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Quickbooks User Guide

1. Exchange 1 47081 2 Update the exchange hete exchange rate set up a foreign M Tobe printed Tobe sent price See Set up foreign Memo o O e SavetNew Clear prices for items on page 162 168 Chapter 6 Doing business internationally Note When you create an invoice for a foreign customer and add an item that has a tax code assigned to it the tax code is not brought over to the invoice Receiving payments from foreign customers You receive payments from foreign customers as you normally would As you do you also need to 1 Select the foreign customer from whom you are receiving the payment in this case itis a US customer QuickBooks selects A R account that matches the currency of the selected customer If one doesn t exist QuickBooks prompts you to create one Fill out the Receive Payment window as you normally would gt Receive Payments _ Of x Previous Next QhHistory E Journal Print Credit Memo The customer Customer Payment determines the currency C Received Fiom American Impons Lid E USES of the transaction and seeing that this customer is American the amounts on this form are in US dollars Pmt Method Cheque gt Date 08 30 2001 Amount US 18075 Ref Chg No 134 an Show discount and credit information Amt Due X 180 75 180 75 180 75 it Clear Selectii GoT Unus
2. Chapter 5 Tracking and paying sales taxes Now QuickBooks automatically categorizes all transactions affecting your sales tax liability account This means m you ll no longer have to manually categorize these types of transactions m when you generate GST PST reports your sales tax liability amount will now be accurate and m uncategorized amounts will no longer appear in the File Sales Tax window or in your GST PST reports W hat happens to the uncategorized amounts when I upgrade If you previously had uncategorized amounts these transactions will automatically be updated and categorized when you install QuickBooks 2006 QuickBooks takes the ending date you enter and marks all uncategorized amounts on or before that date as filed so they won t affect your sales tax liability Uncategorized amounts after the ending date will be categorized as tax on sales or purchases so that they correctly affect your sales tax liability account The next time you file a sales tax return QuickBooks will include these newly categorized transactions properly with all other unfiled transactions If you had uncategorized amountsin earlier versions of QuickBooks and didn t adjust your GST PST returns for them consult your accountant to see if you should file an adjustment now W hy are the From and To fields missing from the GST amp PST Liability reports We changed the model of the GST and PST Liability reports in QuickBooks 2004 In earlier
3. Default ui Chequing IV Use foreign prices on items IV Require accounts mjia Foreign item i zya Die detak Tescil Netherlands Guilder Also See Rene IV Prompt to assign classes NOF Australia Dollar vV Nes IV Use audit trail Canada Dollar IV Automatically assign general jornal entry number Euro Finance France Franc Charge Closing Date Germany Deutsche Mark Hong Kong Doll Date through which books are cfpsed J pales ven i mo m v Netherlands Guilder Switzerland Franc United Kingdom Pound United States of America Dollar Toy Once the foreign pricing is turned on 162 Chapter 6 Doing business internationally New Item jor you ll see an extra field in the New Item window where you can Item Name Number Subitem of enter a fixed foreign price for an D a item T This item is purchased for and sold to a specific customerjob QuickBooks uses an item s Description Foreign Price in transactions where the currency matches the currency that you chose in the Account T Item is inactive foreign pricing Using the currency list The Currency List isa list of all the currencies that are set up in QuickBooks We veincluded atotal of 44 currencies including Canadian currency in the Currency List The list contains information about each currency such as its exchange rate currency symbol and hotkey When a foreign transaction is recorded QuickBooks u
4. Paying payroll liabilities and filing payroll forms 213 Creating a TPZ 1015 report In Qu bec along with your monthly payment to the Minister of Revenue you need to submit a TPZ 1015 form On this form you report the Qu bec income tax amounts and QPP contributions you withheld from your employees pay cheques over the past month To help you prepare this form QuickBooks provides a Qu bec Remittance report 1 From the Reports menu choose Employees amp Payroll then Qu bec Remittance Report TPZ 1015 2 Check that thedates show thecorrect payroll deductions period they probably don t and type new dates if necessary 3 Click OK to generate the report 4 Usetheinformation on this report to fill in your TPZ 1015 form Gathering information for other tax forms Your business may also be required to file other payroll forms Though you cannot prepare these forms in QuickBooks you can generate reports to help you gather the information you need to prepare the forms For more information about these reports see Getting information about your payroll on page 219 Creating year end T4 and Relev 1 slips T4 Statement of Remuneration Paid and Relev 1 RL 1 slips are end of year payroll forms that show an employee s wages and payroll deductions for the past year In January or February you need to create these slips for your employees the Canada Revenue Agency and in Qu bec the Minister of Revenue You al
5. In all versions of QuickBooks you can set up your company file so that different users have different access to features You can set up aS many users as you want See Users and passwords on page 123 In QuickBooks Pro or better several people can work with your company file at the same time over a computer network In QuickBooks Pro and QuickBooks Premier editions five users can access your company file simultaneously Sharing company files w ith QuickBooks Pro or better While QuickBooks Pro and QuickBooks Premier can network together to share one com pany file QuickBooks Enterprise Solutions will only network with other copies of Quick Books Enterprise Solutions to share a company file Using QuickBooks on a network is basically the same as using it on a single computer When several users are allowed to work in the company file simultaneously the file isin multi user mode However for some activities only one person at a time can use the company file The other users must log off close the company file or exit QuickBooks Then the person who wants to perform the activity must switch the fileto single user mode After finishing the activity the person can switch back to multi user mode and the others can log back on or open the company file again Single mode activities include m File operations such as backing up condensing or exporting data m Sometypes of changes to lists m Adjusting inventory m A
6. Period Amount _ Hours for Period Hourly 1 600 00 160 00 4 Ba Other Employee and Company Payroll Items Item Name Period Amount VacPay Accrued CPP Company CPP Employee EI Company EI Employee Federal Income Tax 234 009 At the end of this wizard you ll be asked if you want to create an Employee Earnings Summary Report You should compare it to the information you enter here Pay Period Summary Cancel Help Accounts Affected Show Wage Bases From 01 01 2003 To 01 15 2003 Click OK when you re done entering year to date summaries for this employee This employee has 234 of accrued vacation pay still owing to her at the time of the conversion An employee s outstanding accrued vacation pay must be added to the Set Up YTD Amounts wizard Do not use the accrued vacation pay amount shown in the Payroll Register detail report as this amount does not include any Employee a outstanding accrued vacation pay carried forward from previous payroll Page 1 Amount Logan Smith Alison 4 Vacation Pay Accrued years None Tota 234 00 When you ve entered year to date summaries for all your employees click Next On the Enter prior payments window click Create Payment and enter the total liability payments that you made in this payroll year for each liability item
7. 357 50 percentage if you set one up i in sales and customer preferences To make the marked expenses taxable Most people use an incom on the invoice select this checkbox account for markup After you click OK in the window QuickBooks puts all the marked expenses on theinvoice Note You can set up QuickBooks so that it assigns income for a reimbursed expense to an income account If you don t do this setup the income cancels the original expense in the expense account See Items for reimbursable costs QuickBooks Pro and better on page 38 Charging customers for time worked and other costs 239 Reimbursable time and costs in QuickBooks Pro and better In QuickBooks Pro and better when you click the Time Costs button on an invoice for a customer or job it displays a window with three separate tabs one for billable items billable expenses and billable time On the Items tab you mark which billable items to add to the invoice Click the Hide field only if you don t ever want to charge this customer for the item The bill is not affected Time tab displays only if time tracking is on This window shows all billable but not yet billed time and job costs for this particular job Choose Billable Time and Costs Hon ba Each of the three tabs displays the dollar total for the lines that have a mark in the Use field These amounts will be added to the invoice
8. E Customer 0 00 Message Tax je Total Balance Due Thank you for your business M 9 085 04 9 085 04 I Tobe sent I Tobe printed Memo Final invoice Smith family room Save amp Close Save amp New Clear M Customer is Taxable However Frank uses more detailed items so he can learn more from his sales reports Frank breaks down the remodel cost and uses items such as Lumber Hardware Markup Carpentry Hours and Labourer Hours He groups these items under one item called Remodel Even though he chooses not to print theitemsin the group on theinvoice for his customersto see he still has those details on his sales reports Amount 499 99 100 00 5 199 98 5 179 98 5 16 99 5 Description Coolman 15 Canoe Employee Family discount Dawaiee Reel 44 456 Spinning Reel Sportsman Fishing Jacket Black PCB Tackle Box Customer Thank you for your bd Message business PST 499 99 20 0 99 99 89 99 16 99 Coolman Canoe 1 Discount Fishing Dawaie 2 Fishing Fishing 2 Fishing Tackle Box 1 GST 55 79 63 76 Total 916 49 Working with items 43 Applying a discount to one or more items To apply a discount you have to enter a discount item If the discount item s rate is a percentage the item reduces the amount due by a percentage of the line above it To take a percentage off several items at once you
9. Intult CANADA User Guide QuickBooks Pro for Windows QuickBooks Premier for Windows QuickBooks Premier Industry Specific Editions for Windows Copyright Copyright 2005 Intuit Inc Intuit Canada All rights reserved Box 4182 First printing July 2005 Edmonton Alberta T6E 4T2 STATEMENTSIN THIS DOCUMENT REGARDING THIRD PARTY STANDARDS OR SOFTWARE ARE BASED ON INFORMATION MADE AVAILABLE BY THIRD PARTIES INTUIT AND ITS AFFILIATES ARE NOT THE SOURCE OF SUCH INFORMATION AND HAVE NOT INDEPENDENTLY VERIFIED SUCH INFORMATION THE INFORMATION IN THIS DOCUMENT ISSUBJECT TO CHANGE WITHOUT NOTICE Macromedia Shockwave Player and Macromedia Flash Player Copyright 1995 2003 Macromedia Inc All rights reserved Macromedia Shockwave and Flash are trademarks of Macromedia Inc Trademarks and Patents Important Intuit the Intuit logo QuickBooks EasyStart QuickBase Quicken TurboTax QuickTax ProSeries WillExpert Lacerte EasyStep and QuickZoom among others are registered trademarks and or registered service marks of Intuit Inc in the United States and other countries Other parties trademarks or service marks are the property of their respective owners and should be treated as such Various QuickBooks products and services are protected by one or more of the following U S patents 5134564 5423033 5842185 5903881 Terms conditions features service offerings prices and hours referenced in this document are s
10. T Federal Allowances 7 634 00 ederal Extra Withheld 0 00 Provincial Allowances 636 UU WA Birth Date 5 26 1973 E Converting data from MYOB 83 Importing from exporting to other softw are Importing from other softw are 84 Note Note QuickBooks can import information directly from some bookkeeping packages To start the import wizard from the File menu select Import then the software you areimporting from For help click the Help button in the wizard If you use QuickBooks Pro or better with a few clicks you can import your contacts from Microsoft Outlook or Symantec ACT see page 85 For all other software QuickBooks imports data in a format called IIF Intuit Interchange Format a special type of ASCII text file with headings to tell QuickBooks the type of information it contains This format is different from QIF used by Quicken If you want to import data from other software programs you need to create an IIF filefrom it or reformat data you already use to conform to IIF standards Creating an IIF file from scratch or changing data from another accounting program into an IIF file is not recommended unless you have programming experience However you do not need to learn about the IIF format to export lists and import them back into QuickBooks see below To learn about Search the Help index for Creating an IIF file importing data Transferring lists bet
11. links appear here as well QuickBooks provides a variety of ways for you to obtain useful information and answers to your questions These include tutorials in the Learning Center Follow Me Help and an exhaustive search engine referred to as 1 2 3 Help that searches not only thehelp but our online knowledge base How Do I menus Show Me Help main menu videos are listed here Search the Help 18 xi Mi buik 8 QuickBooks Premier Edition 2005 Lists Company Customers Vendors Employees Banking Reports Window Help o P E 2 2 H Invoice Cust Nitem MemTx Wend Cheque Bill Reg Accnt P x fa Create Invoices Rmnd Find Support Backup ik stem qooston Ask gt How Do IIE B previous GPnext Grint Bema Grind MSpeling History E Journal CH Timefcosts Customer Job Template Customize gt Intuit Service Invoice gt Date Invoice 05 7 200 m Invoice ie Amount Tax Search Look Online Contact Us 1 Look for help in QuickBooks g Powered by WexTech AnswerWorks Description Search the help by entering key words or a question such as how dn T reset my rhenie zi Heo Px db MQalax 1 From the Customers menu choose Create Invoices fel 2 Fillin the name of the customer or job IF multicurrency is turned on the currency that is assigned to the customer determines the currency that is used in the form For example if the invo
12. Employee 0 00 0 00 0 00 0 00 OPP Company 0 00 0 00 0 00 0 00 Quebec Income Tax 0 00 0 00 0 00 0 00 Het Vacation Accrued 614 27 614 27 83 80 6 589 43 Total Payroll Liabilities 614 27 4 195 76 595 74 10 682 86 Payroll Liability Balances January 1 through December 15 2003 o Oct03 o Hov03 oDec1 15 03 BALANCE lt Finding out how much you spend on your payroll Let s say you want to know how much money you spend on your payroll You can run a payroll summary report to see your payroll totals by enployee and for the whole company for a single payroll period You can change the date range to cover this year to date last quarter or any period you want The gross pay includes commissions and additions to gross This represents the total payroll expenses not including the employer portion for employment taxes and other contributions The adjusted gross pay equals gross pay minus deductions from gross 2 34 PM Mountain Sports Equipment Payroll Summary December 1 15 2003 1215 03 TOTAL o Hours Rate Employee Wages Taxes and Adjustments Gross Pay Salary Hourly Commission Total Gross Pay Dec 1 15 03 The net pay is the actual amount of money the employee s received This amount is usually less than gross pay due to taxes withheld and other after tax deductions justed Gross Pay Taxes Withheld Federal Income Tax CPP Employee El Employee Total Taxes Wit
13. Installing amp Learning to Use QuickBooks Guide 4 Open QuickBooks by double clicking the QuickBooks icon on your desktop 5 From the File menu select Import then Convert from Quicken The Important Docu mentation window appears 6 Click View Help for information about converting from Quicken 7 Close the help window then click OK 8 Choose the Quicken file you want to convert then click Open 9 Follow the instructions on your screen to convert your file Fine tuning your data after converting to QuickBooks After you convert your data from Quicken you may need to make some additional adjustments to it before you start using QuickBooks Edit your Other Names list At the end of the Quicken conversion unless you use Quicken Deluxe you are asked to choose which account you used for Accounts Receivable A R As the conversion finishes QuickBooks gives you a list of names to which you made payments but which you have not used in your accounts receivable account This list may contain not only the names of customers vendors and employees but also descriptions such as Deposit Transfer and Interest You should change the names on the list to the correct type If you don t change them now they remain on your Other Names list so you can change them later but you ll have to do it onenameat atime If you want to use QuickBooks account payable be sure to move your Quicken payees other than employees f
14. Time and Costs For Melton Johnny Dental office items 2 250 00 Expenses Select All Use _ Date Item Description Amount Hide To use all lines on this tab click Select All To unmark all lines click Clear All the J 111 10 195 Subs Drywal Install drywall 11 14 195 Subs Metal Metal Work 11 24 1795 Subs Drypwal Install drywall 11 30 19 Subs Electric Electrical work button name changes 12 05 195 E quip Renta E quipment Rental 12 08 17 9 Permit Building permit Select this checkbox to print only the overall total and a general description for the group of marked items on all three tabs To print an overall total but no detail for one tab alone mark the lines on only one tab select the checkbox and click OK 2 250 00 Total billable time and costs OK Cancel Help The Description and Rate fields show the sales description and rate for each item from the item setup They may differ from the purchase description and rate Print selected time and costs as one invoice item This is the total amount for marked items on all three tabs On the sales form QuickBooks Pro and better use the sales price not the cost for each inventory part and for each resale non inventory part subcontracted service and reimbursable other charge item You can change the price on the sales form If you set up the item with a sales price of 0 00 because c
15. a you d see that the purchasing unit for Soda Pop isa case QuickBooks understands this to mean 12 cans as defined by the item s selling units of measure Description Amount TAX Invoices Soda Pop vit Uy 1 50 7 1 50 5 When that same item is added to an invoice however the unit displayed is the selling unit Tip You can enter fractional or decimal values on forms For example if you purchased only half a case you could enter 5 or 1 2 on your bill Assigning a label to Service amp Non inventory Part items A descriptive label can be added to Service and Non inventory Part items with units of measure turned on to help identify the unit of measure or rate that is used for these items Different units of measure cannot be tracked for these item types These labels act only as atitle and when created are displayed on business forms and reports Setting up items 35 Reporting in different units of measure By default some reports display an item s unit of measure The unit that is displayed depends on the report being created For example a Purchase by Item Summary report displays the purchasing units of measure whereas the Sales by Item Summary report displays the selling units You can change the reports to display in the units you want through the Modify Report window fiji sales by Item Detail _ ol x Modify Report Memorize Print Excel Hide Header Refresh L e Dates This
16. anew account and enter its opening balance QuickBooks enters that amount in the Opening Bal Equity account so that your accounts balance You can leave the Opening Bal Equity total alone or you can distribute amounts from it to other equity accounts 2 To learn about Search the Help index for Distributing equity from before your Opening Bal Equity account start date Moving the amount in the Opening equity transferring from Opening Bal Bal Equity account to other equity Equity accounts How QuickBooks converts accounts receivable transactions If you answered Yes to converting your Quicken asset accounts to QuickBooks A R accounts QuickBooks converted the transactions as follows This item in your Quicken A R 1S Converted to this in account QuickB ooks Each transaction that increases your A R bal An invoice to a customer ance Each transaction that decreases your A R bal A payment from a customer ance and has only one split line Each transaction that decreases your A R bal A credit memo to a customer ance and has more than one split line Each payee A customer on your QuickBooks Customer ob list Each category Both an item on your Item list and an income account on your Chart of Accounts QuickBooks applies payments in Quicken to a customer s oldest outstanding invoice first 68 Chapter 3 Importing and exporting data Changing The conversion saves you the time of typing
