will have multiple accounts affected for one transaction and they can be a more complex type of report. So that's a couple of things you can do with it. Note that you also have, if you're reviewing someone else's work, what they did. If you're saying, Hey, look, someone else do work and you're delegating tasks and you want to see what they have done than one easy way to do it is to go into the transaction detail and see how many transactions have, have taken place during that period. And obviously, if you are in it's structure, then it's a great tool to review work that has been done as well. Now like every other report, it's going to be basically a report that's going to be given information about things that happen or things that constructed the balance sheet reports. So it's going to be supporting information here every time we enter a transaction. Here, we're constructing the balance sheet in some way and this transaction detailed report will give us detail about those transactions. If we go into any account on the balance sheet or income statement, you might say, I can drill down on that information like like this and I get a transaction detailed report. And this transaction detail report is similar. However, of course, this transaction detailed report is going to be just the detailed information with regards to that particular account. Instead of having all of the transactions that are going to be in order basically by date. So that's what we have on the transaction detailed report. So if we go back on over here, I'm going to hold down control and scroll down a little bit since this is a large report. And then we'll kind of go through it here. Let's see if we can review it. We've got the date on the left-hand side of the transaction. We've got then the transaction type. So these are going to be basically the forms that are used to create the transaction deposit bill, invoice, bill check, and then invoice and so on and so forth. You really want to get used to and understand what these actual names mean and how they tie into the forms that we'll use to create them. And we'll get a lot of practice with them when we do data input. Every time you do data input, you want to get used to that and keep on practicing how, how the data input is going to relate to these forms. And that'll make it a lot easier to glance at a report and get an idea of what's going on with it. The numbers if they are affected by Augustine, we've got the name, vendor name and employee name, customer name, and so on, MIMO if applicable, and then the account. So we have the account checking, account, accounts payable checking, and so on and so forth. And then the split, which would be the other account. Remember that every transaction has two accounts that are affected. If there are only two accounts, then it'll just give us the other account. If there are more than two accounts or some kind of multiple activity that's reported to one of the two accounts, then you're going to see the split item into C. The more detail you'd have to go into this split item here. Then we're going to have the amount and the amount on the right-hand side for the amount of the transaction. This is also a really good report to practice your sorting of your filters that can be done with reports as well. So we can filter on a lot of this data for common types of filters might be filtering by transaction type here or possibly name. But Transaction Types probably the most common. So if you were to customize the report up top and look at your filters here, then you could go to the transaction type. And if you wanted to look at multiple types of transactions that have occurred during that time range, that you could simply check off those transactions and it'll, it'll filter the report down to those particular transactions. So that's going to be the the overview of this report. We will take a look at this report after basically every section that we make when we enter the data input. And that'll give you a good idea. And I get it's really good for grading and kinda checking your work as well when you're doing practice problems that will run this report as we work through our practice problems. Let's go ahead and do our normal formatting and then export this report and save it as a PDF. We haven't done that for the last two. Let's do it this time. So I'm going to hit the Customize up top. Let's customize this thing. I'm going to say we want to remove the pennies negative numbers. Let's bracket, Let's bracket ties them, putting brackets around them and read them, read them. And then we're gonna go to the header and footer. We're going to remove the date prepared and the time prepared will just remove those. Run that report. So there we have it. And now let's go ahead and just export this as a PDF file. So there's the PDF. We're going to download it and save it as a PDF because we're in Chrome. It will then open up down here. So it's going to open up down there. I did it twice because it was kind of slow and I clicked it two times, but there it is. Then I'm going to open up our folder. This is where we want to put it. We're going to use the good old drag and drop. So I'm going to open up this folder. We're going to drag and drop it in there whether it wants to go or not. If it's kicking and screaming, That's okay because we can drag it. So then I'm going to hit this one. And then it's like we're going to left-click on it, drag it. It's like no. And then we're going to drop it into the folder. So there it goes. And then we're going to open up our other Excel sheet. We're going to want to add it to this Excel sheet as well. So we'll open that up. We're going to put a new tab here. So we're going to hit the New Tab button, opening up a new tab. And then I'm going to go back to our other form. I'm going to close this out and now let's export it to Excel as well. We want to export to Excel as well. Opening up the Excel documents, so we'll open that up. Now this one's probably going to have some formatting issues. It's not going to fit on one page wide, so we're going to mess with that. But first let's enable the editing. Let's hit the triangle laptops. We copy the whole sheet. I'm going to hit Control C to copy, gonna go back on over. I'm going to be on A1 or select the entire sheet control V on the keyboard in order to paste it. Now, does this fit on one page, I'm assuming, like it doesn't. So I'm gonna go back to this tab. And no, it's certainly does not. And then I'm gonna go back to the first tab. So these lines that are indicate the page breaks. So this one's way too wide to fit on a page. So first what we'll do is landscape it. That's our first solving issue. So I'm going to go to the Page Layout. I'm going to go to the Page Setup orientation, landscape. So that had a minor effect that kinda little bit. Now these merged cells, these are kind of a problem because what I'd like to do is delete column a because I don't even need it because it's got it's got nothing in it except for this total down here at the bottom, which doesn't it doesn't even have a total, so we don't need this, but it's tough to do with these merged cell. So I'm going to merge these cells. I'm going to go to the first tab. I'm going to unmerged, which is in the Home tab Alignment that merge, if I hit it again, unmerged. So I'm gonna do that here. Home tab Alignment unmerged. Here, Home tab Alignment unmerged. Then I'm going to take these, add a column a, I'm going to move them on over to column B. Just going to move him over here so that I can delete Column a completely. So click on column a, right-click, Delete. That's solve. So then, then what else can we do to shorten this thing up? This column looks a little wide. I don't think I need this column that wide, so I'm going to shorten this column up a bit. Let's do that. That should be useful. This one looks a little wide. Let's shorten that up a bit. Memo looks awfully wide. Let's shorten up the memo. Don't need it that big of a memo. The split column also looks awfully wide. Let's shorten up the memo column. And so there we have that. And so it's still not quite there now some of these columns you may not use and you can delete them. But then you might say, Hey, I might need it, so maybe you can hide them. Maybe I'll hide one of these column like this posting column. I mean, do I need that? I'm not sure. Maybe I don't think so. Let's go ahead and right-click on that, that column D. And let's just hide it just in case I need it to come back like later. And then the memo doesn't have a whole lot going on in it. Maybe the number I don't need the number column. I'm going to right-click on that and hide it as well. So that brings it pretty close. And then maybe I'll just make these a whole lot smaller. I don't think I need this name. If it cuts off a few things, kinda messes it up. I'll make this one a little bit smaller. It's not going, it's not gonna do it. Let's hide the memo column. I'm going to hide the memo column. And that should do it. Alright, so we'll keep it at that. Now if I want this centered again, I can't center it again. I can highlight this. One at a time, go to the Home tab Alignment and center this way. But the better way to do this. So you don't have that merged cell funniness is to right-click on this and then go to the Format Cells alignment. And then I want the Horizonte, I want the horizontal alignment across the selection. So then I can, I can align it without doing that merged cell thing, which really can mess you up. So I recommend doing it this way or at least test it out. See you, I see how you like it. So we're gonna go to the Format Cells and then alignment, and then we're gonna go down to center across like so. It's kinda like so. And then do it one more time, right-click and format the cells. And then again we will center across. So there it is. Now let's, let's go ahead and double-click on this name down here and we'll call it trans. Trans list by date, something like that. And then now let's save it again and let's export it to a PDF file. So we got all of our reports on that one PDF file again. So we're going to go to the print option, printing it to the PDF printer. And then we're going to select the entire workbook, which is now got a lot of pages that got 25 pages. I'm going to scroll through it quickly. I kinda wanted just get to the end to make sure that that last one that we did that we printed. Now Landscape, which is totally different than the portrait printing page orientation that we've had in the past. So I'm going to try to scroll down there. But it's awfully slow considering that there's 25 pages that we're going through, but we're almost there. So we did that. I remember doing that. Here it is. So here's our new one. And so you can see it's a landscapes, so it looks a little bit different. I don't care. I don't mind that it's it's multiple pages long. We want to keep it at one page wide, one page wide. So my computer's going awfully slow. So there it is. So that looks good. I think it looks good. And so if I go all the way to the bottom, I don't have any things with like two columns on. Okay. So let's go ahead and print it. That's printed. See if my computer crashes here. No, it's going to do it. It's going to do it. You could do it computer. And so there it is. I'm going to write it on this one. I'm going to double-click on that and say save it. So once again, I'm going to minimize these. And then there's our, there's our statement which we can attach and it's got all these reports on it now. So open that up just to check it out. Notice if you open this up in Adobe reader, like we're doing here, then the landscape doesn't even really matter that much because it's still opens it up this way. It's not like you got to rotate the page. See here's the, here's the portrait one up top. This one's landscape. And even though they rotated the sheet, that you can still read it top to bottom like this, which is really helpful. That's really helpful. So it looks good. 52. 