QuickBooks Online Basic to Advance Training Course

1. Course Introduction: Welcome to QuickBooks Online BCT advanced training course. My name is Sad, and I'll be leading you throughout this course. I'm a professional trainer and consultant with over ten years of experience in accounting and business software. So if you are a freelancer or a small business owner looking to manage their finances or provide any kind of financial services in the freelancing world, this course will be ideal for you because this is cloud based accounting, which is most widely used nowadays. So in this training, I'll teach you completely how you can get the latest trial version of QuickBooks online, how you can subscribe to. Then how will you use all the basic to advance functionality? Because this software is one of the most powerful and widely used cloud based accounting software. In all of our trainings, we use the practical project based method. That means we will not use the software just like you were reading a book or theoretical understanding the functions we will work on a practical project in which we will take the example of the company which has a trading business, and they want to implement Quickbooks completely from scratch. And before implementing the software, let's say that they were working manually or they were maintaining their accounts on the spreadsheet. So we will take an example on how you can completely implement accounting system from scratch, which involves creating a new company, which involves configuring a chart of accounts, customers, suppliers, and putting all of their opening balances along with the inventory. And don't worry. Whenever you are stuck in any particular area, you can just go to the Q&A section and use ask the question feature, and I'll be more than happy to help you. So this might be the only course you need. And with this said, let's start the training. 2. How to Create QuickBooks Online Trial Account: In this video, we are going to see how we can get access to the QuickBooks online free trial with the latest version so that you can work on your own company. You can create a new company, you can put all the balances from scratch. You don't need to work on a sample company. I'll show you the complete process. But before starting, just remember that if you are from any region other than USA, you might need a USA number to configure that. But if we don't have a USC number, what should we do? That's very simple. You can get it online for free. I'll attach this video link with the resources section of this video, or otherwise, you can just write here a prompt how to get USA phone number for SMS verification from Sony Del. This is the website. This is the complete process because I have already configured the number, so I don't need to repeat the process. Neither did I recorded that video where I have configured that phone number for so you can watch the complete process, and it will ask you for some kind of verifications, like your address verification, your bill copy, and other things like that, and then you will get the virtual number of USA, not only for one time, but you can configure different accounts on that. So that's very effective, and it is just $1 or 1.5 dollar, something like that. So just follow the process that is mentioned in that video, and I'll show you after that what we can do. Once the virtual number is enabled, just go to Google and right here QuickBooks online free trial. And once you get this website, just click here. And it says free 30 days trial, but I'll just scroll down a little bit until you see this plus, and I'll continue with that, continue without payroll. Just click here. And after that, you will get this screen. Now, since we have configured a number of Sony tel, we will use it here, enter the ID password and the phone number, we need a US number for that. And click on one more step. Like, again, it will take some time to process. And then the number that we have configured from Sonal I'll receive the code there in my email and this verification code, I'll just paste it here, continue. And now we get the option of New York address since we have configured the Sonatl number, which is of US. So I need to enter a US address. For that, we will just search it on Google, any random address, like I have did. And I'll just copy this particular address and paste it here. It will automatically put it in different fields. Let's click on Continue. And it says, skip the trial and save today, and I'll just click on Continue with Trial. Here we are. It says, setting up your account. This won't take long. So that's a great thing. Let's see. It will take some time to process, and then it will show you the welcome screen, as you can see. Our intuit Quickbooks style is successfully activated where we can create our own company and work on that company from scratch, from creating chart of accounts to putting all the opening balances, we have the complete options here. And again, it will show you some different visits, so we need to wait a little bit until it fully configures. It might take a while. And then we have the company with no name. Now, you might see the configuration scheme immediately, so you can work on that. So this is how you can activate the complete free trial where you can create a brand new company without any data, and you will configure it fully by yourself from scratch, and you have the validity of this trial version for one month. So just try this by yourself, activate the trial version, and I'll see you in the next one. 3. How to Relogin in QuickBooks Online System: Video, we are going to see how we can re login into the QuickBooks online system. So we have already created the ID, and now let's say that we have closed the browser and now we want to re access this. If you can't find the link in the URL, you can just go to Google and just write QuickBooks online sign in. And here, just scroll down a little bit until you see this online login, sign into your account. Just click here and select QuickBooks online, continue to sign in. Here, let's get you into QuickBooks. This is the login that you want to use. Just click here, and the ID and password must be saved. Just select that. It says, welcome back. And it has some more configuration stuff get started. You can just start your business, and that's how you can resign in into the system. Just try this by yourself, and I'll see you in the next one. 4. Company Creation and Introduction to Interface: Video, we are going to see how we can set up a new company in QuickBooks online, and also we will see the introduction of the QuickBooks online latest interface. So first of all, when you set up the new account in QuickBooks online, it welcomes you with a welcome screen, and then immediately it started a wizard where it is asking about your business. So basically, it will immediately ask you to set up the company. We will directly work on a project so that we can understand each and every functionality in a better and practical way. So we are taking an example of a trading company which buys and sells car parts. The company name is Elite traders. So, guys, what I have done is I have skipped that wizard, and now I have landed to this page where I can see the dashboard of the company, even if I want to access any particular portion. For example, in the accounting, if I want to access the chart of accounts, I have the chart of accounts as well. That means even if you skip through the company creation process, it will still create a company by default in the trial version. But here there is no data. It's a brand new company and there is no company name as well. So in this case, what we need to do is we simply just need to change the company name to whatever we like. Just go to the settings on our right and click on accounts and settings. And here we just click on Edit. No company name. I'll just paste lite traders. Click on Save. I've already changed the name here, but you will see no company name here. Click and after that, you might need to refresh this. And now we can see the Eli traders is showing here. This is the company. It's already set up, we have changed the name of it. Now, when we set up a company, you will lend to the dashboard where you can see the graphical representation of the company's overall performance. You can see all the invoices. You can track your money. We have different groups here, not paid paid invoices, deposited money, cleared money. And also we have some graphical representation of the profit and loss accounts, expenses tracker, and all the top customers and bank accounts, and we can also customize this however we want. And after that, we have a specific section for each area. Like in the accounting, we can perform all the generic transactions like banking transaction, recording entries. We can set up the chart of accounts. In the expenses, we have the vendors related transaction. In the sales, we have the customer related transactions, and we can create the customers, and all the activities are showing right here. So all of these tabs are related to a specific functionality which we will explore in much detail, but this is just an overview of the dashboard and how you can create the company in QuickBooks online. Now, I want you to land on this interface first so that you can follow along as we will progress in our project. So just try this by yourself, and I'll see you in the next one. 5. Understanding Quickbooks Online Chart of Accounts: Video, we are going to see and observe the chart of accounts functionality and the chart of accounts structure in QuickBooks online, and we are going to match it with our project because this scenario is about lite traders, which was using some other accounting software or maybe they were working on Excel spreadsheets, and now they have planned to work or implement on QuickBooks online. So they need all the ledgers with the opening balances. So here it is. But we just need to make sure that we do have all of these ledgers with the same name or at least similar nature in QuickBooks online. So we need to see the chart of account. To see the chart of accounts disco to the corner, where it says, accounting tab click on chart of accounts here, and here is the complete list of chart of accounts as you can see, we have many chart of accounts here, some are related to expenses, other current assets equity, now the first ledger is debtors or receivable. If we are finding it difficult to see some ledger, we can just also find it here. So just write here receivables. No, we don't have receivables. Let's try debtors. We don't have debtors as well. But this is a very main account. The receivables current balance is 195,000, so why it is not there? That means when we enter the individual customers along with their balances, you will notice that Justin has 85,000 balance, 30,000 for Albert, Victor has 65,000, Walter has 15,000 to be paid. So this is all receivables. If we combine all of these balances, it makes the 2195000, which is exactly matches this one. When we enter the individual customers along with the balances, this balance should automatically update. So neither do we need to create any kind of charter accounts, nor we will put any balance here. Same goes for creditors and stock when we enter the individual details along with the balances, this will automatically update. So this means that we will directly start working from the next ledger, which is buildings at cost. You will also learn how we can create some new ledgers and also edit the name of the existing ones if we need to. So just try this one and see how the chart of accounts work. Just open up the chart of accounts and observe, and I'll see you in the next one. 6. Entering Customer Balances and Linking to Control Accounts: This video, we are going to see how we can enter the customers along with the opening balances in QuickBooks online. So what we'll do is just go to the customers and click on the customers here. Here we have two options. Either we can import the details of the customers or we can add the customers manually. So let's try to manually add them. Here are some fields. If you want to mention the title, the first name, middle name or company name, we can mention all of these details. But I'll just stick with the compulsory ones. Customer display name is Justin, and we can fill the rest of the details. It's pretty straightforward. I'll just skip the address part, add a chatan, you can add notes. You can add credit limits, terms and conditions, language to choose and the customer type, and we will put the opening balances right here. So I'll just keep it simple so that you can easily understand that. I'll stick with the basic information because rest of them is pretty self explanatory. So we just enter the customer name, and we just enter the customer balance, which is this one. Just copy here, piece right here, and it's first of January. So let's make it 01, 01, and hit safe. And similarly, I'll just add the other customer, but just wait for it to show up here, as we can see. Now we are in the customer list. It's showing that you can view some transaction details right here. But we just have a customer with this balance that we have just entered. If we want to enter further customers, we'll just click on the customers and click on new customer right at the top. And the next customer is Albert. Just copy the name here and change the display name, customer display name, scroll all the way down to the bottom, and we just enter the balance here. It's as of first of January. It's safe. Now, let's enter again, click on the plus sign from here, and we can enter our new customer from here as well. So in the customer display name, I'll just copy this one. I'll just copy this one. Display name is this, scroll all the way down to the bottom, and this is the customer balance. As of first of January, it's safe. And the last one is Walter. So click on the plus sign. Display name is Walter, and the balance is 15,000. It's as of first of January. Hit save. And that's how we enter all the customer details. Now we need to check the chart of accounts, whether the account ledger is created along with the balance or not. So click on accounting and click on Chart of Accounts here. Now we can see the account receivable ledger just popped in, and the QuickBooks balance is 195,000, which exactly matches this one. And that's how we entered the customer details and update the control account balances. Just try this by yourself, and I'll see you in the next one. 7. Change Date Format in QuickBooks Online: Video, we are going to see how we can reconfigure the date settings in QuickBooks online. So QuickBooks online is basically a US based software, and if you are using this in UK, India or Pakistan, what you need to do is just change the sequence from month, date, and year to date, month and year because in the UK region or India region, we use date then month then year. So all of the Asian regions use this. Click on the settings to change this. To right. Just click here and click on accounts and settings. And from here on the left hand corner, we can see the advanced settings right here. Click on Advance and scroll all the way down to the bottom where it sees other preferences, and the date format is set to month, date, and year. We need to change that. So we'll change that to date, month and year and hit done. Do you want to leave without saving? No, we want to save this. We can save this from here. Okay, we can save this from here. Any changes you make in the particular section will be saved from there only. Click on Done, and that's how the settings will be saved. You can just confirm once again by going to the same area. And there it is. Similarly, we have many options here. Let's say that we are dealing in some other home currency or we are even using multi currency, we can enable that or change the home currency from here. So you can explore this advanced area, and that's how we can change the date format in QuickBooks online. Just try this by yourself, and I'll see you in the next one. 8. Entering Vendor Balances and Linking to Control Accounts: Video, we are going to see how we can enter the vendor details along with their opening balances so that it automatically creates this control account of accounts payable and automatically update this balance, which is a combination of both of these balances in the chart of accounts. So let's see how we can do this. First of all, from the dashboard or from any area, you can switch directly to the expenses section and click on vendors. And from this section, we have two options. Either we can import the vendor details or we can add the manual ones. So let's click on Add vendor because we just want to learn how the system works and the import process will be very simple after that. So vendor display name, I will only enter the compulsory fields and leave the rest as it is. So this is pretty self explanatory. So the vendor details is this one, paste it right here, scroll all the way down to the bottom, address and every other detail, you can fill it later on. I'll just stick with my project. So 50,000 is the balance. I'll just put it right here. And this is of first of January. As of first of January, save it, and let's move to the next one. Close this, simplify vendor payments, close and we can also add a new vendor right from here. When we enter the first vendor, it took you to this screen where it's showing the summary of the vendors along with the name. So click on the plus sign right at the top and we can enter the new vendor now. So next one is San scroll all the way down to the bottom, and in the opening balances, we put 80,000 as a balance as of first of January. Click Save, and both of these balances are now updated. Let's move to accounting tab and just go to chart of accounts. We should now see an accounts payable ledger right here, and the balance, as you can see, is automatically updated to 130000. And this exactly matches this one. And if you want to see the details of it, we can just click on View register, and it's showing the individual breakup of all the opening balances, along with the vendor details. So that's how we update the vendor details, along with the opening balances and link it to the control accounts. In Gk Books online, try this by yourself, and I'll see you in the next one. 9. Creating and Editing Chart of Accounts With Opening Balances: Video, we are going to see how we can create the new ledgers. And also, if you want to match all the ledgers, according to your project, we need to edit the existing ones as well. Also, we will see how we can put all the opening balances that we have here, and we will also learn how we can delete some external ledgers. So in the previous video, we have already dealt with debtors, creators and stock, where we have seen that when you individually enter the details, this balance will automatically update. The next balance is of building at cost. So this is a fixed asset, and the total amount is 750,000. So from the accounting tab, just click on Chart of Accounts. And here you can sort it by type. So we can sort it by type, but as we can see here, we only have limited accounts. We don't have any fixed asset account if we write buildings here as well. We don't have this account. So let's create a new one from our right hand corner at the top. Just click here, and we will simply copy and paste the name here. Account type is fixed asset, and it goes under buildings. Original cost is 750,000 as of first of January, and the description, we can add the same details here as well. And that's it. Save it. Now, if you want to make any changes after we have entered it, let's say that we have realized that, okay, we needed to enter 50,000, but we only entered 75,000. So how will we edit this balance? It's very simple. Just click on this Aero sign next to View register, and there you get the edit option. Here, you can see that you can customize the name, any detailed type account type, but the balances are fixed. So this means that we just double click on this particular ledger, and it will take you to the details here where in the opening balance field, you can see this 750,000 mentioned right here. And as soon as we click here, we should be able to change the balance from here, and after that, we can save it. But I'll just cancel this. Similarly, if I go back, I can just click on this arrow sign, click on Edit, and you can edit rest of the details here if you want to. Now the next one we have is accumulative depreciation of buildings. Now, accumulative depreciation is basically recorded as a tra fixed asset. That means the depreciation that is charged until now for years on building will be credited here. Basically, the nature is fixed asset, but it is recorded on the negative side, so it reduces the overall value of the asset. I'll attach a complete document on how the accumulative depreciation works and what is the treatment in accounting. So just copy the name right here. From the chart of accounts, click on new. Paste the name here, it goes under fixed asset, but it is an accumulated depreciation. And the balance is 80,000. As of first of January. Description, we can copy and paste the same thing here and you can select accumulated depreciation of buildings. Now, it sees here fixed asset accounts. Accumulated amortization, depletion or depreciation cannot be payment accounts. So what I'll do is I'll just choose buildings here, and let's record this one in negative negative 80,000. First of January, copy and paste the account name right here. Click on Safe. And the next one we have is motor vehicles. I'll just copy this. Click on New from the top. And here, I'll paste this. It goes under fixed asset and it is a motor vehicle. So I'll choose vehicles here. Copy this, paste it right here and first of January. In the description, I'll just copy and paste this account name right here, and that's it. Click on Save. Next, I'll create again new from the top accumulated depreciation of motor vehicles. Just click on fixed asset here