17. can make an employee active again at any time If the same employee appears in your Employee list twice you can merge the two names if there are no payroll transactions for either instance M erging employees is not reversible To learn about Search the Help index for Making employees inactive hid employees hiding and showing ing them or showing them Merging employee names employees merging two names Deleting an unused employee employees deleting Contacting your employees by mail In all QuickBooks editions except Basic you can use your QuickBooks data in conjunction with prewritten Microsoft Word letters to mail your employees notices about such matters as accrued vacation and sick time Search the Help index To learn about for Using your QuickBooks data with letters using QuickBooks data in Microsoft Word letters Microsoft Word Managing payroll and employee information 205 Running payroll and paying taxes Note Before you begin writing pay cheques be sure that your payroll system is set up completely and correctly see page 175 Also go online to get the latest payroll update which includes the most current tax information available Selecting employees to pay To select which employees you want to pay m From the Employees menu choose Pay Employees QuickBooks draws If you enter hours worked commission bases If all your employees are salaried and the cheque from this vacation pa
18. employer paid Private health care hospitalization or medical insurance Ded n Net N N N N N N N n a plans employee paid Private health care hospitalization or medical insurance boc n a N N N Y Y N N N N n a plans employer paid B Professional fees in cash naam n a Y Y Y Y D Note 8 Y N In Professional fees non cash Co Box not taxable if a job requirement by Ctrb n n a Y Y N Y Y Note 8 N N n a the company 40 L B Recreational facilities in cash ecu n a Y Y Y Y Y ion Y Y N In B Recreational facilities non cash A n a Y Y N Y Y ia Y N N n a Recreational facilities club Co Box membership dues Ctrb n n a K H N be X 40 L u N N n a Registered Pension Plan RPP Ded n Gross y N N y N Box N nj employee paid 20 D Registered Pension Plan RPP Co Box employer paid Ctrb n n a N N N us 7 40 L N N N n a Registered Retirement i Box Savings Plan RRSP employee paid Ded n Gross X N ug 7 N 40 L y n a Registered Retirement Co Box Savings Plan RRSP Ctrb n n a Y bd Y Y N Y N In employer paid 40 L Registered Retirement Savings Plan RRSP Co Box employer paid but considered a non Ctrb n n a Y y N bs X 40 L N N N na cash benefit Registered Retirement Co Box Savings Plan RRSP Ctrb n n a Y Y Y Y Y Note 8 N N n a administration fees 40 L P f Co Box Scholarships and bursaries Ctrb n n a Y Y Y Y Y 40L N v N In Spouse s travelling expenses cash Co Box allowance Ctrb n n a Y Y
19. in this order m Your payroll items see Setting up your payroll items on page 179 m Your employees see Setting up employees on page 191 m Theemployees year to date amounts see Summarizing amounts for this year to date on page 196 If you havenot already doneso protect your company and employee payroll data from unauthorized access by setting up users and permissions see Users and passwords on page 123 To learn about Search the Help index for Setting up payroll payroll setup required information Signing up for the QuickBooks QuickBooks Payroll Payroll Getting payroll updates payroll updating Setting payroll preferences preferences payroll Setting up users and permissions permissions for a payroll system Setting up payroll an overview 175 Collecting the information you ll need If you paid employees before you set up your company in QuickBooks you ll need to get information from your previous accounting package or your accountant Information you need W here to find it Company How often you pay your employees Your accountant or company records Your policies on vacation pay and sick time Your accountant or company records Contact information for the agencies you Your accountant or company records remit money to after withholding it from employee payments e g the CRA Start date for using payroll Your company records Tax information Your business numbe
20. m Payroll Info this employee s salary or hourly wages and any additions deductions or company contributions that apply to him or her You ll need payroll items for most of thisinformation which you select in the Item Name column of the tables If you have not already set up all the payroll items you need QuickBooks gives you achanceto add them as you work This tab also contains four buttons for setting up other important parts of the employee s payroll information Payroll Taxes the employee s payroll deductions for income tax Employment Insurance Canada Pension Plan Qu bec Pension Plan and any other payroll taxes heor she might haveto pay Theinformation from the employee s TD1 form goes here see Entering information from employee TD1 forms on page 194 Direct Deposit the employee s bank account number and routing number Accrual Hours how the employee accrues time such as sick daysor time off in lieu of overtime Use this window to track how much accrued time an employee has available and how much he or she has used this year See page 197 for important information about entering Accrual Hours year to date amounts Vacation Pay how the employee accrues vacation pay Use this window to track how much vacation pay an employee has available and how much he or she has used this year See page 197 for important information about entering Vacation Pay year to date amounts QuickBooks also provides a notepad i
21. or deleting report customization columns columns on a report Tailoring the data in the report reports changing the scope of filtering Changing headers and footers report customization headers Getting information about your company 103 W hat does Other refer to on reports If you use subaccounts subitems or jobs then sooner or later you will seethe word Other on areport Profit and Loss October through December 2003 Oct Dec 03 Expense Automobile Fuel 140 35 Repairs and Maintenance 114 75 Automobile Other 16 45 Total Automobile The 18 45 expense for Automobile Other is for the Automobile main account and not for either of the subaccounts QuickBooks shows the word Other when you create a report for an account that has subaccounts or items that have subitems customers that have jobs and so on and there is atransaction associated with the main account Generally if you are using subaccounts or subitems or jobs you should associate transactions only with the subaccounts instead of the master account To remove the Other line or column on a report double click its dollar amount to see the transaction and adjust it When QuickBooks displays a report listing one or more transactions double click each one in turn In the transaction itself replace the problem name with the correct subaccount subitem or job Understanding QuickBooks file types 104 Quic
22. then choose For Files or Folders In the Search Results window type QBB in the Search for files named field The asterisk symbol acts as a substitute for zero or more characters Choose a drive or folder in the Look in field Click Search Now Backing up your company data 113 Restoring your backup file Note If you need to restore your company file from a backup use the Restore command Because QuickBooks backup files are compressed simply copying the backup file to your QuickBooks directory won t give you access to your data Because your backup copy is in a compressed file format you must use the Restore command to bring the data back into QuickBooks Do not use the Copy command from Windows Explorer or the DOS prompt If your hard disk has malfunctioned you first need to reinstall QuickBooks on the repaired or new hard disk For instructions see the Installing amp Learning to Use Quick Books Guide that came with your software If QuickBooks locates a company file with a name that is the same as the one you re restoring QuickBooks asks you whether you want to replace the existing file If you answer No QuickBooks returns you to the Restore window You must then give a different name to the restored file and when the process is finished you will have two different versions of your company data If you are restoring your company file because your computer or hard drive malfunctioned w
23. use items for entering sales only If you purchase property such as buildings vehicles computers or heavy machinery that will contributeto the operating capacity of your company for several years QuickBooks Pro and better enable you to set up items that can help you track their depredation You need to track the depreciation of such fixed assets both for tax purposes and to get an accurate accounting of the worth of your business Your accountant can give you more information about using fixed asset items to record purchases and subsequent sales of fixed assets Why you probably need to set up items 25 Deciding how items should affect accounts 26 When you set up most items you must specify which account it should affect when you use the item on a sale or purchase Then when you record the sale or purchase each item on it affects the appropriate account In other words while you are recording the items on a sale or purchase QuickBooks is adjusting all the right accounts behind the scenes Which are the right accounts If you sell an item service non inventory and other charges you normally associate an income account with it If you purchase the same item QuickBooks Pro and better provide a way to associate a second account usually an expense account to be used on purchases See Items for reimbursable costs QuickBooks Pro and better on page 38 To learn about Search the Help index for accounts for trac
24. versions of QuickBooks the reporting period of these two reports was specified using a From and To field meaning that the reports typically represented one reporting period Now when you create these reports they calculate your sales tax liabilities as of a particular date beginning from your QuickBooks start date If you insist on generating a GST or PST Liability report using the older model you can modify the current report to meet your needs When you have customized the report to your needs memorize it so you can create it again quickly From the Reports menu choose Vendors amp Payables then GST or PST Liability On the report click the Modify Report button On the Display tab in the From and To fields specify the reporting period Click the Filters tab From the Current Filter Choices table select the Filed filter and click Remove Selected Filter Click OK UukhWN Fe e2 Sales tax information for upgraders 139 Does your business need to be registered Although very small businesses are exempt the Canada Revenue Agency CRA recommends that all businesses register to collect the Goods and Services Tax GST or in provinces where the provincial sales tax has been combined with the GST the Harmonized Sales Tax HST Registered businesses track the GST or HST collected from customers on sales and paid on purchases for the business Usually you collect more sales tax than you pay out and must remit t
25. you can print font type appears here any other form in colour 5 Click OK in the Select Font window and the Printer Setup window to save the changes Printing is slow There are several things you can try m Lower the print resolution for your laser printer In the Settings tab of the QuickBooks Printer Setup window click Options and change the resolution or dpi dots per inch If you re printing on blank paper or letterhead do not choose to print lines around each field In the Settings tab of the QuickBooks Printer Setup window clear the Print Lines checkbox m Make more computer memory RAM available by closing down programs you don t need 136 Chapter 4 QuickBooks basics Chapter Tracking and paying sales taxes Sales tax information for upgraders Does your business need to be registered Setting up sales taxes Using tax codes on sales and purchases Finding and paying your sales tax liabilities Remitting your tax liability to the government Adjusting your GST Payable or PST Payable account Locking older transactions after paying your GST PST liabilities 138 140 141 145 147 148 151 155 L H o w to collect and pay the right amount of GST and PST There are several types of sales tax in Canada the Goods and Services Tax GST the Harmonized Sales Tax HST and provincial sales taxes The sales tax feature of QuickBooks han
26. 213 T4 forms E filing 215 T4 forms printing 215 T4 Summary report 216 TPZ 1015 report 213 payroll items 179 201 additions 181 bonus 181 changes effects of 201 company contributions 181 created by QuickBooks 179 creating new 180 deductions 181 displayed by QuickBooks 179 editing 200 201 examples of common items 185 hourly wages 181 liabilities adjusting 210 merging 201 officer salaries 181 268 Index If you don t find the topic you are looking for here try QuickBooks Help order of effect on amounts and gross pay 190 191 other tax items 181 reports 219 salaries 181 showing 201 vacation 180 payroll liabilities adjusting 210 discounts for 212 how QuickBooks tracks 184 paying 209 212 PD7A 212 penalties 212 Relev 1 forms 213 Relev 1 forms printing 215 report 218 RLZ 1 S V report 216 T4 forms 213 T4 forms E filing 215 T4 forms printing 215 T4 Summary report 216 TPZ1015 report 213 year to date summaries for setup 198 payroll reports 217 Payroll Service 174 payroll taxes employees setting up for 191 historical 194 on employee defaults 189 other forms for 213 other payroll items for 181 paying 209 212 payments entering year to date summaries 198 PD7A forms filing 212 refunds for overpayments 212 Relev 1 forms 213 Relev 1 forms printing 215 RLZ 1 S V report filing 216 T4 forms filing 213 T4 forms E filing
27. 215 T4 forms printing 215 T4 Summary report filing 216 tax forms filing 209 TPZ 1015 report 213 PD7A forms filing 212 phone numbers Intuit 251 253 ordering cheques and other supplies 251 ordering software and other products 251 PIN password for online accounts 120 POs for foreign vendors 170 preferences employee 175 GST PST 141 multicurrency 159 payroll 175 using classes turning on 5 12 23 price levels setting up for items 27 prices of items changing 46 printing alignment adjusting 133 files to disk compared to other methods of transferring data 85 margin issues 132 pay cheques 208 pay stub reports 208 realized gains amp losses report 168 Relev 1 forms 215 T4 forms 215 timesheets 226 troubleshooting 132 unrealized gains amp losses 166 prior liability payments 198 problems printing solving 132 solving before you call Intuit 249 product lines tracking by 5 12 product support calling 251 professional advisor 4 profit and loss statement described 15 Index 269 provincial sales tax seeGST PST PST commission 148 compensation 148 Payable account 151 adjusting 151 tracking 141 Q QPP Quebec Pension Plan payroll items for 180 Quebec income tax payroll item for 180 Quebec Pension Plan calculations and employee s date of birth 190 payroll items for 180 questions getting answers with 123 help 98 using the index 98 QuickB
28. 4 Ifyou want QuickBooks to print a cheque select To be printed If you are writing a cheque by hand select Assign cheque no 5 Click Next 6 QuickBooks displays your tax return You can make adjustments directly on the form with the exception of lines 103 and 106 To adjust the amounts on these lines click the Adjust button beside the line then click OK 7 Click Next The tax return is displayed after any adjustments ready for printing 8 Click Print QuickBooks creates and records the cheque to the Receiver General or Minister of Finance You can now print the cheques by choosing Print Forms from the File menu then choosing Cheques It also updates your Liability reports and Payable registers to show that you ve made a payment Paying sales tax liabilities by installments The government requires certain businesses to prepay sales tax in regular instalments Check with your accountant the CRA formerly the CCRA or your provincial Minister of Finance to see what rules apply to you You do not need to create a GST or PST return each time you create an instalment payment Instead record each instalment payment in an Other Current Liability account then enter them on your sales tax return when you file it To create a sales tax instalment payment 1 From the Banking menu choose Write Cheques 2 Inthe Bank Account field choose the chequing account you use to pay this sales tax liability 3 Inthe Pay to the Order of fiel
29. 8 M Macintosh converting Quicken for 64 manually updating QuickBooks 58 margins adjusting alignment when printing forms 132 adjusting for reports lists and graphs 132 markup item prices 46 memorizing reports 102 merging employee records 204 names after converting from Quicken 66 payroll items 201 midyear setup 52 miscellaneous charges items for 37 reimbursable charges 40 modifying your Internet connection 56 mortgage amortization only in Quicken 73 multicurrency adding foreign prices to items 162 an overview 158 creating currencies 163 foreign accounts 160 POs for foreign vendors 170 currency calculator 165 depositing foreign money 169 exchange rates 158 165 foreign customers creating 161 invoicing 168 payments from 169 foreign vendors creating 161 paying 171 POs for 170 266 Index If you don t find the topic you are looking for here try QuickBooks Help home currency adjustments 166 items adding a foreign price to 162 printing realized gains amp losses report 168 unrealized gains amp losses report 166 realized gains amp losses 167 setting up 158 162 transferring funds 172 unrealized gains amp losses 166 using 158 172 multiple users maximum number of 124 update QuickBooks for 59 multi user mode 123 MYOB converting your data to QuickBooks 74 83 setting up your payroll in QuickBooks 76 83 names Quicken conversion a
30. 84 QuickBooks exporting to other software Thank you for moving to QuickBooks Now you need to convert your data from your former accounting software You may also want to make some adjustments to your company file to take full advantage of QuickBooks features In this chapter you ll find information about moving information to QuickBooks 61 Converting data from Quicken Note This section explains how to convert your Quicken data to QuickBooks data and some of the differences between the two programs After you finish converting you ll want to make some adjustments to your new QuickBooks company to take advantage of the QuickBooks features that Quicken does not offer Before you convert to QuickBooks back up your Quicken data file If you plan to continue using Quicken with this data for example if you have both busi ness and personal data in your Quicken file make a copy of the Quicken file before you make changes For instructions on backing up a Quicken file see the documentation that came with your software QuickBooks data files are called company files and they are not compatible with and cannot be converted back to Quicken data files Do not uninstall Quicken before installing QuickBooks and converting to it Preparing your Quicken data for conversion 62 Note To make the transition to QuickBooks as smooth as possible you may need to make some changes to your m Quicken Account lis
31. A construction company wants a subtotal for construction income for labour materials and sub contractors How to record in QuickBooks When setting up a customer job or vendor assign a type J ob types are available only in QuickBooks Pro and better Set up a main or parent item for example clothing Then set up subitems of the parent item for example T shirt cap Use the appropriate subitem when enter ing a sale or purchase of items Set up a custom field for tracking the particular kind of information Fill in the custom field where rele vant for new and existing custom ers vendors employees or items To display and print the custom field on sales forms or purchase orders customize the form to add the new field Set up a main or parent account for the subtotal for example con struction income Then set up sub accounts of the parent account for example labour materials subcon tractors Use the appropriate sub account when QuickBooks requires you to specify an account Comments You can filter a relevant report to limit the transac tions to those for customers job or vendors of the type or types you specify You can filter a report of your Customer ob list or Vendor list to limit the names to those for the type or types you specify On reports that summarize amounts by item Quick Books provides an amount for each subitem and then a subtotal for all subitems of t
32. Activities Search the Timer Help not the QuickBooks Help for To learn about Exporting activities to an IIF file activities exporting to QuickBooks that QuickBooks can read Importing Timer data into QuickBooks After the Timer user exports the data from the Timer into an IIF file see Exporting Timer information to QuickBooks on page 232 you can import the data into the QuickBooks company file After importing information from the Timer check the Timer Import Detail report available only from the Import Summary window to ensure that the correct payroll items are assigned to each activity In addition to activities QuickBooks imports any items on lists that is names service items classes that are not currently on the corresponding QuickBooks lists You can view reports of the imported list items 232 Chapter 8 Time and cost tracking The time reports in QuickBooks report on all activities including those imported from the Timer To create areport similar to the Timer import detail report you can customizeatime by job detail report to add columns for payroll item and import date 2 Search the QuickBooks To learn about Help index for Importing data from a Timer file Timer importing timed activities into the QuickBooks company file from Viewing a report of the imported Timer reports about imported Timer activities or the imported activities items on lists Editing an imported acti