4.60 Journal Report: Quickbooks Online 2021 Journal report. Let's get into it within two. It's QuickBooks Online 2020 one, here we are in our free QuickBooks Online Test Drive practice file, which you can find by searching in your favorite browser for QuickBooks Online, Test Drive, or in Craig's Design and landscaping services. We're going to go down to the reports on the left-hand side. We're going to go all the way down to the accounting reports, looking for the Journal report, which after this point in time you might find by simply typing up top for it. But right now we're going to scroll on down so we can see these categories and sections of reports were in the for my accountant type of reports. We're looking for the Journal report. The journal. And when you're thinking journal, you can think like journal entry. You can think it like debits and credits for the Journal report, very useful report and really good for getting an understanding of how QuickBooks out works. So let's go ahead and change the range. Range change up top, a 10120 to 1231 to 0. So there we have that. Let's go ahead and then copy or opened our other reports as well. So I'm going to duplicate the tab, right-click on the tab up top, duplicate. And then I'm gonna do it again, right-click on the tab up top, duplicate. Then again, right-click on the tab up top. And duplicate doesn't want to let me right-click again. Sometimes it doesn't let me right-click runaway, a good duplicate. Okay, so then we're going to make a balance sheet here. Income statement, they're Journal report there. Have this tab open in case we want to do any other kind of work to the left. That's my standard layout that I would recommend. I do it basically every time I open up and work it in the file. So I'm going to go down to the reports down below. We're going to be opening up the trial, the balance sheet. Let's open up the balance sheet. Range change up top from a 1, 0, 1, 2, 0, 2, 1231, 200. Run that report. Closing the hamburger up in the top left, holding down Control scroll up to get to that one to 51 to five, which we might have to scroll down on the journal because it's going to be a wide report. Then we're gonna go to the second tab. Let's scroll on down and go down to our reports. This is going to be the P and L income statement, profit and Loss report. Closing the hamburger up top range change from 0, 1, 0, 1, 2, 0 to 12, 31 to 0, running that report. So there's our P and L and then of course our journal report. Let's just close the a hamburger there. Now, just like with the other reports, we're basically looking at the detail of some line items on the balance sheet. So in this case we're looking at all the information that's used to construct the balance sheet. So when you think about constructing something from scratch, if you took like accounting courses and typically you would, you know, make journal entries, make the trial balance, and then construct the balance sheet from it. When we're using software, then typically we will, we will kinda jump to the financials, right? Well, we'll enter the data here with these forms. These forms will basically make the journal entries affecting the actual accounts that will be affected. And that will then kind of behind the scenes construct the whole financial for us balance sheet. And the income statement. So that means that the balance sheet and income statement are kinda mysteriously can put together. We don't see the building blocks, we don't see that really the process of it. And this this report is a really good tool to really go back and see the whole kind of building blocks the transaction report that my date that we saw last time. Also really good, but this one has more detail. And if you want to look at the debits and credits of particular transactions, then this becomes really useful, meaning like if you look at the invoice and you sell inventory, that can be kind of a complex transactions as we saw and we'll see more when we start entering transactions for them because there's a lot of accounts involved. And if you want to look at the debits and credits related to it, that can be a little confusing to this report, can be really good to kinda get that, get those concepts down. So I'm going to close this back out. So when we go into these reports, notice that if I if I drill down on it, so if I drill down on say, the checking account here from the end product that being the financial statements, then I have the transaction detailed report, which looks like the detailed report by date that we looked at in a prior presentation. And this is all the information that basically as being taken from these forms, these forms being the things that are behind the scenes data input form that's going to construct the journal entries that are used to create the balance sheet. So we're in essence looking at the same kind of detail with the journal by Journal report. But we're going to break it down by all the accounts and then by date. And then we're going to be recording the things in terms of actual journal entry format that debits and credits related to them. So let's go over to the journal and check that out. So I'm going to have to scroll back down a little bit, holding down control, going back down to 100% so that we can see this thing. And so we're going to have our information similar to the last report we looked which which the transaction detailed report by by date. Transactions by date. But this time we have we have by journal entries, so we have the deposit here, Bill deposit, bill invoice. These are the types of forms that were used. Then we've got the name, we've got the memo if applicable. And then over here, instead of just having one number and seeing that split column, we actually have the debits and credits for each transaction. So we've got the deposit form and we can see what actually happened in terms of debits and credits have an increased the checking account debit. The other side went to opening balance because that was like an intro. A bill is going to be increasing the accounts payable, the credits on top here. So notice the software doesn't care about debits on top, recruits on top, they just haven't in the right column credit being on the top, a bill. So maybe that's why it's emphasizing the accounts payable other side then go into what looks like an expense account of a lawyer fees. So then you can go down invoice. Invoice will typically it has to be increase in accounts receivable because it's an an invoice with a debit. And then it's going to be increasing income. In this case, two kinds of income accounts, the landscaping and the pest, the ears. Another invoice, this one has accounts receivable increasing and then we're increasing some other line items here. And then we've got the bill payment and so on and so forth. So it's really good for looking at these different forms and then getting an idea of what is happening. So just understanding the financials, it's really good. Then the other thing that's really good for is if if you do want to do billing by not having the hourly billing, but by transaction, you want to build by transaction or activity that has happened. Then last time we looked at a report that basically counts the transactions this one does as well, but you can see it also gives you more detail of the activity in the transactions. So you might want to, you could break down your bill and not by transaction itself, but by the accounts that are affected within them. So you can you can record it by line item. And that way then if you have more complex transactions that are happening like an invoice with all these different items that are involved in it. Or if you're dealing with payroll, but you'll have a bunch of different accounts that will be affected within it, then you can work that into your billing system without having to say, okay, payrolls a different a different amount. You could just say, Well, payrolls going to add more transactions. So if you're in this range of transactions, I'm going to charge you this much. If you're in this range, I'm not transactions in this case, but this range of activity in the transaction detailed report, accounts that are affected or line items in the transaction detailed report. I'm going to charge you by line item. So you probably have a wider range in that case, but that'll help you to work in more complex transactions without having to do anything more complex on the billing side of things. So it's useful with that. It's also useful for seeing what other people have done. So if you're, if you're delegating work to somebody else and you want to see the full details, you can pull this up. It gives you a little bit more detailed in the transaction by date report. And then of course if you are gradient or something like that, Also a good report to kind of pull up the activity. So that's going to be this one. Let's go ahead and do our standard process with it. It's going to be a quite a long report because it does include all of the information in a lot more detail. Let's just look at the one month of December for this one, I'm just going to break this out to December 12, 31. Let's take at 12, 01 at 20. And then I'm going to bring this to the end date of say, 1231, 200, and run that report so it's not too long. And then let's export your standard exporting process here. So I'm gonna hit the drop-down up top. I'm going to export it to a PDF file, save it as a PDF file. Should open up down here we're gonna do are dragging and dropping now. So I'm going to hit the Minimize button or not minimized but the square button. And then I'm going to go into my report. I'm going to drag this in your report. So I'm going to drag this in here and drop it, dragging it and drop it. You can't just drag without dropping. Then like it doesn't go where you want it to go. And then we're going to then have Excel as well. So I'm going to open up our Excel file. This is the Excel sheet that we want to save it to. This is the one. I'm going to add a new tab over here. Let's add a new tab so that we're going to then copy this one into that tab. And this other sheet. I don't want