Learning QuickBooks®
Beginner's Forum For Business Owners Working From Home

by L. Kenway BComm CPB

What You'll Find In This Chat ...

Let's chat about good bookkeeping practices.

Learning QuickBooks® to avoid beginner's mistakes ... gives you a hint about what this chat is all about ... tips on how to use QuickBooks® software correctly.

While I will chat about how to use QuickBooks®, please understand that this page is directed to work from home small business owners who do their own bookkeeping.


It is not intended to instruct the "power" users or advanced users of QuickBooks® ... there are a lot of sites out there that cover that material better than I ever could.

So pour some tea into your favorite teacup and let's get started.


Advertisement




QuickBooks setup for transitioning to new sales tax on April 1, 2013.

QBO Canada Customizing Your Sales Tax Codes

Let me walk you through how to setup some customized sales tax codes that will make your data entry easier when learning QuickBooks® Online Canada.

Learn how to setup the meal split code in QBO Canada here.

Coming shortly ... How to setup a self-assessing PST code.

These two videos can assist you in preconfiguring your sales tax setup in the QuickBook Canada desktop (not online) version:

B.C. video to switch from HST to GST + PST.

P.E.I. video to switch from GST + PST to HST.








3 Part QuickBooks® Primer
Click on any image below to go to the chat.

Learn How To Use QuickBooks

Part 1

Beginner's Tips on A/R, A/P, Banking

Period End Closing Adjusting Entries

Shortcuts, Beginner's FORUM

How to use QuickBooks to create customized reports.

Part 2

Accounting System Flowchart

Learn How To Customize Reports

Closing Procedures, Tracking GST/HST/PST

Part 3

Setup Meals Sales Tax Code
in Classic QuickBooks Online 

Differences/Limitations
QBO Canada



We are not going to be shooting the breeze about QuickBooks® POS software ... or a whole lot about advanced inventory ...

... just useful QuickBooks® tips, tricks and traps that will hopefully make your bookkeeping time more efficient ... and enjoyable ... so you have accurate financial information to make smart business decisions.

You'll find a spot to ask your QuickBooks® questions at the end of this page.


Learn QuickBooks so you can avoid beginner's mistakes.

                               good bookkeeping practice
THE BOOKKEEPER'S|TIP    

Do You Have The Latest Version?

Do you have the latest version of QuickBooks 2012 or 2013? Are you using a version from 2011 or earlier? Are you aware of Intuit's sunset clause?

The 2014 version is now out. I don't switch until I know they have release 3 or higher is out. I think R1 and R2 are for those people that love the beta experience.

To check your version, press F2 (or Control + 1) and the Product Information window will open.

You can have these maintenance updates happen automatically by ensuring the Automatic Update feature is turned on.

QuickBooks Canada (and the U.S. too) only supports the last three versions of QuickBooks. This means QuickBooks 2011 will no longer be supported as of May 31, 2014. This means you will not be able to obtain technical support or business services (such as payroll or downloading your bank transactions) relating to the 2011 version after this date.

If you are learning QuickBooks® with a 2011 version, now may be the time to upgrade.

The 2014 version now lets you attach a document to a record, is supposed to automatically handle bounced cheques, have easier tracking of all income, and some improvements to the payroll center.



Learning QuickBooks® ... The Tips

GOOD TO KNOW

Quebec HST Setup

The steps to setting up Quebec HST:

  1. Create New Sales Tax Liability Account
  2. Create New Vendor
  3. Create New GST & QST Sales Tax Items for Sales and Purchases
  4. Create the New Sales Tax Groups for Sales and Purchases
  5. Create New Sales Tax Code

Click here for more detailed instructions.

Be sure to check Intuit's  Step 6 of important things to remember.

Prince Edward Island HST setup is a bit different.

I want to start by saying that you need to be kind and patient with yourself as you are learning QuickBooks®. The program was designed for small business owners and is user friendly ... but there are a few things that have to be done a certain way.

Here are links to a few tips on QuickBooks® procedures that you should learn to ease your learning curve and make your bookkeeping go smoothly:

Vendors - Accounts Payable - Expenses

  • When to use Pay Bills vs Write Cheques

    Pay Bills is used if the bill you are paying is sitting in Accounts Payable
    Write Cheques/Expense is used if the bill you are paying was NEVER entered into AP

  • How to adjust GST ITCs for meals and entertainment

    ✔ CRA only allows you to claim 50% of your input tax credits for meals


Customers - Accounts Receivable - Sales

  • When to use Invoice vs Sales Receipt

    Invoice is used if YOU are extending credit to your customer. It places the amount in Accounts Receivable.
    Sales Receipt is used if the customer is paying you with cash, debit card or credit card at the time of the sale. The amount does not get posted to AR. If a credit card is used, the AR is the credit card company's problem, not yours.