33. Bprint GBpayments E Journal Deposit To Second Bank gt Date 07 12 2003 Memo Deposit Click Payments to select customer payments that you have received List any other amounts to deposit below Pmt Meth visa From Account ChqNo Undeposited Funds Undeposited Funds Sales Merchandise Sales Merchandise Received From Tommy Sands Tommy Sands Sandy Preston Wilma E Nelson Visa 10 52 622 26 Visa MasterCard Deposit Total 651 41 To get cash back from this deposit enter the amount below Indicate the account where you want this money to go such as your Petty Cash account Cash back goes to Cash back memo Cash back amount E A Deposit Total 651 41 Save amp Close Save amp New Revert Reconciling bank and credit card accounts 119 Setting up online banking account access and payment QuickBooks online banking encompasses account access Before you can start using online banking there a few things you ll need to do as described in the following table W hat to set up Internet access through an ISP if you haven t already set this up for another QuickBooks feature Comments Choose Internet Connec tion Setup from the Help menu Look in the Help Index for Internet connections If you don t already have an account chequing savings money market credit card at a financial institution that provides online banking thro
34. Chapter 2 Setting up anew company Turning on the units of measure preference The units of measure preference cannot be turned off once it has been enabled You should only consider activating this preference if you buy stock or sell in different units Before you can set up different units of measure for items the units of measure preference must be turned on 1 2 3 From the Edit menu choose Preferences From the scroll box on the left select Purchases amp Vendors On the Company Preferences tab select Inventory and purchase orders are active and then select Units of Measure are active Inventory must be turned on in order to activate units of measure W hat happens when units of measure is turned on With the units of measure preference turned on you ll see the following changes in QuickBooks A Units of Measure button is added to the Inventory Part and Inventory Assembly type items window This button opens the Define Units of Measure window where you can set up different units of measure for these items A field is added to the Service and Non inventory Part items window where you can assign a descriptive label that represents the unit of measure used when dealing with theitem Notethat thisin only alabel that is used asa descriptor on various forms You cannot define different units of measure for Service items A Unit column is added to all forms This new column displays the item s unit of measure
35. Detail report shows the amount associated with each tax line for the tax form you specified during setup and includes individual transactions Many businesses find this level of detail is the most convenient for filling out income tax forms Make sure the reporting preference is set to the accounting method you use for tax reporting Accrual or Cash From the Edit menu choose Preferences then Reports amp Graphs and then click the Company Preferences tab Income Tax Preparation report The Income Tax Preparation report shows the accounts in your Chart of Accounts and which tax lines are assigned to them Transferring tax information to Intuit tax products If you use a current version of QuickTax or another Intuit tax product to prepare your tax return you can transfer your tax data from QuickBooks directly into it in a few minutes QuickBooks only exports information to Intuit tax products For more information about these products visit http www intuit com canada or http www quickenstore ca Your Intuit Canada tax product will have instructions on transferring information from QuickBooks It will import data from the last company file you opened with QuickBooks To learn about Search the Help index for Transferring tax information from m QuickTax QuickBooks to your tax software m ProFile Gathering income tax information 131 Solving printing problems If you rehaving trouble printing try c
36. Editions see Ordering QuickBooks products and services on page 251 W hat does QuickBooks mean by a job 22 In QuickBooks ajob is a project done for a particular customer You must always associate ajob with a customer Use jobs if you do or expect to do more than one job for the same customer For example Jan does freelance writing for a large company that supplies a separate purchase order for each job Hank s plumbing business has to keep track of the separate jobs it does for a general contractor Chapter 2 Setting up anew company Changing T On the other hand if your company never does more than onejob per customer or you do not want to track individual jobs you don t have to enter job names For example Doug s printing company refers to each customer order as a job However even though Doug gets repeat business from customers all he cares about is whether the customer has paid so he doesn t need to set up jobs for his customers Besides using projects for jobs you can be creative For example m Ifyou manage several apartment buildings set up the building addresses as customers and the individual apartments as jobs If you invoice against purchase orders set up each purchase order number as ajob If you have a practice or organization that sends one statement to a family to cover individual members of the family set up the family members as jobs m If you have multiple estimates per cu
37. Help window How Do I menus also list any show me videos that may be available for that window or activity F1 key You can get explanations about features of most windows by pressing the F1 key or the Help key on your keyboard The help topic is displayed in the Follow Me Help window Some windows also havea Help button When you click a Help button the help is usually displayed in a separate help window and not the Follow Me Help window Getting your questions answ ered 98 Using the index To find help on aparticular subject choose Help Index from the Help menu or click the book icon on the Follow Me Help window TheIndex appearsin the Find window Type the word that best describes what you need information on If you can t find what you want from the Index try using the 1 2 3 Help Searching for answers In most windows next to the How Do I drop down menu there is a search feature where you can type your question and search the in product help system You can also use the 1 2 3 Help to not only our help system but to search the knowledge base located on our Web site The knowledge base is a grouping of Frequently Asked Questions FAQs that come from our customers It contains hundreds of tips and tricks Chapter 4 QuickBooks basics Using 1 2 3 Help to answer your questions With 1 2 3 Help you can get all of your questions answered at the click of a button Search Click Search type your question in the
38. On the Item list items are Item List _ Of x in order of item type __Name Within the same item Subs type they are usually in sare alphabetical or Electical numerical order but you o Painting can change this order e Plumbing Roofing Subitems are indented acabet Cabinet Pulls under the parent item e Light Pine Hardware Use the menu buttons to Lk Doorknobs Locking interior d Inventory Part Construction M add edit sort or perform Wood Door Doors Inventory Part Construction M noan A Exterior Exterior wood dooij Inventory Part Construction b other activities on items Interior Interior wood door Inventory Part Construction M 1 Doorknobs Stc Standard Doorkno Inventory Part Activities Y Description Type Account On Hand Subcontracted ser Service Construction St Install carpeting Service Construction St Install drywall Service Construction St Electrical work Service Painting Serv Plumbing Roofing Cabinets Inventory Part Construction M Cabinet Pulls Inventory Part Construction M Light pine kitchen Inventory Part Construction M Inventory Part Construction M Construction M 41 0 8 a 0 4 6 0 6 4 Reports r 28 Chapter 2 Setting up anew company Information about fixed assets is availablein the Fixed Asset Item List The Fixed Asset Item List is only available in QuickBooks Pro and
39. Phone numbers Outstanding bills Value of your assets Balance sheet prepared by your accoun J For fixed assets you also need the original cost and accumulated tant depreciation Equity information Your accountant J All the money you have put into the company plus the sum of the retained earnings the net profit or loss for each year your company has been operating Payroll information See Setting up payroll an overview on T page 175 for details Using the EasyStep Interview 20 The following custom editions of QuickBooks Premier come with company files that are partially set up based on a specific industry therefore the EasyStep Interview is not available in these editions m Premier Contractor m Premier Retail amp Repair m Premier Accountant For information on creating your company file in a custom edition of QuickBooks Pre mier refer to the QuickBooks Premier Custom Edition Set Up Guide Return to this guide for more information on how best to set up your company in QuickBooks once it is created The EasyStep Interview walks you through the process of setting up your entire business in QuickBooks It takes about an hour to complete but if for some reason you need to exit the interview you can click Leave at any time Starting the Interview the first time you start QuickBooks The first time you start QuickBooks it displays a window with several options Oneis to crea
40. Places 2 x Currency is Hotkey Thousand Egchange Rate Select this checkbox to make a currency inactive This hides the currency from the list as opposed to deleting it entirely Minimizing the Currency List makes it easier to read from drop down lists on forms 3 On the New Currency window fill in the currency options at the very least the Currency Name Country Code and Country fields must be filled in m Currency Name the name of the currency Country the country in which the currency is used Currency Code the internationally recognized code for the currency Currency Symbol the symbol such as to represent this currency on forms Hotkey a unique letter or symbol to use by pressing the key to multiply an amount by the currency s exchange rate a Exchange Rate the value of one unit of the foreign currency in your home currency In order to keep your foreign transactions accurate you should update the exchange rate on a regular basis Format options Symbol Position select where you want the currency symbol placed Your optionsinclude Leading in front of the dollar value or Trailing behind the dollar value Decimal Separator enter the symbol you want to use on forms to represent the decimal placeholder The default is a period Decimal Places select the number of decimal places you want to use on forms You can select zero through 2 m Thousand Separator enter the symbol you wan
41. QuickBooks Try Or call From the File menu choose 1 888 333 8580 Activate QuickBooks then Mon Fri 9 a m 8 p m follow the onscreen instructions Eastern Time QuickBooks delivery billing and account inquiries If about Billing inquiries General billing inquiries m Updating credit card information m Updating banking information Other service inquiries Order and shipping status m Exchanges m Replacement CDs Call 1 888 333 8580 Mon Fri 9 a m 8 p m Eastern Time 252 QuickBooks product support If about Try Or call QuickBooks product sup port or how to use Quick Books QuickBooks in product help Many windows in QuickBooks have an Ask a help question area at the top Type your question there then click Ask for the answer For step by step instructions about tasks most commonly performed in a window click the How do I menu at the top The new Follow Me Help window dis plays help topics related to what you are doing in QuickBooks Refer to it when you need help with a task Use the 1 2 3 Help to search the in prod uct help You can also search the knowl edge base on our Web site which has hundreds of FAQs and tips For Help on a specific subject search the Help Index from the Help menu The Index is also accessible from the Follow Me Help window QuickBooks Learning Centre The Learning Centre provides interactive tutori
42. QuickBooks 182 reorganizing accounts on chart of accounts 48 columnson forms 106 fields on forms 106 lists 48 transactions in reports 102 Rep field in New Employee window 192 270 Index If you don t find the topic you are looking for here try QuickBooks Help Report Finder 101 resetting help windows 97 reporting period for GST PST 142 restoring company data 114 reports retained changing the scope of the information 103 earnings adjusting for during setup 53 condensing data amp how it affects reports 117 transactions 116 customizing 102 date ranges 103 descriptions of payroll 217 219 payroll item detail 219 RLZ 1 SV report 216 payroll liabilities 218 payroll summary 218 filtering 103 S finding the report you want 101 fonts on 102 GST PST liability 147 memorizing 102 Other on 104 realized gains amp losses 167 saving the customization and filtering 102 unrealized gains amp losses 166 retained earnings account 53 description 8 salaries employee changing 202 employee entering 191 officer payroll item for 181 payroll item for 181 removing from bonus check 206 year to date entering for setup 194 Index 271 sales commission tracking 192 foreign customers 168 forms described 94 sales orders creating 36 sales tax applying to sales 145 business number 141 codes setting up 144 historical data 52 how QuickBooks calculates 14
43. QuickBooks Product Expert 250 Intuit Contact Information 251 Ordering QuickBooks products and services 251 QuickBooks activation 252 QuickBooks delivery billing and account inquiries 252 QuickBooks product support 253 Glossary of terms 255 Index 259 viii Chapter 1 W elcome to QuickBooks Il use this Welcome to QuickBooks This user guide is designed to help you learn how to use the most common features of QuickBooks The User Guide covers QuickBooks Pro QuickBooks Premier and the QuickBooks Premier Industry Specific Editions When the name QuickBooksis used it refers to any of these programs When there is an important distinction between the versions of QuickBooks the proper name of the software is used in the text W here to start If you re new to QuickBooks Read the nsta ling amp Learning to Use QuickBooks guide It contains information on the following installing QuickBooks hardware software and network requirements activating QuickBooks setting up multiusers introduction to some essential tasks such as adding customers vendors accessing the in product help creating an account tracking sales tax and setting up payroll to name a few Using this guide 2 The QuickBooks User Guideis meant to help you get the most out of the features that QuickBooks has to offer Once you have read the nsta ing amp Learning to Use QuickBooks guideand you have become famili
44. QuickBooks at any time without affecting your accounting records By default QuickBooks creates reports on an accrual basis To change reports except a transaction report to cash basis search the Help index for Reports cash vs accrual Cash basis Some small businesses record income when they receive the money and expenses when they pay the bills This method is known as bookkeeping on a cash basis If you ve been recording deposits of your customers payments but haven t been including the money customers owe you as part of your income you ve been using cash basis accounting Similarly if you ve been tracking expenses at the time you pay them rather than at thetime you first receive the bills you ve been using cash basis accounting Accrual basis In accrual basis bookkeeping you record income at the time you make the sale not at the time you receive the payment from the customer Similarly you enter expenses when you receive the bill not when you pay it Most accountants feel that the accrual method gives you a truer picture of your business s finances How your bookkeeping method affects QuickBooks QuickBooks allows you to enter your transactions the same way no matter which method you use for taxes When you first install QuickBooks however it uses accrual basis accounting by default For example it shows income on a profit and loss statement for invoices as soon as you record them even if you haven t yet rec
45. Set the preferences according to your business needs then click OK If your province ask a help question Ask 7 How Do 17 INT uses the 4 My Preferences Company Preferences OK Harmonized Rey f jae Finance Do you wish to set up taxes Yes No Cancel Sales Tax HST Charge Goods and Services Tax Preferences only track the Are you registered for the GST Yes C No Business Number Help GST You do not Record GST aly on purchases Yes No prfooor You can enter the A GST PST need to track Reporting Period Quarterly B ORTER business n um bers PST as well Ra Ending Mar Jun Sep Dec Receiver General gt Also See that are assigned General Return due fis day s after the reporting period ends to you by the CRA Provincial Sales Tax Preferences and you r a Are you registered for a PST Yes C No Registration Number provincial Minister Integrated Record tax separately on purchases Yes No of Fin ance here ir z Have ae Period Quarterly x Government T R Ending Mar Jun Sep Dec x Minister of Finance customers with Ere speci al tax Estimates Return due fis day s after the reporting period ends status check GA IV Mark taxable amounts when printing Default Tax Code fs x this box You Online a I Allow customer tax codes ust Tax Code This code is will then be able assigned to all to assign a tax new items by code to his or her customer profile O
46. Setting up multicurrency 158 If you deal in acurrency other than the Canadian dollar you need to turn on the multicurrency feature This feature is turned off by default as many businesses deal only with Canadians using Canadian dollars After multicurrency is turned on you will need to assign a currency to each of the customers and vendors with whom you deal on an international basis Customers and vendors that were created before you turned on the multicurrency feature are automatically assigned your home currency by default Canada Dollars The home currency is used to determine the value of all other currencies and its exchange value is fixed at 1 Oncea home currency is selected and you have recorded a transaction it cannot be changed unless you delete the associated transactions and edit the associated customers Chapter 6 Doing business internationally Each foreign currency you deal in must have a matching Accounts Receivable or Accounts Payable account in the same currency This allows you to track transactions specific to each currency that you set up in QuickBooks You can also set up foreign currency Bank and Credit Card accounts To setup multicurrency you need to complete these tasks 1 Turn on the multicurrency on page 159 2 Set up foreign accounts on page 160 3 Create foreign customers and vendors on page 161 4 Optional Set up foreign prices for items on page 162 Turn on the m
47. Sick Salary for a salaried employee or Sick Hourly Rate for an hourly employee C After you finish entering year to date information go back to the employee s profile and confirm that the accrual hours are correct They should now take your year to date entry into account Entering vacation pay year to date amounts a In the employee s profile enter the amount of vacation pay that the employee has available as of the first day of this year not what he or she has available now See Setting up employees on page 191 196 Chapter 7 Payroll and employees b In the Salary and Hourly Wages area of the Enter Year to Date Amounts window enter intheHoursfor Period column thenumber of vacation hoursthat the employee used this period and inthe Period Amount column thetotal amount you paid out for those vacation hours Be sure to use the correct payroll items Vacation Salary for a salaried employee or Vacation Hourly for an hourly employee If the employee did not take vacation so you paid out the vacation pay owing make the entry using VacPay Accrual Paid Out or VacPay Paid Out Only one of these payroll items appears depending on how you set up your employees c Inthe Other Employee and Company Payroll Items area of the Enter Year to Date Amounts window enter the amount of vacation pay that the employee accrued this period using the VacPay Accrued payroll item d After you finish entering year to date informat
48. There are many ways to retrieve the total liability payments you ve made thus far from your accounting records In this example we created a Tax Liabilities report covering the period of time when we remitted our tax liability payments to the government You could also get this information from your PD7A forms If you are not sure where to get the payroll liability payment amounts you ve remitted so far contact your accountant Don t forget to include non tax payroll liability payments such as union dues Converting data from MYOB 81 82 When all the liability payments have been entered click the Accounts Affected button and select Do not affect accounts click OK then click Done 7 1 2002 3 07 08 PM Category Andrew s Bike Shop Tax Liabilities 1 1 2002 To 6 30 2002 Page 1 Income Tax Income Tax CPP CPP Employer Contributi El El Employer Contribution Grand Total Liabili E m On thelast CPF Employee Contribution El Employee Contribution 5132 16 5132 16 1316 64 on 1316 64 Payment Date 06 30 2002 For Period Ending 06 30 2002 j gt gt Next Payment Prev Payment Taxes and Liabilities KK Prev Paymer This report represents the total amount of tax liability payments you ve remitted to the government so far this payroll year be sure to check these totals with your accounting records These payments in addition to
49. Timer data into QuickBooks on page 232 on page 243 You and others in your company have access to QuickBooks and want to enter time data after the work is done Enter time data directly into QuickBooks Pro or better either on a weekly timesheet or as separate activities one at a time Setting up QuickBooks to track time on page 225 Entering time manually into QuickBooks on page 234 224 Chapter 8 Time and cost tracking Situation Your employees submit paper timesheets How to track time One person can enter every one s time data directly into QuickBooks Pro or better on a weekly timesheet for each person See m Setting up QuickBooks to track time on page 225 m Entering time manually into QuickBooks on page 234 Setting up QuickBooks to track time The following list is for tasks you must do in QuickBooks to prepare for tracking time A QuickBooks user must do this preparation before Timer users can set up their own Timers W hat to do Turn on time tracking and indicate the first day of your work week Comments The weekly timesheet starts with the day of the week you specify Search the Help V index for On the Customer ob list set up the customers and jobs for which time will be tracked preferences time m m customers adding m new m jobs adding new On the Item list set up service items that describe the type