and choose motor vehicles now. Choose vehicles here. 45,000. I'll just put it. Find a sign with it. First of genre and just copy and piece this thing right here as well. Click on CV and remove the name of the asset from here as well. Next is machinery. Click on New, go to fixed asset, change the account type as fixed asset, and it goes under machinery. So just be careful that you choose the right idea. Machinery equipment is there, and the overall cost is 290,000 as of first of January. Click Save. The next one is accumulated depreciation of machinery. Let's see how we can do that. Click on New and select this one account type as fixed asset, and it goes under machinery and equipment again. But since this is an accumulated depreciation that reduces the overall value of the asset, I'll just put this one in negative. And this as of first of January in the description, I'll just copy this name right here, paste it in the description and click on safe. So until this point, I want you to enter all of these ledges, and then we will continue to the ledger creation process. So just try this by yourself, and I'll see you in the next one. 10. Creating and Editing Chart of Accounts With Opening Balances part 2: Let's continue further and enter some more chart of accounts, and the next one we have is cash. So I'll just go to the chart of accounts and search for cash. If you don't find it in the list, just write case here. Hit Enter. And if we still don't find it, that means we don't have it. From the top, we will click on New. And here we just write case in hand. Account type is Bank and a detailed type, I'll select to case on hand. The opening balance we have is 694730 as of first of January, and the description is cash in hand. This copy and paste right here and click Save. 11. Creating Ledger Of Bank with opening balances: We are going to see how we can create the ledger of the bank and put their opening balance. As we can see here, we have the opening balance of standard Chartered Bank. So I'll just copy the name. And since it is a bank account that is specific by name and we don't have this bank account, ledger already created. So click on New from the top. I'll just make it full screen. Click on New, and I'll just paste the name here. The account type is Bank and the detailed type is I'll select checking account. In US, checking account means bank account. So opening balance, I'll paste this as of first of January. Description, copy and paste it here and save it. Next is United Bank Limited. Just click on New, paste it right here. It goes under Bank and the detailed type is checking account. Copy and paste the balance here. It's of first of January. Description, I'll just copy and paste this ledger name here, and that's pretty much it. Save Now, the next one we have in the list is accrued expenses. Accrued expenses simply means that the expenses that is incurred for a particular month, but it is actually paid in the next month, like electricity bill. Electricity bill, if you have received, it's related to, let's say January, but it will be paid in next month, like in February, same goes for some salary expenses, but they are part of January, right? So what we will do is we will make an expense as debit in the month of January. But since nothing is paid yet, we will credit something. So we will credit liability or bills payable. That is called accrued expenses. So when the next month comes when the actual payment is made, what we will do is we will reduce the liability, debit the bills payable, and then credit the cash because actually the cash is paid in the next month. If you want to understand more about accrued expenses, I have mentioned it in this document that you can find with the resources section of this video. It says accrued expenses are the expenses that company has incurred but has not paid or recorded in its account at the end of the accounting period. So all the unpaid liabilities, it gives in all the examples. So you can read through all of the document. It also gives the journal entry examples. So it's very useful for you. Since we know the treatment now, I'll just go to the top and click on New copy and paste this name right here, and goes under the other current liabilities. And here, it's your choice if you want to use the prepaid expenses payable. So we have chosen account type as other current liabilities. In the deal type, I'll just choose other current liabilities as well. And the balance is 53,000 that is unpaid balance. As of I'll just make it first of January. In the description, I'll just copy this right here and paste it here. Click Save. Now under the capital invested, basically capital invested is net owner's equity, and that is the basic accounting equation that is asset is equal to capital plus liabilities. So if you want to extract the capital, you just shift the capital on the other side and it will be asset minus liabilities. So this means that we don't need to update this particular balance. We will just extract the trial balance to see how it looks. If you want to extract the reports, I'll just click on reports from here. And disclose it. If you want to search any particular reports, we can directly type it here. Otherwise, we have the most common ones marked as favorites and other ones can be seen here. So I'll just go down to this section where it says for my accountant. And since trial balance is very common report as well, I'll just mark this as favorites right here. And after that, you can see this in the favorite section. Just open this up. And here we just have to set the period that is from first of January till, let's say 31st of January. Run the report. And we have these balances. We need to check it one by one, and we need to make sure everything is good. So 6947 304 cash in hand. This is perfect. I'll just highlight this one as done. Next is Standard Chartered Bank. Standard Chartered Bank is this. Done. Next is United Bank Limited. So United Bank Limited is this. Next is account receivable, which is of 195,000, accumulated depreciation of machinery, which is 58,000. Motor vehicles accumulated depreciation is 45,000. Building at cost 750,000. Machinery is 290,000. Motor vehicles is 380,000. Accounts payable is 130,000 on the creditor's side. 53,000 is for accrued expenses, and under services, it says hundred 95,000. And also under miscellaneous expenses, it says 130,000. Now, these are the other sides. When we put the account receivable, it debits the account receivable, but it credits this particular account right here. And same goes for accounts payable. When we credit the accounts payable, it debits this particular amount. So what we can do is just open this to see how the transaction is booked. So for example, first of all, I want to clear the services, just open this up. And this is book against different invoices. So if we open the invoice, we can see that this opening balance against the customer is booked as an invoice. We'll just close both of these infos, and it goes under a product or service, but it should go in the opening balance equity. That is opening balance equity, this ledger right here. So we need to shift the balance. That means, this one is credit. I need to debit the services and credit the opening balance equity. Now, we can do this from journal entry as well if we like. But otherwise, what we can do is just create a new item. We can do that as well. And like this is created as services, I can create it as opening balance equity, let's say, or we can simply change this to from income account to opening balance equity account. Let's try that. Opening balance equity. So if we save close, add a service name, okay? Service, Save and Close. So basically we are unable to change the name. The other thing which we can do is just simply pass a journal entry. So instead, let's make it simple. I'll just debit the service, credit the other miscellaneous expenses because I want to reduce the balance from there as well. And then I want to shift this to equity. So actually, I'll just take the screenshot of this and paste it in paint so that I can easily take the reference here. And now for the journal entry, you won't find the journal entry directly in the accounting section or expenses section. Rather, what we have to do is just click on the plus sign right here, and you will get all the other details as well in the other columns. So here's the journal entry. As of first of January, I'll just write here as adjustment journal. Or let's keep this as a number. Now let's take the reference here. Services, I want to reduce the service balance and shift it to opening balance equity, right? So I'll just select services here. And instead of credit, I'll just make it debit 195,000, and I'll just write here, opening balance, adjustment. And on the other side, we have other miscellaneous expenses. So other miscellaneous expenses, just right here. And it is under debit. I'll just make it credit 130000. And let's make this opening Balance equity adjustment. Rest of the balance, we will shift it right here. So 65,000 should be on the cred side. All done. Let's click on Save and disclose out of here. Just refresh this report, run the report again. And now we can see the balances are now zero and is shifted on this specific area. Now, if we don't want to show the ledges which has zero balance, what we will do is just go in here and just make it non zero. And now, if we run the report, you can see that ledgers are eliminated from here. And now we can see this balance. Now, if we compare this with our report, if we compare this opening balance equity balance, this one, with this balance, you will notice that there is a change. There is difference. So let's calculate this difference. 4396 730 is the balance that we have in the project. I'll just minus, put a minus sign. And on the other hand, we have 40, two, three, 730. So 402 3730 on the other hand. So this is the difference of 373,000. That means we might have missed something as well. Since we have highlighted a couple of them, Stock is missing because we haven't updated the individual stock details, and that should automatically update here. So leave that. But accumulated depreciation of buildings is also not there. So first of all, we will update that and then we will compare it again. So in the accounting tab, just go to Chart of Accounts and let's click New accumulated depreciation of buildings. It goes under fixed asset, and it is contra acid, so I'll just choose this as buildings. Retail type is buildings. And the balance will be in minus, -80,000 and it's as of first of January. Just copy this, piece it in the description as well and save it. Now if we go in the reports and click on Trial Balance. We have this balance updated right here as well. So I've highlighted this, and now let's compare it again 4396 730 minus what is the balance here? 3943 730. 3943 730. 453,000 is the difference, and that is exactly of the stock. So that means we have entered all the ledgers along with the balances correctly. And now the next step is we just have to enter the individual's inventory items along with the opening balances, and that balance should automatically be updated. So just try this by yourself, and I'll see you in the next one. 12. Entering Inventory and Opening Balances in QuickBooks Online: We are going to see how we can enter the individual inventory details and put their opening balances so that as a total, it can update this balance of 453000 as a control account, and it automatically creates the ledger and put this balance here as well. So this means that it's connected to the individual inventory items details. So let's see how we can create this. From the inventory tab right at the bottom, just click on products and services. And from here, we are on the Get Started option where we can create the new items manually or we can import the items as well. So how we can import that, I'll just show you later on. But first of all, just click on Create items, and here it is. Now, one good thing about the QuickBooks online interface is not only you can enter all the inventory details here, but you can also add the image of the product as well. So this makes it very easy to identify the exact product while you were entering this or while you were checking this in records. So the first item name is Carol windscreen. I'll just copy and paste it right here. It goes under the inventory item. Now let's mention the SKU. SKU means stock keeping unit, and that is how do you want to mention this? Is it in pieces, liters, meters, cages, whatever? So this is a big item, and it's in pieces or each, you can say. The category, I'll just choose it as ad new. Just click here, and the category name, I'll just name it as car parts. And this is the main category, so I'll not just highlight this. Click Save Inventory info, the initial quantity on hand. This is a compulsory field. The quantity is 470. So I'll just write here 470. As of date is first of January, since this is an opening balance, reorder point, I'll not set it right here. Inventory asset account is already selected description in the seals. So we need the same specifications to be mentioned whenever we are entering any seals or a purchase, income account is already selected to sales of a product income, and cost of goods sold is also selected. So in short, we have the 470 initial quantity. And the cost is 400. I'll just mention it here here. So let's click on CV and close after that. And now we have three more products remaining. But first, we have to make sure that whether it shows this balance as a ledger in chart of accounts or not. So I'll just go to the accounting and click on Chart of Accounts. And as soon as we have entered this, as you can see, the inventory asset is there with 188,000 as a balance that exactly matches this one. So that's great. Just click Inventory and products and services to add more. Let's click on New. It's an inventory item. And the next item is Civic headlights it goes under inventory item, SKU is each. It goes under car parts. Initial quantity on hand is 950 as of first of January, inventory asset account is selected to inventory asset. Description for sealed in purchase, I'll just copy this from the name and paste it in both of these areas. Income and expense account is already selected, we have to mention the purchase cost. So the rate, I'll mention it here. And save a new so that we can keep on this screen and just quickly enter the rest of two. Pre use wheel cups. Copy that. Piece do it right here. It goes under inventory item. It's each. Category is car parts. Quantity on hand is 250. As of first of January, it goes under inventory asset. And here in the sales and purchase description, I'll just copy and paste that. And the rate, I'll mention it as 50 goes under cost of goods sold all Good. Click on Save and New. And the last one we have is pre us rear lights. Just space that inventory item. It's each. Now, if you want to update the picture as well, it's very simple. Let's find an image for this. So for example, this is the image I like. I'll just save this, save it to the desktop, or you can download any kind of specifications like this. Let's say this is the image style that I want. And after that, just click on Add Image. Choose the location. This is the item, and it's shown like this. Category is car parts. Quantity on hand is 550. It's first of January, inventory asset account. Description, I'll just copy and paste this as description and in the sales description as well. So in the income and expense account, it's all selected. Just click on Save and Close. And this is all done. Now let's go to the accounting and click on Chart of Accounts. And under the inventory asset, we can see the total balance as 343,000. So there is something lagging. Okay. In the previous rear lights, the only problem is with the previous rear lights, just open this up again and click on Edit. 550 is the initial quantity, and what is the cost? I think the cost is not mentioned here. Cost is 200. I'll just mention it here. Safe go back, click on Chart of Accounts. And now we have 453,000 as balance updated. And since all the balances are now finalized, the debit and credit should match. According to our project Trial Balance. So click on reports, click on SndardRports. Let me make it full screen, click on Trial Balance, set the period, make sure it's first of January till 31st January, let's say, run the report. And on the debit and cred side, we have 4762 730, 4760 on both sides here in the project as well. Exactly matches this one. If you want to hide the zeros, we can click on customize and we want to make sure that we only show the non zeros here. So, in fact, it's not in the customized area. It's right here. So non zero. And after that, we can just run the report, and there we go. This is how you can extract the trial balance report exactly by entering all the inventory details along with the opening balances. Just try this by yourself, and I'll see you in the next one. 13. Understanding The Diffrence Between Trading and Non Trading Activities: Before moving forward to our d2d transactions, we need to understand the difference between the trading and non trading activities. Since this business is a car parts business which buys and sells car parts, so anything which is connected to this particular business will be called a trading activity. For example, if we have bought these inventory items, which is a car part, it should be a trading activity. If we are selling these car parts, it is a trading activity. If we are receiving the payments against that, we are booking the sales invoice. We are entering the sales order or we are doing some kind of returns, whether the customer returns or we return to the vendor, these all are trading activities. So what are non trading activities? Non trading activities are the indirect activities of the business that is not connected to the main course of business. Like, for example, we have purchased the furniture for our office. So this furniture is not an inventory. It's not for buying and selling purpose. It's not the main trade of us. So this is a non trading activity. Similarly, advanced rent paid for six months, security deposit paid for shop taken on rent. These are all supporting activities, but it is not directly a trade of the company. So that's why it's a non trading activity. Same goes for paint and renovation expenses, any kind of other expenses rent adjusted for advanced rent. So all of these will be dealt in a completely different way as compared to the trading activities. So this is very important before starting the transactions. And from the next video, we will start working on our project and day to day transactions because the real scenario of the company where you will implement the complete system will be exactly the same. Only the data will be in more quantity. First of all, you just entered the ledgers, leaving the debtors, creditors in stock. Then we enter the individual customers with details, vendor with details, and inventory with details as of first of January. So the client will provide you the closing balance of the last year, which you will enter as opening balance, and now the system is fully implemented. Now we will start working on the Quickbooks online as if this is our main system now, we will enter all the day to day transactions here. In this video, we just understood the difference between training activities and non trading activities. And from the next video, we will start working on our day to day activities. 