open. This one. I don't want open. Sorry about that. That's from the last presentation. And then we're gonna go back in and let's take this. Download Excel as well. Excel as well. Opening up. We're going to open up Excel to as well. Enable the editing. And then let's put our cursor up in the triangle and copy the entire report. I'm going to copy the entire thing, close this backup or minimize it. I'll put that in a one right-click and A1 and paste it. Let's see if it fits on a page I expected it will not it will not fit on a page. So it doesn't fit on a page and there's where the page break is right there. I'm going to hit I'm going to make this a little bit larger. So there's the page break and let's rename it. Before I forget that, I'll double-click on the name down here. This is going to be the journal. And before I get too deep into this, just realize also on the journal you can't sort the journalists well, just like we did before. So this report, for example, you might have adjusting entries and this is when we will use this report in our practice problem when we have adjusting and reversing entries where we actually use a journal entry, meaning your transactions typically will have a form in them. And then if we don't have a related form, will have to use an actual journal entry. So if you want to look at the ones that you did with actual journal entries, debits, and credits when you did the data input. That's going to be a good use for this form that often happens with the adjusting entries. So to find those, you can go to the filter and the transaction type. And then you might just filter by journal entry. And we'll do this in the future when we do our adjusting journal entries. And so we have these two transactions. This journal entry means QuickBooks didn't have any form that could that they could tie to it and therefore simply entered a journal entry in order to do that, again, that's going to be used when we do the adjusting entries at the end of the period. So that's, that'll be, that'll be fun when we do that later. So now let's go back on over here. I'm going to, I'm going to make this a little bit smaller. Let's kind of minimize this column a bit. Now notice, like I can go smaller here, but then it's not wrapping the text. So I'm going to take this entire header column. I'm going to go to the Home tab and alignment and there's the Wrap Text, so it should be wrapping. That's rattler it is. So now it wraps the text if I need it, like if it's too small. So there's that. Let's bring this one down a bit. Let's bring the orientation in the Page Layout. We're going to bring that in the page setup. Let's bring the orientation to landscape. I want to get rid of column a again, but I can't because of these merged cells. So I'm going to go to the Home tab Alignment unmerged. And I'm gonna do the same thing here. Home tab Alignment, unmerged, Home tab Alignment, unmerged. I'm going to copy or cut these three, which is going to be now cutting it, which is the same as just moving it. And put that over here. I went Control V paste it and now I can remove column a because it's not helpful. This column isn't helpful to us anymore. So I'm going to right-click on it and delete that column. We'll minimize the name a bit. Let's bring that down a bit. Memo, Let's bring that down a bit. And the account, Let's go ahead and close that up a bit. And so notice the wrapping, it's doing some wrapping here as well, but it's not extending the column. That's okay. I really don't want wrapping on, on all this stuff, the internal stuff. So on all this, I don't really want it to wrap. So I'm going to select this whole thing and stop the wrapping, which is Home tab Alignment. Don't wrap. Don't wrap it. Just if it goes over, just cut it off. That's okay. I'm okay with that. And then it'll go into so there we go. So that's something that looks pretty good. So then and then I won't center these again, but well, it's center. I'm again, I could send them again by going to the Home tab, Alignment Wrap and then merge. But I don't want to use that. This is the other one, which I think is better for centering this across the selected range. You're going to right-click on it and my right-click has broken. Then it goes. And then I'm going to go to edit, I'm going to edit this thing, edit the cells, Format Cells. And then we're gonna go to the Alignment tab and we want to go across the selection, across the selection. Okay? And now I'm just going to I'm just going to select that item, Home tab, clipboard, paintbrush it, copy and the formatting and put that right there and do it again. Home tab Format Painter, and brush it down right there again. Let's save it now and then let's export it to the PDF. So I'm gonna go to the File tab. We're going to print it. We're going to be printing it to the cute PDF printer, so it saves it as a PDF. We want the entire workbook, which is now 37 pages. I'm not even going to check it this time. I'm just going to live dangerously and save it without checking it. So we're gonna go ahead and print it without even, without even looking at it. So I don't recommend doing that unless you're an expert like I am. And then we're going to go to the financial statements. Double-click on the financials here, overwrite that now we'll check it. So we're just doing one check instead of a double-check. And this is where it went. I'm going to double-click on that. It's going to be opening up in the Adobe Reader. And let's see if we can scroll all the way down on the bottom of this thing. Scroll all the way down to the new stuff. I want to see the new stuff and it does fit on one page. So here's all the new stuff down there. It's all on one report. This is probably too long. It's definitely too long of a report for most purposes, but just to show you that you can put it all in one PDF file this way, which is amazing. So there we have it. So there's our new item. 53. 4.82 Accounts Receivable Graphs Excel: Quickbooks Online 2021 net accounts receivable graphs with the help and use of Excel. Let's get into it within two. It's QuickBooks Online 2021. Now, here we are in our QuickBooks Online, that test drive file, which you can find by searching in your favorite browser for QuickBooks Online, Test Drive, or in Craig's Design and landscaping services. We're going to go down to the reports. On the left-hand side. We're looking for reports for who owes you the money. So who owes you money? We want to take a look at the customer balanced summary. I'm going to be opening up the customer balanced summary report. And I also want to take a look at the balance sheet reports. So let's copy the tab up top and let's copy it two times. I'm going to right-click on it and duplicate the tab. It's not really a copy, it's duplicating completely different thing. Right-click on it again and duplicate the tabs. We've got two tabs going to put the balance sheet on the one to the right than the report we're working on in the middle and then have another tab in case we want to do other stuff that's open for us to do that stuff. So then I'm gonna go down to the reports again in the tab all the way to the right. Let's open up a balance sheet report as well. Opening up the balance sheets report, range change up, top range change from 0, 1, 0, 1, 2, 0 to 12, 31, 200. Running that report. Closing the hamburger on the upper left, holding down Control scroll up to get to that. Perfect one to five percentage Zoom. We're looking at a report that's going to be a summary report that expands on the balance sheet account of the 5280 150 to the story typically being in your mind, you're saying, okay, I'm doing work for a client or something. They asked, how much money do people owe us? And we say 5000 to 8152, where then they say, well, who owes us that money and when can I collect on it? And that for that, we'd run the other report which can't just be the drilling down on this report because I need it. I need it by customer, not by date. So we're gonna go though this report and say, all right, we have this report on the second tab, close enough, the hamburger for this tab range change up top and we have a good range. Let's make a custom range. And we'll just make it as of 1231, 200, run that report. The total of this thing broken out by customer is that 5000 to 8152. That's the same as is over here, 528152. Now many of these reports, we might want to make visuals from them. We might want to make graphs and charts and what not to add to our presentations. So the best way to do that oftentimes is just to export the reports to Excel, because Excel has a huge amount of functionality to do the graphs and charts. So we'll just show some examples of a couple of ways to do that. This is an Excel course, of course, but it's really useful to be able to do this with any kind of database program. Because any kind of database program, it's going to have some numbers in it. Oftentimes and oftentimes if you can just export that to Excel, almost every database program hasn't exported to a financial spreadsheet program. And then you can take that data and put it into other formats that might be more visually pleasing. So such as a graph. So this one is a type of form that we could create a pie chart with because they all sum up to a total down here. Or we could create a standard bar graph and stuff like that. So let's export this data. So I'm going to go to the drop-down. I'm going to export it to Excel. So let's export it to Excel. Now I'm ultimately going to want to put it on another tab over here again in our other Excel worksheet that we've been putting all those reports on. And just imagine we're going to add like a graph to this one. So I'm going to, I'm going to hit the plus button down below. And then I'm going to, I'm going to open up this Excel worksheet that we just downloaded, the customer balanced summary item. Let's enable the editing. So I'm going to enable editing. And then I'm going to copy the whole sheet by selecting the triangle in the upper left, right-clicking and copy. We're going to copy it and then close. And then I'm going to minimize this thing, put my cursor in A1 and then Control V, paste it. So there we have our information. So I'm going to put my cursor down here and I'm going to call this the accounts receivable customer. Let's say accounts receivable graph, graph data. So this is going to be the data file. Now what I'm gonna do is I'm just going to adjust this, this information so that I just have a column with the data in it. So I don't need like the headers. I don't want, I don't want any the headers or anything like that. So I'm going to just remove this altogether. And I'm gonna do this fairly quickly just because I know this isn't an Excel course, but I'm going to delete this. I'm going to hold down Control and zoom in a bit. So I'm at that 145, so you can see what I'm doing, hopefully 145 percent. And then down here, notice we have some subtotal activity. So this is totally up like those two or three lines. So what I wanna do there is I just want the total for Freeman sporting goods. So