50. Using the Follow Me Help Search Click this button to open up the Help Search interface in the Find window ates zi PEIE E OPO EEE a A ltem Mem x vend Cheque 7 2 6 Bil Reg Accont Rmnd Customer Navigator Customers re es Find Support Backup GST Liability Purchase Order A Estimates Sales Orders Sales Receipts Customers Items amp Templates Customer Services Ri A D 7 Receive Deposits Invoices p Payments C gag Finance Statements Refunds and Credits 9 Write Customer gister Letters Centre GST PST Collect and to ij Customize sales forms Related Activities amp Pint invoices B Add a Customer C Customer Centre G Customer Detail Centre Customer Solutions FEATURED 4 amp SERVICES QuickBooks Technical Support Get back to business faster and maximize your effectiveness with QuickBooks by aetting expert help when you need t Lean more about our QuickBooks support plans today T Remind me later Intuit Supplies Save time and money with QuickBooks certified cheques business forms Th Remind me later Memorized Reports _Help Customers hd A R Aging Summary Customer Balance Detail Customer Balance Summary Open Invoices Display or Print this Group Memorized Report List Report Finder stationery and accessories The customizable Icon ba
51. and Company Contributions Phone 3 Provincial Allowances 7 686 00 may al ready Item Name Amount Limit Payroll Tages P be set z WW Accrual Hours Birth Date 5 26 1973 Vacation Pay gt _ button Click OK when you re done _ off in lieu of overtime click Accrual Hours _ You do not need to add accrued vacation pay because you ve already added vacation pay accruals in the Set Up YTD Amounts wizard QuickBooks now has all the information it needs to continue paying your employees through to the end of this payroll year To ensure that you entered your payroll data accurately refer to the checklist in the section Making sure your payroll data is complete on page 199 To adjust the payroll tax information for this employee click the Payroll Taxes To set up how your employee will accrue time for such things as sick days or time Taxes for Tracey Stewart Andrew s Bike Shop mployee Payroll List Base Pay 20 000 00 Tax Table 71412002 p Subject to _ 3 34 36 PM Federal Income Tax Federal TD1 7 634 00 ES Ks Name Tracey Stewart SIN 123456789 Additional Tax 0 00 Help Card ID None TaxTable AB Employment Insurance El Factor 1 4 FirstAddress 1234 12 Ave re Dares 12 21 2001 Terminate Date IV Canada Pension Plan City Edm Cost per Hr Provincial TD1 7 686 00 r Other Taxes Amount Limit Item Name X am Pay Basis Salary
52. and Sales Price fields 0 00 when you set up the item If you pay owners or partners and vendors for the same service you need separate service items because the accounts for the costs must be different To learn about Search the Help index for separate service items service items creating items for services you sell or buy Setting up items 39 40 Products and materials purchased for a job If you invoice for actual costs of products and materials purchased for a specific customer or job set up anon inventory part item for each type of product or service Be sure to select the checkbox for This item is purchased for and sold to a specific customer job Then you can designate separate income and expense accounts and separate descriptions for sales and purchases Vure ok Non inventory Part Use for goods you buy but don t track like office You can enter different supplies or materials For a specific job that you Cancel charge back to the customer rates for your co st and R Next the sales price to your p ee Custom Fields customer However if Spelling the cost of the product or IV This item is purchased for and sold to a specific customer job material varies leave the Sales Information Description on Sales Transactions Cost and Sales Price fields 0 00 when you set up the non inventory Cost 0 00 Sales Price 0 00 part item Purch Tax Code 5 gt Expense Account Special Or
53. as easy as selecting the foreign customer or vendor from your customer job list QuickBooks takes care of everything else With multicurrency you can also set up a fixed foreign price for items or enter prices in your home currency and then have QuickBooks calculate the foreign price based on the current exchange rate See Set up foreign prices for items on page 162 for more information on setting up foreign prices The home currency refersto the currency that isused in thecountry in which your business is located QuickBooks selects the Canada Dollar as the home currency by default In registers and forms home currency transactions are displayed in the home currency whereas foreign transactions are displayed in their foreign currency On most reports however foreign balances are converted into the home currency Once multicurrency is turned on you cannot turn it off We recommend that you make a backup of your company s file before turning multicurrency on For more information see Backing up your company data on page 107 A note about exchange rates Exchange rates of currencies change daily and these fluctuations can generate a gain or loss in your books QuickBooks accounts for these gains and losses by tracking them in the Exchange Gain Loss expense account which is created automatically when multicurrency is turned on see Exchange rates and how they affect your transactions on page 165 for more information
54. associated with the type of transaction For example the selling unit is used on sales forms such as invoices and sales orders and the purchasing unit on purchase forms such as bills and purchase orders A Unit column is also displayed on some windows such as Adjust Quantity Value on Hand and Change Item Prices A Unit column is added to display an item s units of measure on reports to do with the item list and purchases sales and inventory transactions Setting up items 33 Setting up different units of measure With the units of measure preference turned on you can keep track of how you purchase stock and sell your items You can define different units of measure for Inventory Part and Inventory Assembly items The association between an item s units of measure cannot be changed once a transaction involving the item is recorded Therefore you must first set up an item s units of measure before entering a quantity on hand 1 From the Lists menu choose Item List 2 From the Item menu button choose New 3 From the Type field of the New Item window choose Inventory Part or Inventory Assembly and then click the Units of Measure button The Define Units of Measure window appears For items that are already in your inventory you must set up the units N of measure on the Define Units of Measure window before you enter a Quantity on Hand on the New Item Window Once you enter a quantity on hand for a new item you
55. box then click Ask The search engine searches all the in product help topics and displays the results underneath the box Look Online Click Look Online type your question in the box then click Search The search engine searches all the FAQs on our Web site and displays the results in the QuickBooks workspace in a separate window Search Look Online Contact Us 1 Look for help in QuickBooks Bask Powered by WexTech AnswerWorks Contact Us AS a last resort if you still haven t found the answer you re looking for click Contact Us to display a list of contact numbers for Intuit Canada Note that service charges may apply Search the help by entering key words or a question such as how do I reset my cheque numbers and then clicking Ask The 1 2 3 Help is located in the Find window The Find window by default appears above the Follow Me Help sidebar window You can move this window anywhere you like by dragging it to the position you want When you drag it back to the sidebar window area the window automatically docks in the sidebar You can also close the Find window altogether To close and open the Find window m To close the Find window click the x in the upper right hand corner of the window m To open the Find window go to the View menu and select Follow Me Help m To reset the sidebar area to the default layout go to the View menu and select Reset Sidebar Windows Learning w ith the Q
56. by depart ment Retailers Funds General Building Outreach and so on Nonprofit organizations You could start with two main classes for restricted and unre Religious groups stricted funds and then make each fund a subclass of a main class Locations if the business has more than one Restaurants Retailers Service businesses Manufacturers or Product lines Distributors Manufacturing reps Sales agents You can set up subclasses of existing classes if you need to subtotal information about classes on reports To learn about Search the Help index for Turning on the preference for using classes turning on in QuickBooks classes Adding classes and subclasses classes adding Decisions to make before you start 5 W hat accounting method should I use 6 Cash versus accrual bookkeeping There are two common methods of bookkeeping cash and accrual Your method determines how you report income and expenses on your tax forms When you begin your business you need to decide which bookkeeping method to use The Canada Customs and Revenue Agency CCRA requires accrual based bookkeeping for businesses that collect GST except for farmers fishers and a few other specified businesses Check with your accountant or the CCRA before you make your choice It s best not to switch to a different accounting system after you ve selected one However you can switch between cash and accrual reports in
57. can never delete the item unless you delete the transaction or condense your file to remove old transactions and old items Fixed asset items are not condensed Thus if you sell uniqueitemsor a rapidly changing assortment of items you probably want to use more general items If the prices vary you can enter prices on the sales form For example Tomas has a men s clothing store Because his inventory of styles changes so much he doesn t use QuickBooks to track inventory To track his sales he has more general items such as Suit Sports Jacket Dress Shirt On theother hand if you have two standard services or products that are similar except for their rate or price you can save time recording sales by having a separate item for each Then QuickBooks can fill in the correct rate or price on the sales form For example Mali employs three stylists in her beauty salon When she cuts a client s hair she charges more than the rate for a haircut by one of the employees So she has two separate items for haircuts You can change the rate or price of any item at any time You don t have to create a new item in order to raise your prices In QuickBooks Pro and better you can create price levels to increase or decrease inventory noninventory and service item prices Use them on sales forms to automatically adjust the price of an item Pricelevels can be created for any customer with whom you havea special relationship Finally if the
58. changes to transactions m the Sales Tax Detail report when viewing prior sales tax returns this report shows the transactions that were marked as filed by a particular sales tax return Since the trans action you changed is included in this report the report will show the change to the transaction That means this report will disagree with the sales tax return for the same period by the amount of the change m Registers for tax liability accounts the register reflects all transactions filed and unfiled and all modifications to them If you change an amount in a filed transaction you are creating a difference between the transactions marked as filed and the payments or refunds you have made to the tax agency This difference will not be picked up by theGST or PST Liability reports For this reason sales tax registers area good place to help reconcile sales tax issues When you edit a filed transaction it remains marked as filed Chapter 5 Tracking and paying sales taxes Locking older transactions after paying your GST PST liabilities ae After you ve paid your GST and PST liabilities for a given period you won t want your employees to change any of the transactions that affected your payment QuickBooks lets you restrict access to these older transactions to be sure they are not changed without your knowledge By requiring permission to delete add or edit transactions before a chosen date you can discourage changes to th
59. click the Y column m Ifthetransaction isunfiled thecolumn isempty From theright click menu select File QuickBooks will no longer use this transaction to calculate your sales tax liability it will no longer appear in the GST or PST Liability reports that show what you owe as of a certain date Manually filed transactions are given a filing date of 01 01 1901 m If thetransaction is filed it showsan F in the column From the right click menu select Unfile After you manually unfilea transaction it appears with other unfiled transactions as part of your sales tax liability that is it appears in GST and PST Liability reports that show what you owe as of a certain date The transaction will marked as filed when you pay your sales tax liability as normal 6 Click Record to save your changes Finding and paying your sales tax liabilities 153 154 Editing transactions marked as filed QuickBooks allows you to edit filed transactions For example you might need to changea filed transaction if it contains a mistake about what items were bought or sold the customer or vendor name the account that an amount was assigned to or another issue not related to the dollar amounts in the transaction However we strongly recommend that you do not change dollar amounts in a filed transaction without consulting an accountant Otherwise the amount QuickBooks shows you owe in sales tax reports will not match the actual balance owing in you
60. conversely move a subac count to a higher level You can drag accounts to a new position on the chart of accounts When your accounts are not in alphabetical or numerical order and you add anew account QuickBooks places the new account above the other accounts of the same type P To learn about Search the Help index for Adding new accounts or subaccounts accounts managing adding Turning on account numbers accounts managing numbering Changing account names or numbers accounts managing editing Changing or entering an opening balance m opening balances changing for existing for a balance sheet account accounts m opening balances entering for existing accounts Arranging accounts and other lists in lists sorting entries alphabetical or numerical order Reorganizing accounts within the same lists reorganizing entries account type also reorganizing other lists that allow subentries for example customer ob list Remove accounts from your chart of accounts deleting accounts 48 Chapter 2 Setting up anew company Using account numbers To better maintain your chart of accounts develop and follow consistent account naming and numbering conventions For example some accountants like you to add anumbering scheme to your accounts m 1000 1999 Assets m 2000 2999 Liabilities m 3000 3999 Equity m 4000 4999 Income m 5000 5999 Expenses m 6000 6999 Other income and expenses Adding
61. customers on sales Usually the business owner collects more sales tax than he or she pays out and remits the difference to the CCRA Many provincial governments also require businesses to register to collect a provincial sales tax PST or QST Check with your province s Minister of Finance for the requirements for your business Chapter 2 Setting up anew company Other important information you ll need This table lists the information you ll need to complete the EasyStep Interview and where to find it You ll enter most of thisinformation in the Interview but some you ll need after you finish the Interview and are completing your company setup Information you need W here to find it Company legal name and address Owner your accountant or tax forms J Federal business number You must have a business number if you Canada Customs and Revenue Agency E m collect the GST or CCRA formerly Revenue Canada m pay wages to employees The dates of your accounting period Your records or accountant J m first month of your fiscal year m first month of your income tax year and m your QuickBooks start date Income tax form your business will file Your accountant CCRA or tax forms J Tip When the EasyStep Interview asks you select the income tax form your company uses QuickBooks uses this information to asso ciate accounts with tax form lines and create tax reports Chart of accounts for your business You
62. expenses Expenses you have incurred on behalf of a customer and for which you have requested reimbursement restore To expand a company file from a compressed backup into a functioning company file again retained earnings account An equity account that QuickBooks automatically adds to your chart of accountswhen you set up anew QuickBooks company QuickBooks uses the account to track profits from earlier periods that have not been distributed to owners At the beginning of a new fiscal year QuickBooks automatically transfers net income into your Retained Earnings account sales tax A tax you collect from a customer when he or she pays for the sale There are several types of sales tax in Canada the Goods and Services Tax GST the Harmonized Sales Tax HST and provincial sales taxes such as the Qu bec Sales Tax single user mode Only one person can access your company file at any time sole proprietorship An unincorporated company owned by one person start date The date QuickBooks will have complete infor mation about your company finances The start date can bein the past if you enter historical records it can be the current date or it can be some day in the future if you prefer to enter information gradually time tracking Keeping a record of the hours that you your employees or your subcontractors work so that you can then pass the expense on to your customers trial balance In traditional
63. ges Dates This Month to date From 01 09 2002 fl To 12 09 2002 1 sort By Defaut A to show the items in fai NTE their purchasing Accrual Basis sep za i Type gt _Date_ tum tame Qty Unit prices amount __ Bance units Inventory 1l ty Jj 3 Soda Pop gt Invoice 10092002 1 anne wemen 0 08333 case ys 150 1504 Total Soda Pop re 150 150 2 SS 4 Total Inventory me 150 150 TOTAL gt 1 50 1 50 E 36 Chapter 2 Setting up a new company Adding items to your Item or Fixed Asset Item list As the table starting on page 30 shows QuickBooks has several different item types Here is some general information about what to enter for most types of items when adding anew item to your Item or Fixed Asset Item in QuickBooks Pro and better only list Information to enter Type of item How QuickBooks uses this information After you choose the item type QuickBooks requests only the information it requires for that particular item type Note You cannot create fixed asset items from the Item list Use the Fixed Asset Item list to do so After you set up an item depending on the type you may not be able to change it to a differ ent type Item name or code Displays this name or number on reports of items and in the drop down list in the Item field for example on sales forms Item description optional on all but fixed assets Prefills the entire description in the Description field of
64. good idea to activate as soon as you can so that you can begin using all of the QuickBooks online features If you did not activate your copy of QuickBooks immediately after installation you can do so at any time by choosing Activate QuickBooks from the File menu If you do not see Activate QuickBooks under the File menu then QuickBooks is already activated Connect QuickBooks to the Internet 55 56 If you are an upgrader After you install QuickBooks you re prompted to activate QuickBooks It s a good idea to activate as soon as you can so that you can begin using all of the QuickBooks online features If you owned a previous version of QuickBooks your new software uses the same Internet settings as your previous version If you have changed your Internet Service Provider between then and now or switched from using a modem to using a direct connection for example cable or DSL you can change your settings manually To set up an Internet connection 1 From the Help menu choose Internet Connection Setup If you have not used QuickBooks on your computer before then the first time you go online for example to activate your software QuickBooks automatically launches the Internet Connection Setup wizard 2 Follow the onscreen instructions Click Next to move through the screens If you need help at any time click Help 3 Click Done Changing an Internet connection If you already have a connection to the Inter
65. in all your accounts receivable transactions but you ll probably want to make some changes to the converted data For example if the category you used in most A R transactions was Sales income you ll want to change the name of the converted invoice item from Sales income to the product or service you actually sell such as Consulting hours The income account however may be just fine as Sales income You don t have to make these changes now QuickBooks makes it easy to make changes at any time to QuickBooks accounts payable You may havehad an Accounts Payable A P account in Quicken QuickBooks converts the transactions in this account into historical transactions in your journal which indicate what you owe and to whom The transactions do not appear in your QuickBooks A P account m In this case track payments of outstanding bills only the same way you did in Quicken However enter any new bills with the Enter Bills window QuickBooks creates a new A P account for you the first time you enter a bill If you didn t use an accounts payable account the documentation explains how to set Quicken up for cash basis accounts payable and for accrual basis accounts payable For a cash basis system Quicken recommends using a Bank account and simply postdating cheques For an accrual basis system Quicken recommends using an Other Liability account The transition to QuickBooks accounts payable is the same for