14. Handling Journal Entries: Video, we are going to see how we can deal with the journal entries in QuickBooks online. As you can see, this is a non reading activity with Cs, but she is furniture by giving cash. So we will simply head over to QuickBooks online and on the top right, we can see this ad new option, and in the other section, we have the journal entry. So click here. Now, because we have entered some opening balance and some adjustments as well, it automatically gives the number according to that sequence. So two, three entries are already performed in the opening adjustments. So journal four, I'll keep this number as it is. As of first of January, and it is furniture. Let's write here furniture. But if we don't find it, no problem. We can add it directly from here. Just mentioned the name. An account type is fixed assets. Detailed type is furniture and fixture, and the original cost, I'll keep it as it is because just remember that only when you were creating the ledgers for the first time to put the opening balance only then the opening balances come here. Now that the system is implemented, we are just doing the day to day activities. We will never put an opening balance now. So in the description, just complete this name for nature. In the description, I'll just copy and paste the same name. I think it's picking up this name. So I'll just remove this, add new, and just then write for nature. Fixed asset, and that's it. Click Save. And now our new account is created. I'll just choose this. Debit is 10,000. And we can just copy and paste this description right here. And it's by giving case. So cash in hand, I'll just credit this. And we can mention any memo here as well. Save and new if you want to enter a new one, otherwise, save and close it manually from here. So it's saved right here, and this is how you can book the journal entry in QuickBooks online. Just try this by yourself, and I'll see you in the next one. 15. Dealing With Prepaid Rent and Security Deposits: Video, we are going to see how we can deal with the prepaid rent or prepaid expenses in QuickBooks online, as we can see here on fourth of January, it sees advance rate paid for six months by giving cash, and the rent was $1,000 per month. So we have already paid 6,000 in advance. But this benefit will be consumed in future. We have paid all the rent as advance, but we haven't consumed the benefit yet. So should this be charged as an expense? No. It will be charged as prepaid expenses. Prepaid means that in future, the expenses will occur, but since now it is just paid in advance, it should be recorded as a current asset. So once the January month is complete, in the end, you will notice that rent expense for January should be adjusted against the advanced rent account. So only that portion which we have consumed the benefit of should be charged as an expense, and then we will reduce the prepaid expenses from there. But in this position, we are in the start of January. That means even for the January, we haven't consumed the benefit. So all the amount should be charged as a current asset and paid against cash. Now, if you want to learn more about prepaid rent, I have attached this document with the link of this video. The resources section, so you can just download and learn all the things about prepaid expenses. I've also included some examples that will guide you better All right, let's continue with our entry. And for this, since this is a non trading activity, I'll just move to journal entry to book this. So from the top, I'll just click Plus, click on journal entry. And let's say this time, I decided that instead of five, I prefer to keep it this way. Five, 01, that means January 005. I want to follow this sequence from now on, and the date of the transaction is fourth of January. And it's against prepaid rent. I'll just try to enter this. Maybe we have this, maybe not. So if you have this in your version, that's best you can enter it in prepaid expenses. Otherwise, since I haven't configured the company, I just exit the wizard and just directly started the company in QuickBooks online. So that's why it didn't created much accounts. So click on Add New. And I'll just write here prepaid rent, prepaid rent. It goes under other current assets, and in the detailed type, I'll just use prepaid expenses, and that's it. Click Save. In the debit, we have 6,000. Just enter that. And in the description, I'll just copy and paste this same description, press tab, go on the second line, and then we have it paid by cash. So cash in hand is credit, and all set amount it picked up automatically, description is already mentioned, so save and new and now from the next journal entry, you will notice that it will now follow this pattern, and it automatically followed this sequence. And the next entry is of four GNE as well, and it says security deposit paid by cash for shop taken on rent. We have taken the shop on rent and we have paid a security deposit. So I'll just try to find security deposit. We don't have this. So I'll click on Add New just right here, security deposit. Account type is other assets. Just remember that this is neither a current asset nor a fixed asset. Current asset means that if this is for the period of less than one year, it should be a current asset. And if it is in cash form, which is easily to be received, then it is a current asset, and the fixed asset is which is contributing in any way for the administrative purpose. For example, you bought a furniture, motor vehicles or anything related to the business, any kind of fixture, furniture, machinery. That should be a fixed asset because it is indirectly supporting the business. This thing is neither a fixed asset nor a current asset. Neither it's less than one year, neither it's supporting in any kind of activities. It's just standing with the owner. Until you leave the premises. This could be ten years, 15 years, whatever. So the security deposit should be categorized as other assets. I'll just use other assets here and just use security deposits here. Click Save. We can also put the same thing in description. We don't need to put any opening balance because opening balance is only recorded for the first time when first lurchers were created just to enter the opening balance. So 18,000 description, I'll just copy and paste that. And it's paid against cash in hand. So cash in hand, I'll credit, rest all okay. We don't need to enter any memo because we have already mentioned this in description, save and new. And that's how we book the prepaid rent and the security deposit entries in QoI books online. Just try it until this point, and I'll see you in the next one. 16. How to Locate Existing Journal Entries: Before moving forward, we need to check that we have entered a couple of journal entries. So if you want to locate all of these journal entries where they are going, how we can find this, let's see. So from the dashboard or from anywhere, basically what we can do is two things. If you are in the journal entry, let's say, and you just want review the recent transactions. So just go to this left hand corner at the top and just click on this sign, click on recent journal entries, and it will show you a summary of a couple of journal entries here. So let's say if you want to move to the most recent one, which is JV 006, I can just simply locate it here and click Open, and it will display it for you. But what if I want to see all the journal entries together in a report? For that, I'll just click on the reports and click on standard reports. And from here, either we can locate it at the bottom or otherwise, I can just simply write journal here and it will show us the journal entry. But if we want to see it in the detail in a group, so for my accountant is the area where you will extract this. I'll just click on Journal. And let's specify the write period. That is first of January. Till date. And these are all the journal entries that we have entered so far, including the opening balances, as you can see. So opening balances and all the transactions during the period after implementing the system are all shown here. So whether you want to sort this change this, customize this, you can locate all of these entries and you can change it in real time, for example, if you want. For example, if you find the problem in this journal entry, you can just simply click on this and it should take you to the original journal entry. So that's how we locate all the general entries in QuickBooks online. Est try this by yourself, and I'll see you in the next one. 17. Creating and Customizing Reports: Video, we are going to see how we can extract any particular report, make the customization, and then save that customization for future reference so that whenever I open the new report, it should be customized like I did. It saves you a lot of time. So for example, I want to again extract this journal report. I click on reports, click on standard reports, and let's instead say that I extract trial Ben's report. By default, the settings is that you show it all. But since I have made the settings to non zeros, that only the ledges with some balance should show up, but the default settings is changed. So I've changed this from active or all rows to non zeros. I can also make some further customizations. Let's say, every time it should extract first of January till 31st of January. It should be on accrual basis, and I can customize it further, as well. Let's say I want to divide this by thousands. So if I have all the figures which is very long, I can divide by thousands, and it should be without cents totals only headed footage should be customized in a certain way. Let's say we run the report, and this is how it shows up without three zeros. The zeros are common. So after that, you want to save this customization so that I don't have to do this over and over again. So on our right, we have this safe customization option, and we can write here trial balance. Let's say special report. This is my special report, and I want to add this to a specific group, which is my special Reports. New group name is my Special Reports and my special reports. Add it and save it. After that, whenever you want to locate this, we have the reports, and there we can see different sections. So in the custom reports, I have this special report right here that whenever I open, it is set to all these specifications from first of January to 31st January is all set. It should be non zeros. All the customizations are set, zeros are common, and that's how we can save a lot of time in customizing the reports. So not only for this, you can try it for other reports as well. So just try this by yourself, and I'll see you in the next. 18. Dealing With Repair and Maintenance Expenses: Video, we are going to see how we can deal with any kind of repair and maintenance expenses in QuickBooks. As you can see here, on sixth of January, it says paint and renovation expenses of shop taken on rent. Let's say that owner has already given you the shop, but since you want to customize the shop according to certain brand colors, and you want to paint and renovate the shop according to your taste. So these are some of the expenses that you incurred. So let's see how we can book this. From the dashboard, just click on this plus sign at the top, and from here, just choose the expenses. Just click on the expenses here. So basically, it's your choice to either use the general entry for it or use the expense option. You can access the expense from here as well, or otherwise, you can just click on this expenses section right here and click on Expense Transactions. It will take you to the specific section, and then you click on New transaction. Click on Expense. And from here, it's asking you, who did you pay. Let's say that this is not our regular vendor, so I don't want to book a pay, and in QuickBooks online, you have this choice to leave the pay as it is and still be able to enter the transaction. So from the payment account, I'll just choose cash in hand. The payment date is sixth of January. Payment method, it's not mentioned here how these expenses are made, but I am just supposing that all the painted and renovation are usually made on cash. So I'll just choose cashier. Reference number, you can put any reference number. You can add some tags, and then we will just simply write repair and maintenance. And we have this account already repairs and maintenance. I'll just put it here. In the description, I'll just copy and paste this expense right here. And total amount is 1,500. You can mention any kind of memo if you want, and after that, you can save this. So let's try to save close and this is how you can book the expenses via expense option in QuikusOline. Now, when it comes to journal entry, it's very simple, click on the plus sign at the corner and click on Journal Entry. And here we simply enter the repair and maintenance expense as debit cash in hand is credit. We put the description and all good. So it's your choice, whatever you want to use for this. Just try this by yourself, and I'll see you in the next. 19. Receiving Payment Against Customer Balances: This video, we are going to see how we can receive the payment from customers against their opening balance or any pending invoices. As you can see here, on seventh of January, it says, Mr. Victor paid all previous balance by giving us cash. We haven't made any sale during the month, but this 65,000 is against the opening balance that he had when we entered the balances first. So he's being generous and clearing all the money. That's great. So we have two choices. Either we can go in the sales and you can access the receive payments option from here, or we can click on the customer section, click on the customers here, and then you can receive the payment. So for example, we are receiving the payment from Mr. Victor. So I'll just select this. Click next to it, click receive payments. And here we will choose the customer again. It's Victor. Now, as soon as I select this customer, you will notice, I'll just crowse this. I want to record the payment. Payment date is seventh of January. Reference number, we can put any reference number here if you have any receipt number. Payment method is cash. Deposit two cash in hand. I have all the deposit two accounts right here, and you will notice that as soon as I select this customer, it is showing the pending invoice or the opening balance amount right here. So if you want to clear all this balance, I just click on this invoice right here and it will automatically show up here that this whole balance is being cleared. But otherwise, if you want to settle any partial amount, let's say, right now, you're just receiving 20,000, so you can write 20,000 here. But in this case, we're receiving the full amount, so I'll just uncheck it once and check it again, and that's how we can receive the payment. Now I'll just record and close. Just simply record. And let's say that if you want to check the journal entry effect of it, we just click on more here and click on transaction journal. We don't need to close it, then go from report section to access the journal entry. Just directly click here. It might process a little bit depending on your system speed or Internet speed, basically. So this is the journal entry effect where the account receivable is credit since we have received the cash cash is debit and receivable is reduced, so it's credit. Again, if we go to any receive area, we can receive the payment from here as well. Like I said, there are two methods. Either we can go in the customers, click on the customers and then receive the payment next to it, or otherwise, just click directly on the Ad New and click on receive payments. That should take you to the same area. You just choose the customer, and then you should be able to see that. If you want to locate the most recent transaction while you are in the receive payments, you can just click on this recent transactions, which is located at the top left and just click here, you see all the transactions here. So until now we have booked only one, just click here, cancel this one to exit. And we have landed to the same area. So for example, if you want to print, you want to delete this, void this, or audit history, you can do whatever you want. So that's how we can receive the customer payments in QuickBooks online. Just try this by yourself, and I'll see you in the next. 20. Entering Credit Purchase Invoices and Resolving Inventory Errors: This video, we are going to see how we can enter a credit purchase invoice in QuickBooks online. As you can see here, on eight of January, it says purchase following items from Mr. Daniel. So whenever the vendor name is mentioned and it's not mentioned that either we are purchasing it from cash, it is by default considered that it is on credit because 90% of the world's business is run on credit, and we purchase different items from them, and then we pay it in 30 days. So these are the items. Let's see how we can book this. First of all, if you are in any specific area, you just head over to the vendor section or the expenses section here, and you can book a bill, or otherwise, you can just directly click on the plus sign at the top right. And here we have the customer vendor team and other section. From here, we can access the bills as well. So this is the shortcut to all the areas. After that, we are purchasing it from Daniel, right? I'll just choose Daniel here. Terms, net 15 days. That means net 15 days means the payment is due to be paid in 15 days. We have the 30 days and 60 days as well. But since we don't know when we are paying for it, we might be paying very soon. So in this project, I'll just click on due on receipt. That means whenever we entered this purchase invoice, it's due on the same date. In fact, let's keep it net 15 days, so it will automatically change the due rate for you. Bill number, we can mention any bill number if we have one. I'm just taking in random number here. Stored, we can specify and create new stores here. Tags, I'll just ignore this. I'll just stick to the basic details so that we can easily understand how the system works. So Carla windscreen. Is the first item. Now, as you can see that the first one is for the categories. Categories means all the expenses can be directly mentioned here. I'll just minimize this and open the item details field, and here we can enter all the inventory items that we are purchasing. So we're purchasing Carula windscreen. Description is mentioned. Quantity is what? Quantity is 20. Rate is 400. This makes the total to 8,000. Press tab, go on the second line. And here we have civic headlights. Select civic headlights here. Quantity is 30. And if you notice, we also have the quantity on hand mentioned right here. So that's awesome. It is showing you the summary of the quantity on hand for each item just by hoving over it. So 30 is the quantity. Read is already mentioned, but just confirm it once from the project because the ads might be changing in future as well. So just confirm that you have the right rate. Press tab, go on the second line, third line, and previous veal cups. Previous veil cups. Quantity is 50, rate is 50. Quantity is 50, rate is 50. This makes the rule two, 2,500, go on the next line. And on the next line, we have preus filters. Previous filters. This one is not there, so it might be a new item. We don't need to go back to a separate area. We can just directly add a new item from here. And here we just write the name, which is this preus filters Paste it here, you can add any image. It's a inventory item. SKU means storekeeping unit. So we buy and sell these items in each category I'll sell car parts. Quantity on hand, there's no initial quantity on hand. We are just booking this in the mid of the month after the implementation, so there's no quantity and opening balances. Description, I'll just copy this same name and paste it in both the areas so we don't need to enter them separately. And we are purchasing this for the first time, so I believe all okay. Ledgers are all selected, save and close. Initial quantity, we don't have the initial quantity. I'll just mention the date here. Let's say seventh of January. Save and Close. In this case, it should be zero. I'll just mention zero here just to fill the field. And now we can exit out of here, and quantity is not there, as you can see. 70 is the quantity that we want to purchase. And the rate is 50. This makes a total to 3,500. So altogether, if you check 8,000 4,500, 20530500, make sure everything is good and the total are correct. You can put any memo if you want. Otherwise, you can just save this. I don't want to schedule a payment. I want to just save this, or you can click on Save and New from here. Just click O on this arrow sign and then click on Save and New. Select a deed that's after the deed, you started tracking this inventory item. So I guess I have to mention this on eighth of January, Save and new. I'll just make it to you on receipt. Let's make it sixth of January. Or seventh of January. I think there's something wrong with the item. So in that case, what we'll do is we'll just delete only this last item and try to save this save and new just to keep the record of it, disclose it out of here. Close this bill, and I'll go to the inventory and click on products and services. And this is Prius filters. Just go in here, open this. We can click on Edit next to it, and I think we need to change this date to something else. Okay. The date sequence is a little bit different, so that's why here is the confusion. I'll just make this one as seventh of January. Save it. Initial cost, I'll just put zero here or maybe just $50. I'll put it right here. And save it. Now, it's good that we are seeing all of these errors so that you can understand the software in a better way. Now, how will we access the bill again? I'll just click on this expenses section, click on the bills here. And then we click on Add a Bill. Or we can click on the sign and click on Bill directly from here. Now, we are not entering a new bill. We will just access the recent one. Click on the top, which is showing the recent bills. This is the recent bill. I'll just make the changes here. The last item was previous filters. And the quantity we are purchasing is 70. And now this total is all correct. Save and new. And now our bill is saved. Whenever we want to access this again, we will just click it from here. And if you want to see the journal entry effect of it, just click on smore button and click on Transaction Journal from here. It will take you directly through the journal entry effect. And here it is. Since we have purchased the inventory on credit, all the inventory is increasing, so all of these are debits and it's showing separately for each items. So debit is inventory. Credit is account payable since the liability is increasing, and that's how we book a credit purchase invoice. In QuickBooks online, just try this by yourself, and I'll see you in the next one. 21. Entering Credit Purchase Invoice With New Vendor: Video, we are going to see how we can enter a new purchase invoice from a new vendor using the same method that we have done earlier as well. Only the vendor needs to be added. So in our project, as you can see, on ninth of January, it says purchase of falling items from Mr. Matthew, which is a new vendor, and these are some items that is purchased from them. So from QuickBooks, just click on the top corner and click on ADN. Click on the Bill, choose a vendor. But since this is a new vendor, I'll just click on ADNW Company name and all the other fields, that's pretty basic. You can fill it later on. But the compulsory field is the one which is with the steric. So this is Mr. Matthew. I'll just paste the name Matthew here and address and notes and all the other details, I'll just skip through it and click Save. Now the new vendor is add. Bill date is ninth of January. Due date, I'll just keep it as it is and click on Dun receipt. Bill number, I'll just give a random number. And just make sure that you have expanded this item details and not the category details. In the category details, we can just mention what kind of services that we are purchasing, which is expensed out directly. But in the item details, we can specify what we are purchasing as items. So Carla windscreen, I'll just copy and paste here. Choose this one. Quantity is 50 and rate is 400. 