  • When to use Receive Payments vs Make Deposits

    Receive Payments is used if the invoice being paid is sitting in Accounts Receivable
    Make Deposits is used if an invoice was NEVER issued and entered into AR

  • The Bookkeeper's Alert on customer payments and Make Deposits
  • How to enter customer prepayments/deposits in QuickBooks
  • How to record net online sales revenue (less any service fees) directly deposited to your account


THE BOOKKEEPER'S TIP

How To Record Online Business Income

NEVER use Make Deposits in QuickBooks to record online business income. Interest income ... okay. Earned business income ... not okay. Why?

An important concept when learning QuickBooks is to remember it has modules ... one for customers, one for suppliers, one for employees.

You need to use the correct module to enter your data if you want it to report properly. Otherwise garbage in, garbage out as they say.

In the case of online business income such as affiliate fees, eBook sales and webinar sales, you must enter it into the customer module if you want your sales tax reports to federal, provincial, state and/or territorial governments to report correctly.

Most affiliate income earned online is not paid out immediately. If you use the accrual basis of accounting, you should be creating a bill at the end of each month for the amount you have earned. When the money is deposited to your account anywhere from 10 days to 6 months later, use Receive Payment to record the receipt of cash.

If the amounts you are earning are immaterial, for example you receive a $50 payment about every 6-12 months, it would be acceptable to not setup Accounts Payable each month and just create a Sales Receipt when the money is deposited to your account or you receive the cheque/check in the mail.

Other information on doing business online:


H E L P !     My A/R ledger is out of balance!!!!

When learning QuickBooks, sometimes you goof. (GASP) If your Accounts Receivable ledger balance does not equal your Accounts Receivable subsidiary ledger balance, then you know you've goofed somewhere in your process. Check:

  1. Your Open Invoice report to ensure payments were applied to invoices. If they haven't, they will show up in the Open Invoice report.
  2. Your Open Balance report if your Undeposited Funds account is growing or you can't find customer payments. Look to see if any deposits were made directly through Make Deposits or even the banking register bypassing the Accounts Receivable subsidiary ledger.


                               good bookkeeping practice
THE BOOKKEEPER'S|TIP    

Naming Convention For AR and AP

When you have a business or person that is both a customer and supplier, use this naming convention:

Joe's Plumbing - c ... for the customer (c) name and Joe's Plumbing - v for the vendor (v) / supplier name.

No more guessing the name, initials, abbreviations!


Banking - Cash


Company - Period End Closing
Government Compliance


What trouble are you having learning QuickBooks®?



Learning QuickBooks® ... The Shortcuts

The QuickBooks® accounting system has keyboard shortcuts to make data entry more efficient. There are six different types or categories of shortcut keys:

  1. General
  2. Dates - my favorite category so I talk about it below
  3. Editing
  4. Help window
  5. Activity - I give you a few of my favorites below
  6. Moving around in a window

If you key in "keyboard shortcuts" to the QuickBooks® help menu, the above categories will come up. Click on the one you are interested in. Take the time when learning QuickBooks to memorize the shortcuts ... it will save you time.

My favorite shortcut keys are the dates. It is really quick and easy to enter dates using these shortcuts. They work in the desktop version AND online version.

  • The + or - key can be used to increase or decrease the date by one day to the next day or the previous day. Please note the - does not work in QuickBooks Online Canada at the time of this writing.
  • Typing T in the date field will give you Today's date.
  • W gives you the first day of the Week
    • K gives you the last day of the Week.

  • M gives you the first day of the Month
    • H gives you the last day of the Month.

  • Y gives you the first day of the Year
    • R gives you the last day of the Year.

  • If you want the date calendar to pop open, your shortcut key is Alt + down arrow.

As you can see, the keys are easy to remember because they are tied to what you want to accomplish and they are not case sensitive ... one of the reasons these are my favorite keys ... I can actually remember with no effort. That is great accounting system design.


A few activity shortcut keys that are very useful ... but only in the desktop version.

I'm learning QuickBooks® Online Canada right now and it seems we are out of luck for these timesaving shortcuts in the online version as it is driven by your browser. When learning QuickBooks using the online version, expect things to be done a bit differently. I'll try to point out the differences as I go through my chat.


Ctrl + G ... transfers you to the line/entry of the account register directly from the entry you are in ... a real time saver when working on the bank reconciliation and one of my all time favorites!

Ctrl + M ... is one I use frequently to memorize a recurring transaction or report.