66. in transactions need for a slash as a separator In QuickBooks projects or jobs can be linked to customers as part of the Customer ob list so you can use classes for different kinds of classification Transfers Uses brackets to indicate a No need to use brackets Quick transfer to another balance sheet Books handles transfers like any account other transaction Passwords One password for entering and Customizable password and per viewing data mission access for each person in your company Subaccounts Categories can have subcatego Most accounts even balance sheet ries but accounts cannot have subaccounts accounts can have subaccounts Payroll accounts if you set up your accounts as described in the Quicken manual A separate liability account for each tax withheld and for every other payroll liability You can continue using your old liability accounts However by using payroll items you can put all your payroll liabilities into a single account New and renamed balance sheet accounts 72 QuickBooks and Quicken have similar kinds of balance sheet accounts but QuickBooks adds some types and uses different names for others When you convert a Quicken file the program automatically creates QuickBooks accounts most like your Quicken accounts m In some cases you may not want to use the account that QuickBooks automatically creates For example Quicken sometimes uses liability accounts inste
67. information you ll need while you re working and gives you some useful tips on managing your business QuickBooks also providesinformation about resourcesfor your business product news and how to get help if you need it Look under the Help menu for these options Navigating in the working area Navigators are an easy way to workin onearea of QuickBooks Each Navigator shows the tasks for one area of your business QuickBooks makes it easy to access the feature or information you want There are several ways to get around in most areas of QuickBooks just choose the one that best fits your work style Also many parts of QuickBooks such as thelcon bar are customizable to fit the needs of your business Sample Mountain Sports Equipment QuickBooks Premier 2005 Accountant Edition File Edit View Lists Accountant Company Customers Vendors Employees Banking Reports Window Help H R amp amp Invoice Cust Navigator List x 2 Accountant fi Company As you use A i x QuickBooks the Open Window list keeps a list of the areas you ve worked in Get your questions answered with 1 2 3 Help Help amp Support Search _ Look Online Contact Us 1 Look for help in QuickBooks a Powered by WexTech Answerorks fe Search the help by entering key dp MQ eH eo aN Print Search Pin this topic Index in place stop the follow me help here Back Next
68. left of insertion point BACKSPACE Use list item CTRL U Delete line from detail area CTRL Del Insert line in detail area CTRL Ins M oving around a window Key Cut selected characters CTRL X Next field Tab Copy selected characters CTRL C Previous field SHIFT TAB Paste cut or copied characters CTRL V Report column to the right Right arrow Increase cheque or other form number by one plus key Report column to the left Left arrow Decrease cheque or other form number by one minus key Beginning of current field HOME Undo changes made in a field CTRL Z End of current field END Line below in detail area or on report Down arrow Help window Key Line above in detail area or on report Up arrow Display Help in context F1 Down one screen PAGE DOWN Select next option or topic TAB Up one screen PAGE UP Select previous option or topic SHIFT TAB Next word in field CTRL gt Display selected topic Previous word in field CTRL lt Close popup box ESC Close active window ESC or CTRL F4 Close Help window ESC First item on list or prev month in register CTRL PAGE UP Last item on list or next month in register CTRL PAGE DOWN QuickBooks Keyboard Shortcuts 95 Using the Help system in QuickBooks Sidebar Windows Find Use this open Window Use px all your Find Px questions answered Follow Me Help This window tracks your moves and displays help about what you are doing Show M evideos and How Do
69. liabilities Enter or edit employee YTD payroll setup trans actions Export changes to prefer ences Memorize reports Change a non inventory part type to an inventory part type Merge new inventory part items with previous existing inventory part items To learn about Search the Help index for Setting up your accountant as a user with all privileges if you have set up users Creating an Accountant s Review copy of your current company file Merging the accountant s file into the master company file Making the accountant s revised copy your master company file Cancelling an Accountant s Review copy permissions accountant s review copy accountant s review copy restoring data accountant s review copy Chapter 3 Importing and exporting data Note oT For accountants only w orking w ith an Accountant s Review copy The Accountant s Review copy of a company file which your client should create from his or her master company file is a compressed special type of company file It has a QBX extension instead of the usual QBW or QBB When you start working with these files for the first time QuickBooks decompresses them to a QBA file You cannot make changes to foreign currency accounts in an Accountant s Review copy of a company file If your client has foreign currency accounts that you need to make adjustments to have your client send you a copy of their company file instea
70. menu choose Process Payroll Liabilities then Adjust Payroll Liabil ities Liability Adjustment JAsk a help question Ask w How Do 1 x Date 12 15 2003 Effective Date 12 15 2003 Next Adjustment Prev Adjustment Adjustment is for C Company Employee Alison Logan smth v Class zj Enter the amount of the adjustment Taxes and Liabilities Pe ETEA TETIT F A positive amount increases Federal Income Tax 27 89 CCRA Adjustment what you owe A negative SEE amount reduces what you owe _ Accounts Affected For example if the Liability by ssa ove Bese sies Payroll Item report says that you owe 450 but you know you owe 477 89 enter the zi difference 27 89 2 Optional Click Accounts Affected to select how the adjustment will affect your accounts m f your liability and expense accounts have the wrong totals as well as your liabil ities the usual case you should choose to affect your accounts m If your liabilities are wrong but your liability and expense accounts have the correct totals choose to not affect your accounts Click OK If you chose to affect your liability and expense accountsin Step 2 and the payroll item you are adjusting is used to withhold amounts from pay cheques QuickBooks asks you to choose an expense account to adjust so your accounts will be balanced Type the name of the expense account you want to adjust then click OK Most people choose Payroll Expense
71. numbers can help you identify the type of accounts thereby speeding up your account selection on various forms To learn about Search the Help index for Changing your chart of accounts m accounts adding m accounts editing m accounts deleting Enter your company s historical transactions If you ve decided on a start date that is before today s date you ll need to enter past trans actions to have complete financial records from your start date forward Then your Quick Books records will be as complete as if you had started using the program on your start date Enter historical transactions in this order Invoices you ve sent out since your start date Purchase orders you ve issued since your start date that have not been received in full Cash or cheques you ve received since your start date Bills you ve received since your start date Bills you ve paid since your start date Deposits you ve made to any of your accounts since your start date Any other cheques you ve written for things other than bills since your start date Nao uh WN The order you enter historical transactions is important For example QuickBooks won t know how to credit a customer payment unless you ve previously recorded the invoice to that customer Enter transactionsin your bank account last because your accounts payable and accounts receivable affect your bank account By the time you enter all of your historical transact
72. of Accounts Payroll Expenses and Payroll Liabilities QuickBooks uses these payroll accounts to track payroll transactions In order for the MYOB payroll liability withholdings and expense balances that were brought over during conversion to be tracked using the QuickBooks payroll accounts all the MYOB payroll liability with holdings accounts must be merged with the QuickBooks Payroll Liabilities account and all MYOB payroll expense accounts must be merged with the QuickBooks Payroll Expenses account If you are not clear on what MYOB payroll liability and expense accounts that you need to merge talk to your accountant To learn about Search the Help index for Merging accounts merging accounts Complete your employee set up You ll need the reports that you printed in Step 1 to help with the set up of your employees Chapter 3 Importing and exporting data Note Set up employee defaults optional On the employee defaults window you can set up payroll information that most or all of your employees havein common such as life or dental insurance benefits or union dues These defaults will then show up on every new employee s payroll profile thus removing the need to enter the same data over and over again for each employee To learn about Search the Help index for Setting employee defaults employee defaults creating Display the Employee List from the Employees menu select Emplo
73. of a visit to your site and you don t have to worry about preparing a disk for your accountant To work this way set up atime with your accountant to start the session Your accountant gives you an Internet address and license key When you go to the address and enter the number your accountant can begin the remote access session During the session your accountant controls QuickBooks on your computer Every action your accountant takes is shown in real time on your screen Your accountant has access only to your QuickBooks software and programs that integrate with it Exporting data for your accountant Accountant s Review The Accountant s Review feature allows an accountant to make certain kinds of changes in aspecial copy of your company file Meanwhile you can continue to enter daily transactions in the original master company file After the accountant has made the changes you merge them into the master company file Merge your SUID CEERI En Continue using your ea lan eares pene gt company file for day adjustments into eview copy of your ou oaa to day business your QuickBooks company file data for your tasks accountant Opens the Y Reet Reviews your data Saves the sae and makes adjustments to one Review copy in accountant Bn adjustments or more disks Note Changes cannot be made to foreign currency accounts in an Accountant s Review file Therefore if your accountant needs to edit for
74. of cash From the report you can see how your cash position changed over a period of time Note QuickBooks also has the capability to display investing activities which show you how much was invested in assets such as equipment and furniture Rock Castle Construction fens Statement of Cash Flows October 1 through December 15 7004 Oct 1 Dec 15 04 OPERATING ACTIVITIES Het Income b 19 919 42 q Adjustments to reconcile Het Income to net cash provided by operations Accounts Receivable 37 251 83 Inventory Asset 4 113 15 Retainage 2 461 80 Accounts Payable 40 779 20 CalOil Card 544 Payroll Liabilities 538 39 5 Sales Tax Payable 792 50 This shows how Het cash provided by Operating Activities 15 246 09 much cash was Hi aN provided by FINANCING ACTIVITIES profit making Hote Payable 17 059 17 activities Opening Bal Equity 8 863 39 Owner s Equity Owner s Draw 6 000 00 Retained Earnings 6 563 39 This shows how Het cash provided by Financing Activities 23 059 17 much cash was a ee i R Het cash increase for period 7 813 08 provided by long term Cash at beginning of period 35 071 57 liabilities and Cash at end of period 27 258 49 equity QuickBooks also has the capability to display investing activities which show you how much was invested in assets such as equipment and furniture 16 Chapter 2 Setting up anew company Setting up your company in QuickBooks Determining a start date Note New Busines
75. other non tax payroll liability payments must be entered into QuickBooks Item Name 2633 28 361 44 505 92 El Company Accounts Affected 867 36 El Employee ities 8632 80 Federal Income Tax Senay CPP Employee Memo v Done a Cancel window click Finish Customize payroll information for each employee m Display the Employee List from the Employees menu select Employee List m For each employee double click their name on the list to open the Edit Employee window On the Address Info tab enter their date of birth in the DOB field their SIN and other information as required This information is available from the Employee Payroll List report in MYOB Employee Payroll List report from MYOB 7 4 2002 3 34 36 PM Andrew s Bike Shop Employee Payroll List a Name Card ID First Address City Province Postal Code Country Phone 1 Phone 2 Phone 3 FAX mail Tracey Stewart None TaxTable AB 1234 12 Ave Hire Date 12 21 2001 Terminate Date Edm Cost per Hr AB Base Pay 20 000 00 T5J 1A2 Pay Basis Salan Canada Pay Periods 52 Address Info Payroll Info 780 123 4567 Federal Allowances Federal Extra Withheld Provincial Allowances 7 i fT Mr Ms Print As Tracey Stewart QL Phone 780 123 4567 At Ph E mail SIN First Name Tracey La
76. pay cheque additions deductions and com pany contributions if any Employee s vacation pay and accrued time Employee Employee and or company records Employee Pay cheques reports or payroll ledger Pay cheques reports or payroll ledger Year to date amounts Each employee s payroll amounts from the beginning of the calendar year to the date you started using QuickBooks m Thatis the total amount you ve paid out to the employee so far this year and The total amounts you withheld from each of the employee s payments and what for Your payroll liability amounts from the beginning of the calendar year to the date you started using QuickBooks m Thatis the total amounts you withheld from all pay cheques you issued this year and m How much you already remitted to the government benefits providers etc as a result of these liabilities Copies of employee pay cheques pay stubs payroll reports payroll service accountant payroll ledger Copies of liability cheques payroll reports payroll service accountant payroll ledger Direct Deposit For each employee using the service Direct deposit request m Bank number s Transit number s m Account number s Employee s direct deposit request form Setting up payroll an overview 177 Payroll expense and liability accounts When you turn on payroll QuickBooks adds two accounts to your Chart of Accounts m Payroll Ex
77. payroll transactions by their use of payroll items m Payroll reports include only transactions that use payroll items m Payroll liability balances are based on transactions that use payroll items m Employee year to date amounts are based on transactions that use payroll items When the payroll feature is turned on QuickBooks creates the Payroll Item list with some standard payroll items You can add payroll items to this list To learn about Search the Help index for Payroll items payroll items defined About the default payroll items When you first turn on the payroll feature QuickBooks creates the Payroll Item list with some standard payroll items These include Payroll item ane Type Use for Advance Advance Giving an employee an advance on upcoming pay that is to be reimbursed to the company on the next pay cheque Sick Salary Yearly Salary Accrued time such as sick time paid out to a salaried employee Vacation Salary Yearly Salary Vacation pay paid out to a salaried employee who is on vacation Setting up your payroll items 179 180 Payroll item wane Type Use for Sick Hourly Rate Hourly Wage Accrued time Such as sick time paid out to an hourly employee Vacation Hourly Rate Hourly Wage Vacation pay paid out to an hourly employee who is on vacation or who left the company VacPay Accrual Paid Out Vacation Pay A specific amount of vacation pay paid out to an employee
78. plan to reconcile your bank chequing savings and money market accounts and credit card statements on aregular basisto make sure your records and the bank s agree Situation You haven t recon ciled these accounts for a month or more W hat to do in QuickBooks Reconcile each month you skipped Balance each month separately starting with your earliest statement since you ve been using Quick Books through your most recent statement You added earlier transactions in QuickBooks After you add earlier transactions and you want to reconcile past months you should reconcile month by month only if you ve never used the QuickBooks reconcile feature However if you ve already reconciled one or more months you should reconcile forward only that is reconcile months after your start date Use the previous months data for reporting only You need to mark all older transactions as cleared to reconcile future months You are reconciling for the first time Enter all uncleared transactions in your account Update the Opening Balance transaction to reflect the amount actually in your account when you began using QuickBooks You cancel in the middle of reconcil ing QuickBooks keeps track of the items you ve marked as cleared with an asterisk in the cleared column of the account s register This indicates that the items are still pending and reconciliation wasn t complete When you start reconcili
79. re using 3 5 floppy disks to backup and you require more than onedisk label the disks Monday Disk 1 Monday Disk 2 and so on By having one set of backup disks for each business day you likely won t lose more than one day s records if a disaster strikes Each day back up onto that day s disks and keep them in your office m Atleast once a week make a second backup to keep off your premises Alternate between two sets of media for your weekly off set backup If a disaster strikes your office you ll want a reliable record of your data to fall back on Periodically replace your backup media with new media on your machine If you back up your company file to a floppy disk you should be aware that there are risks involved in this type of data storage Not all floppy disks are created equally Some disks can be re used several times and retain their integrity for a long period of time While others can be re used only a few times and can become corrupt for no obvious reason Because of the volatility of floppy disks we least recommend this type of data storage m Attheend of the fiscal year make an archive copy of your data to keep off your premises To learn about Search the Help index for Backing up your company data backups Chapter 4 QuickBooks basics Backing up to a CD R or CD RW A Tip oT Although Windows XP can write data directly to a CD R or CD RW we strongly
80. receive payment QuickBooks does not show these two accounts on your profit and loss statement until a customer makes a payment which isthe expected behavior You do not need to make any adjustments If you keep your books on an accrual basis you record the transaction when you make a sale or incur an expense QuickBooks does show these two accounts on your profit and loss statement as of your start date Your accountant may want you to make an adjustment so that the income from all invoices and the expenses from all bills before the start date are also tracked on an accrual basis regardless of whether payment has occurred Ask your accountant if this applies to you To learn about Search the Help index for Adjusting for Uncategorized Income and m Uncategorized Expense account Uncategorized Expenses m Uncategorized Income account m Adjustfor current income and expenses if your start dateis not at the beginning of your fiscal year If you set up your company in QuickBooks with a midyear start date and you know what your income and expenses are from the beginning of your fiscal year to your start date enter adjustments for them Then the profit amp loss statement in QuickBooks will be accurate from the beginning of the fiscal year to any date after your start date To get thisinformation have your accountant create a year to date profit amp loss statement also called an income statement for your current fiscal year to your
81. recommend that you use third party CD writing software to back up your company file instead Because of a limitation in the CD writing program that comes with Windows XP it may not allow QuickBooks to back up directly to a CD Instead it may display an error message such as Unable to access the disk Also if Windows XP does allow Quick Books to access the CD Windows XP may not transfer your company file backup from the CD Writing Tasks area to your CD properly Instead you should first save the backup to your hard drive then copy itto your CD with reliable third party software To back up to a CD R or CD RW 1 Insert the CD into your CD R drive 2 From the File menu choose Back Up and ensure the Back Up Company File tab is selected 3 Click Browse 4 Navigate to a place on your hard drive that you can easily find again m QuickBooks may warn you that you are backing your data up to your hard disk 5 In the File name field type a name for your backup We recommend that you give a new name for each backup for example the date of this backup This prevents you from overwriting the previous backup should there be a problem during the backup process for example a power failure 6 Click Save 7 Optional Select the backup options you want m Verify data integrity Select to verify your data before backing up m Set Defaults Click to specify the defaults for backing up manually 8 Click OK QuickBooks creates a ba