5,400, press tab, go on the second line. Next one we have is civic headlights. So civic headlights. Quantity is 30, read is 150. This makes the total to 4,500. Next one we have is previous filters. Quantity is 100, read is 50. And all set, just make sure the totals are correct before saving this. And if all looks good, click on Save and New or click on Save. And now, if you want to check the journal entry report, just click on More and click on transaction Journal from here. So this is the entry, and that's how you can book the purchase invoice from the new vendor. Justry this by yourself, and I'll see you in the next one. 22. Entering Cash Sales In QuickBooks Online: Video, we are going to see how we can record the cash sales of any inventory item because as we know that even in the businesses which runs on credit, which buys and sells on credit, still there are some walk in customers that will still purchase from you in cash. So these are just one time customers or walk in customers. We will not record a customer for them. So how will we deal with this? Because at the same time of sales, we are receiving the money as well. So let's see how we can deal. So let's see how we can book this. First of all, from the dashboard or from any main section, you just click on the plus sign at the top, which says add new. And in the customer section, we have all the functionality related to customers. We have invoice receive payments, but there is a function which is combination of both. Since we are selling the items and receiving the payment at the same time, this is called sales receipt. So I'll just choose this sales receipt. Just mention the customer. I need to add a new one. And that can be called a walk in customer or the cash customer. So cash customers, all together, we will book and rest all, I'll leave it as it is. Click on safe. And the transaction deed is of 11 January. Sales receipt is 11 January. Payment method is cash. Reference number, we can put any reference number for the sake of example and products and services. Okay, we are selling Carola windscreen. Description is this quantity is one and the t is 560. So I'll put 560 here and all good, if you notice that we have this amount in total, and the amount received is 560. So that means at the same time when we are selling the item, we are receiving the money as well. So message displayed on sales receipt, you can mention any message for your customers. Thank you for your business or something like that. Displayed on the statement, you can mention that, and you can also add some attachments. I'll just click on save and after that, if you want to see the journal entry effect of it, click on More and click on Transaction Journal. Now, there are four entries involved here. Cash is received, and sales is made. So normally what we do is whenever we do a cash sales, cash is debit because asset is increasing and sales is credit because income is increasing. But at the same time, it will automatically reduce the inventory from the stock of Karula Winskin and then charge it as cost of goods sold. So automatically, the profit and loss will compile, which will detect that seal is 560400 is the cost of sales. That means 160 is the profit. So the same area. So the same area, it will reduce it from the inventory asset and charge it to cost of sales. Now, let's click back on the sales receipt. You can enter directly back to the original seal receipt tamped it. And then if you want to print or preview the print, just click on the bottom area and click on print or Preview. And this is how the template looks in QuickBooks online for the sales receipt. If you want to download this, just click on Download from here, and it will be immediately downloaded and looks something like this. So this is how we can book the cash sales in QuickBooks online. Just try this by yourself, and I'll see you in the next one. 23. Dealing With Customer Advances: Video, we are going to see how we can deal with the customer advances in QuickBooks online, as you can see here, on 13th of January, it says, receive cash in advance from Albert, and the total amount is 5,000. Now, why this customer is paying us $5,000 in advance, that's against a bigger order on the same date. On 13th of January, we have received the sealed order from Mr. Albert of nearly 10,000. So it is our policy to receive something in advance as a security so that we can start working on their order or we can start arranging the items or whatever. So we take the advance from customer. Now, this advance is a liability on us. That means in future, either we have to supply them the goods or if it is not possible for some reason, we have to return the money back. So this is what you have received. So the amount that you have received right now is a liability. Let's see how we can record this. I'll just click on this plus sign which says Ad new, and we will use the bank deposit area for this. Just go in here, choose the account. We are receiving the cash, and the transaction date is 13th of January. I'll leave all of this as it is, and we are receiving this from Albert, and I'll choose the account of customer advances, which would be recorded as liability. So click on Add New right here, customer advances. I'll choose other current liabilities here, and I'll again choose other current liabilities here as well. All done. In the description, I'll just copy and paste the same name. Click Save. Description, I'll just mention customer advances, payment method cash, reference number, we can put any reference number you like. And the amount we are receiving is 5,000. After that, I'll just click on Save and Close or Save and New. If you want to access this transaction again, just click on the recent transaction from the left hand corner. And here it is. Just click here. And now, if you want to check the journal entry effect, just click on more and click on Transaction Journal. So now the transaction is customer advances credit as a liability, and cash is debit. Perfect treatment. That's how you book. The customer advances in QuickBooks online. Just try this by yourself, and I'll see you in the next one. 24. Handling Sales Orders in QuickBooks Online: This video, we are going to see how we can record a sales order in QuickBooks online, and it's very simple. Just click on the right hand corner at the top, which says at new. And under the customer section, we have the sales order right here. Click here. Now, once we are in here, you will see and notice that all of the templates look exactly the same. Only we need to enter the customer name and rest all the template is same. So order number 25, I'll just mention the order number 25. Date of transaction is 13th of January. I'll just write here 13th of January. Make sure that you have selected the right date, according to the date sequence, which is DD, M YY, date, first, then month, then year. Customers Albert, billed to and shipped to address. That means the customer head office might be at some different place, and the items that he want to be shipped is in their warehouse. So ship to address can be mentioned here. Let's mention the products now. First item is Corolla windscreen. SKU means storekeeping unit is set to each. Quantity that the customer has ordered is 12. Right now, the quantity on sale order is Nill. Red is 560, and this makes the total to 6720 press tab. Next one we have is civic headlights. Civic headlights. Quantity is ten, read is 210. This makes a rule 220100. And the third one we have is prius filters, preus filters. Quantity here is five, rate is 70. So 570 This makes a rule 2350. So overall, just confirm the amount in total once before saving. And if everything looks good, you can just save it right here. Now, I don't need to check any kind of journal entry because this is a non financial transaction. That means customer has just ordered the items and we haven't supplied anything yet. So it doesn't affect the account. It's just an order, and it will only affect the accounts once the order is delivered. So no need to check the journal entry. Click Save. So let's save it, or we can click on this erosign and click on Save and Close. So that's how we can book the sales order in QuickBooks online. Just try this by yourself, and I'll see you in the next one. 25. How to Record Credit Sales Invoice: This video, we are going to see how we can book a direct sales invoice in QuickBooks online as we can see. On 14th of January, it says sales made of falling items to Mr. Justin. Now, Mr. Justin hasn't ordered anything in the past, but they might be a regular customer. And for the regular customer, it's not compulsory to follow the complete sales cycle, first sales quotation, then sales order. Already know the order, and maybe we regularly deliver them the same items after every month. So that's why it's a direct sales invoice. And it's on credit because it says to Mr. Justin, it doesn't say on cash. So from the main section, we click on This plus icon, which says Add New. Or otherwise, if you want to access from this area, you can do that as well. Just go to the Sales section and click on invoices. And under the invoices, you can see all of the invoices that has just been entered until now. So we want to create a new one, right. So click on Create Invoice, or otherwise, like I said, you can click on This plus icon right here and just simply click on Invoice from here. Now, let's add the customer. And we are now in invoice. Let's go to the customer and add a new customer. This is an existing customer named Justin. We can mention other details about this customer bill to invoice number. I'll just stick to this original one. Tterms is net 30. That means this invoice is by default due in 30 days. Invoice date is 14th of January. Just make sure in the calendar, just open that and make sure the right date is selected. Due date is automatically set according to the terms and conditions. And tags and store, I'll just keep it as it is. And now let's enter the items. The first item is Carla windscreen, Carla windscreen. Quantity is 25 rate is 560. Quantity is 25 rate is 560. This makes the tal 214000. Next one we have is civic headlights. So civic headlights. Quantity is 15, rate is 210. This makes the total 23150. Next one we have is previous filters. The quantity here is ten, and the read is 70. The total of which is 700. So overall, just check the total once before saving and click on this one, and click on Save. And even if you want to book some other changes like you want to mention all of these details, note to the customer internal customer notes, memo on the statements and all the other further details, you can add this here. And after that, just click on more actions and if you want to check the journal entry report, you can click on Transaction Journal. Here is the transaction journal. Now, it looks quite detailed, but it's very simple. Actually, these are one, two, and three items involved. So for each separate item, it books the sales separately, cost of goods separately and inventory separately. But let me just explain to you. Normally, what we enter is whenever we make credit sales, we enter account receivable to sales. So receivable to sales is this, and it's just separate for all the items. At the same time, not only it will book the sales, it will reduce the inventory from the stock and discharge this as cost of goods sold. So this is now charged as cost. So 14,000 -10,000, it will automatically determine the profit. So the inventory at cost is now our cost of sales, and that's how we book the credit sales invoice. In QuibsOline, just try this by yourself, and I'll see you in the next one. 26. Dealing With Purchase Order In QuickBooks: Video, we are going to see how we can enter a purchase order in QuickBooks online. So here is the entry of 17 January. Reese purchase order to Mr. Sian, Order number is 49. Now we are using the new system. That means by default, the number that Quickbooks will recommend is one, so we have to manually change that, and after that, it will follow it automatically. So to enter the purchase order, just go to the top right corner and click on Add New. And here we can see the vended section right here. So all the vendor related functionality will be found here. Just click on purchase order from here and let's choose a vendor. Vendor name is Mr. Can that already exist. I'll just mention that. And but Cheese order date is 17th of January 17 of January. But whenever you change the date, just make sure once the right date is selected because sometimes the date sequence might be different. 17 January is selected. Okay, Shipya you can mention it the mode of the shipment, and tags, I'll just ignore all of these things. Store and tags, I won't be using it now. And there are two sections, but category is related to expenses directly. We will just go to the items, and the first item name is Carola windscreen. Quantity is 25 and rate is 400. Press tab, go on the second line. On the second line, we have civic headlights. Quantity is 30 and rate is 150. And the last one we have is previous veal cups, and here the quantity is 20 and rate is 50. So this makes it rule 2000. Just confirm once the totals are correct, and when you check it all, you can also add some message to the vendor and memo if you'd like to. And otherwise, we can just save this. Click on Save and we can even save in close because we don't need to check any kind of journal entry effect. Since this is a purchase order, that means we have just ordered items through the vendor. He doesn't supply us anything, neither we have paid anything yet. So this doesn't affect accounts. This is just for the documentation purposes of order. So anything which doesn't affect accounts, we don't need to check the journal entry of that. So save in close, and that's how we enter the purchase order in QuickBooks online, try this by yourself, and I'll see you in the next. 27. Writing Off Bad Debts in QuickBooks Online: Video, we are going to see how we can treat the bad debts in QuickBooks online. The transaction is of 17 January Wiss, Mr. Walter didn't pay the due amount thus treated as bad debts. So customer had some pending balances against the invoices that we are unable to receive. Maybe the customer went bankrupt or ran away. So, we want to charge this as an expense and close this invoice and close the customer balances as well. Remember that bad debt can be treated from the journal entry as well, but that will not close the open invoices for Mr. Walter. So that is our main concern. That's why the procedure is a little bit complex, but it will do the job. Now, because in QuickBooks online, there is no direct treatment to enter the bad debts. So what we will do is we have to work around. I'll just go to the accounting tab and click on Chart of Accounts to make sure, first of all, we have the bad debt account. So just write bad debts in the filters and we don't have it No, we don't have it. I'll just scroll down to check it once, and we don't have it in our list. So what I'll do is I'll just create a new one from the top right corner. Click on New, name the account as Badits Account type, I'll select it as expenses, and it's a Bdt detailed type, I'll set it to Bdt. In the description, I'll just copy and paste the same name and tick safe. And after that, we need to associate this to a service. So for that, we will click on the inventory and click on products and services. Now, I know it sounds different, but we will create a new item, and this will be a service. Just because we are going to create the service item, that will be reflected as a credit memo, and that's how you can deal with the bandits. So I'll explain to you in a while. So bad debts, I'll just write here. Item type service SKU I'll just leave all things as it is in the income account. It will be connected to bad debts. So after that, just save and close. And now what we can do is just click on the sales, and either you can search for invoices or otherwise, just click on the plus sign at the top and just select a credit memo in the customer section. I'll select Mr. Walter here, Mr. Walter. And the Deed of the document is 17th of January. Credit memo number is mentioned. You can also mention credit note here. And now here we will select the products or service as bad dates. I'll just write here bad dates as well. Or otherwise, what we can do is just copy this whole narration right here. Let's leave quantity and read as it is, and just directly mention the amount, which is 17,800, how it went to 17,800. Walter has some balance at the starting, which is 15,000, and we have sold something to Mr. Walter as well during the month. So 15,000 plus 2,800 is 17,800. So 17,800 and scroll down a little bit where we can mention the message displayed on the credit memo if you want to write any kind of description message displayed on the statement, you can mention all of this. Now, just save this, or you can just click on this arrow sign and click on Save and Close. If we now go to the customer section and click on the customer and select that specific customer, Walter, as we can see that we had an opening balance. As we can see, it had an opening balance of 15,000 and during the year transaction is 2,800. So the unapplied credit memo is 17,800. The overall balance of the customer is now zero. But as you can see, it still shows unapplied overdue and overdue. So what we are going to do is just click on the receive payments and just choose water here. And as you can see, it automatically identified all the associated transaction that is invoice during the period, invoice at the start of the month, which is the opening balance and the credit memo. It is all checked, and the total amount is zero. Amount to be received is zero because we are not receiving any kind of payment. This is just to close the invoices against each other. And after that, when we record and close, you will notice that still it's showing zero, but on the status, we can see applied closes and paid, and it's not showing anything like overdue or any kind of open balance summary. On the top, even, you will notice that the summary in the opening balance is zero and overdue payment is also zero. So that's how we not only settle but properly close the account of Mr. Walter. So now we want to see the results and click on reports and click on standard reports. And just go to sales and customer section, or you can go to who owes you. I want to extract account receivable aging summary. Just go in here, and we can see now the customer is not shown. It's totally closed, and it's not showing anything in this here aging summary. And also we can check the reports and click on standard reports and extract the profit loss account just to make sure how the bad debts reflects in the accounts. And as we can see, in the expenses section, we have the bad debts recorded right here that if you want to see or drill down, just click on this figure, and you should be able to see the details about it. Once you click it again, it will take you to the original credit memo from where you entered this bad debt. So that's how we can deal with this bad debts transaction in QuickBooks. Just try this by yourself, and I'll see you in the next one. 28. Entering Purchase of Services: Video, we are going to see how we can enter any kind of purchase of services in QuickBooks. On 18 January it says packing charges invoice received from Mr. Anthony. Now, we are dealing with all the items that is fragile and that requires special handling and packing. So we don't have that professional packing services, or we don't have this packing unit with us. So we are taking the expert services from Mr. Anthony, and they will pack these items for us. Let's see how we can deal with this in Quickbooks. First of all, on the top right corner, we have this Add New button. In the vendor section, we click on Bills and from here, we will choose Anthony, but since Anthony is a new vendor, just click on Add new. Company name, all the other fields are not compulsory. It doesn't involve steric. So this is pretty self explanatory. You can enter it later on. I'll just write Anthony here and rest all the details should be as it is. Click on Save. Terms and conditions you can mention any terms and conditions. I'll just mention it due on receipt. Transaction date is 18th of January. Bill number, let's specify any bill number. Here comes the most important part. We have two sections. One is category details, one is item details. Just remember that any kind of expense that is directly entered in the bill should be in the category details because this is directly linked to expenses and all the ledgers that you can directly enter here. But since in the item details as well, we can enter not just the product, but any kind of service as well. And since this kind of service is a regular service by us, so we will not directly just enter the expense from the category details, rather we will book a service item here. So just drop down and click on Add new. And the item name is packing charges. This copy and paste the name here, item type is service. SKU means stockkeeping unit. There's no specific stock keeping unit here. Category, I can select any category here, but I'll leave it as it is. I don't sell this service, so I'll uncheck this. I just buy this service, and the expense account should be set to cost of sales, cost of goods sold because this packing is done directly on the materials or on the inventory that we are planning to sell. So anything which is directly applicable on those inventory items is cost of goods sold. So click on Save and Close. And in the description, we can just simply mention this description right here. In the quantity and rate, I'll just ignore these fields and directly mention the amount, which is 4,500 all set. Let's click on Save. And only after saving, you will get this more button to check the transaction journal effect. So let's click on More and click on Transaction Journal. Now, the entry should be cost of goods sold for fracking services should be debit and credit should be Mr. Anthony as a payable. And as we can see, cost of goods sold is debit and accounts