Ctrl + T ... takes you to your memorized transaction list.

Ctrl + Y ... opens up the transaction journal so you can see the entry in debits and credits ... bookkeepers like this one. :0) It's especially useful when using the forms to see the other side of the entry.

  • In the Classic online version, look for "Related Activities and Information" in the module you are in ... usually near the bottom. You will see "transaction journal" under "Related Reports and History". See the image on the left hand side below.
  • In the Harmony online version, look for "More" in the module you are in ... usually near the bottom right menu bar. You will see "transaction journal" in the popup menu. See the image on the right hand side below.

Ctrl + I ... quickly opens a customer invoice.

Ctrl + A ... brings up your COA but I prefer use my icon bar to get to my COA.



F2 let's you see the number of vendors, employees, and customers ... and the version you are using along with what updates have been installed.

F1 gets you to the contextual Help menu ... which helps to let you exhale while you are learning QuickBooks®! :0)

What are your favorite shortcut keys in QuickBooks®?


Learning QuickBooks® ... The Reporting

Follow these links for customized QuickBooks® reports and other useful information to assist the management of some of your balance sheet accounts.



Do you have a customized QuickBooks® report that has made your job easier?


The Forum

Ask A Learning QuickBooks® Question Here

Are you learning how to use QuickBooks®? Maybe this forum can help you out ... it is strictly for beginner's ... no advanced stuff here.

Ask your beginner QuickBooks® questions here ... I promise the answer won't be to go talk to a professional.

Hopefully others who know QuickBooks® will join in too ... offering to share their expertise.

Contributions to this site are moderated. They may be edited for grammar, spelling, and presentation. (I may even change your title if I think it will help the search engines find your page.)

Your contribution will appear below once it has been approved.


Enter Your Title ... It should give readers a hint of the subject

Tip - Keep it short ... 3 or 4 words is best

Learning QuickBooks® Questions & Answers
Visitors Have Already Asked ...

Click below to see the contributions that have been made already. Enter the discussions. There is usually more than one right answer or more than one way to do something ... so tell us what you think!

You can help make Learning QuickBooks® better by adding your comments and ratings to one or more contributions.

Sales Tax on Paid Parking Tickets 
Hi there, I am trying to enter some expenses for the partners of the business and am not sure what to do when the receipt does not have the taxes broken …

Daily Sales Summary 
Our company has a website selling a high end product. As the company bookkeeper I enter each sale into our accounting software as a receivable. Once …

Fixing a QuickBooks Mess 
How do I correctly fix a badly managed set of QuickBooks that hasn't been properly managed since 2010. Specifically, how do I get the QuickBooks records/data …

How To Track Customer Deposits 
I need a program that will let me track cash deposits made in advance of purchase even when no final amount has been determined. There is no time limit …

Year-end Trial Balance Report 
Our company year-end date is Nov 19th. I did not enter a Closing Date in the Accounting Preferences. However, in Company Information, I had to enter a …

Entering GST/HST Late Filing in QuickBooks®  
Due to circumstance,s the company I just started working for was unable to file a complete GST/HST report last quarter. Their bookkeeping was several …

How to Fix Entries Already Reconciled 
How do you adjust year end entries if they already have been reconciled. Example: I did a journal entry for an asset under misc withdrawls, for the …

Sales Receipt Requirements 
Hi, My son is just starting his very own small-business. (He is 13). I am setting him up to use QuickBooks in its most simple form (sole proprietorship) …

HST From Purchases 
Hello, I have a question regarding entering the HST paid from purchases into QuickBooks software. The corporation is registered for the GST/HST (although …

How to Recover Lost Data in QuickBooks 
I might have deleted some entries that change the numbers in the balance sheet. How could I use the backup file to get the previous numbers without …

QuickBooks Receive Payment 
Adjusting Accounts Receivable For Deposited But "Unreceived" Payments. BEST Solution ... Follow The QuickBooks Process. Hi, I have a bad habit …

Petty Cash 
Petty cash has been set up. Let's say I paid Cindy (employee) $10.50 (includes GST only) from Petty Cash for Parking Expense. In QuickBooks, …

Sales Tax Return Already Filed 
I am using my newly purchased QB and filed my current quarterly Sales Tax Return. Now I am entering data retrospectively for the last fiscal year. …

QuickBooks Bank Reconciliation 
Bank Reconciliation-has not been performed in two years Hello, I started assisting a small business with their bookkeeping records. Apparently …

Refund of HST 
Good Day! First of all, thank you for your great website! You answered lots of questions already, but I still have a few... We import goods from …