82. sales or purchase forms Displays the beginning of the description in the drop down list in the Item field You can set up some types of items to have separate descriptions for sales and for pur chases Rate or price optional Prefills the rate or price in the Rate or Price fields of sales or purchase forms Some types of items can have a rate that is a percentage You can set up some types of items to have separate rates or prices for sales and for pur chases Account or accounts Profit and loss statements report on the income or expense account associated with items used in transactions You can set up some types of items to have separate accounts for sales and for purchases Some types of items for example payment items require a balance sheet account instead of an income or expense account Inventory items require three separate accounts Default Tax code QuickBooks applies GST PST to the item based upon the rate s defined in the Tax Code list You can override this sales tax code on the sales form Subitem status If this field appears you can make an item a subitem of an existing item QuickBooks dis plays subitems of the same item together Custom fields optional You can set up custom fields that fill your company s needs for example size or unit of mea sure You can also customize sales and purchase forms to display a column for a custom field Then QuickBooks prefills the column with
83. service rendered and each product sold but also for discounts markups sales taxes and subtotals If the customer makes a partial payment at the time of the sale you can add an item for the payment Using items to subtotal on sales forms The subtotal item adds up the amounts of the items above it up to the last subtotal You ll need a subtotal item if you ever want to apply a percentage discount or surcharge to several items Because QuickBooks calculates percentages on the line above you ll need to subtotal the items before entering the percentage line item If you use two subtotals in a row the last subtotal will add up all the previous subtotals on the form The first subtotal line shows a DESCRIPTION AMOUNT total for all materials i Maple kitchen cabinets Brass cabinet and drawer pulls Materials subtotal The second subtotal shows a Cabinet installation total for all labour Cabinet delivery Labour subtotal The third subtotal THE SE ONA super alee Profit and overhead 1 965 70 line adds up the makes the third subtotal pease die include all amounts on the Customer Please call with any T GsT BA 668 25 two previous nee Message questions subtotals so thata invoice so a percentage TOTAL 11 568 93 markup can be Ai can apply to the total applied to the entire sale 42 Chapter 2 Setting up a new company If you use very general items like this one your reports won t be as useful as if you used
84. start date Chapter 2 Setting up anew company P To learn about Search the Help index for Adjusting income and expenses for mid adjustments income and expenses year setup m Distribute earnings and equity before your start date After you have entered all of your opening balances and made other adjustments you may want to distribute the amount in your Opening Bal Equity account to other equity accounts if you want to identify retained earnings or the equity of several owners To learn about Search the Help index for Distributing earnings and equity from Opening Bal Equity account before your start date ae Equity carried over from previous fiscal equity retained earnings from periods Moving the amountin the equity transferring from Opening Bal Equity Opening Bal Equity account to other equity accounts Setting up accounts to track equity details Your company s equity comes from two sources m Money invested in your company capital investments m Profits of your company Of course the owner can also take money out of the company Such withdrawals called owner s draws reduce the company equity QuickBooks sets up two equity accounts automatically m Opening Bal Equity For every balance sheet account you set up with an opening balance QuickBooks records the amount of the opening balancein the Opening Bal Equity account Asset account opening balances increase the equity liability account
85. the Help index for Displaying a customer s register customers registers for Editing a transaction in a register registers editing entries Entering an invoice invoices creating Setting up an other charge type of item other charge items Should I track customers and jobs 23 W hy you probably need to set up items Items for w hat you sell If your business provides a service writing haircutting consulting legal advice house painting or any other service you may charge by the hour and list the number of hours and your rate on your sales forms Or you may simply charge a flat rate for the service If your business sells products or parts you probably list them on sales forms that you give your customers In QuickBooks both kinds of businesses service and product can benefit by setting up items to track the services they provide or the products they sell to customers Note In QuickBooks sales is a broad term It refers to any business action that generates income in exchange for services or products even if you don t think of what you do as selling For example a psychologist with patients a graphic designer with clients and a roofing contractor with customers all would set up items in QuickBooks for what they sell Benefits of setting up items Here are some specific benefits of setting up items m You can use sales forms in QuickBooks to track the details of how your business earns its income Esti
86. thetimeand costs to a sales form with or without a markup or to the register for the job The following table shows what you must do to track time or costs so that you can charge for them To track You must All expenses incurred for the job Record a bill cheque or credit card charge Miscellaneous costs incurred for using the Expenses tab or Time Costs tab to this job costs you prefer not to identify the accounts and amounts for other record by using items QuickBooks costs incurred for this job Pro and better only Time billable to this job Record hours spent on this job using the Timer QuickBooks Pro and better only the Stopwatch or entering time manually into QuickBooks Assign the hours to the service item that should be used on the invoice To Show the service date for each time entry on the invoice customize the invoice to add a Service Date column Be sure to mark the hours as billable Subcontracted services products Record a bill cheque or credit card charge materials and other charges bill using the Items tab to identify goods and ser able for this job QuickBooks Pro vices purchased for this job Be sure to mark and better only these items as billable You can transfer time data to invoices and statement charges as long as the time data has a customer job and service item and is currently marked as billable Asyou create an invoice you can display the unbilled time for the job
87. to a tape 1 2 3 4 5 Insert the tape into your tape drive From the File menu choose Back Up and make sure the Back Up Company File tab is selected Click Browse Navigate to your tape drive In the File name field type a name for your backup Tip We recommend that you give a new name for each backup for example the date of this backup This prevents you from overwriting the previous backup should there be a problem during the backup process for example a power failure 6 7 Click Save Optional Select the backup options you want m Verify data integrity Select to verify your data before backing up m Set Defaults Click to specify the defaults for backing up manually Click OK QuickBooks creates a backup file of your company data Chapter 4 QuickBooks basics Backing up to a 3 5 floppy disk A Tip Tip If you decide to backup your company file to a floppy disk you should be aware that there are risks involved in this type of data storage Not all floppy disks are created equally Some disks can be re used several times and retain their integrity for a long period of time While others can be re used only a few times and can become corrupt for no obvious reason Because of the volatility of floppy disks we least recommend this type of data storage Formatting your floppy disk Formatting removes any old data that may be on the disk and prepares the disk to receive new data Ev
88. used to After you fill it in QuickBooks does the accounting Ask a help question Aski v How Do I x Previous mPNext amp Find ThhHistory E Journal Bil C Credit Vendor Blitz s Ski School I Bill Received When you record a bill and then write a cheque M Date 12 15 2003 Discount Date 12 25 2003 using the Pay Bills window to pay for the business expense QuickBooks enters transactions in your accounts payable register to show the expense you Bil Due 01 14 2004 f amp Amount Due 3 743 01 T 2 10Net30 v No 586 e ailal incurred and the payment you made Memo Essa 25079 m It also records the cheque in your chequing account Account Tax Net Amt Memo Customer Job_ E dass keeping your records up to date and providing a Sales Lessons 5 325479 Peterson Deb running balance of what you owe at any time Clear Splits Recalculate The register shows information about invoices written to customers the date of the invoice the date it s due the name ofthe customer and the amount GST 1227 84 PST 1260 38 Save amp Close Save amp New Clear Using registers Just as you use the paper register that comes with your cheques to record the transactions in your chequing account cheques you ve written withdrawals you ve made and deposits QuickBooks uses electronic registers to record the activity in its accounts The register s
89. when you opena o Savings Bank 893 business is open a business Accounts Receivable Accounts Receivable 37 226 83 chequing account Inventory Asset Other Current Asset 4 113 15 Retainage Other Current Asset 2 461 90 If you have multicurrency Undeposited Funds Other Current Asset 0 00 turned on the Chart of Accounts also shows the Fixed Asset Fixed Asset A Fixed 4 currency denomination of e 64 20 the account For more information on multicurrency see Doing business internationally on page 157 Credit Card i Other Current Liability 0 00 Other Current Liability 1 582 49 Other Current Liability 67 81 Long Term Liability 3 440 83 Truck Loan Long Term Liability 16 750 00 Opening Bal Equity Equity Owner s Equity Equity Owner s Contribution Equity Owner s Draw Equity 6 000 00 Account v Activities v CalDil Card Direct Deposit Liabilities Payroll Liabilities Sales Tax Payable Note Payable Reports v I Show All Income and expense accounts Income and expense accounts track the sources of your income and the purpose of each expense When you record transactionsin a balance sheet account you usually assign the amount of the transaction to one or more income or expense accounts For example you not only record that you took money out of your chequing account but you keep track of what you spent the money on such as utilities adver
90. you can use it in the future as an alignment cue to position your forms visually Even if your printer has an autoload or park feature the printer puts the paper in the same place each time you load it you need to manually line up your forms for coarse alignment using a visual cue QuickBooks cannot remember placement relative to your printer s autoload point 11 Optional In the Align window click Fine to make further adjustments then go on to Step 5 of the Fine alignment process below Fine alignment adjustments This method of adjustment is available for all type of printers 1 N OUR WN o Make sure your printer is turned on and is online with blanks of the forms you want to print inserted to the printer s paper feeder From the File menu choose Printer Setup Choose the form you want from the Form Name drop down list Click Align If the Align button is not available that form cannot be aligned If alist of templates appears select the one you want and click OK If you are using a continuous feed dot matrix printer QuickBooks displays a window where you can choose coarse or fine adjustments Click Fine Click Print Sample QuickBooks prints the form with a small alignment grid 1 10 inch squares on it Check the horizontal and vertical alignment of the text in the alignment grid Enter amounts in the Vertical and Horizontal fields to move the printed text to align it The alignment va
91. you ll need to have access to most of the software You might also want to switch to single user mode m Have the following information available m Model of computer amount of memory RAM and available hard disk space m Accessory manufacturer type and model monitor and printer for example m Operating system type and version Network configuration and software version Using the QuickBooks utilities A QuickBooks Product Expert may ask you to run the Verify Data or Rebuild Data utility to recover damaged transactions TheVerify utility detects most data errors the Rebuild utility attempts to correct data errors but some errors cannot be corrected Because Rebuild can cause additional problems to your company file that can increase the difficulty of recovering your data we do not recommend running Rebuild on your own Intuit Contact Information Ordering QuickBooks products and services If about Ordering QuickBooks products and services m QuickBooks services m Payroll support plans m Support plans Try Visiting www intuit ca Or call 1 888 333 8580 Mon Fri 9 a m 8 p m Eastern Time Ordering QuickBooks supplies m Cheques Business forms amp statements m Other small business supplies Visiting www intuitsupplies ca 1 877 445 3233 Mon Fri 9 a m 8 p m Eastern Standard Time Intuit Contact Information 251 QuickBooks activation If about Activating
92. 0 Canadian D Other Current Liability Canadian D 0 00 3 0000 Equity Equity Canadian D 0 00 Owner s Inve Equity Canadian D 0 00 Activities v Reports I Show All If the conversion date you chose in the wizard is earlier than the day that the conversion was performed the balances in the QuickBooks Chart of Accounts may be different than those balances from your MYOB Accounts List This is because the account balances in your MYOB file may include transactions that were entered after the chosen conversion date Check your customers and vendors profiles Customers and vendors are added to QuickBooks lists Think of these lists as the Cards List in MYOB To see your customer list open the Customers navigator and click Customers To see alist of your vendors open the Vendors navigator and click Vendors Converting data from MYOB 75 m Check out the QuickBooks navigators Navigators gather information from your data and display it in onelocation so you can manage your business more effectively Navi gators are to QuickBooks what Command Centres are to MYOB The tasks that you accessed from Command Centres in MYOB similarly can be accessed from Quick Books navigators T Andrew s Nike Shop Quickilooks Premier Ldition 2004 p algi xi Ee ER yew URs Company Customers Vendas Emoioyees Going Bepots Window tiep Z AR a P g ge 6 amp a J P Arvoce Cu iem Memik Vend Cheque Of Reg A
93. 0 liabilities 142 liability reports 147 locking after paying 125 155 paying liability 148 preferences 141 reimbursable expenses 239 241 tracking 141 turning on in EasyStep Interview 141 what you owe 147 sales tax codes customer 145 item setting up 144 Zero Rated about 144 sample company 99 searching for a backup file 113 using 123 help 98 using the index 98 security passwords 123 125 selling units 32 service businesses benefits of setting up items 24 Service for Payroll 174 service items creating 37 description 30 tracking payroll expenses by Pro and better only 183 setting up an Internet connection 56 employee defaults 189 employee payroll information 189 employee year to date payroll summaries 194 foreign accounts 160 foreign customers 161 foreign vendors 161 multicurrency 158 162 MYOB payroll in QuickBooks 76 83 payroll 175 units of measure 34 your business 20 sharing QuickBooks on a network 123 shipping charges item for on invoice 31 shortcuts keyboard 95 sick time accrual period and hours entering on employee defaults 189 employees setting up 191 entering 191 year to date entering 194 single activities entering details about in QuickBooks 235 timing 233 sole proprietorships 54 described 18 sorting lists 29 spreadsheets transferring data to and from QuickBooks 85 start date 17 choosing 17 GST PST liabilities 142 state
94. 04 removing from list 204 setting up 190 sharing QuickBooks on a network 123 tracking time for 235 Employment Insurance payroll items for 180 equity accounts 8 created by QuickBooks 53 setting up 53 balance sheet viewing on 14 redistributing during setup 53 retained earnings from 53 sole proprietorships in 54 transferring from Opening Bal Equity 53 68 errors in payroll tax calculations 206 exchange rates 158 how they affect transactions 165 see also multicurrency 158 updating 165 expense accounts opening balances 52 uncategorized 52 expenses payroll 182 exporting data 84 85 lists for usein Timer 228 Timer data for use by Pro or Premier 232 vs other methods of transferring data 85 F F1 key for help 98 FAQs 98 federal income tax payroll items for 180 federal payroll taxes employees setting up for 191 paying 212 fields adding to forms 105 changing on forms 106 custom for employees 190 filtering reports with 103 file types 104 described 95 Index 263 files backing up overview 107 backing up to atape 110 backing up to CD 109 backing up to floppy disk s 111 backing up to Zip drive 110 backing up with QuickBooks Backup Service 111 condensing 114 restoring 114 testing backing up 112 filing payroll tax forms 209 PD7A 212 Relev 1 213 T4 213 TPZ 1015 213 filtering reports 103 find using 123 help to find answers 98 using the index 9
95. 181 salary payroll item for 181 year to date entering for setup 194 Web sites connecting QuickBooks to 55 updating QuickBooks from 59 Windows converting Quicken to QuickBooks 62 72 software requirements for Timer 245 windows within QuickBooks 92 word processors transferring data to and from QuickBooks 85 write offs adjusting GST or PST Payable account 151 writing pay cheques 207 Y year to date amounts payroll entering 194 199 Z Zero Rated tax code 144 Zip drive 110 Index 275 276 Index
96. 4125 2003 Alison Logan Smith Company Pay Cheque 750 00 350 1245 2003 Anita Joly Company Pay Cheque 345 00 351 1245 2003 Luis Barata Company Pay Cheque 1 000 00 Total El Company 2 095 00 To learn about Search the Help index for payroll reports payroll reports about Chapter 7 Payroll and employees Chapter 8 Time and cost tracking Should I track 222 time L How to bill for employee and Setting up 225 QuickBooks to track time E subcontractor etting up and 227 K using the Timer time and costs Using the 233 Stopwatch to time an activity Paving fortime 235 Timetracking available only in QuickBooks Pro wo Charging 233 QuickBooks Premier editions and QuickBooks customers for i i time worked and Enterprise Solutions allows you to track hours other costs Rimburabie 239 Worked by yourself employees or subcontractors expenses in 7 ae QuickBooks You can make the time billable for specific jobs qimet Reference 244 QuickBookscan then transfer thetracked timeto pay cheques regular cheques and bills from subcontractors Cost tracking allows you to pass costs along directly to your customers 221 Should I track time QuickBooks Pro and better provide time tracking capability to suit your needs m The Stopwatch When you re working in QuickBooks and want to take a stopwatch approach that is turn on a timer work and then stop the timer use the Stopwatch on
97. 8 Where to find information about your items 28 Types of QuickBooks items 30 Setting up your items with different units of measure 32 Reporting in different units of measure 36 Adding items to your Item or Fixed Asset Item list 37 Items for reimbursable costs QuickBooks Pro and better 38 Chapter 3 Working with items 41 Using items saving time 41 Using items to subtotal on sales forms 42 Showing partial payments received at the time of sale 44 Changing prices or rates 46 Editing item information 46 Final steps to complete your setup 47 Fine tune your accounts 47 Enter your company s historical transactions 49 Complete your customer vendor and item information 51 Adjusting opening balances for balance sheet accounts 51 Setting up accounts to track equity details 53 Things to think about after you re finished 54 Create reports to check your setup 54 Maintain your previous accounting system 54 Set up other company files if needed 55 Connect QuickBooks to the Internet 55 Update QuickBooks to the latest release 57 Set number currency time and date formats in QuickBooks 60 Importing and exporting data 61 Converting data from Quicken 62 Preparing your Quicken data for conversion 62 Converting your Quicken file to QuickBooks 64 Fine tuning your data after converting to QuickBooks 65 How QuickBooks converts accounts receivable transactions 68 Changing to QuickBooks accounts
98. 8 finding a backup file 113 firing an employee 202 fiscal year 108 129 adjusting for mid year QuickBooks start date 52 flowcharts 92 follow me help 97 closing 97 fonts changing on reports 102 forms 106 foreign currency seemulticurrency forms described 94 printing alignment 133 freight charges item for on invoice 31 G Goods and Services Tax seeGST PST 141 group items compared to subitems 32 creating 38 description 31 uses of 43 using to hide details 43 GST Payable account 151 adjusting 151 GST PST adjusting liabilities 151 amount owed as of start date 52 applying to sales 145 business number 141 codes setting up 144 customer tax codes 145 discount items and 146 editing filed transactions 154 filed vs unfiled transactions 152 filing a transaction manually 153 how QuickBooks calculates 140 instalment payments 149 interest on late payments 151 late payment fees 151 liabilities 142 liability reports 147 locking after paying 125 155 out of province customers and 146 paying by instalments 149 paying liabilities 148 penalties 151 preferences 141 purchases including 145 refunds for overpayments 150 reporting period 142 sales including 145 tax codes setting up 144 tracking 141 turning on in EasyStep Interview 141 uncategorized amounts 138 unfiled vs filed transactions 152 unfiling a transaction manually 153 what you owe 147