what I'm gonna do is copy this. I'm going to copy this. I'm going to paste it up top, pasting it 123, just the values only. And then this whole little summary thing that has these two items which are jobs, I'm going to delete those rows because I have included it up top. I'll double-check my totals down below to make sure that I'm not off on the total salt delete this. Don't want that. I'm going to do the same thing down here. This one is totaling up a couple of columns. I'm going to copy that total and paste it 123 values only right there. And then get rid of this subtotal kinda thing for the, for the jobs right-click and delete that. And so there we have it. And then if I just ribosome up this data, we're going to sum up this data, see if it's still ties out to what it should, which is the 528152. Is that what it is over here? That's not what I'm trying to look at and I'm trying to look at this here, five to eight 152, It looks good. Okay, so I'm gonna go back on over. And let's do some more formatting here, little more formatting. And so then I'm going to format the entire worksheet basically with a cell on this side, just so all the cells have the same formatting to start with. So I'm going to go to the Home tab, clipboard format, paintbrush. Click my cursor on the triangle, and that'll format the entire thing to have uniform formatting. Then I'm going to right-click on this thing. I'm going to, I'm going to format the cells. Formatting the sales. You don't have to do all this formatting by the way, but I'm gonna go to currency. I usually go to currency none. I'll keep the decimals, I guess, I guess, and then have negative numbers, the bracketed. And then Okay, and so there we have it. And so now I just want to add, I can just take this data and add graphs to it now, which is quite easy at this point. So I could then say, I'm going to just highlight this data. I'm not going to include the total. So not including the total. And then I'm gonna go to the insert and we'll just grab a graph. And this is one that adds up to a total down below. So a graph that works is a pie chart. So we can go pie chart, maybe pie chart. And so then there's a bunch of different kind of settings you can get into with the pie charts. Obviously, this has a lot of data down below and I'll talk about how we can adjust that so it might look better, something like this. But again, there's a lot going on, probably too much, but let's keep it at that for this point, at this time. And then you can adjust your settings over here. You can have the chart title, like I might not need the chart title for example. So I might say I don't want the chart title, so I can remove the chart title, for example. And data labels kinda, kinda have to need the data labels in some way. So I'll keep the data labels. I'm going to put the data labels like outside like this, one like that. Maybe again, really busy looking like that. The legend, you can add the legend or not. So maybe you don't want the data labels and you have the like your legend on the right-hand side. That's another way that you can kind of populate this information. So a lot of different, lot of different ways that you can organize them. Let me just add the percentages again, just so we can see the percentages. So if I go to the legend down here, could top left, bottom. More options. Well, I'm going to close this up and then I'm going to go to the one that had the percentages with the data labels, data labels here. And then I'll get rid of the legend for now. And so just so you can see what the percentages are coming from. Because obviously if you were to add a graph and then we'll make it look a little bit nicer. If you were at a graph like this, then they're going to ask you, well, what are these percentages come from? And you're going to be wanting to say, Well, if they come from this report, which is basically generated from this report, which is supporting information on the accounts receivable here. So we're breaking out that accounts receivable in a visual way and like a pie chart type of way, the percentage calculations then would be calculated something like this. Just so you can see the calculation. It would be this number divided by the total. That number divided by the total would be the percentage calculation if I then make this one so it doesn't move, so I can copy it down by making it an absolute reference, by putting my cursor in the 17, selecting F4, putting a dollar sign before the B and the 17, then I can copy that down. I could copy that down. There's our percentages. If I make this column, then a percent column. So there we have our percentages. If I sum this up, we have the sum. And so we have that information for the sum 100% and you can see are our corresponding percents over here. Now some other things you might want to do to this. You might want to say, Hey, look, it would be kinda nicer if I had this in alphabetical order or maybe an order BY the biggest number on top. And maybe I don't need all the little or numbers. I would probably want to cap it somewhere. So let's try that. Let's say we take this whole thing. Let's just check this, all this data. And I'm going to put it down here and try another one. So we're going to copy this data. I just need this. And let's put it down here. Now when I start to organize the data, like you could just simply organize the data here and then go to your data tools and add filters. And then use these filters to organize the data and you'd want it organized in this column. I like to, instead of using that filter option to actually make a, make a table out of it because it's less likely that I jumble up the data that way in my opinion. So I would actually make a table usually by going to the Insert tab, make a table from it and say, Okay table. So there's our table and then I'll sort, then I get my little sort handles and it's less likely than a jumble the data, meaning having a misalignment of the number and the item to the right. So then I'm just going to sort this from top to bottom. So we have that, That looks good. Now what I'd like to do down here, if I, if I sum this up, then if I sum this up, we still add up to what it, what it should add up to the 5281. Now these bottom line numbers maybe I want to stop at somewhere in say everything else. I'm going to put the top 123456789. Maybe that's good. I put the top nine there and then everything else I'm going to put into other. So this whole piece is going to add up to one to 19, 10. So I'm going to say right there, one to 19, 10, 12, 19 point 1, 0. I'm going to delete these columns altogether. So delete, right-click, delete those columns. And I'm simply going to call this other other. And there's our total still totals up to that, but I put everything that's below that amount in other. Now we can make another pie chart and this might make it a little bit easier to read. So we can go then to insert. I'm just selecting the data in the middle here. Insert. And then we're gonna go to the pie chart that we're going to insert, insert the pie chart like so. And there we have it. So there's our pie chart. And once again, we can kind of adjust this. I don't need the title maybe. And then the legend. Let's do that thing again, data thing and put those maybe on the outside. So that looks a little bit, a little bit easier to see. Notice you also have other options with the, with of course the charts you can enter in on. So if I was to say Insert. A pie chart and do something like this. The reason I don't really like this one is because it kind of emphasizes you kinda visually cheat in some way because it makes the ones that are being emboldened look a little bit bigger. So if you wanted to emphasize how big these two clients Are, you can put them over here and they were looked bigger, right? If it's deceptive to me. So even though it looks kinda cool, so I don't really like that chart personally. But the other one we see commonly is going to be this one, which is kinda neat this chart. So it does it in that kinda circle fashion. So we see that you've got similar, similar options over here. So you could say, I can remove this. The legend, still have a lot going on in the legend. So maybe if it's on the right, it's not too bad. So put that on on on the left. We'll put it on the left. So something like that, It's kind of a neat way to, to put the data. One more, one more option of course you could have is to, is to have will not you have a ton of options. But notice that this, because this sums up to a total down here, you have a good thing to do a pie chart with. But you can also always do a graph chart. So this, when you can do a pie chart, it's nice to put that in play because you can't do them like all the time. And you could do one of these kind of things most of the time with most data. So we could do something like that and do a similar kind of process. So we've got our title and then are that are items down below. And of course we have a bunch of different options for the look and feel of the graph and the color the graph. Now once you have this, then you can, then you can copy it on another page. You might say, well, how do I fit this on my report? Really, you don't really want the data on the report. All you want is the actual the graph on the report, most likely. So one way you could do it is you could try to put the graph kind of on top of the data like this. And then, and then you've got your data underneath there. And you can just have your graph basically on top of it. That's one method you can do. Or you could put the graph completely on a, on a different page. So I can then add another page for example, and put this, say this is the AR graph. And then I can just take, maybe, let's take like this one's kinda neat. Let's take that one and I can copy that graph and then paste it here. And then I can have it just on one page. And then I can alignment I can align this to fit properly on a page like that. Right? Okay. And then I can take my other one like I can take this one, maybe have one like that, looks like that and bring it over here. I should put a title on it. And then we can have one that looks like that on a page and we can fit it nicely on the page. And then if I wanted to print this thing, what I could do is just hide this whole tab right here. So I can right-click on this and hide this tab. So now that tab is totally hidden. So then if I go and I know this doesn't look as nice as possible because again, this is just like an example of what you can do. But then if I go then to the, to the print and I want to print all my reports together again. And I'm going to print the entire workbook for some reason that was hidden. So I went back on over here to the, to the journal tab. Let's try it again just to check it out and then got to go to print. I want to print the entire workbooks and we'll print the entire workbook, which is now quite long. So it's 38 pages. Let's go all the way down to the bottom. So we go down to the bottom. There's our graphs, right? And the one above it is the is now been hidden. So it looks like it is picking up just the one that we want that's open. And that'll allow us to then print it as a PDF all on one file again, even though we have the data on a separate tab. So I'm gonna go ahead and print this using our cute PDF printer. And let's see what that looks like. So I'm gonna say, I'm gonna, I'm gonna overwrite this statement again, say, Okay, and then let's check it out. Let's give it a double-check here. We'd like to have two checks before we proceed. So we're going to then say that we're going to open up our report here on the PDF file that we created. And let's scroll this all the way down so we can complete our second of two checks for the double-check. So there it is. There's our new report and so it just tax on beautifully. So I'm going to close that back out. And then if you want to unhide this cell over here, like if you want to change the data now, I have a hidden cell so you're like, and you wouldn't even know it unless you like. So but you can always test if you have a hidden cell by holding down Shift and selecting the two cells there. And then right-click on the hidden cells and say unhide. And then boom, there it is, it's right there. It was hidden. But we found it and we unhidden it in so that it's back. So that it's back. Okay. 54. 