payable credit, line description, name, and all things are mentioned here. And that's how we can enter the purchase of services in QuickBooks. Just try this by yourself, and I'll see you in the next. 29. Payment Against Pending Bills: Video, we are going to see how we can pay for the services that we have purchased or how we can make any payments to the pending bills in QuickBooks. Let's see. So on 18 January, it says, paid Mr. Anthony by check of standard Chartered Bank. Who is Mr. Anthony? In the last transaction, we have booked a packing charges against this. So we booked a bill of 4,500 out of which we are paying on the same date, 3,000 to Mr. Anthony. So this is a partial payment. I'll go to QuickBooks and click on Add New at the top, and under the vendor section, I'll just click on pay Bills. And here we just select Strandard Chartered Bank. The transaction details of 18 January. And we can find the pending bill here. Mr. Anthony. Mr. Anthony is right here at the bottom. Just click here. And as soon as we click here, it will automatically consider that we are paying the full amount. As you can see, on the payment amount, it's filled with the full amount. So I need to change this. I'll just change to 3,000. And it will highlight this as partial payment, and click on this arrow sign and click on Save and Close, or otherwise, just click on Save, Save and Close. And it shows that the bulk is marked as speed. Sometimes there is a problem with the date. What you can do is just uncheck this, and it should show you the reset date. And after that, just select the date again and then select the transaction, and it should be okay. After that, if we want to check this transaction, what I can do is just click on the reports here and we can check the transaction journal manually. In this section of for my accountant, I'll just click on journal here, just specify the date, and this is the transaction of 18 paid Mr. Anthony by check. So standard chartered bank balance is reducing its credit and accounts payable is also reducing because the liability is being settled, it's debit. So that's how we can deal with the payment for any kind of bills in QuickBooks, try this by yourself, and I'll see you in the next one. 30. Converting Sales Order to Sales Invoice in QB Online: This video, we are going to see how we can convert the sales order to sales invoice in a very simple way. On 19, January it says, send all items to Mr. Albert against previous sales order. And order number is 25. Now we will just see a simplest method of converting the seals order to Seals invoice. What we need to do is just click on the seals on the left hand corner and click on Sales Order. Just remember to go in the SEL section and click on Sales Order, and it will land you to this area where all the pending orders are here. So order numbers 25, this is what I want to convert. And under the actions, next to it is this arrow sign. I'll just click this and it says convert to invoice. I'll just click, I'll just click. As you can see, invoice is created right away. So click on View. And since this was all order should be converted, it automatically saved the invoice altogether. If we refresh this and go against the sales order, you will see that the payment status is invoiced and order status open. Fulfillment status is still pending fulfillment. So that's how we convert the sales order to sealed invoice. It's very simple to do. Just try this by yourself, and I'll see you in the next one. 31. Settle Customer Advances Against Invoice: Before continuing to further transactions, we want to make some correction. In the previous transaction, we have received the cash from customer as an advance against the sales order number. And in the most recent transaction, we have converted this order to invoice. So at the time of invoice, the customer advances should be deducted. So only we have to charge the remaining amount. That means let's say the customer total bill is 10,000 and against that, he has already paid us 5,000, so that 5,000 should be reflected in an invoice. So we haven't done that. So I'll just show you how we can correct this one as well and how you can do the correct treatment of customer advances because we will do other changes as well. So first of all, we need to check the status of customer advances. Just click on accounting and click on Chart of Accounts. And here, if we scroll down and check the customer advances in the liabilities, we can still see that 5,000 is still not settled yet. So this entry shouldn't be done in this way. I'll just double click although it's accounting wise perfect, but it will not allow us to settle this in the invoice. Why? Because in the invoice, you are not able to enter the category wise expenses, only items or service is allowed. So I'll just delete this, yes. So because it was unable to show in invoice, service, we have deleted this although it was accounting wise correct. So the fresh procedure is, first of all, you will create the chart of accounts like I have already did. I just delete the balance. Let's suppose it a fresh account of customer advances as a liability. And after that, what will you do is just click on inventory and products and services from the corner. And here we need to create a service item. On the top, we have the new option, click on service, name it as customer advances. I'll just straightaway go down and link the income account to customer advances as well. And just save and close. And now we will click on New and click on sales receipt from the customer section. We'll select Albert. Now, this is not exactly a sales receipt, but we have to find a way around so that we can do the proper treatment, and also it can be settled against the invoice. So sale receipt and what kind of service you're giving? I'll just mention here customer advances. So against customer advances, we are receiving this money. I'll just mention this as description. So the amount is 5,000. I'll just straightaway mention there. The date of transaction is 13th of January. All set, save and close or otherwise just save and go to more and click on transaction just to make sure that everything is okay, accounting wise. So customer advances is credit as a liability, and against that, we have received cash, but that needs to be settled in future. So after that, I'll just go to the sales and click on invoices, and let's choose this Albert invoice, click on view or Edit. And here everything is set. We just have to enter this one in minus. I just need to edit this. So click on the plus sign, add a product or service. But as we can see, we are unable to edit this just because we have converted it directly from the sales order. So click on More actions and we will delete this Delete invoice. And just go to the sales order first. And now the status is not invoice. I'll just open this one and edit this. Here, we will just write here customer advances. And this is the right treatment that whenever you book the sales order and you receive the customer advance, just make sure that you don't forget this in future while creating the invoice. So you must make sure that at the time of sales order when you receive the customer advance, you should enter this in the sales order. So although it will not reflect or affect the accounts at this spot, but whenever the seal order is directly converted to sealed invoice, it will affect. So this is the complete order against that, 5,000 is set to minus. All set, click on Save and save close. And after that, since we are in the sales order field, just click on the actions. Next to it is this arrow sign. Click on Convert to invoice, and it will directly convert it to invoice. Click on View, and this is the complete invoice. Click on more actions to check the transaction journal report. And now as we can see a big entry here, account receivable is debit, sales is credit, and customer advances is now settled, so the pending receivable is much lesser. Because debit is customer advances, and 4170, let me just show you on calculator. 4170 plus 5,000. So in total, the seal amount should be this 19170. So on the credit side, we have 6720 plus the sale is 2,100 plus the seal amount is 350, so 9170. Against that, we only have to receive 4170 because we have already received this amount as advance. And that is a perfect treatment that whenever you mention or forward an invoice to the customer, you just less the customer advance amount that is already received and then invoice the rest of the amount. That's how we can make the complete treatment of customer advances. Now, it's good that you are getting this type of knowledge that if you have made some earlier mistakes, how we can correct this and how we can find some different ways so that it can be reflected in accounts and documentation properly. So that's how you do it. Just try this by yourself, and I'll see you in the next. 32. Dealing With Purchase Returns in QuickBooks: Video, we are going to see how we can enter the purchase return in QuickBooks. As of 22nd of January, return ten Carla windscreen to Mr. Matthew. That means we are returning items back to our vendor, and this is purchase return at the rate of 400 per unit. So from Add New at the top, in the vendor section, we click on vendor credit. So this is credit memo and vendor is Mr. Matthew. Transaction date is 22nd of January. Reference number, I'll just mention any reference number. Now, there are two areas. One is category, one is items. So we want the item to be mentioned. Just open up the item details products. We are returning ten Corolla windscreens. So I'll choose coral windscreens here. Quantity is ten. Rate is 400 and the total is 4,000. A good. I'll just save this and show you the journal entry effect. Click on More and transaction journal. So it should be exactly opposite to what we do in purchase. Debit normally, debit is purchases, and credit is payables. So now payables should be reduced, payables should be debit, and inventory should be credit. So as we can see, accounts payable is debit and inventory asset is credit. Since we have returned the items, our inventory is reduced, so it's credit, and we don't need to pay that money now because we have returned that, so accounts payable is also reduced. So that's how we can book the purchase returns in QuickBooks online. Just try this by yourself, and I'll see you in the next one. 33. Dealing With Sales Returns in QuickBooks: We will see how we can deal with the sales return in QuickBooks. Transaction is of 24 and we return five Civic headlights by Mr. Albert. That means the customer is returning items back to us. Just head over to QuickBooks and click on Add New at the top. In the customer section, we have the credit memo right here. Select the customer, which is Mr. Albert. Date of transaction is 24th of January. I'll just leave all the rest of details like tags and stores as it is and products. Since the customer is returning a product, it's five civic headlights. Five. Red is 210, and this makes the total 21050. All set. We just have to save this and click on Me and check the transaction journal. Now at the time of sales, we have mentioned debit as receivable and sales is credit. So now it should be exactly the opposite of it. Receivable is credit and sales is debit because the customer has returned the items. So sales and receivable both are reduced. And also, inventory is back in stock, so it's increasing, so it's debit and cost of goods sold, which we have charged at the time of sales is also reduced from here. So that's how we can deal with sales return in Quibooks. Just try this by yourself and I'll see you in the next one. 34. Settle Customer Account Against Pending Balances: Video, we are going to see how we can settle the customer balances and receive all the payments against the pending balances or pending invoices. On 25th of January, it says, Mr. Justin cleared all his previous balance by giving us cash. So, Mr. Justin, let's scrawl up and see who is Mr. Justin. Mr. Justin is our first customer, and the pending balance was 85,000, and we might have some transaction during the year, as well. As you can see here on 14th of January, we had made some sales through Mr. Justin. Now he is being generous and clearing all his money and clearing all his previous balance. So that's a good thing, and we should immediately receive this payment. So click on Add New from the top and click on Receive payments and just choose the customer here, which is Mr. Justin. Now record or change, charge, new payment. These are some new features that we will learn about later on. But just to keep it simple, I'll just mention here, the payment date, that is 25th of January Reference number, we can mention any reference number for now. Payment method is cash and deposit to cash in hand. Now it is our choice. If you want to deposit it to a specific bank or undeposited funds, you can mention that as well. So some people prefer it undeposited funds because whenever the cash is received, it should be kept there because ultimately the businesses deposit this money in the bank at the end of the day or at the end of the week. So you can write any memo here. And he's clearing all his money. So what we will do is just from the top next to description is this checkbox. I'll just take this. What it will do is it will automatically select all the invoices, which means that we are paying for all of these. So this is the opening balance, and the payment made is this. So automatically, the fields will fill up. And as we can see amounts to applies 102850, amount received is this one. So just record this and more button is now enabled. Just click here, click on Transaction Journal. And this is our entry where we have received the cash, so cash is increasing as it is increasing, so it's debit, and against that, account receivable is reduced. So that's how we can receive and settle the customer balances in QuickBooks. Just try this by yourself, and I'll see you in the next one. 35. Converting Purchase Order to Purchase Invoice: Video, we are going to see how we can easily convert the purchase order to purchase invoice, and I'll show you the simplest method to convert that. On 26th of January, it says, Mr. Sian sent all items against previously issued purchase ordered. That means our vendor has sent all the items to us. So, click on the plus sign. So just click on Add New from the top. And here in the vendor section, I'll just click on Bills as if we don't remember that we do have a purchase order. So click on Bill. And as soon as we select this vendor, this is Mr. Sian, it might take some time depending on your Internet speed. And as soon as you select on the right hand side, it is automatically suggesting that there is an order this is pending against this vendor. So do you want to add this Add to Bill, I'll click on add A. And as we can see, if we scroll down a little bit, category, I'll just minimize this. So all the items are now died from order to invoice. Order number was 49. Bill date is 26th of January. Bill number, I'll just give a random number because there's no number given here. So all done, if you want to enter a memo or the attachment, you can do that. Otherwise, just save it. And after that, just click on more to check the transaction journal, and the entry is inventory debit and accounts payable credit. And since all the inventory items are separately mentioned, so these are three debits and accounts payable is credit. So that's how we can convert the purchase order to purchase invoice in the simplest way. Just try this by yourself, and I'll see you in the next one. 36. Dealing With Loss of Inventory: Video, we are going to see how we can deal with the loss of inventory in QuickBooks. On 27th of January, the transaction is one Carla windscreen damaged during loading and unloading. That means this is an abnormal loss. What is abnormal loss, which is not the part of normal production process? And it is clearly due to our mishandling, so it will be charged as an indirect expense. And also the quantity should be reduced from the overall stock. So what we will do is very simple treatment. On our left, we can see the inventory area where we will go to products and services. And here we get the list of the complete all products. So for example, we want to adjust this one, just select this and next to it is this edit sign and a drop down arrow. So let's click here and click on dust quantity. The adjustment date is 27th of January. Reference number, you can put any reference you like. Adjustment reason is damaged goods, but it shouldn't be charged as inventory shrinkage, because as you can see, it is charged as cost of goods sold. Basically, inventory shrinkage is the normal loss, which is part of the production process, so it is charged in cost of goods sold. But since it is our mishandling, it should be charged as loss of inventory in indirect expenses. So I'll just create a new ledger quickly. Loss of inventory. And this will go in the account type of other expenses, and the retail type is amortization. So all good. Description, I'll just copy this description right here and paste it in here. Click Save. And here it is loss of inventory as other expense. So one Gorula sin damaged, that means quantity on hand is 492. The new quantity should be 491. So it will show it here, change in quantity is minus one. We can mention any memo about the details. I'll just simply copy this narration right here and paste it in the memo. So that's it. Click on safe we just have to select a date. Adjustment date is not properly selected, so 27th of January. I'll just make it 27th of January. Sometimes there's a difference in some documents for date, month and year. As you can see here, now here, it follows month, date, and year. Even though my date sequence in QuickBooks is correct. So click on Save and we can click on Me to check the transaction journal. It should be loss of inventory debit as an expense and inventory should be credit against that. Now, just ignore these ones because these are blanks. This may be because of extra fields inserted, but the entry is exactly, like I said, inventory asset is created, and loss of inventory is charged as an expense. So this is how you can deal with loss of inventory in QuickBooks. Just try this by yourself, and I'll see you in the next. 37. Unwinding of Prepaid Expenses in QuickBooks Online: For you, we are going to see how we can unwind the prepaid expenses that we have earlier booked as it, but now it should be charged as expense. The transaction on 31st of January says rent expense for January adjusted from Advanced rent account for an amount of $1,000. That means we have already paid the rent in advance. Let me just scroll up and show you. So at the start of the month, we have paid the rent in advance, not just for this current month, but for six months in cash. So at that spot, the benefit was not yet consumed, so we debit this as advanced rent or prepaid rent, so any kind of prepayment, which is not consumed yet should not be charged as an expense, but it should be charged as asset. So same thing we have done earlier that we have debited prepaid rent and credited cash. But now the enr is complete, so we have completely utilized this for this particular month only. So that portion should be charged as expense. So debit should be rent expense with $1,000 only. And since we don't need to pay anything, we just reduce that prepayment now. So credit should be prepaid rent. Very simple treatment, just go in the top right corner and click on Ad new. And from here just in the other section, we will select journal entry. Date of transaction is 31st of January, and I'll just charge it and I'll just charge it as rent expense. I'll just write rent here. So rent in lease is already there. You can just change the name to only rent as well later on. In the debit, I'll just charge 1,000. Description, I can just simply copy and paste that. Let me just unhighlight this. Description, es copy and paste that. On the second line, we have the prepaid rent. So prepaid rent, I'll just write here. $1,000 is on credit side, and that's pretty much it. You can just mention this one in the description or memo as well. Save it and in fact, save in close because this is already a journal entry. So that's how we can deal with the prepaid rent unwinding in QuickBooks. Now, this is our last transaction for this project, which is complete. From the next video, we will see some of the important reports that we can extract to identify the overall position of the company, and these are all the critical reports like trial balance, balance sheet, and profit loss. And then we will move to some other sections as well. So just try this by yourself, and I'll see you in the next one. 38. Extracting Closing Trial Balance Report: Video, we are going to see how we can extract some of the important final reports after completion of all of these transactions in QuickBooks. So the first one we have is trial balance. And to extract any kind of report, we just click on this corner on the left hand side and click on standard reports, which will take you to this screen, and as you can see here that favorites, I have already marked the trial balance as favorites, but otherwise, you can just uncheck that, and by default, it is unchecked. So we have to go all the way down to this section which says for my accountant. And here, I'll just enable the trial balance. And we can market as favorite. So whenever we require it, we can easily access it from here. So click on Trial Balance. So what we will do is since our project is from first of January till 31st of January, but I prefer to keep it to all dates because sometimes it might happen that maybe you have entered some transaction on a wrong date. So that's why it won't show up here. So I prefer to keep it all dates and click on Run Report again, and you will see all dates here as well. So this is the trial balance, and don't worry if you find any kind of discrepancy here. Your balances might be different from mine, but what you can do is you can match