99. 9 Free consultation call You receive one free consultation call to a QuickBooks Product Expert from 60 days of the purchase of QuickBooks With this free consultation call you get help up front when you need it most to get your business up and running as quickly as possible See QuickBooks product support on page 253 for contact information QuickBooks support plans With the QuickBooks support plan you receive unlimited telephone support from a QuickBooks Product Expert for you and your employees email support live chat support and priority service As part of your support plan you also have unlimited access to our members only Web site with training materials and tips for your business and future upgrades and enhancements at no extra cost Pay per incident telephone support If you choose not to purchase a QuickBooks support plan we also offer pay per incident support With this plan you pay for each call that you make Web based support 248 QuickBooks ca http www quickbooks ca is the official site for Canadian QuickBooks users Visit the QuickBooks Web siteto get answers to many QuickBooks questions from our knowledge base FAQs where you can search for questions We also have a user to user forum where you can get advice from other QuickBooks users You can access the QuickBooks Web site from within QuickBooks under the Help menu Miscellaneous services Data recovery If your QuickBooks company file bec
100. By Default Mountain Sports Equipment Click Modify Report to customize a report for your needs Unpaid Bills Detail If you are using QuickBooks Pro or Pant Dacamhpar 1372003 better and Microsoft Office you Type Date o Hum gt Due Date gt Aging gt Open Balance Mi ft Anderson s Jersey City can export reports to a Microso gt tem Receipt 10 02 2003 1 955 00 4 Excel spreadsheet item Receipt 1017 2003 1 150 00 Total Anderson s Jersey City 3 105 00 MacKeen Office Solutions Bill 11 21 2003 12 21 2003 393 97 The Modify Report 260 00 window is divided up Display Eilters Header Footer Fonts amp Numbers 643 97 in to tabs Each tab Report Date Range covers different Dates Today Today only 14 2 819 80 customization options From 12 15 2003 To 12 15 2003 1 995 40 C eee for the report 4 816 20 For example the 4 Sort by Default Display tab allows you typ _ Ascending order 4 42 415 00 to choose the columns Enteredlast Nedfied SOEN C Descendngorder 54 i you wantvisible on the i report that you are 8 680 17 j Si N currently working on sue Nene Name City nane RENEA Put a check mark next to each column that you di to appear in the report AE fet OK Cancel Help After you have customized a report you can save the settings for future use Saving report settings is called memorizing The next time you run the report QuickBooks recreates the format of
101. Chapter 4 QuickBooks basics Financial institutions use WebConnect for online banking connections WebConnect offers online integration through the financial institution s Web site accessible from QuickBooks or any browser With WebConnect you can go directly to your bank s Web site for online banking services Reconciling online accounts Reconciling your online accounts is a three phase process 1 2 3 To download your transactions go to the Online Banking Centre select your financial institution from the drop down list and Click Go Online Match transactions View a QuickStatement for the account The QuickStatement includes all transactions that have cleared your financial institution since the last time you downloaded including deposits cheques transfers and ABM withdrawals as well as any transac tions that were downloaded previously but not been matched When you click Match QuickBooks automatically matches downloaded transactions to thosein your account register For the unmatched transactions select one of the trans actions from the downloaded statement click Add to Register and follow the onscreen prompts until the transaction appears in the register Assign an account from the Account Drop Down list and click Record to enter the transaction in the register Match Transactions sk a help question Askf How Do I xi s Goto Print Edt Transaction 2 QuickReport Match Quick
102. Chart of Accounts The Chart of Accounts appears 2 OntheChart of Accounts window click the Account menu button and choose New 3 Create an A R or A P account for each currency in which you want to deal See the online help for information on how to set up a new account When you select a currency the Exchange field shows its exchange rate If you want to update the exchange rate do it from the Currency List See Using the currency list on page 163 for more information To learn about Search the Help index for Setting up accounts accounts Chapter 6 Doing business internationally Note Create foreign customers and vendors After you ve set up foreign A R and A P accounts you can set up the foreign customers or vendors who will be using these accounts To do so create the customer or vendor as you normally would and choose the correct currency from the drop down list in his or her profile Once a currency is assigned to a customer or vendor all future transactions involving him or her are recorded in the currency you assigned with the exception of bill and credit card payments in this situation the account you use to pay determines the currency of the transaction Existing customers or vendors that is ones you set up before turning on the multicurrency feature are automatically assigned the Canadian dollar currency If you want to usea different currency for these individuals you ll need to create new cus
103. GST collected and collectible on sales Line 103 GST Collected and Collectible The Canada Revenue Agency considers invoices due on thedate you issuethem So for any given reporting period unpaid invoices with GST must still be included in the GST collected and collectible for that period m Total input tax credits Line 106 Input tax credits Finding and paying your sales tax liabilities 147 Recording reductions in PST compensation or commission Some provinces give certain small businesses a reduction in the amount of provincial sales tax they are required to remit In Ontario this reduction is called compensation in British Columbia Saskatchewan and Manitoba it is known as commission You can track compensation or commission by entering it as you create a cheque to pay your PST liability 1 8 9 Create a PST return as you normally would see Remitting your tax liability to the government on page 148 m Do not adjust your PST return for the compensation or commission Create a cheque to pay your PST liability as you normally would m Attheend of the process create and save the PST liability cheque but do not print it yet From the Banking menu select Use Register then select your PST Payable account from the drop down menu and click OK In the PST Payable register locate the cheque you created in Step 2 If you created the cheque with today s date it is likely the last entry at the bot
104. I Calculate Provincial Tax on GST PiggyBack If the PST is to be calculated on top of the GST that is the GST is calculated on the sale added to the total and the PST is then calculated on this new total select the Calculate Provincial Tax on GST Piggyback checkbox 4 ClickOK Setting up sales taxes 143 Note W hat the Zero Rated Z tax code is for Under theGST certain goods and services are taxed at arate of 0 instead of the usual 7 These items are called Zero Rated To see whether the items you sell are Zero Rated you should check with the CRA or your accountant Some examples are basic groceries such as milk bread and vegetables agricultural products such as grain raw wool and fish for human consumption prescription drugs and medical devices and items manufactured for export Zero Rated items are not tax exempt and should not be assigned the Exempt tax code E If you sell a Zero Rated item you charge your customers 0 GST on it This means that you do not collect any GST to remit to the government However because the item is taxable you can claim input tax credits the GST you paid on the materials you needed to produce theitem for it When you file your GST return you receivea refund based on these credits Assigning tax codes to items 144 Tip To let QuickBooks know how to tax the items or services you sell and purchase for your business assign each a tax code as you set it up in
105. L N Y N In Gifts awards bonuses and social Box events non cash Bonus Gross Y Y N Y Y 40L Y N N n a Group term life insurance policies Co Box employer paid premiums Note 7 Ctrb n n a Y y N Y Y 40 L N y N n a Housi tfi tincash f yoy y y y P Notes Y N F ousing rent free or low rent in cash cib n n a 30 H ote or Housing rent free or low rent non Co Box cash Note 4 Ctrb n n a Y Y 4 Y Y 30 H Note 3 N N n a Interest free and low interest loans Co Box Note 5 Ctrb n n a Y Y N Y Y 36 L N Y N In Co Box Medical expenses in cash Ctrb n n a Y Y Y Y Y 40L Note 6 Y N In Co Box Medical expenses non cash Ctrb n n a Y Y N Y Y 40L Note 6 N N n a Moving expenses and relocation Co Box benefits in cash Ctrb n n a N y X Y a 40 L yi Y N In Moving expenses and relocation Co Box benefits non cash Ctrb n n a y X N X y 40 L y N N n a Moving expenses non accountable Co Box allowance over 650 Ctrb n n a y M u y y 40 L N y N In 186 Chapter 7 Payroll and employees Fed Qu ROE a Gross T4or GSTor ROE ROE Payroll item Type or Net Inc CPP El Inc QPP RL 1 HST Eam He For Tax Tax orin Municipal officer s expense allowance Co Box Note 7 Ctrb n n a Y Y N Y Y 40L N Y N In 3 Co Box Parking in cash Ctrb n n a Y Y Y Y Y 40 L Y N In Co Box Parking non cash Ctrb n n a Y Y N Yy Y 40L Y N N n a Public health care hospitalization or Co Box medical insurance Ctrb n n a Y Y N Y Y 40 L N N N n a plans
106. Month to date From 01 09 2002 To 12 09 2002 sort By Default gt sali Ruby s Tuesday If you want to see the Serene Sales by Item Detail purchasing unit on i September 11 gt Type Date Num Hame F fo Se Sales Price gt Amount Balance this report click b Qty Unit Modify Report Soda Pop d Invoice 10 09 2002 1 Anne McMan 1 can 1 Total Soda Pop ETEEN ARA SS ARK Modify Report Sales by Item Detail re Display I Filters Header Footer _ Fonts amp Numbers r Report Date Range N Because this is a sales report by default the selling unit is shown Dates JUMEAU mnanaa ms E In the Modify Report Units of Measure window select Show Qty and Unit in Purchasing Unit to Doi show the item s purchasing unit of measure jow this report calculates income and expenses Purchasing Unit Selling Unit p Units of Measure Show Qty and Unit in Inventory Unit Purchasing Unit Selling Unit QuickBooks converts Name Put a check mark next to each column 7 7 Source Name that you want to appear inthe report sera Re the quantity which in selling units is one can oe ce e to 08333 of a case ty MEE Modify Report _ Memorize Print Excel _Hide Header _ Refresh The report chan
107. Outlook you can synchronize information about customers and vendors such as addresses and phone numbers from your contact manager so that you don t have to re enter it To learn about synchronizing contact information search the Help index for contact management synchronizing Items are the goods services and other things you buy and sell QuickBooks starts a list of items when you go through the Interview but you ll want to add to this list and refinethe information you ve already entered To learn about Search the Help index for Adding a new customer customers adding Adding a new vendor vendors adding Item types and uses items about opening balances for balance sheet accounts After creating your company in the Interview you may need to enter additional opening balances or make adjustments to the account balances you ve entered To adjust an opening balance for an account From the Lists menu choose Chart of Accounts Double click the account that should have an opening balance Click anywhere in the blank entry at the end of the register Change today s date to your QuickBooks start date Leave the Number and Payee fields blank au RWN Enter the opening balance amount m For bank accounts enter the amount in the Deposit column m For asset liability or equity accounts enter the amount in the Increase column m For credit card accounts enter the amount in the Charge column 7 Inthe Account
108. Property that will contribute to the operating capacity of your com pany for several years Examples Vehicles Computers Heavy machinery On sale Decreases assets On purchase Increases assets In QuickBooks Pro and better you can create fixed asset items in QuickBooks Basic you can view fixed asset items in the Item list and edit or delete transac tions in which they re found but you can t create them 30 Chapter 2 Setting up anew company continued Other Charge Use for Other charges on a sale or a pur chase Examples Shipping charge deliv ery charge finance charge Usual effect on accounts On sale Increases income On purchase Increases expenses Comments In QuickBooks Pro and better you can set up an other charge item so that it can affect either income or expenses depending on where you use it Can be either a percentage or a flat amount Subtotal Calculating and printing a subtotal on sales forms Subtotal items have no effect on accounts On sales forms if you want to apply a discount or add a percentage charge to several items at once subtotal first Group Fast entry of a group of individual items already on the list Example A group of services and food items provided by a caterer Each item in the group affects the same account it affects when used by itself Available for either sales or purchases Discount Calculating an amoun
109. Record the sale using the appropri ate items On sales forms you can edit the item descriptions to add detail you want the customer or client to see Set up jobs for the customer on your Customer ob list When entering any sales for a job enter both the job and customer name in the Customer ob field If you don t have QuickBooks Pro or better turn on the preference for tracking expenses by job When entering any expenses for a cus tomer or job enter the customer name or the job and customer name in the Customer ob field Turn on class tracking and set up a class on your Class list for each fund On every transaction enter a class as well as an account where appropriate Use the QuickBooks payroll feature to track your payroll Find and fill in the appropriate field in the New or Edit Customer win dow or the New or Edit Vendor win dow The field you want may be on the Additional Info tab Comments You can get reports about the items for services and products that you have sold including quantities and dol lar amounts by item Reports by customer or by job give subtotals by job and then a total of jobs for the customer You can track expenses by customer alone if you don t use jobs The profit amp loss by job report lists both income and expenses with a sepa rate column for each cus tomer and job The profit amp loss by class statement has a column for each fund class so you can
110. Sort Bills By Due Date Exchange Rate fi 45 Update the exchange rate J Date Due Vendor Ref No Amt Due Disc Used Amt To Pa If the exchange rate F 20711 2000 Bottorft Designs 70 oo 0 00 0 ooj 70 006 changes between the time 20 11 2000 Bottorff Designs 175 00 you entered the bill from the time you paid the bill a gain or loss is generated QuickBooks accounts for it by making Pts ao w Totals 245 00 an entry in the Exchange r Discount amp Credit Information for Highlighted Bill Gain Loss expense Vendor Bottorff Designs Terms Number of Credits account Bill Ref No Sugg Discount 0 00 Total Credits Available Go to Bill Set Discount Set Credits m Payment Account gt m Payment Method Payment Date G chequing E Cheque E oema 1071172000 E Ending Balance 1 238 79 C Assign cheque no Clear Selections Pay amp Close Pay amp New Clear Select the account from which the payment will be taken If the bank account is not set up as foreign QuickBooks calculates the amountin the home currency thatis to be withdrawn using the exchange rate 9 To learn about Search the Help index for Payments using your credit card credit cards Dealing with foreign vendors 171 Transferring foreign funds You can transfer money from ahome currency bank account to a foreign bank account or from a foreign account to ahome currency account H
111. State 750 00 1 2100 Accounts Receis Accounts Receivable Canadian D 62 143 48 1 2160 Receivables US Accounts Receivable United State 4 110 00 1 1150 Undeposited Fur Other Current Asset Canadian D 6 135 16 1 1300 Deposits Paid Other Current Asset Canadian D 0 00 1 3100 Finished Goods Other Current Asset Canadian D 270 664 70 1 3200 Raw Materials Other Current Asset Canadian D 83 257 64 1 5210 Improvements O1 Other Current Asset Canadian D 65 120 00 1 5220 Improvements Ar Other Current Asset Canadian D 7 627 82 1 5710 Furniture amp Fixtur Other Current Asset Canadian D 33 464 00 1 5720 Furniture amp Fixtur Other Current Asset Canadian D 8 892 00 1120 Inventory Asset Other Current Asset Canadian D 0 00 2 2100 Accounts Payab Accounts Payable Canadian D 42 899 10 2 1110 American Expres Credit Card Canadian D 0 00 2 1120 MasterCard Credit Card Canadian D 0 00 2 1130 Visa Credit Card Canadian D 0 00 2 3100 GST Collected Other Current Liability Canadian D 3 479 42 2 3200 GST Paid Other Current Liability Canadian D 4 363 08 o 2 3300 PST Collected Other Current Liability Canadian D 2 410 40 2 3400 PST Paid Other Current Liability Canadian D 217 60 2 3500 Import Duty Paye Other Current Liability Canadian D 0 00 2 5000 Payroll Withholdi Other Current Liability Canadian D 5 038 70 Customer Depos Other Current Liability Canadian D 0 00 Other Current Liabilit Canadian D 0 0
112. Statement transactions to those already in QuickBooks IV Show Register 7 1 Line Account Chequing Date Number Payee Payment lt Deposit Balance Ex Rate Type Account Memo 11 15 2004 SEND Jacobs s Tile amp Brick 4 765 44 8 541 35 BILLPMT Accounts Receivable 10 03 2004 Blitz Richard Kitchen 13 560 39 5 019 04 PMT Accounts Payable 07 16 2004 Duff Tracy Bathroom Re tile 7 633 28 12 652 32 PMT Accounts Receivable Add to register Record Restore Ending Balance 12 652 32 a As of 12 18 2004 Balance 5 035 66 Sort Statement By Date x Status Cheque Unmatched 11 12 2003 Funds Transfer Unmatched 11 25 2003 ABM Withdrawl Unmatched 11 17 2003 Deposit Unmatched 11 22 2003 Bank Service Charge I Show Matched Match Unmatch Done Cancel Has it been a challenge to obtain a benefits plan for your employees When you receive your bank statement for the account use the Reconcile window Note With QuickBooks you can reconcile only to the paper statement you receive from your financial institution With Quicken you can reconcile to either the online or paper statement Setting up online banking account access and payment 121 To learn about Search the Help index for Downloading and matching online trans transactions online actions Account reconciliation m reconciling bank statements m reconciling credit card statements Working w ith multiple users 122
113. Y Y X 40 L N Y N In Setting up your payroll items 187 Qu ROE Fed Gross T4or GSTor ROE ROE Payroll item Type or Net Inc CPP El Inc QPP RL 1 HST Ean He For Tax Tax orin Spouse s travelling expenses non Co n a Y y N y y Box Y N N aa cash Ctrb n 40 L Co Box Stock options Note 9 Ctrb n n a Y Y N Y Y 38 L N N N n a J Co Box Subsidized meals Ctrb n n a Y Y N Y Y 30 H Y N N n a Travel assistance in a prescribed zone Co Box Note 10 aon a FY Y Y Y aa SC N n Travelling allowance to part time and Add G Y Y Y Y Y Box N Y N other employees n ross 40 L n Tuition fees in cash Co n a Y Y Y Y Y ROX Note 8 Y N Ctrb n 40 L i Tuition fees non cash Co Box not taxable if a job requirement by Ctrb n n a Y Y N Y Y Note 8 N N n a the company 40 L Co Box Uniforms and special clothing in cash Ctrb n n a Y Y Y Y Y 40 L Y Y N In Uniforms and special clothing non Co Box cash Ctrb n n a K Y N Y Y 40 L Y N N n a Wage loss replacement or income Co Box maintenance non group plan i n a Y Y N Y Y N Y N For premiums Ctrb n 40 L Co Box Other taxable benefit Ctrb n n a Y Y Y Y Y 40L N Y N In Payroll items for GST HST and QST on benefits Qu ROE f Gross T4or GSTor ROE ROE Payroll item Type Inc CPP El Inc QPP For or Net Tax Tax RL 1 HST Eam Hrs PTA GST HST on Benefits Co QST on Benefits Ctrb n n a Y Y N Y Y None n a N N n a 188 Chapter 7 Payroll and em
114. You can change prices or rates for items individually or have QuickBooks calculate new prices or rates on several or all items of the same type at once If you want to automatically apply an increase or decreaseto inventory non inventory and service items you can use price levels Price levels allow you to automatically adjust up or down the amount charged to customers with whom you havea special relationship When you apply a price level to an item QuickBooks calculates the rate to reflect the increase or decrease To learn about Search the Help index for Changing prices or rates of items items prices Price levels price levels Editing item information 46 After you ve created an item you can edit information about it at any time subject to certain restrictions Changing item type You can changea non inventory part or other charge item to a service non inventory part inventory part or other charge item However you cannot change the item type of any other type of item Hiding and redisplaying items on lists You can hidean item on the Item or Fixed Asset Item list without deleting it by making the item inactive For example you may havean inventory item on your Item list that you have not stocked in the last six months but which you may want to stock in the future When you make an item inactive QuickBooks keeps the information associated with that item but hides the item on the Item list and removes it