4.85 Accounts Payable Graphs Excel: Quickbooks Online 2021 now, accounts payable graphs with the help and use of Excel. Let's get into it within two. It's QuickBooks Online 2020, one there. Here we are in our QuickBooks Online Test Drive practice file, which you can find by typing into your favorite browser, QuickBooks Online, Test Drive, or in Craig's Design and landscaping services. Going down to the reports on the left-hand side, we're looking for reports that represent or support the accounts payable. So we're going into the category of who you are, what you owe reports. We're looking for the vendor balanced summary. So let's open up the vendor balanced summary. Let's open up the balance sheet as well. So I'm going to duplicate some reports up top gonna go up top right-click on the report. Duplicate the report. I'm going to duplicate again, right-click and duplicate again. And then I'm going to open up the balance sheet for the report all the way to the right, keep audit report for the AP report in the middle, and then have another tab just in case we want to do other stuff without messing up the stuff that we're currently in. So we're in the tab to the right. We're gonna go down to the reports down at the bottom left, again, opening up our favorite report that being the balance sheet report. Going up top for the range change, 0, 1, 0, 1, 2, 0, 1231, 200. Range has been changed. Let's go ahead and run it. And then we'll close up the hamburger on the top left hold down control zoom into that one-to-five percentage. And then if we go down to the liability side of things down here in the accounts payable, that represents money that we owe to somebody else. Now, and if we imagine the scenario that we would talk about, like with a client or with a supervisor or whatever. And they ask, you know, how much money do we owe other people? And we say we owe other people ten hundred, six hundred and two hundred sixty seven. Then they're going to say, who do we owe, when do we have to pay it? Can we not pay it? Not be penalized for some period of time, enlight pay it later or something. And to do that, we need to break out the report by the subledger. So that's what this is. If we go to the second report here, closing up the hamburger range change up top, which is just one date, not really arranged this time doesn't sound as good. Point in time change, point in time update 1231, 200. And then we're going to say run that report. So this is the people that we owe. So we could break down who we owe in a simplified fashion here that's going to come out to the 1, 6, 0, 267, which should tie. And if I go back to the balance sheet to the 16, 0 to 100, 67 on the balance sheet. Back to the profit and loss. Let's use this data to make another chart. Again, we can, this is a nice chart, make Hubble type of report. Many of them make great, great graphs. You can imagine good graphs that you can make for visuals depending on what you're doing. And again, it's a really good skill to have this on any kind of database program, whether it be QuickBooks or you're doing some other kind of any work that you do. You'll probably have a database and you'll probably have the ability to export to Excel if they, if they give it to you, otherwise it's your work might restrict the export. But if they allow you to export it and that software will typically have that ability. And if you have that, then you can run reports like this and put them into your your reports. And it's really good. So we're going to be then saving this to our, our Data tab we have over here. I'm going to add another sheet that we're going to add a sheet to. I think I added two on accident. I just want one. So we're going to add this sheet. And then let's go ahead and export this to Excel. I'm going to export to Excel. It's going to show up down here because I'm in Google Chrome. And that's how Google Chrome does it. But it might be up in the top right if you're in like Firefox or like Explorer. And then let's enable the editing. Let's hit the triangle up top as we've seen in the past. And we're just going to say Control C this time, keyboard shortcut, name it, making it simpler. And then I'm going to put my cursor on, you were on Sheet 3. I'm in cell A1. I'm going to say Control V on the keyboard to paste it. Holding down Control zooming in a bit. That skew, that's zooming down here to the 145 so we could see that. And this is going to be, I'm going to call it a PV graph data, graph data, data. And then I'm just going to cut this thing down to what we need. So what I wanna do is format this whole thing. So it doesn't have this kinda different formatting. So what I'll do is I'll put my cursor on some cell to the right that didn't get affected by funny formatting. And then I'm going to go to the Home tab and then format paint. And then I'll format paint the entire worksheet. So there's like standard formatting. Then I'm going to format it the way I like to do it, which is the select the whole thing, right-click. Format. Cells, go to currency, bracket, ties the negatives, and then remove the decimal or me. So I removed the dollar signs will keep the decimals. And there we have it. So that looks good. And now let's just get rid of the excess data we don't need. I don't need, I don't need this whole header. Think is, is just data. So I'm going to just delete that stuff. Delete. And I don't really need the total right now, I put the total back later. Let's just delete this whole thing. Delete. And then if I want to make a pie chart out of this, I might just say, let's put it into a little table first. So I'm going to go highlight the data. Go into the Data tab. You could then add the filters. But like I say, I like to insert a table. So I go to Insert, make a table so that I don't mess anything up. I'm most likely to mess stuff up this way. And then, and then I'm going to format or sorted by top to bottom on the, on the number side of things and then we have it. So now we've got our data. We could just simply make a good old pie chart out of this, selecting that information. And we could say, I want to go and insert myself a pie chart. And so there's the pie chart. And then hold on, I just drag the data. Let me do it again because some funny happened. So we'll do it again. We'll go to Insert pie chart. Pie chart. There it is. Okay. And then you can adjust, adjust what you want this time. Let's put the legend here. So I'll say we're going to put the legend maybe on the left. Let's put it on the right this time, and then let's add the title this time. This is the Accounts Payable. Do something like that. And then of course we can change the coloring to like the standard format of a coloring like these items here and make them all kind of similar color or the different colors. And then we can change what we want in terms of the format and this format as well. So I won't go into any more of that now, but let's make this a little bit smaller. Now again, if you wanted to save this data or print it, you could just put this right over the data and then it'll kind of print, then I can see, okay, then it prints basically on one page there. So that looks pretty good. I could do that last time we copied it, and then we tried to hide the data. That's the other way you can kinda do it. So then you can also say that I'm going to, maybe you want to select this and create another graph like a, like a bar graph. So we create the bar graph again. And let's make a like a sideways one like that. And the numbers are kind of squished. So we'll just do a standard one like this. And so there we have that. Looks good. And so a couple of ways you can kinda show the data. So this is accounts payable. Accounts payable. And then again, if you want to copy this into, into like a PowerPoint, you can copy it into a PowerPoint if you want to do that or if I want to print it and I don't want to see the data, then like I said, we can create another tab. I can create a tab down here and say, I'm going to call this API graph. And then we can just grab our graphs and copy the graph over here and say I want to copy that thing and put it over here. And then I'm going to go to see if it fits on a page. So it fits on a page there. And then we can make this a little bit larger. We could do that for this one to just grab that, put it on this side. When I print everything on the my PDF file. If we're printing it as a PDF, we can hide this one again. So I can hide that she just right-click and hide it so high that no one even knows. It's like I made the graph without any data at all. I just kinda made it hide this one. So then we can print these two with the rest of the data. So let's do that. Let's go to the File tab and then we can print it. Let's print it. And we'll print it the entire workbook. It's not letting me do it again. I gotta go off the graph before it won't let me do. I'm going to go over here on the journal. Then it lets me do it. File Print did last time. Let me do it last time. And then the entire workbook. So we want to print the entire workbook, scrolling all the way down to the 39th page, page number 39. There it is. So there it is. And the one above it is our prior graphs and we don't get, we hid the data. So we can successfully print this with a nice pretty graphs without having the data thing showing up as well. So we could spend a lot more time to kinda make these look nicer. But with Excel you have a ton of options. But just to do a basic graph, it's really quite easy to do. And just realize also that If someone asks you about the graph, I mean, oftentimes when you make a graph like this, people are not, you know, don't do what they're supposed to and just be impressed by the colors and whatnot, not ask you any questions about in her anything, but they might ask you the