each individual ledger, and that's how you match it. And sometimes it's a minor error as well. So what I'll do is I'll export this and to export this, I'll just click on Export option right here. And from here, just click on export to PDF and Save as PDF. Download it started. I will just check this, go in the folder, and here is our trial balance. So I'll attach this with the resources section of this video. So that's how you can extract the most important report after completion of all the transaction that is trial balance. Just try this by yourself, and I'll see you in the next one. 39. Individual Ledger Report: Video, we are going to see how we can extract the individual ledger details. Let's say that we are checking the trial balance, and we find a discrepancy in a couple of ledgers. So one method is, if you find, let's say, a discrepancy or a difference in cache in hand, we can just simply click on this debit balance right here. And these are the details. But here we can see that we only have one amount column and it is not separated in debit and credit. So we can customize that as well. Just go to the columns here, and if we scroll down a little bit, we have all of these option which is not selected and on the top, we have all the options that are selected. So let's choose a couple of them. Let's say that I want to enable the debit and the credit. So it's removed from here and it's added here. And now we can see that all the transactions are available in debit end credit as well. Now let's say I want to rearrange them. That means the debit end credit should come first and then amount and then balance. So I'll just go to the columns again and I'll change the sequence. I'll just drag this up, rack this one as well, amount and then balance. And even if you want to uncheck the balance, you can do that as well. So that's how we can customize this. And not only that, we can eliminate some other columns as well if we don't want that but this is an individual transaction summary report which shows you the details of one particular ledger. What if you want to do the same for all the ledgers at a single report? I'll just go to the reports and click on standard reports, and I want to extract the transaction detail by account. So although we can find this in the section for my accountant, we have this report. But if let's say you are finding it difficult, you can just directly search for the report here. Transaction detail by account here it is. Just click here and there you can do the same. We can set it to all dates. And if we go to the columns, we can also rearrange that debit and credit just enable those fields, debit and credit, and we can place it up, place it up, and we can uncheck the balance. So same customization is available here. The only difference is all the ledgers are here in a single report. This will be very helpful for you to check individual balances, how they are made up. Let's say you're finding it difficult to identify what is the difference in the balance? You can see individual details on the transactions. That's how you check it. I'll attach this report with the resources section of this video. So you can check and reconcile your balances with it. Click on Export, export to Excel, let's say, Report is downloaded and here it is and how it looks. So this is how you do it. Just wry this by yourself, and I'll see you in the next one. 40. Extracting Closing Profit and Loss Report: This video, we are going to see how we can extract the closing profit and loss report in QuickBooks online. On our left, we can click on the reports and click on Standard Reports. Now, from the standard reports, we have some mark as favorites. So if you find it here because this is a very main report, that's good. But if not, you can just scroll down and we will scroll down to the section of Business overview, and there we can see this profit and loss report, and from here, you can mark it as favorites. So we can click here the most important one is this simple one. Report period, I'll just tend it to all dates. And this is how the profit and loss looks. It is showing a loss, so it might be same for you as well if you haven't made any mistake. So to export this, I'll just click on this Export button right here, and we have three formats to choose from. I'll just export to PDF. Save as PDF. And the downloading is started, and by default, it will place it in the downloads. But what I'll do is I'll attach this with the resources section of this video so that you can just download and reconcile it with yours. So that's how we can extract the closing profit loss report in QuickBooks. Just try this by yourself, and I'll see you in the next. 41. Extracting Closing Balance Sheet Report: Video, we are going to see a very important report after profit and loss, and that is balance sheet. So we want to extract the closing balance sheet, right? So click on reports and click on standard Reports. By default, you will already find it in the favorite section, but if not, you can search it in the business overview, or you can just type it here as well. So balance sheet detail, balance sheet comparison, all of these are available, but we will just extract the simple version, which is this. And since our assignment is from first of January till 31st of January, but maybe we have entered some of the transactions in a wrong month or whatever. So I want to make sure that all the transactions and balances are included. So just the report period should be set to all dates. And this is the balance sheet. Now, I don't need to explain you about the assets, about the liabilities in capital, all just to see that there are four levels. One is asset, then current assets, then bank accounts, and then the individual ledger. So this is four level accounting. First is the main group, and under the assets comes current assets under current assets come another category that means bank accounts and the individual ledger in which the actual entries are is at four level. So if anyone ask you in the interview how many level of accounts does QuickBooks online maintain, you can easily answer that now that it maintains four level of accounting. So this is the format of it. It's pretty simple and basic. I don't need to explain to you this. But if you want to export this, click on the Export section and click on PDF. And we can save it. But by default, it will be saved to downloads. What I'll do is I'll move it for you and attach it with the resources section of this video so that you can download and match it with your balances. So that's how we can extract the balance sheet report in QuickBooks. Just try this by yourself, and I'll see you in the next one. 42. Closing Elite Traders Project: So far, we have finished the complete Elite traders project in which we considered the scenario that the company was operating for many years, but they were working manually or some other software. So they want to transfer and fully implement the QuickBooks online system. So I have showed you how you can create this chart of accounts from scratch and put their opening balances, how the individual control account matching system works and how we can entert the individual customer and vendor inventory details to match the control account balances here. Then we have checked some other reports which enabled us to extract the trial balance report until this point. After that, this is the main step that you do for the system implementation in all of your clients. The method will be similar, but the data will be more. So this is how you can implement this system. After that, just took the scenario that we are now live on the system, and we just perform all the day to day operations, including each and every kind of transactions, all kind of settlements, even the bad debts, inventory loss, prepayments, unwinding, and all the day to day transactions like sale purchase, receipts and payments. So after that, we extracted some of the critical reports at the end, which is trial balance, balance sheet and profit and loss. This is basically a complete scenario of how you can handle a real company project. This is exactly how you do it. From the next section, we will start working on some of the other key areas in QuickBooks online, like customizing the dashboards and seeing some different functionality like reconciliation texts matters, and all the other amazing stuff. So this is the end for Itaders. From the next video, you will see some other essential topics. So I'll see you in the next one. 43. Working With Dashboards: Video, we are going to see and work on the QuickBooks dashboard. So when we open the QuickBooks interface for the first time on the left hand corner at the top, we see this dashboard option. And once we click on this, it will show us this screen. So by default, you will always land on the dashboard. So basically, this is a quick glance of the overall company performance in graphical form. So as you can see, we have the bank account position, the profit and loss position. And since not much transactions are entered for this particular month, we can specify a particular date this month, let's say, and we can see the income and expenses chart. And same goes for expenses top customers, and we have different options here. Also, we can add more wages to it. So this is basically a snapshot of overall company performance. So basically, you can see the overall company position at a single screen in graphical form, and that is called the dashboard. So that the business owners can easily make the decisions based on this snapshot of the company. It's easier for them to analyze the overall company situation. So, for example, in the profit and loss we see this month here, and it's showing us a net profit of May as 2620, and it is up by 100%. But if we change it to, let's say, this fiscal year, it is showing us a loss and down by 100%. Basically, what we have entered is just a couple of transactions for a particular month. So when you enter a real data, it will show you much more meaningful details. And also if you want to see other details like let's say that you want to analyze why my income is so low and expenses are so high, you want to see the details of it. So simply click on this par and it will lend you to one other area. Basically, the profit or loss account where you can see the details of all of these expenses. So if you want to switch back to dashboard, on the left hand corner, just click on the dashboard and you're back on the screen. Same thing goes for expenses. If it is set to last 30 days, I can set it to the complete fiscal year, and it'll show us different positions, and these all expenses are denoted in different colors. So for example, my cost of goods sold is around more than half of a portion, and also we have some bad debts of a great amount. So let's say these are multiple bad debts, and you want to see the details of it, just click here. And it will land you to transaction detail by account area where we see the bad debts ledger directly. So this involves only a single transaction, but if these are more than one, it will show you the complete details right here and you can switch it directly from the dashboard. Same thing goes for all the top customers. Let's say that you are making a good seal for some customers, like Justin Victor and Albert, and these are arranged according to the sales amount. So we can click on Justin profile. And again, you can see not only in balance, but also all the transaction statement recording transactions and basically the complete details about this customer. And also one cool thing about dashboard is whatever changes I have made recently, I set it to this fiscal year, as soon as I switch to dashboard, it is always set to that settings. As you can see here, this is fiscal year set. This is set to fiscal year and all the other customizations are intact. And on the left hand side, we can see the bank accounts position as of today. So we have this balance in UBLbnk. We have in Stndard Chart bank, this much balance, and we have cash in hand of this much amount. So if you want to customize this a little bit, we have the street dots right here where we can customize this, and this is a new feature. So click on Customize Budget, and on our right, we can see that we are able to drag the balances up and down. So for example, you have some of the banking areas like standard chart bank you use more frequently and B bank, and then you should arrange all the cash. You can rearrange this in this way. Just hold it from the dots and you can drag it wherever you want. And you can set it to choose what info is shown first, like today's balance or none. So I've set it like this, and you will see that it will rearrange as I press save. Sometimes you need to refresh this before it shows you the updated position. So now as we can see that I refresh this, basically, I moved it to the other section and then went back to the dashboard, and they should show you the updated arrangement in Bank of accounts. And as we can see here at the bottom, we have mainly three to four summaries here, but we can add more widgets if we want. And it's also showing some of the suggestions from the Smart suggestions like you can add the sales overview. So let's say if I want to add this, I'll just simply click that and click on Add to Dashboard. And it will show us the graphical representation of that. Basically, we have entered it on a specific date, so that's why it's showing like this. But if we set it to let's say this fiscal year, it will show us the same position because all of the transactions are almost entered in January. Similarly, we have a great feature that we can add more widges to it. So as soon as I click here, we have many widgets to choose from. Select the widgets for your dashboard if you want to add cash flow, account receivable, accounts payable position and deposits and all the invoices and things like that, you can just click them and save them. So now you can see it's much more improved with a lot more graphical representation on the top of our dashboard. So these are some of the dashboard positions that you can use for analyzing the company's performance. You can see how cool it looks, the cash flow trend and all the other details. It looks so cool, and that's how it works. Just try this by yourself, and I'll see you in the next one. 44. Access QuickBooks Online Sample Company: Video, we are going to see how we can explore the sample company or our test drive of QuickBooks online. So let's say that your trial period has expired and you still want to check some of the functionality, you can still do that by opening a sample company data. And that is for the unlimited time period, not only you can see all the data, you can enter some of the data by yourself as well. The only problem is that data will already be ended. You won't be able to start a fresh company here, but you get the rest of the functionality. So what you can do is just from the resources section of this video, just download this Word file. I have the link. Just copy this link right here and paste it in the browser, but I recommend you to open a private window if you are already working on some company, so it won't be able to open that. Just click on the three dots and click on Incognito Window and just paste this link right here. I'll just make it full screen. It will ask you for a simple security verification. Just click Continue. And here you are. We have this mean dashboard for the Creek's design and landscaping services. Not only that, it is loaded with all the amazing information. And we have this dashboard right here with a lot more data than we already had. So, for example, you can see that in our report, we didn't have the data for every single month. So let's say if I want to set it to any specific period, we have the data for different periods right here. And it's much more detailed. So we can explore all the functionality. And not only that, let's say that I want to enter some of the bill, I can do that as well. On the left hand corner, we have this plus sign right here. It is a little bit different from what we had in the other company. So click on New from here and click on the Bill, let's say. So Bill and it's basically the classic function vendor, as we can see, we have a lot of vendors here. Due on receipt, let's say I want to enter the bill on a current date, and we have the categories. We have many expenses in other ledgers right here, but also we have the item details. So let's say we want to enter a specific inventory, we have a lot of them to choose from. So we can write any of them. We can choose the rate, we can choose the quantity, and we can try entering this one, save. As we can see, the new bill is saved. We can go to the more and click on Transaction Journal Report to check the journal entry effect. So basically, you can work on each and every function in the sample company for the unlimited time period, and that's a great thing. The only difference is whenever you open the fresh company link, the earlier data which you have tried to enter recently will not be available, and it will do a fresh start for the company with their default list of dataset. So that's how we can test all the functionality. Similarly, we can explore some other important reports here, like, for example, in the report section, we can see the standard reports, and we have all the essential reports right here. I just clicked on the profit and loss, and I can set it to all dates. Let's say I want to compare it with the percentage of Row and want to customize it further, we can see all the details here, much more detail that we have done in the project. So we have this jobs available right here and all the details. So this is how you can test the full functionality of QuickBooks and also check some essential reports even if you don't have the data in your original project, you can explore sample company, and it is loaded with all of this sample data for each function to check. So that's how you can access it. Just try this by yourself, and I'll see you in the next one. 45. Report Customization on QuickBooks: This video, we are going to do some more customizations to report. And for that, we will use the sample company file that QuickBooks has provided in the test drive mode, so we won't be using our project for that because we have the limited data for our project. What we will do is open the test drive mode where a sample company is given by QuickBooks online. So just copy and paste this link. You can get it in the resources section of this video. Just open the incognito window. I'll just make it full screen. Just paste it here. Enter it. I'll just make it full screen now, and it will ask you for simple security verifications. I'm not a robot, and we need to check a couple of boxes here. Continue. And this will lend us to this screen where we have the sample company of Craig's Design and landscaping services with much more data than we earlier had in our project. So let's explore one of the reports and see some more customizations to it. Just click on reports from here and click on standard reports. And let's access the profit and loss account. And here we have the report from first of January till 18th of May, right? But if you want to see the month by month details, we can do that as well. So display columns by, it says total only, but we can see the daily profit and loss weekly, monthly, however we want. We can also customize it for years if we have much more data. So we will change it for months and click on Run report again. And we can see we have the profit and loss here for each particular month along with expenses and overall profit for each particular month, so it is very easy for us to analyze the overall company position in this way. And it will also help you analyze the overall performance and where we are performing well and we are not. So let's say for landscaping services, it grows 190-90. So for example, for landscaping services, we had the sales of 190, and then it fell down to 90, and then it again, back up to 475. So maybe in that particular month where the sales is slow, you might need more marketing or some aggressive focus to gain customers and maintain the sales. So it will help you much more in analyzing the different situations. And it will also help you analyze whether all the expenses are distributed evenly. For example, if you, let's say, pay the rent for the premises on every quarter, but it should be recorded in every particular month, and you will use a prepayment concept here. That once you make the payment for the complete quarter, you haven't consumed the benefit yet. So we record it not as an expense, but a prepaid expenses, which is a current asset. And after that, every month end on every month end, you will just pass the entry of debit and prepaid expenses credit so that it can evenly distribute there. But if we extract the month by month report, you can analyze these kind of situations that we have the 900 charge on April and no other expenses charged in any of the month. So we can manage the business better. By analyzing these things. Moreover, you can also change the report name and some other customizations. For example, if we want to change the company name, you can edit it from here where we see the pencil icon, and also we can just click on this profit and loss account. And let's say by latest standards, now the profit and loss statement name is changed to statement of comprehensive income. So we can make it as statement of comprehensive Income. Hit Enter or click anywhere outside. We can also change the company name. For example, the company short form is CDLs. CDLs. I'll make it that and click anywhere in the corner. And we can also add some kind of notes if we want to. We have the add notes option, for example, to be discussed with the manager, to be discussed with management, let's say. Hit Enter and we can add more up to 4,000 characters here. And furthermore, you can see that in every particular section where it has some categories like job materials, and