Accountants Copy 
Accountants Copy of over 200mb books ... and mysterious password When the books are too large, instead of being able to email, the Accountants Copy …

Personal Expense on Business Account 
I failed to follow one of the basic guidelines you mention on the web site. I charged personal items to the company credit card and paid the credit card …

Entering Invoices from a Supplier 
This may be a silly question, however; I'm very new to bookkeeping and Quickbooks and see a potential problem with how our accounts were set up. Initially …

Loan Proceeds Not Deposited To Bank 
How do I record an asset paid for in installments and financed by a lender? New to Quickbooks and double entry accounting. I understand most of …

QuickBooks Conversion 
I have a customer account that used to be a Partnership - the one partner has signed off and the other has assumed all business liabilities - I now need …

Vendor Prepayments 
What is the best way to deal with vendor prepayments in QB? Client wrote a cheque for $1,900 to a vendor for a leasehold improvements item. There …

Payroll Liability Refund 
Recording Tax Agency Credit in Quickbooks Hi, Our church uses Quickbooks Pro for accounting but we don't use the payroll module (only 1 paid …

Foreign Exchange Transactions 
Income lost to foreign exchange rate changes. I have received a cheque for payment in US dollars. The (exchange) rate has changed and I am losing …

Payment of Owner's Expenses 
How do I set up an account to reimburse owner for expenses paid? I talk about how I like to setup my "Owed To Owner" account in QuickBooks …

Click here to write your own.

Interest Received in a Deposit 
How do you show interest received in a deposit using QuickBooks? I'm not sure exactly what you are asking ... so I'll answer in two parts. …

Customer Deposits 
What account should I use for deposits (received) in advance from clients? I am using QuickBooks. I need to know where I should deposit the payment …

Cost of Goods Sold
In a Resale Printing Corporation
 
How can I use this account in my business if I do resale of the printing jobs like ... ... business cards, flyers and more? Is it right to use Cost …

QuickBooks®
Recording a Direct Deposit
 
How can I show fees associated with an ACH (automated clearing house) deposit in QuickBooks®? I am doing very basic bookkeeping for a friend. She has …

Entries for Graphic Artist Business 
My partner is a graphic arist. He produces work (brochures, for example), and has them printed at a local printer company, then they invoice him and he …

Reconciliation Issues with ...
General Journal
 
I did not reconcile my accounts before filing my sales tax (didn't think to do this, now I know). I've now reconciled my accounts and found numerous …

Reimbursed Expenses 
Hello, I am trying to figure out whether or not I should include recoverable expenses in line 101 of the HST report. I work for a patent agency. …

QuickBooks Version 
Hi, Can I work on QuickBooks Pro 2007 for QuickBooks 2009 files? Thanks a lot. Hi Maria, I'm not exactly sure what you are asking. …

Credit Card Data Entry Not rated yet
I just started using QuickBooks so I'm pretty new. I've just added our MasterCard account. Now I have all these transactions to add or split which is …

Self Assessing PST Not rated yet
Hi, I live in BC and setting up bookkeeping file for my first client and I have to self asses PST on couple of purchases out of country. It is equipment …

Lease - School Assignment Not rated yet
Which type of lease these are, please explain. (a) Firdous limited is intended to acquire an asset for one season that is consisted of 6 months. Hefty …

Recording CBSA Assessed GST as ITC? Not rated yet
Hi, I'm having trouble figuring how to record GST assessed by CBSA (Canada Border Services Agency) on goods imported. We purchased the items as supplies …

Recording Pension Income Not rated yet
How do you record Old Age Security (OAS) income being deposited directly into bank account? Should I use record deposit but which account is it coming …

QST set up  Not rated yet
Can someone help with setting up QST ITC in QuickBooks? Currently I am splitting out the PST portion to the expense account. Thanks. …

Missing Sales Tax Codes Not rated yet
I have a cheque that was issued to pay HST to CRA. The cheque was entered without a sales tax code and is now showing up as an unassigned item and throwing …

New to Yearend Procedures Not rated yet
I need help quick! I'm new to a small company as an office admin. As part of my duties, I also do a little bookkeeping or data entry which I'm not …

GST Mapping Changes Not rated yet
I accidentally changed the GST mapping in my company account. How do I fix it? The program won't let you change from a dollar amount to a % and vice …

HST Credit Not rated yet
Hi ! Last quarter I had a credit on HST and I filled the tax return as it showed me in the Sales Tax report. After I filled , some stuff was changed …

Inventory Entries for Restaurant Not rated yet
I would like to know how to transfer inventory totals into my QuickBooks. Inventory is done monthly for the restaurant/pub, but not tracked through QuickBooks. …