questions about it and you want to make sure that this ties in and you say, well, those are the accounts payable graph that ties into this report that we have generated here that's breaking out who we owe by, by vendor. And that ties into, of course, the, the balance sheet report here. So that ties into the balance sheet report here. And if you wanted to take a look at the percentages allows us to unhide these. So I'm gonna, I'm gonna select this one and this one right-click and unhide. Just so we can see that data. And I just want to see the API graph right now. I only want to really. So if you want to see the percentages over here, then it would be if I put a total column, this equals the sum. This is the total. Then you can always do this calculation. It's going to be this divided by this. And then I'm going to F4, this one absolute referencing it, and then copy that down, make this a percentage Home tab number percent defy it. And then hold on a second. This should be one more time. This divided by this. And then I'll try to F4 that it's not because it's in a table. I can't do that F4 thing for well, there we have it. So there we have it. Okay, and then if I sum this up, we have our a 100 percent. And if I if I show you the percentages on this side, then if we take a look at our table, has been created. And Alice to say plus, and we want to see, say, the data. And let's see the data with a percent. So then you can kind of see the actual percents there. And that's how the percents are basically calculated. So you have a good idea of that. So you might want to actually make your table and have the table ready for someone who's going to actually want to know what the thing means and it might ask you questions about it. Okay, So now let's hide this again. Let's right-click and hide. And then let's go. I'm gonna go back to the journal tab and then file up top and print this thing. And we're going to print it to the cute PDF printer, the entire workbook. And then we'll just say print. And then it's going to tell us where do we want to put it. So I'm going to say says where do we want to put it? Right there? And then I'm going to overwrite this one and say yes. And then let's, and then we're looking for our hour. Here's where we put it. So I'm gonna open that up and do the double-check, double-check. And then I'm going to scroll all the way down so that I can put this second check on this one and complete it. So there it is. The accounts payable, looks nice. And then right above it, accounts receivable graphs and then write to the data all that date the data tabs are now gone because we hid them. And if you wanted to unhide them, remember, and this is good to know. Like if anybody has, they might have hidden worksheets and your thing and you wouldn't even know. But if you like, select the first one and then go to the end and then right-click and unhide. Then they will be revealed. And you can, you can select those, then bring them back to two out of wherever the place that they hide them in. And there they are. So there's that one and there's that back. 55. 4.92 Sales by Customer Graphs Excel: Quickbooks Online 2021 their sales by customer graphs with the help and use of Excel. Let's get into it with Intuit QuickBooks Online 2020 one. Here we are in our free QuickBooks Online Test Drive practice file, which you can find by searching in your favorite browser for QuickBooks Online, Test Drive, or in Craig's Design and landscaping services. We're going to go down to the reports on the left-hand side. This time we want to be considering our sales items and it's always good to be breaking down our sales items into different groupings in different categories. This time we want to break down the sales items by customer who we sold to. So to do that, we're going to be in our sales and customers information. And we want to take a look at our sales by customer and we want the summary report. So we're going to be looking at the sales by customer summary. We're going to open that up. We're also going to be opening up the income statement because this report will of course, support line items on the income statement. Going to change the data up top first, let's do a range change. Range change a 10120 to 12, 31, 200, gonna run that report. And so there we have it. Let's go up top and now make a few duplicates of our tabs and we're going to right-click on the tab duplicate. I'm going to make another one right-click on the tab. Duplicate. And then I'm going to have this one on the right be our profit and loss, one in the middle. That's going to be the report we're working on, the one on the left. It's just going to be a tab open in case we want other stuff that we need to do that we have the option to do so we have our options that are open. We're going to then go to the reports on the left-hand side while we're on the tab all the way to the right. And then we're going to open up our P&L profit and loss or income statement. Range change up top from a 10120 to 12 31, 200. Run in that report. Closing the hamburger up top, holding down Control Scroll and into that one to 5%, one-to-five, we're going to be looking at then the income items. So these income items up top. Now we're breaking out that income item in different ways. And remember, when we think about the income items on the income statement, we typically only have, I'm going to collapse this item, one or two line items for income most of the time because we only do one or two things. We're not going to get the detailed typically in the income statement for things like who we got money from customers or the detail of the items, what we did services, or the things that we sold inventory because we're going to use other reports to do that. One of those reports being the sales by customer, obviously the income being the performance in terms of how we did, in terms of revenue generation through the period. Very important number and that's a great thing that we can build graphs on. So we might want it when we do our presentation purposes or provider information to the client or to our supervisor what not. At the end of the period, we might want to break down that income number and say, hey, here's where your income is coming from, here's your, here's your best clients. Let's do a visual of that. So we're then gonna go to the sales by customer summary, closing the hamburger on the second tab, scrolling all the way down, we'd get the total of the 10 thousand to 8005. Note, if I go back to the income statement, we're currently at 10 thousand to 8877. So it's a little bit different there. And that's because once again, you can it's not quite like the accounts receivable and accounts payable on the balance sheet where the iris, the iris where the QuickBooks will basically force you. Not to be able to enter something to those accounts, accounts payable and the AR without selecting a customer or a vendor, respectively for accounts payable I'm sorry, for accounts receivable and accounts payable on the income line item, you can't do that. So it's possible for you to enter something without selecting a, a customer. And that would mean that you're not going to be using a form. So if you didn't use like an invoice or sales receipt, then it's possible that these things don't line up. So just note that that is possible. But if you make all your sales with invoices and sales receipts, that of course have customers attached to them, then they should line up and you should be able to generate this report. So then we're gonna go back on over here. So I'm gonna go ahead and note to that. And then we're going to print this out. We're going to export it to Excel. I'm going to go to our other Excel tab, which is this one. I'm going to add a new worksheet and we're going to add a new worksheet. I'm going to pull it to the end where we can put this new graphene stuff. I'm going to close this other graph I have here. I'm going to close that graph because we don't need that one. And then we're gonna go back and export. So export this thing going up top, export it to Excel. Thing pops up at the bottom because I'm in Google Chrome. And that's how, that's how Google Chrome does it. And then if you're, if you're in something else, it might be up top to the right. We're going to open that up. Then. I'm going to enable the editing trust, QuickBooks not to infect my computer. And what not, which is already do these days, but QuickBooks, I kinda trust QuickBooks. So we're gonna have been right-click here and then copy, will copy that. And then we'll go on back on over here and we're going to put it on the sheet 6. We're going to put it in a one, I'm going to say Control V, There's going to be our baseline data. So double-clicking down below, we're gonna say this is sales by customer data. That's gonna be our Data tab, holding down Control, scrolling up a little bit. So we're at like the 125 percent now, one to 5%. And then I'm gonna do our same thing. I'm going to clean this thing up. We got a little bit more data than we've seen in the last graph that we worked on. So we'll clean it up a bit and just double-check it that it's all good. So I'm going to then delete these ones up top. I don't need any of this. I'm going to right-click. I don't want that delete, not useful. I'm going to then format everything in the same format by clicking somewhere off the section that was like formatted. So that I can then go to the homepage clipboard Format Painter, and then paint brush the entire worksheet. So now it's all got one standard formatting. Then I'm going to format it the way I want to format it, because this is my worksheet, right-clicking in on it. And then we're going to format the cells, go down to the currency. We're gonna put brackets for the negative numbers removed the dollar sign make it currency, will keep the decimals. And then, okay, so that looks good. And then all of these ones that have this subtotal item here, the sub accounts. We're going to I don't want the sub accounts because that's going to double up my total. So this one is a formula. I'm going to copy that formula. And I'm just gonna put it up top. I'm going to put it up top right there, but I'm going to paste it 123 pasting it 123 values only, in other words. And then I'm going to delete these other three, which are all subtotal lines and you can see how much longer that makes a report, those kinda subtotal things. So then I'm going to right-click and delete. And we'll go back on down and we have that same thing happened in right there with these three lines. So I'm gonna do the same thing. I'm going to copy that one. I'm going to put it up top where the name is, right-click and paste it 123 values only, and then delete. Rows 19 and 20 are these two items. Right-click, Delete, and then the total. So I think that's good. And then the total, I'm going to retitle it by using the trustees some function, most famous function of Excel, well-known, 20080000005. Let's see if that ties out. I'm going to delete the other one that we had open here. This one, I'm going to delete that, not needed anymore. And let's just check if our total 10, 1000 to 800, five that I mess anything up. No, I didn't. Still looks good. Now I'm going to delete the total column for right now. I'm going to delete it for right now. Now that I checked it with double-checked two checks. Then I'm going to add our, our table on this. I'm going to select this range. I'm going to go to the Insert. Let's put a tables and put a table on that. Slap a table on it. And then we're going to then use our dropdown and I'm going to sort it from top to bottom, top to bottom. So there we have it. And then now if I sum this thing up, see if it's still adds up. To see if it's still adds up to what it should, should 10 thousand 280. So that looks good. Now this things too long, really for a good, for a good pie chart. So we're going to want to break down like the top ten, maybe that's usually what we do. It's a good round number. When you, when you're trying to impress, get people's attention. These are our top ten customers. Top ten customers by Sale. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10. And then everything from this one on down, we're going to put that into a total. Total, if I just highlight these is coming out to 2, 2, 0, 8. So I'm just going to say, all right, and then everything below that, I'm just going to say it's going to be 2, 2, 0, 8. And then we'll delete. And then these rows, I'll just remove these rows altogether. These people are not worth being on our pie chart because we didn't sell enough, they buy more stuff. You could be on our pie chart. But until then, you're just going to be part of the other category, other. And then we're gonna, I'm gonna make this a little bit smaller. And then we can make our pie chart here. So we're going to go then highlight our center data. And we can go then insert, we want then the pie chart. Once again, let's do this fancy donut. It's not a pie chart, it's a doughnut. It's not a Danish, it's a doughnut because there's a hole in the middle. And then we'll open this up and say maybe we want like the data labels on it. So data labels. So there's our data labels with those things. It seems like it's taken up an awful lot of room. Data Labels. Let's say more options just to check him out here. One thing you could do is actually pull them outside. I can pull them out like this, maybe can do that. So let's try that out. Still seems like a lot going on here. 10 There's 10 of them. Maybe I should break it down. Select the top five. I'll put that one in the middle. Said, Okay, Does that bother anybody? Okay. So something like that, it's kind of fancy. And now where do those totals come from? We can do are we exclude, we can say this equals this divided by the total here. And that's where those numbers come from. We can percent, uh, phi, this column, Home tab percent of phi, and then sum it up over here, we can sum it up, which is to prove that it adds up to 100%. And there's our top 10. There's our top 10 items. Thing got. So now this is picking up, this thing is picking up the data. Let's see if I can change the selected data here to just include the, just want Vose my data, okay, and then adjust, okay, we're back. So I added the data kinda mess things up, but so now we're back. So that looks pretty good, pretty nice chart. Of course we could do a standard, a standard graph here as well. And you can see how this, if they ask you again, if someone asks you about the other line, well, that's everything else in other over here that cool cars. That's how the calculation is happening on the 21 percent. So it's a nice little visual and then you can break it down if you get any more questions on it. Let's add, we can add, of course, another graph. We can go to the insert. And we can say, let's mat and let's make it like a normal graph. This is going to be nigh histogram. We'll just do this has recommended grass right here actually, let's check out the recommended grass they give us. So this is kind of interesting. So we have our top to bottom here. It's kind of an interesting graph that they recommended for us. Good visual. Go with that. So that's good. So then we can add the title and whatnot, but this is just an example. Then if you want to print this, you can't put this over the data and then you can print this all in one PDF or we can do as we did before and create another. Another tab will have a Data tab and then our actual charts. So this is going to be sales by customer. And this is not the Data tab. This is actually, this is the thing, the real thing, and just copy this over here. And then I can take this and maybe copy this one over there. So there we have it. And then we can check to see if it fits on a page and we can fit exactly on a page. We might even make it landscape. We might say I want to make it a landscape. So it can do a landscape option like that. And then maybe that might be oval. Let it make it like a wider graph. If we so choose. And who's to stop you from choosing to make a wider graph. Nobody made graph y. And if I want to sell export again, so then if we're going to print this, then we can hide the data file once again. So I'm gonna go back over here. I'm going to hide this. So no one knows it's there. It's going to hide this one. And then I'm going to hide this one so that when we print it that they won't show up then the data ones and just the nice, beautiful graphs will show up. I'm gonna go back to the journal tab so I can do that printing option. So let's save it as we're at right now, go to the File tab and down to the printing options. And then we're going into the cute PDF printer. We want the entire workbook to be printed. Once again, it's got 40 pages in it now, scrolling all the way down. I just want the new stuff. Just want to check out the new stuff. I'm not going to check everything else because I've already double-check that. And two checks is enough. I don't need three check. Three checks is going overboard when he got kinda checking problem. Like you check things too much. So there's our flasks, one that looks good. The Data tab has been hidden. So we're at this graph, and then we're at this graph. So all the data tab have been hidden, it looks like so let's go ahead and print this out. Then we're going to go the printing option, which will save it as a PDF file. Once again, all 40 pages of our PDF, we're writing a book. It's going to be an epic novel in data format. And then it's going to ask us where do we want to put it? And we're going to put it on the financial statement information there. We write that. Let's just check it out. It should be right there now. So this is our double-check, but I'm only check in the new stuff. The new stuff is the only thing that only has one check right now. Everything else has already got two chicks. So down here, Here's the new stuff. So that looks good. And we've got a nice graph and you can put all kinds of different graphs for that. And again, it's really good to do this for any kind of data, you know, any kind of data that you can then export and used for graphs, any kind of database program, even if it's not QuickBooks, you can typically Export and make fancy graphs in Excel that are pretty easy. And then I'm going to, you know, you can have a lot of tutorials on it. There's complication to it, but just to make a basic one pretty easy. So I'm going to put my cursor here and then hold down Shift, go back over here and then right-click and unhide. So we're going to unhide so that we can see the hidden stuff. We're going to unhide there. And notice if you ever encounter an Excel worksheet where it's like something's wrong here, something hidden, then this is how you can unhide. Well, now I hit everything again. That's not what I wanted to do unhide. So I'm going to unhide all of it. So I'm going to say for some reason I'm going one at a time, I can't unhide. The whole thing which is kind of annoying. Unhide. Unhide. I'm doing some raw whole lot of second says ungroup on high all just do this this way. There's gotta be a faster way to do this. Another is but and we'll do two more unhide and one more time. On Hyde. There's a slow way of unhide and every sheet. 56. 4.93 Sales by Product or Service (Item) Graph Excel: Quickbooks Online 2021, sales by product or service or item graph with the help and use of Excel, Let's get into it with Intuit QuickBooks Online 2020 one. Here we are in our QuickBooks online test drive, a practice file which you can find by searching in your favorite browser for QuickBooks Online, Test Drive or in Craig's Design and landscaping services. Going down to the reports on the left-hand side, we're looking for the sales reports once again, this time breaking it out by item or service or product, things that we sell. We're going down to the sales and customer section down below. Last time we took a look at these sales by customer. This time we want to take a look at the sales by product or service, selecting the summary report. So we want the sales of byproducts service summary. Product slash services is not as easy to say is like items in the desktop version they had items, sales by product slash service summary report. So we'll select that item or that report range change up top from a 1, 0, 1, 2, 0, 2, 0, 2. I hit a space instead of a tab, So 1231 to 0, and then run that report. Now we're going to have the supporting report here is supporting or this report is supporting a line item or line items on the income statement. Let's open up the income statement as well. I'm going to duplicate a couple of tabs up top or right-clicking on the tab up top. Duplicate one time. I'm going to duplicate again, right-click on the tab up top. Duplicate again. We're going to have the balance sheet on the one to the right. We're going to then kinda have the report we're working on in the middle. And then another tab just in case we want to do other stuff so that we have the freedom to do so. So we're gonna go back to the one on the right. And then we're going to be opening up our reports down below on the left-hand side. Then we're going to be opening up our profit and loss. I said balance sheet before we opened up the Profit and Loss report here. And this is going to be then range change up top from 0, 1, one to 0 to 12, 31, 200, and run that report. So now we have our profit and loss. I'm going to close the hamburger, hold down Control. Scroll up just a bit to get us up to that one-to-five. Now on the income statement, the profit loss income statement P and L, I'm going to shorten up the income line item. Typically we don't have a lot going on in the income line item in terms of separate accounts. But we hopefully have more money going into the income or revenue line item than the expense line items. And then we're resisting the urge to sit up income accounts that are going to be by customer or by item. So that we can then shorten up the amount of information on our profit and loss reports and still have that other added detailed information with other reports. So we can break out, for example, our income or revenue lines in this