under the job materials, we have three categories. Let's say that I want to see a summary of this profit loss account I just don't want the details of each particular category, rather I want totals to appear. So this is how you can expand and collapse any particular section. But if we want to do for all these sections, what we can do is just click on collapse once and it will collapse all the areas for you. Like this, as you can see, whenever we want to expand any particular section, we can just manually expand it and collapse it like this. And also, we can save these customizations if you want. For example, we have compiled a profit and loss and adjusted it according to ourselves. We have changed the company name, we have changed the title. We have changed it to month by month profit and loss. And for example, we have changed the accounting method from accrual to cash. Basically, cash method is that income is considered when you actually receive the cash. So let's say even if you have made a credit sale of 100,000, it won't consider it as a sale until you receive a particular portion. So let's say you only receive 20,000, so cash method will only record that here. So let's say that you have made all the customizations and after that, you don't want to do this again. So what we can do is just click on save this customization and we can name this customized report anything we want, and we can add it to a specific group if you want to. For example, financial analysis or add new group. Let's say that the name is financial custom reports. And we can share it with someone. If we have some members added in the QuickBooks online profile, we can share it with them. Otherwise, we can click on let's say share it with all. Click Save. Now if we want to access this. Okay, we can't share this, so I'll just save it none, click on Save and the custom report is saved successfully. Now if I want to access this, just go to the report section here, click on the standard reports or maybe we need to click on the custom reports. So click on the custom reports here. We can switch between the sections even if you are in the standard reports. A special section is there with custom reports, and here is our report. If you want to email that on a specific date, you can do that as well to a specific email. We have the functions. We can export it as a PDF. We can export it as Excel. We can add the management reports, and we can delete this report whenever we want. If you want to make some of the editing, we can edit it from here. That's how you can make some more customizations in QuickBooks online. Just try this by yourself, and I'll see you in the next. 46. Bank Reconciliation Project: This video, we are going to learn about the bank reconciliation process in QuickBooks online. And I have this small project right here so that you can easily understand the complete functionality. We have some of the transactions that we need to enter in QuickBooks, and then we have a sample bank statement. With the opening and closing balances, it's just a sample, but I'll also show you the bank statement how it looks practically. But this is to help you understand all the functionality, and then we can perform the bank reconcilation. So for that, we have supposed that we are a bookkeeper for the Bright interiors, and we have received the bank statement for April 2025. From the company's bank. So our goal is to reconcile the bank statement with the transactions recorded in QuickBooks online. So first of all, we need to set up some chart of accounts on a particular date, and then we enter some of the transactions. So this supposes that we are in the Bright Interiors company, but since we have just activated the Eli traders, and we cannot open many companies in QuickBooks online subscription, we only have the option to choose one. Otherwise, we have to go through the registration process over again. We need a new number, we need a new email. So that's a lengthy process. What I'll do is for this particular assignment, I'll just name the company as bright interiors and we will enter it separately, all the transactions for April. So this project was done in January. I'll just enter it for April so that all the transitions can be kept separate. So from this settings icon on our right, just click on account in settings if you want to change the company name, and from here, let's edit it, and let's change it to bright interiors. Save it. And let's suppose that this is a blank company dataset. After that, what we will do is just go to this accounting tab and click on Chart of Accounts. And here we create a new ledger named Bright Interiors Bank. If the name is not changed yet, what we can do here is just refresh at once. And now it is changed to Bright Interiors. Let's now create a new ledger, click on New. And this is a bank account. The bank account name is Bright Interiors Bank. I'll just space it right here. This is a bank account, and it's a checking account because in US, all the bank accounts are called checking accounts. So we have some opening balance as well as of 31st of March. So 5,000. As of 31st of March, I'll change it to 31st of March. Description, I can just copy and paste this name right here, and we click Save. After that, we will enter these transactions in QuickBooks. So first of all, we have the deposit which we have already done for the $5,000. Mark this. And then we have the Office Depot Office Supplies is purchased. So 250 is out of a bank. How we can enter this expense, we have a couple of options here. I can just click this plus sign right here and we will use all the functionality from here. So pay is Office Depot. So when we have the payee name, we can create a bill for it. But since this is a cash bill, we can simply enter a check in the vendors, click on Check. And this is for Office Depot. I'll just add a new pay or we can just simply write the name here, and we have a quick add option, add new Office Depot and the details are set. I'll just save it as it is. And we are purchasing office supplies. So since this is an expense, this is not an inventory that we are maintaining. So I can just put it in the categories. I'll just right here office supplies. If it is not there, we will create a new one. Office Supplies and software is there, so let's use this one or otherwise, just click on Add new Office Supplies, simple expenses. And let's charge it to supplies and material in the detailed type. In the description, I'll just copy and paste this one right here. Click Save, and we can just manually write office supplies here. And this is of $250. So just right here, 250. So once we do that, if you want to save and check the transaction journal report, we can click on Me and Transaction Journal. Now, we need to make sure that the bank should be credit and the office supplies should be debit as an expense. So here we have the office supplies debit and banks credit. And this transaction is of 19th May. But here, the assignment should say that it should be recorded on second of April. So I'll just make it second of April and then see if the changes here. Next one we have is rent expense. So this we are also supposing that it's against the check, as we can see here as well. And rent payment, if you want to create a pay for each category, we can create that as well. So rent pay. Let's say I click on this plus sign and click on check again. Rent pay, add new, save it. The transaction is of fifth of April it's a fifth of April. Just make sure on the calendar it picks up the right date. Check number, I'll just keep it as it is. And it's a category, and we charge it as rent expense. Rent and lease, I can put it here or otherwise, we can create a new expense account. I don't want to confuse it with other accounts because since we are considering a brand new project, so in the expenses, I'll just put it as rent or lease of buildings in the right expenses. Sometimes whenever you are in the middle of creation of name and then you click on New, it always picks up this name. So instead what we can do is just write here full name or otherwise just remove the full name and click on Add new. And then it will pick up the right thing. Expense. Account type, I'll just set it to expenses, and we can set it to rent or lease of buildings. I'll just simply copy and paste this in the description as well. Click Save, and I can just manually paste it right here. So it's $1,000 out from the bank. I'll just save it and click on more, check the transaction retail. It should be rent expense debit and bank should be credit because it's an expense out. So rent expenses debit, Bright Interiors bank is credit. So perfect. Right next one is an expense for the repair and maintenance, and the pay is John electrician, and it's also an expense out. So just click on this plus sign and click on the check from the vendor section, and we're paying it to John electrician. I'll just copy this name right here, add it in new. Or otherwise, it's more simple just place it right here and add new John Electrician and we can simply save it now. It automatically fills in the details. Just make sure that the date is correct. So this is tenth of April. It's very important to see the right dates, especially in the bank reconcilation process. So we are paying for repair and maintenance. So write repair here. Repair and maintenance is already there. Just copy and paste the description, and it is $300 out of the bank. All done, click on Save More and Transaction journal. It should be the repair and maintenance debit and the bank should be credit. Yes, it is. Repair and maintenance, debit and bank gives credit. All good. Just click on the next transaction, and the next transaction is a receipt. So we are receiving the invoice payment for ABC client, and that one was in the category of account receivable. So we have two options here. First of all, we can enter invoice and then receive that payment or otherwise, we can just simply do a sales receipt. So if you want to click and create a sales receipt, I'll just click on Add New. And in the customers, we have the sales receipt option. That means the invoice will be created and the receipt is on the same time. So it's for the ABC client, a new client. Add it and it's for any kind of service, let's say. It's for let's enter a service. Service one, whatever. SKU, you can ignore all of this, and it goes in the income account. Income account for services, I'll just consider that. Save service one, and we can copy and paste the name in the description as well. And in the quantity and rate, I'll just keep it all as it is, right 2000 here, and we can choose any kind of payment method. Click on save and we can save this client as well. Click on More and transaction journal. No, cancel. I'll just save it properly. Make sure it is saved, and then click on More and transaction journal. Remember, if we ask you exit without saving, you always click Cancel and check the transactions first. So we have cash in hand right here. Okay. No case in hand. It was what? Bank? It was it should be in the bank. So in the bright interiorspnk, save it more transaction journal. And we have bright interiors debit. That means the bank account balance is increasing, and it's against the services, which is credit. So that's done. Next one, we have a fuel expense for the gas station. So if you want to record a pay for this, we use the ideal option, that is vendors and create a bill. The pay name is gas station. Save it. Bill deed, be careful of the deeds. It's of 18th, April. Bill number, I'll just put any bill number here. And under the category, I'll just put it in the category and not in the items, fuel expenses. So just write fuel here. We don't have fuel. So just create one, add new. Just right here, fuel expenses. And just put it in the expenses, and here we can choose the subcategory here. So let's say that this is travel. So I'll just copy and paste the name in the description as well as fuel expenses. Click Save. And that's how we create it. Just paste it in the description. I'll just quickly pass through it because it is a very simple transaction. Don't get worried that I'm doing it so fast. It's a very simple process. In all the transactions, we just have to create a bill, and that's it. We are just creating a direct payment with check. Click Save transaction details. I'm just walking you through all the process so that you can easily analyze how we can enter this. And then we'll straightaway move to the bank reconciliation process, which is our main aim. So this is fuel expense. Okay, it's recorded as zero. Why is that? I just need to check this bill. Okay, we didn't enter any amount here, so 120. Save it. Make sure the date is correct. Click on More and click on Transaction journal, and we have the fuel expenses as debit and accounts payable as credit. But that should not be there. Actually, we have accidentally used the bill option right here. So instead, what we can do is just click on delete this transaction, and I'll just freshly create a new one. Just quickly create it with a check. Gas station is already recorded. I'll just put the date of 18, April here. I'll just put this as fuel expenses. Just copy and paste it in the description, and it's $20. Save more transaction journal. And now it looks fine because fuel expenses, debit and bank is credit, make sure for the bank reconciliation process, we need to put everything in the bank so that we can get some transactions and then reconcile through it. Next one, we have a supermarket expense of miscellaneous expenses. So click on the plus sign. Always remember to enter the check if you're making the payment at the same time. We have the supermarket, add a new one. So copy this, paste it right here, add supermarket. And this transaction is and when this screen is open, just click on Save. And the date of the transaction is 20th of April. Check number, I'll just put any check number here, and we need to put it in the miscellaneous expenses. Other miscellaneous expenses is fine. This copy and paste is in the description, and the amount is 180. So I'll just put 180 here, save it, and check in the more and click on transaction journal report. So we have the bright interiors as credit, and the other miscellaneous expenses is debit. It should show in the reconsideration process as well. And the last one we have is the invoice payment. So instead of invoice payment, I'll just create a direct sales receipt. Let's say I'm selling some of the items to X Y Z client, and this is a new one. Just click here, add and click Save. The SRRcept date is 25th of April. And this is service, let's say. So product or service. I'll just write here service one, service one. I can just copy and paste this description right here, and we are receiving 1,200, but in the bright Interiors bank, make sure you select that. And this is against the check payment. Reference number, we can put any reference number here. We just have to make sure that it should pass through the bank that we are planning to reconcile. Click on CV. And then click on this More and click on Transaction Journal. This one should be the sales or income as credit, and the bank should be debit because we have received the money in. So Brighton arrears bank is debit because we are receiving the money, it's increasing, so it's debit, and it's against the services that we have credited. So so far we have already recorded all of these transactions. In the next portion, we will start working on the bank statement and do the reconciliation process. So just try this by yourself, and I'll see you in the next. 47. Bank Reconciliation Project Part 2: Video, we are going to actually perform the bank reconsideration using this bank statement. In the earlier video, we have already entered all of these transactions, and let's move forward to step three, which is bank statement for April 2025. So this is the opening balance, closing balance, and all the transaction that is showing in the bank statement. So I need to make sure that all of these transaction show up here, and then I will check So to reconcile, I'll just click on the settings right here on the gear icon. And under the tools, I can see this reconcile option. Just click here and click on Get Started. Let's get reconciled. First of all, it will ask you which bank account do you want to reconcile? So I want to reconcile this Pride Interiors bank. And in the bank statement, opening balance is shown as 5,000. I have the big balance right here with me as well. And the closing balance, I'll just put this amount right here, 6350, so 6350, and statement ending date is April 2025. So I'll just mention eight 30th April. And there's no service charges and interest earned basically, when you see the bank statement, there are some kind of charges that you only know when you see the bank statement. That is, let's say that bank deducts any kind of service charges or interest charges, so that we can adjust immediately when we see the bank statement. So on specific date, we can just mention the service charge and the expense account to which it relates. So in this case, we don't have anything like that. So click on Start reconciling. Here what we need to is we cannot just mark it as all and just reconcile it. It doesn't work like that. What we need to do is just make sure that we make this difference as zero. We have the cleared balance, which is mentioned as opening balance, so that reconciles in both for the bank statement and for our records. But the ending balance is 6350. I need to see whether or not the transactions that I have entered is shown in the bank statement as well. I need to match it one by one. So we have account depot shown here. I'll just check it. And we can also highlight this, especially if you have a lot of transactions. So I'll just quickly check through it. Rent payment is 1,000 and that is entered as a payment. So payment, it's showing in the payment. Let's check this. And again, John electrician. The payment is 300. I'll just check that shown in both the areas. Just highlight this. Next one we have is 2000 and it is a receipt. So I'll just mention 2000 as a deposit. Just check this. And $20 as a payment. Just mention this shown both areas in the bank statement and in our transactions. And we have paid something to supermarket and which is other miscellaneous expenses. So it's shown in the payments. All good. Next is 1,200. So this is an inflow of cash from XYZ client. I'll just check mark this and check mark this here as well. So as you can see, the difference is zero. But what we need to do is you might see some more transactions as well. That is not shown in the bank statement. Why? Because it might need some time to deposit. Maybe this is a port SD check which we have ended, but it will be shown in the accounts or in the bank statement next month. This could be a timing difference. Sometimes You have given the money to your vendor, but he didn't put that deposit check in the bank. So we have reduced already from our side, but since it is not shown in the bank statement, the balances won't match. Similarly, we have received, let's say, customer payment in check form, but we haven't gone to the bank yet and deposited that check. So they have deducted on their side, but we haven't entered this, although we have entered it in our records that we have received the check, but it doesn't reflect in the bank statement because we haven't deposited in the bank yet. So there can be many scenarios here to reconst the bank, especially when we have entered some kind of payment, but in the bank, it is shown as a combined balance. Et's say that I've deposited a couple of amounts, but when the bank transaction comes, it should be a total of, let's say, three transactions. So we have to accurately match this. We can spend some time on it. So there can be many scenarios. Right now, we are under the ideal scenario. But the main focus is that if other transactions are still showing here, it's not necessary that you match them all even then you can get the different zero because we just have to sort out that the beginning balances from our statement and in the bank statement is 5,000. So the ending balance in the bank statement is 6350. So what transactions are in both the areas, we need to match only that. So other ones, we can keep it as it is. No problem with that. And after that, just click on finish now. And it says you reconcile this account, done, and we'll immediately extract a report for you. If not, we can click on the summary. Click here and there is the reconciliation report, which we can download or print, click on print, and you can print it from here. So that's how you can reconcile the bank statement in QuickBooks online. Just try this by yourself, and I'll see you in the next one. 48. Job Costing in QuickBooks Online: Video, we are going to learn an amazing function in QuickBooks online, and that is managing the profitability of different projects using the job costing features. Now, the job costing is basically an accounting method to track all the cost which is specific to a specific project. Let's say that you are working for a single customer, but on different projects. So let's say housing projects. You have house A, house B, and house C, and that is supplied for the same customer, but you want to allocate all the cost and income specified to house A, house B, and house C separately so that we can analyze the total price on which we have sold that house and all the associated cost that is incurred on that house so that we can manage each house profitability according to different projects. And that is for the same customer. So how will we do that? For that, I have compiled a special assignment for you that you can get with the resources section of this, so you can get not only that, but the description of this as well. So just read through it so that you can get a better understanding of how job costing works. So the scenario is we have a customer named Elite Properties. So for the same customer, we have two kind of projects. One is living