CPP Base Rate Exemption Not rated yet
When doing payroll, how does QuickBooks factor in the $3,500 exemption? Do I have to do an manual reconciliation and correction for the over-deducted …

Trucking Fees From Vendors Not rated yet
When we receive an invoice (and goods) from our vendor(s), we are charged trucking, which I have set up under "Other" in Expenses. However, we also …

Memorized Transactions Not rated yet
I cannot balance my memorized transaction because "ghost amounts" keep appearing from before and I cannot clear them. I have even deleted the memorized …

Cost of Goods Sold Not rated yet
I recently took a job cleaning up books for a Canadian corporation. And cleaning is an understatement! However in good spirit and in a desire to learn, …

Wrong account entries Not rated yet
I am learning QuickBooks and I am using my household like a company to record my expenses to practice and learn. By mistake I recorded the expenses …

QuickBooks File Set up Not rated yet
Is there a certain specific way to set up a company file in QuickBooks? I have heard from some business people that their QuickBooks company file was …

Click here to write your own.

Quickbooks Clean Up Not rated yet
I have a few transactions from 2010 that include some duplicate credits and duplicate bills along with some old credits. These are showing up on my Profit …

Recording PayPal Fees Not rated yet
How to deal with payment processor skimming? I'm at a non-profit organization. If somebody donates, say, $10 through PayPal I have to issue a $10 …

Adjusting Journal Entries With HST Not rated yet
I am trying to enter my adjusting journal entries from my accountant. One of them consists of five lines: 1 accounts receivable 2 hst on purchases …

Cost of Goods Credit Cards Not rated yet
Hi, 80 to 90% of all my customers pay with a credit card as we operate an online store. Should the per sale credit card charge (discount rate) be …

QuickBooks Journal Entry Rules Not rated yet
I have quarter-end journal entries (JEs) to make that look like this: DR Other Receivables CR Capital Stock DR Other Receivables CR GST Payable …

Items Multiple Unit of Measure Not rated yet
How do or can I assign an item to have 2 units of measure? ex. Flooring at 21 sq.ft per box. If I needed 1000 sq.ft type in 1000 sq.ft under "qty", …

Setting up QuickBooks Not rated yet
Setting up previous year balances for accounts when starting in Quickbooks I started using Quickbooks Pro 2010 at the beginning of the year and …

Prepayment to Foreign Vendor Not rated yet
I am using QuickBooks and have made a payment on account to a US vendor. I do not have a US bank account. I have applied the prepayment to invoices …

Reverse Sales Tax Filing in QuickBooks Not rated yet
Good Morning Laura, Just a quick question: Do you know if you can reverse GST filing in QuickBooks desktop?? I have a situation where I filed the …

Accounts Receivable Clean Up Not rated yet
An accounts receivable has been sitting now for 1 year. I want to write it off as a bad debt. How do I get it out of the accounts receivable and put …

Booking Meals & Entertainment Expenses Not rated yet
Hi There, I am using QB and was wondering how I should book the meals and entertainment expenses given that they only have a 50% eligibility. Do …

Printing Customer List With Balances Not rated yet
I can't print Transactions:Invoices:and only a portion of the list. Hello Nancy, I'm not sure where you are at ... but when I want to print …

Paying Bills in QuickBooks® Not rated yet
Hey there! I am using QuickBooks® to do the bookkeeping for a company with many bank accounts. I understand how to enter in vender bills to the …

Line of Credit Interest Not rated yet
When I have interest on my line of credit, where do I enter this interest? ... because it shows up on the line of credit and the bank account that it was …

Click here to write your own.


That's it for today. I hoped you enjoyed this introduction to learning QuickBooks® and found the information useful, practical ... and not too overwhelming.



It's been great chatting with about bookkeeping today.

It's been great chatting with you .
Your tutor Lake

> > Learn How To Use QuickBooks Forum

> > Learning QuickBooks

Enjoy A Tea Break With
Me Today. Let's Chat!

Use the search feature to quickly find the
information you're looking for.

Like this page? Please let Google
know by clicking the +1 button.





SHORTEN
Your Learning Curve!

How to do MonthEnd | Month-End Procedures

Click on the cover to learn more.





Warm up your tea cup and check out these chats ...

Click on image above to read the chat.






Purchasing These Products Through My Links Helps To Support This Site

Click on image above for my review.



Join Me On Facebook

Help support this site by "liking" me!

Listed Under Websites NOT Local Business.
This website is not associated with the business operating in Bonnyville AB.



Jump The Learning Curve
With This eBook
A Handy Reference

Bookkeeping checklist that are a handy reference.

Click on the cover to learn more.