case by item, by things that we sell. And that's what this report is going to be doing over here. So I'm going to scroll back down. If we go all the way to the bottom here, we've got the 10 thousand to 8005 that should tie out to the 10200. It's a little bit different. Note notice it can be different because the QuickBooks system is not going to force these two things to be in alignment as much as they do for say, accounts receivable and accounts payable. As we look at the related subsidiary reports of like an accounts receivable, aging, accounts payable, aging, and so on. So in other words, if I was to open up and look at our data input sheets, if we're if we're using the invoice or the sales receipts to create our sales items, then of course, we'll be generating the products and services within them. And these two reports should match. If however, you're just depositing things into the checking account and recording them to income without selecting an item for them. Then QuickBooks doesn't have the information to make these added reports. So it's just something to keep in mind dependent so that when you create your accounting system, are you see the pros and cons of those decisions. Whether you can have a more simplified process, possibly by going right to the check register or rather you're going to enter the data input forms such as invoices and sales receipts. Okay, so we're going to close this hamburger backup. And then we're gonna go back to this tab. So this is going to break it out by the things that we sell. Now I'm going to close this up that being the things of inventory items and or service items that we sell. So these are all the items that we have and we're gonna do are similar kind of thing here. We're going to export this to Excel. And then we'll try to create some charts based on the items that we sell. So then we can look at a visual of our revenue broken down by the things that we are selling, which could be a good added detail to a report. Or if we're given a presentation or something like that. Now this one has a lot of sub, subcategories. So, so we're gonna have to make some decisions on how we want to be breaking this out. We got a little bit more formatting that we'll need to do once we get it into Excel. So if I go back to Excel here, I'm going to make another tab. This is the Excel sheet we're working out. I'm going to make another tab. This is where I'm going to start the data. Gonna go back then to QuickBooks. Let's export this report by going up top and simply exporting the report. It then opens up down below and we're going to open that. And then we're going to copy the data. So I have to enable the editing, I believe, yeah, enable the editing. So I can edit it. And then I'm going to select a whole triangle and then hold Control C to copy it on the keyboard Control C. We're going to then go to where we want to put it, our worksheet here and go to Control V. And then I'm going to call this sales by item. See how much smaller that is then product slash service, but sales by item, and then data. This is going to be the data file. Okay, so then I'm going to, I'm going to remove the header. We don't need the header, so I'm going to select these rows and just right-click on them and delete them altogether. I'm going to hold down Control, scroll up a little bit. So we get up to a little bit larger information here. We are then at these 145 percent, the 145 percent. And then what we need is this middle column. So all I really need is this middle column. So I'm gonna try to trim this data down. I'm going to get rid of this line 33. I don't need that. I'm gonna delete that. And then up top, I don't need any of the columns now there's no formulas in here that are going to get messed up. If we delete the columns, I do not believe so. I'm going to select column B and just delete that entire thing. We're going to select column C to G and just delete that entire thing. So we'll just delete that. And then we have some questions as to how much detail do we want, because we have the design categorization and the total designs down here. And then we've got the tremens or the landscaping, Total Landscaping, and then total pest control. And then not specified down here. So we could just break down to those main, main categories or we can further break down to the categories within them. So for now, and you may not have any of the all these subcategories like this. And you could also create kind of reports that would just be breaking out, say that design information and break out those into a, another graph. So within design, you might have fountains, concrete and whatnot. What are going to be the most common things in there? You can create a graph that would add up to this total like a pie chart and what not. And you could do the same for the landscaping. So you can say, for example, you know, I can I can highlight all these and make a pie chart, although I would have to trim these down because there's another subcategory down here. But I'm just going to make the main three categories and so we'll pick that as the ones. So what I want is the total design. So everything else I can kinda delete. So I'm just going to say everything from up top down to here. I'm going to remove, I'm going to delete. And then we're going to say landscaping. All I want is the Total Landscaping. So I'm going to go on down to here, just delete everything else. Delete. And so I just got the total. And then I'm going to say pest control, I just want the total pest control so I'll delete everything else. So let's delete that and then the non specified, I guess I have to keep that if I want if I want to tie out to the total down here. So if I was to then double-check the total, we're going to say this equals the sum of these items and it's adding up to 0. That's unusual. Let's try to format these a little bit differently. I'm going to copy these cells. I'm going to put them down here and I'm going to paste them 123. I'm going to paste them 123 and see how they're kind of format it to the left here. So something went a little bit wrong with the formatting because they should be right aligned. So if I double-click on them and hit Enter, now they're going to be now they're aligned to the right, which is, seems correct. Then I'm going to save the sum. These items is going to add up here. So sometimes the formatting can get a little bit funny when you, when you copy it over here. So there we have it. So that looks correct. The 10000, 280, I'm going to delete these items up top, right-click and delete those items up top and there's our data. Then I'm going to delete the total for now. Let's delete the total for now. And this time let's try using the filter. So if I select this data and I go to data up top and I just use a filter. Then I can sort the data by the filter. I'm going to go from Z to a. So similar kind of thing that we saw before. Then he could take the filters off if you so choose. And then of course we can add our graph so I can highlight these items. Go to the insert, and we can then go to the pie chart, and then we can add a graph. So there's our good old pie chart. And we can then say that we want to be breaking this out. Maybe the legend once again, let's have the data labels. Data labels outside like that. So it looks something like something like that. Will pull this over here and that over there. We could put this here. So something, you know, something like that with the change color of it. And so that's going to be not too much activity going on here, but this, you can see how we can kinda trimmed down the data to what we need and make a, make a nice graph out of it so you can export what you need. Make the graph out of it and whatever kind of format you would like. Again, you could put the graph kind of on top this time. So instead of making another tab, Let's just try to put the graph on top and see what that would look like if I printed it. Now when I print it, I'm going to be off the graph on the sheet that I'm going to go to the File tab up top and I'll just say print. And we're going to print it to the cute PDF printer. Again, we're going to print the entire workbook. So the entire workbook, there's 49 pages. If I go all the way down to the bottom, then just to look at the new stuff, There's the new stuff right there. So there it is in idle. And I just put the graph over the data. So I didn't have to make two tabs and hide a tab in that case. So here's the graph above it, that one had a Data tab. So if I wanted to print this without the other data tab, I would have to hide these other tabs up top. Let's go ahead and do that. I'm going to go back on over. So I don't have to hide anything for this one. This one I made a data tab, so I'm gonna, I'm gonna hide that tab. I'm going to hide this Data tab. Hide that. This is going to be hidden. And then this one I'm going to hide the data tab. And this one I don't even need to hide the data tab because it's data. And graph. It's a graph. It's got the data and the graph. And we did it, we didn't knew it will need to hide it because it's just going to put it over the top. So then I'm going to, let's try this again. We'll go to the File tab. We're going to go to print. We're going to print it to the queue PDF printer. We want to print the entire. So now it's just got the chart. If I go back on it, that's because I'm on the chart. I got to be off the chart and then try it again. Print. So now I can print the entire workbook. Once again, entire workbook, 41 pages scrolling down to the bottom, we've got our chart, which is now a little bit bigger fit not a page. There's that doesn't have a title, but we're not going to detail just an example. And then the data tabs have been deleted and removed. Looks beautiful, full of wonder. There's wonderfulness in it. So let's go ahead and print it then. I'm going to print it. And it's going to ask us where do we want to put it's got 41 pages, so you've got to give it a little bit of time because this is like this is a work. So then we'll save it over this financial statement one, say yes please. And then let's open it up so we can double-check that last report, just the last one. So I'm going to try to scroll all the way down to the bottom so we can double-check the one that needs some another check on it. So there we have it, there it is in the ones above it. The Data tab isn't there anymore. So looks perfect. And then we're gonna go back to the Excel sheet over here and just unhide those ones that we hid. So we'll get, I'm going to put my cursor on the first one and then hold down shift so they're all like brighter brighter than they were before. And then we're going to then unhide. Unhide. I'll unhide one at a time. There's that one. And then I'll right-click and unhide that one just so you can see it when you go in there and you don't have to unhide them. I don't want them to be hidden for you and then unhide this one. But if anybody does try to hide these things, this is how you find them. Well, I don't know where they hide, but you can pull them out by doing that.