room renovation and one is kitchen upgrade. And we want to see what kind of profitability we had in both of the projects. Built with parent, these are some of the Quickbooks functions that I'll explain later on. Products and services, we need these kind of services. We are providing them design services. We are allocating some of the materials for the renovation work, and we have the subcontractor work as well. On that projects, we have incurred some expenses as well, and we have sold some items to them as well, like our services, our materials. So the profitability should be like this. Living room renovation should give us a profit of 400, and kitchen upgrade should give us a profit of 500. So let's see how we can practically implement this. First of all, just remember that we need at least QuickBook plus or QuickBook advance to enable this feature. And by default, even if we click on Plus Sign and click on Bills, you won't be able to see any function related to job costing. So that means we have to manually enable it. Just go to the settings, and we click on accounts and settings here, and we go to the expenses tab here, it says track expenses and items by customer, I need to enable this. Just click it once, and then it should show you this radio button where you can enable this. You can toggle this on. Make expenses and items billable. Yes. Save it. And after that, you can click on Advance here. And you will find a function name project, organize all job related activity in one place. You need to make sure that it's enabled or it's set to on and then click on Done. Now, what we can do is instead of entering the customers and jobs separately here or entering the separate products and services, what we do is just enter the expenses and invoices directly, and whatever we need in between, we will just quickly create that. So the vendor is depo. I'll just copy the name here. And we need to enter this from Bill. So click on this plus sign, click on the Bills here. And I'll just write the name here, add new. Terms, let's say it's due on receipt. Okay, first of all, we just click tab, and then you should be able to see all of these details. I'll just save it And transaction date is second of May. So second of May. Due date is the same date. I'll just click on Du on receipt. Well remember we can give any number here. And we are working on materials. We are buying some materials. So let's say materials, I'll just click on add item. Just right here, materials. Click on add It's a non inventory part and it's renovation income. Non inventory part, and it goes under renovation income. So I'll just create a new income type. I can directly create it from here. Name renovation. Income. It's an income account. And this is my sale of product income or service fee income or other primary income. Let's put it in other primary income. In the description, I'll put the same name, like and saving clothes out of here. So we have the materials category available now. So material, I'll just write here. Not actually category, but I'll just put the material here in the item details. So materials are here. We are buying this material. The total amount is 200, but it should show us the project name, but it's not showing us that. So what we can do here is just cancel this transaction. Do you want to leave without saving yes? Maybe I need to refresh this ones. And now click on the plus sign. Check the bills. And now we have all the options right here. We should have the customer in all details. So let's choose the vendor once again. It's Deco Depo, and it's for 2 May. Bill number, I'll just give any bill number here. It's for the materials. Description, I can just copy this description right here, paste it here, and the amount, I'll just make it this 200. So billable, yes, it is billable. And the project name is living room Renovation. So add new project, click on Add. And first of all, we need to mention the customer name here, which is this one. I can just simply save this directly from here. Let's add one more thing, cancel the transaction, and I'll go to the projects here. And I'll create these projects. In the new project, I'll just write the name of the project, which is this living room renovation, and it's for the customer Elite properties. And we mentioned the start date and end date. But I'll just consider this to be started in May and ending in May. So let's mention the first date and 30th May, or maybe we have 31st, 31st of May. And the project is in progress, not started, we have different status. So let's mention it as in progress. We can mention it in notes as well, new or safe and add a project again. And now we click on all projects at the back and click on New Project. So now the new project is kitchen upgrade for the same customer. And we mentioned the deeds In progress, I'll just mention copy and paste here and save it. So now we have two projects added right here. Now, click on the plus sign and click on Bills. Everything is now added. And the first expense is against Deco depot. Do you own receipt? The transaction date is of second May. Bill number, we can mention any bill number, and it's against the materials. Copy and paste. This description right here. Quantity I'll just ignore the quantity I'll put it as 200 of the total amount. It is billable, yes. And it's against this expense is done against living room renovations. So I'll just put here living room renovations and save it. Save it new. And then we have a new vendor, which is Bride installers. Save it. Transaction DD is third of May. I'll just put any bill number. In the products and services, I'll just write here that we are purchasing. Subcontractor work. So what is the description of this? Subcontractor work is a service and renovation income. So just copy this name here, add new. Put it here. Category, you can mention any category. I'll just mention the details in this purchase and sales and income type service, and it's renovation income. So renovation income goes in here, save and close. And the total bill cost is 300. It's billable, and it goes under a project named Kitchen Upgrade. So save Next thing we have is some of the invoices, like sales invoices. We are providing the service. We are not just buying this. We are also providing invoicing these services. So click on this plus sign right here, and we will just create a simple invoice. You can close this set of payments option. Okay, invoice number is already mentioned a random one, and invoice date is fourth of May. Due date is, I'll just keep it. This one, same tags or store hidden, just ignore that. And we're invoicing for design services. Just right here, design. We don't have the design service here. Item we need to create that design service. Just make sure that you remove first and then add it as new, paste it, and it's a service. Goes under design services income. So I need to create a new one. It's design services. It goes in the income, and it's other primary income. I'll just copy and paste it right here in the description as well. And save and close. And now let's mention that that we are providing this design service and copy and paste in the description. And 400 is the total amount. Do you on receipt? We need to add a customer here. Customer is Elite properties. For all of these projects, customer is Elite properties, but this is against living room renovations. So I need to select that invoice. As you can see here, there is no separate column mentioned here, so it's living room renovation. I need to select this project. So district transaction, I'll disclose this I think all is set. Just click on Save and Close or click on Save and New, in fact, Save and New. Now the next one is, again, living room renovations. I'll choose this as living room renovations, so not only it will select the customer but project as well. So fourth of me, and we will keep the other deed as well as it is. Products and Services, materials, we are providing materials and the total amount is 200. So now you will notice that once all the items are added, it's very simple to just create some invoices. So now we had 200 save and new. Let's move on to the next one, and that is a new project, and we have invoice for the kitchen upgrade. So kitchen upgrade close this fifth of May. Due on, let's say, the same date. And under the products and services, we are providing the design service. So design services available. I'll just copy and paste this in the description as well. And this is 500 And this is for the kitchen upgrade. On the same date, we are providing some other subcontractor work as well. So just right here, sub contractor work because it's same date, we can enter both of these in the same transaction. So this one is 300. All done. Click on Save and Close. And after that, we just need to make sure that we have this profitability right here according to projects. Let's close out of here, and then we move straight to the projects. We have two projects right here, and we can see the income versus cost analysis on both of the sides. On the living room renovations, we have the income of 600. So living room income of 600 cost is of 200. So the profbility is 400. And for the kitchen upgrades, we have this 800 as income, and cost is 300 and the total profitability is 500. So if you want to see the profit as well, we cannot see the profit. We can see only the profit margin. So if you want to let's see the details, click on this graph. And we'll show you the details where we can see the income, the cost, and profit. And if we want to let's say view this, we cannot view that. But let's say that if I want to see the profit and loss report. And just write job here. Let's say I write job. Now, we have to extract the profit and loss account. And I want this to be shown by job job or customer. So these are the customer details. So click on this print list and you will get this printed right away. And let's say whenever you want to see the cost, how it is made up of, you just click on the expenses here, and it's going to show you all the details of how it is made up. Okay. Same goes for income. You can just click on this renovation income or other income, whatever it is. You can see the details of it. And let's say that we want to extract the profit and loss by different projects or customers. Just click on reports and click on standard reports. Here, I just click on the profit and loss account. Let me just make it full screen. And here we just set the reporting period as it is. And in the display by columns, we have the display by here and display by customer. I'll just select that. And now we should be able to see the profitability of each project. For example, for the kitchen upgrade, we have made a profit of net income is 500 and for the other project is living room renovation. We made a profit of 400. On a single screen, you can get both. So that's how we can actually work on the job costing. Now, I have taken a very simple example with very minimal transactions, but you might have much more transactions to enter, but the method will be the same. So I want you to practice it by yourself, and I'll see you in the next one. 49. Managing Sales Tax: Video, we are going to see how we can set up the sales tax for all the invoices in QuickBooks online. So just to make sure that nothing is enabled as a sales tax earlier, we are in the company of bright interiors. But when I go to Sales and click on invoices, and let's say I create a new invoice, you can see that there is no sales tax. In fact, it says setup here. So one way you can do it is just click on the setup here and click on setup Automated Sales text, or if you don't want it from here, what you can do is just close out of here. And from the main section, just click on this more option or you might get it here. Otherwise, just click on more options Sales text and click on Overview. So once we're in here, it's showing the overview on current status. So if you want to get started to set up the Seales text, you can click on Get Started. So click on Get Started. It is showing you that before you turn on the sales text, make sure you have this info, your accurdate business address, text agencies you file with all this information you need earlier. So click on next after that. Business address is already mentioned. It is automatically calculating the sales text related to this particular area, so make sure you entered the correct information. So click next. Now, filing frequency, that you need to ask from your text agent or whoever is filing your text. So that could be monthly, quarterly or whatever. So let's say it's monthly. And the next step is click Next here. Have you registered for the SLS texts with any other ingency? I'll just select No. Click Next, and here is the summary of what you have selected earlier. Just click on finish and turn on the Seal text. Click on Done, and here we are back on the screen. And here is showing the liability for 2025 this period. And here we can select the different agencies for which I'm filing the sales tax. And you can scroll down and according to the agency for a particular period of the amount, status is open and you can review the sales tax return by clicking just here. Let me zoom it. And let's see if you want to make any kind of changes to the sales tax agency, like rates or any kind of name, you can just click on the sales tax settings on the top. It will take you to this particular area where all the details are mentioned. But if you want to let's say edit it, just click Edit and you can change the filing frequency, the reporting method, and all the other information. Something more than that is, let's say that you are supplying goods on some specific county or some specific area where a custom text is also charged beyond the sales text. So you can add any kind of customs text as well. So click here on this arrow and click on Add custom rate. So it might be any kind of other charges. It might be single. You can name it. You can enter the agency on the behalf of which you collect and you can mention the read here. So I'll leave it as it is, and this is all set. Seal stick settings are made. Now let's try to enter any invoice. Just click on the plus sign on the top right corner and click on invoice. And let's add a customer, let's say AVC client, and let's select any kind of product or service. Let's say this is the product, and let's say these are ten items at the rate of 1,000. So this makes the total to 10,000. Right now, it will not calculate any kind of text because we haven't marked it as text. And that's a good thing in QuickBooks online that you can specify for each particular item that whether or not it is taxable. So if it is taxable, you can just choose that, and it is set to automatic calculation, which means that it will automatically calculate it according to 8%. So the amount that we will collect from the customer is $10,887. So generally, I have added a product because services are sometimes not taxable, but the products are. Similarly, if I want to set a new taxable item, let's say add new. I can make a inventory one, let's say, and this is an inventory item. SKU means stockkeeping unit, which is in each. All the ledgers are selected. And we can simply mention this that it is a taxable item or a non taxable item. We can categorize it here. So after that, just click on Save and Close. And since this is a taxable item, you will notice that as soon as we enter this initial quantity, I have to mention zero, like save, and you will notice that as soon as I select this item, it is already marked as text because we have specified that this is a taxable item. If we didn't specify, it will ask you for it. It will leave this as blank and we can separately mark. If we uncheck this for any particular item, you will notice that it will not calculate the text for that item. Here, the item name and the read is not mentioned. That's why it's not calculating any text. So notice the text here. If you click on the text, it will automatically calculate the text for this particular item, and when we uncheck, it won't calculate that. To see the math, how it is calculating this, it will show you the complete calculation and how the different rates are charged across the different states and how it is taxable and what kind of rates are applied. So after that, just click on Save and Close. And now what we can do is just go to that specific area again. Just go to more and click on sales tax and click on overview. And here we see the overall text summary. And also, if we scroll down a little bit, you can see the total tax amount that is due. And let's click on Review sales tax to actually see how the transactions look like. And these are all the seals. This is cross sales, this is non taxable seals. This is taxable seals, all mentioned, and the tax amount is given right here. Now, this is not a tax return. This is only a helper tool that will help you to add all the information easily with the exact same columns that we do in the sales tax return. So for example, if we are in the Florida, you can just check the sales tax return form the year 15. I won't open up here, but you can see different formats here, and here is the form from PD filer. And as you can see here, these are different fields that we can fill in the gross sales, exam seals taxable amount. So these are all the fields that we need to fill. According to this area, gross sales, taxable seals. We have the same fields here as well. So it makes it so much easier to actually file the return based on this data. And let's say based on your taxable amount, your tax agencies has given you a repeat or discount or any kind of adjustment. So click on Add adjustment. Reason, you can enter a credit or prior prepayments, whatever. So any kind of penalties can also be added here. So let's say the tax agencies has given you a credit or a discount based on your income or based on different items that you are selling. An adjustment deed is current date. And you can just credit in on sales tax credit. And that is a new account, so we need to set it up. So if you want to set up something like that, you can just do that. But it's not here, and neither do we have an option to create a new one. So what I will do is just click on any other kind of uncategorized income or let's put it in uncategorized income. And let's say that we have got a credit of $80 or let's say $87.5. So now the total text due is 800. So click Add and sees here that it's collecting the information on your behalf, and now it has settled adjustments right here. And not only on this screen, you can just click on view the tax liability report, and you should be able to see a report like this, which you can export as well, right from here into the Excel sheet or PD form, whatever you would like to do to prepare a final tax report or tax return. Now let's say that I want to pay for this text. So go back to the sales text center from the left hand corner and let's say now we want to record the payment. So we just click on this review sales tax. And once we do that, and here you will get this pay text option. But since I'm in the trial version, and they are offering some kind of offers here that save time by electronically filing and paying for sales tax from QuickBooks. So that means this option they haven't yet enabled in the trial version. So that's a little bit summary about the sales tax, although we cannot just pay for this tax because of the restriction by Qu Books online, but that's how you can enable and enter the sales tax invoice in QuickBooks and also see all the records of the report that QuickBooks produces for the sales tax return. So that's how you do it. Stry this by yourself, and I'll see you in the next one. 50. How to Cancel Quickbooks Online Subscription: In this video, we are going to see how we can cancel the QuickBooks online subscription. So we have completed our project, right? But that QuickBooks online subscription deducted $1, just to confirm your card so that after one month, it can deduct $100 or so. So if you don't want to so if you don't want it to be deducted, what you can do is just write QuickBooks online sign in on Google and go to the same area from where you usually login, choose QuickBooks online, continue to sign. And now let's choose that particular account. And continue. And here we are in our company of QuickBooks online Trial Virgin subscription. On our right, we can see this little gear icon. Just click on there. And this will show you a couple of options on our right. We have the profile and subscriptions and billings option. You need to go in this And once we are in here. And once we are in here, we can see that we are subscribed to Quickbooks plus online subscription, and the next charge date is of four June after the trial ends, and it's $99 per month. I want to cancel this subscription. Cancel and it will give you something like sorry to see you go and all this. And it will show you something like this that sorry to see you go and still looking to cancel. Don't cancel cancel. I'll just click on I'll just click on Cancel Plan. And yes, cancel. You have successfully canceled your plan. You can keep using your plan until the end of the current Billing month and all the other details kip and close. And after that, we are back on the screen, but just click on settings. Click on subscriptions and Billings. Hey. And it again says and shows you this option cancel your trial. I'll just click on Cancel trial just to make sure that everything is working fine, although the payment method is removed from here, but just to make sure everything goes right. And it is still showing cancel. Yes, cancel. Skip close. So we have successfully canceled this plan, right? And it should move you back to the main screen, like I am on some other interface. And here now you can see Quickbooks plus trial canceled. This should appear. Read only until 28th May. So this message should appear. This is the confirmation that you have successfully canceled from QuickBooks online. So just try this by yourself, and I'll see you in the next one.