115. ZED GAIN amp LOSSES 776 40 0 91 w ith foreign customers QuickBooks handles customers who pay in foreign currencies in much the same way as customers who pay in your home currency You create an invoice and receive payments in exactly the same way The only difference is that the currency you assign to the customer in hisor her profile becomes the currency of the transaction see Create foreign customers and vendors on page 161 Creating invoices for foreign customers 1 Select a foreign customer such as this US customer QuickBooks selects an A R account that Invoice matches the currency of the selected customer If one doesn t exist QuickBooks prompts you to create one rate if necessary Before you can create an invoice for a foreign customer you must set him or her up in the customer job list and create a foreign A R account Then you can create an invoice as you normally would As you do you also need to S Create Invoices US A R _ oO x Previous GPNext Pint PMSpeling BW History E Joumal g Time Coste co Form Template US Customer fd Intuit Service Invoice gt The price of the item is converted into the customer s currency US dollars using the exchange rate In this example the rate for skiing lessons is 50 Canadian but when the item is added to the invoice the rate is converted to 33 99 US Se If you don t want the price converted using the latest Bill To
116. Zero Rated tax code about 144 H hardware requirements for Timer 245 help 97 123 help 98 closing help window 97 F1 key 98 264 Index If you don t find the topic you are looking for here try QuickBooks Help follow me help 97 how do I menus 98 index 98 Learning Centre 99 onscreen 97 opening help window 97 resetting help windows 97 hiding and showing details on sales forms using group items 43 employees 204 items 46 items in lists 93 historical transactions 49 entering for payroll 50 hours worked entering on pay cheques 206 recording manually in Pro or Premier 234 recording with the Stopwatch 234 recording with the Timer 229 viewing on timesheets 226 how do I menus 98 Icon bar 92 IIF file format 84 importing activities from the Timer 232 Pro or Premier lists into Timer 228 income accounts choosing for items 26 opening balances 52 uncategorized 52 income statement described 15 income tax form 19 129 preparing information 129 QuickTax 129 reports about 130 setting up and tracking 127 index 98 international business see multicurrency Internet changing your connection 56 connecting QuickBooks to 55 requirements 55 setting up a connection 56 updating QuickBooks from 57 Intuit phone numbers 251 253 product support 248 Web sites 251 253 inventory assembly items vs groups 32 inventory part items description 30 investment
117. a uniqueserial number you cannot print an ROE form directly from QuickBooks or download blank ROE forms from the HRDC Web site Instead you must copy theinformation from QuickBooks to an official blank ROE form or to HRDC software for creating these forms You can order these from the HRDC Web site Managing payroll and employee information 203 204 To prepare an ROE report 1 From the Employees menu choose Process Record of Employment m QuickBooks may ask if you want to review Payroll Item Listing report see Trou bleshooting an ROE report below to confirm that your payroll items are set up correctly Click Yes to review the report or No to go on If you click Yes when you are finished with the report close it and perform Step 1 again 2 Choose the employee who is leaving then click OK 3 You can click the links in m Block 15A to access the employee s insurable hours for the last year of employment m Block 15B to access the employee s insurable earnings for the past six months m Block 15C to access the employee s insurable earnings by period for the last year of employment based on pay frequency and the data in Block 11 Troubleshooting an ROE report QuickBooks uses payroll items to generate ROE reports That means your payroll items must be set up and used properly before the report will providethe information you need Before creating an ROE report you should m confirm you have entered the employee s rel
118. ab of QuickBooks P to the invoice ther case ro or better you mark which billable time to add Choose Billable Time and Costs Time and Costs For Melton Johnny Dental office 1 567 50 Items 2 250 00 Expenses 201 25 Time Options Transfer item descriptions combine activities Change The Time tab shows all time that is billable for this job but has not yet been billed Click Change to specify the following se _ Date Employee Service ltem Hours Rate Amount Description 11 10 97 Dan T Miller 11 09 98 Dan T Miller 11 10 98 Dan T Miller 11 11 98 Dan T Miller Framing 8 00 Framing 8 00 Framing 8 00 Framing 4 50 55 00 55 00 55 00 55 00 440 00 Framing labor 440 00 Framing labor 440 00 Framing labor 247 50 Framing labor y y vA vA m Whether to copy your time notes or the description of the service item into the Description field of the sales form m Whether to show each activity as a separate line or to combine all activities for the same service item Hide A Print selected time and costs as one invoice item Total billable time and costs OK Cancel Help In thiswindow and on thesales form Qui The rates shown are the rates set up for 4 018 75 sho a each service item ckBooks Pro and better use the hourly rate for the service item you assigned to the activity not the payroll rate of the employee If the service item has the subcontractor che
119. able You should delete these before you convert your data To learn about Search the Help index for Transactions group in QuickBooks memorized transactions grouping together Converting data from Quicken 63 Make customer names consistent When you convert to QuickBooks the names in your accounts receivable register become customers and transactions become invoices and payments If you accidentally used different names for the same customer in Quicken QuickBooks can t link the customer s invoices and payments correctly For example if you have a customer listed as Dan Miller D Miller and Daniel Miller you should edit these names before you convert so that the customer goes by only one name If you use online banking You can bank online with participating financial institutions through QuickBooks just as you can in Quicken However not all institutions that work with Quicken also work with QuickBooks Contact your financial institution before converting to confirm that it supports QuickBooks If it doesnot an online account in Quicken will not remain an online account after the conversion to QuickBooks To see the current list of financial institutions that support online account access in QuickBooks choose Set Up Online from the Banking menu in QuickBooks then choose Online Financial Institutions List Y our financial pega sy Comments W hat to do institution Supports online account You will need t
120. able account 151 Locking older transactions after paying your GST PST liabilities 155 Doing business internationally 157 Multicurrency an overview 158 Setting up multicurrency 158 Using the currency list 163 Using the currency calculator 165 Exchange rates and how they affect your transactions 165 Unrealized gains and losses 166 Realized gains and losses 167 Dealing with foreign customers 168 Creating invoices for foreign customers 168 Receiving payments from foreign customers 169 Dealing with foreign vendors 170 Creating purchase orders for a foreign vendor 170 Paying bills from foreign vendors 171 Transferring foreign funds 172 vi Chapter 7 Payroll and employees 173 Payroll before you begin 174 Membership in the QuickBooks Payroll 174 If you don t use the payroll feature in QuickBooks 174 Setting up payroll an overview 175 Collecting the information you ll need 176 Payroll expense and liability accounts 178 Customizing payroll accounts 178 Setting up your payroll items 179 The importance of payroll items 179 About the default payroll items 179 Creating new payroll items 180 Setting up employees 189 Employee defaults entering common employee information 189 Setting up employees 190 Summarizing amounts for this year to date 194 Entering year to date summaries for each employee 194 Entering year to date summaries of liability payments 198 Making sure your payro
121. able if you plan to invoice for the time Class If your company does class tracking you can do the following a Filter time reports by class If you are set up to split payroll expenses by class you can assign classes to employee time Then you can automatically track all payroll expenses by class Choosing a method to track time QuickBooks Pro and better comewith aseparate Timer program that can run on acomputer regardless of whether QuickBooks is on the same computer You have a choice between m tracking time via the Timer and then transferring the time data to QuickBooks m using the Stopwatch on the Time Enter Single Activity window or entering time data directly into QuickBooks manually on the Weekly Timesheet window or the Time Enter Single Activity window Situation How to track time See You have access to QuickBooks and want to use a stopwatch approach to time tracking turn on a timer work then stop the timer Use the Stopwatch in the Time Enter Single Activity window in QuickBooks Pro or better Setting up QuickBooks to track time on page 225 Using the Stopwatch to time an activity on page 233 You want people who don t have access to QuickBooks to track their own time Distribute copies of the QuickBooks Timer to these people and have them give you their time data Setting up QuickBooks to track time on page 225 Setting up and using the Timer on page 227 Importing
122. accounting a document that adds up all the debits and credits so that mistakes can be traced if debits don t equal credits Because Quick Books always adds correctly you do not need to doa trial balance Nevertheless QuickBooks provides a trial balance report if you want to see your data in this format Glossary 257 unrealized gains and losses For transactions that involve foreign currencies the difference between what the foreign currency was worth when the customer paid you and what it was worth when you received it or if you haven t received it what it is worth today Contrasts with realized gains and losses Many accountants prefer you take your unrealized gains and losses into account when you create reports about your company s net worth upgrade The process by which you promote an earlier version of QuickBooks to a newer version For example if you currently have QuickBooks 2000 and you bought QuickBooks 2006 you would be upgradingto the QuickBooks 2006 version update noun A newer release for the version of QuickBooks that you re currently using Thisis also referred to as a maintenance release and it typically contains bug fixes verb The process of converting the format of an existing company file so that it can be opened with anewer version of QuickBooks version v An annual release of QuickBooks which is available through stores Versions include enhancements and new features For e
123. accounts Neither the customer name nor the items sold are retained However if an invoice is not printed unpaid partially paid or marked as pending QuickBooks leaves the invoicein your file so you can apply payments to the invoice m If you have QuickBooks Pro or better condensing deletes only those estimates that are dated on or before the ending date and that havea job status of Closed If an estimate has any other job status Pending Awarded In Progress Not Awarded or None QuickBooks retains the estimate regardless of its date m Only if you choose the option in the Condense preferences if you have paid a bill for a reimbursable expense QuickBooks deletes the bill regardless of whether you have invoiced the customer for the expense Condensing your company file 115 116 Examples of transactions that w ould be retained The following table gives examples of the situations that cause QuickBooks to retain transactions dated on or before your specified ending date When you follow the steps in the Archive amp Condense Data wizard you ll have an opportunity to remove old transactions and unused items to further reduce the size of your company file However QuickBooks always retains transactions that meet the following criteria W hen QuickBooks retains a S 5 A Example of retained transaction transaction w ith earlier date The transaction is linked to another transac An undeposited customer payment that you tion
124. ad of equity accounts In QuickBooks you can make them equity accounts m QuickBooks changes your Quicken categories and subcategories into income and expense accounts with subaccounts Quicken acct type Converted to QuickBooks acct type Chequing Bank Credit Card Credit Card Cash Bank Asset Other Current Asset Liability Other Current Liability Investment Other Current Asset Chapter 3 Importing and exporting data When you convert from Quicken After you have converted your Quicken data file to QuickBooks you ll notice the following changes m Thelnvoiceltems list is converted to the QuickBooks Items list m Each existing Invoice Receivables account is converted to a QuickBooks Accounts Receivable account of the same name m Existing invoices are converted to QuickBooks invoices However they will appear in chronological order m Transactions linked to a customer remain linked About payments credit memos and refunds Converted Quicken payments are always applied to the customer s oldest outstanding invoice so the payment links to invoices may be different after conversion Credit memos and refund cheques like payments are also applied in chronological order based on invoice dates so their links may also be different after conversion Should you continue using Quicken for some things QuickBooks does not change your original Quicken file in any way as it imports informatio
125. ally worked Compensation to salaried corporate officers with expenses assigned to an expense account for corporate officer salaries m Paid sick time for salaried employees Vacation pay for salaried employees Hourly Wage Compensation based on the number of hours worked m Paid sick time for hourly employees m Vacation pay for hourly employees Commission Deduction Compensation based on a percentage of another quantity such as 7 of sales or a flat amount times a quantity such as 8 times units sold Any deduction from gross or after tax net pay Examples include union dues loan repayments and employee paid insurance Deductions can be flat amounts or calculated on a quantity such as the hours the employee works Bonus Advance Addition One time compensation awarded at the discretion of the employer Use to give your employees periodic or regular advance on upcoming pay Any addition to gross or after tax net pay An example is a recurring profit sharing payout Additions can be flat amounts or calculated on a quantity such as the hours the employee works Company Contribution Any company paid benefit or expense that you want to track with each pay cheque Examples include employee benefits such as pension plans or health and life insurance Company Contributions can be flat amounts or calculated on a quantity such as the hours the employee works Setting up your pay
126. als to help you learn some of the basic features in QuickBooks To open the Learning Centre from the Help menu choose Learning Centre Installing amp Learning to Use Quick Books Guide Read this guide to install QuickBooks set up your company file and learn more about some of QuickBooks essential fea tures such as adding customers vendors setting up sales tax tracking and setting up payroll 1 877 772 9158 Mon Fri 8a m 8 p m Eastern Time product support or membership fees may apply Intuit Contact Information 253 254 Glossary of terms accounts payable The record of outstanding bills a business must pay Called A P for short accounts receivable The record of money owed to a business that is outstanding invoices or statement charges for which the business has not received payment Accounts receivable is called A R for short Even though the word accounts is plural QuickBooks uses a single account on the chart of accounts to track all the money that different people owe you accrual basis A method of bookkeeping in which you regard incomeor expenses as occurring at the time you ship a product render a service or receive a purchase rather than at the time you pay or receive cash With this method the first time you enter the transaction into your records and the moment when you pay or receive cash may be two separate events accrual hours Time that your employees accrue ear
127. an either connect to the Internet from each computer that has QuickBooks installed on it or else download the update to one computer on your network and share it for example if one or more users doesn t have Internet access QuickBooks sets up a shared location to which updates are downloaded Then if any user in a multi user environment downloads and installs an update QuickBooks detects it and prompts each of the users as they open the program to install the new version To share updates you need to be sure that all your users can access the location on your networks where the updates are downloaded m All of the QuickBooks computers must be properly networked m Each computer must be configured to share files across the network Update QuickBooks to the latest release 59 Finally all QuickBooks users on your network must complete the following steps To change the download location 1 Open the shared company file 2 From the File menu choose Update QuickBooks 3 Click Options 4 Inthe Options windows click ON for the Share Download option then click Save Updates from a CD ROM If you don t have Internet access you can have an update mailed to you on a CD ROM fees may apply For more information contact Customer Service see page 252 When you receive the CD install the update as you would install any other software Before installing from a CD These instructions may change from time to time When thi
128. and Expense Graph Job Materials 1 302 26 Balance Sheet Standard Saal Job Expenses SC before or after Balance Sheet Detail xl Total Expense you generate Net Ordinary Income it Set the date range Net Income This Month to date T LAP AE p a Pona p From what you ll learn To 12 01 2003 El 12 15 2003 al How much money did I make or lose over a specific period of time Modify Report Display Print Excel QuickBooks provides details about a report s content to help you decide whether the report is appropriate for your needs 2 To learn about Search the Help index for Finding a report reports finding Creating a report reports creating Preset reports report types all Getting information about your company 101 Customizing the look of a report Most reports can be customized for unique presentation of your data For example you can do the following m Change the typeface font and how numbers display Add or remove columns and adjust their width m Create or change subtotal groupings m Changethe sort order of transactions m Changetheunits of measure for reports on your items purchases sales and inventory transactions QuickBooks Pro and QuickBooks Premier only refer to Reporting in different units of measure on page 36 Unpaid Bills Detail 4sk a help question Ask 7 How Do I Modify Report Memorize Print Hide Header Dates Today v sof 12 15 2003 Bl sort
129. and Relev 1 slips for your employees see Creating and reviewing year end payroll slips on page 216 you can print them out QuickBooks allows you to print on either blank paper or preprinted forms QuickBooks prints only six T4 codes per slip If you have an employee who requires more than six other or special boxes on a T4 slip create a second slip for him or her after you print all other slips The second T4 slip should show only the extra codes For more information look in the help index for T4 slips six codes or more To print year end T4 or Relev 1 slips 1 Confirm that the employees whose slips you want to print are selected 2 Click Print T4s or Print Relev 1s 3 Choose the printer to use whether to print on blank paper or preprinted forms and whether the forms you are printing are for you the employee or for the government then click Print 4 Distribute the slips m Give each employee two copies of the T4 slip and send one copy to the CRA You may want to print another copy for your records Although QuickBooks displays your business number when you preview T4 slips QuickBooks will not print it on the employees copies of the T4 slips m Give each employee two copies of the Relev 1 and send one copy to the Qu bec Minister of Revenue You may want to print another copy for your records E Filing year end T4 slips with the CRA If you created fewer than 70 T4 slips you can sub
130. and select which time to include When you record the invoice QuickBooks marks the time you selected as billed so you won t bill for it again by mistake You can also charge for time as a statement charge instead of writing an invoice Chapter 8 Time and cost tracking Reimbursable expenses in QuickBooks When you have billable expenses in QuickBooks and are ready to invoice for them click the Expenses button on an invoice for the customer or job If you are using QuickBooks Pro or better see Reimbursable time and costs in QuickBooks Pro and better on page 240 QuickBooks displays the Choose Reimbursable Expenses window It shows the expenses you have marked billable but have not yet billed to this customer or job In this window you mark which billable expenses to add to the invoice This window is in Choose Reimbursable Expenses Lx QuickBooks Basic only not QuickBooks Pro or better Click the Hide field only if you don t ever want to charge this customer for the expense The bill is unaffected 12 10 97 Sena Lumber amp Buildir To hide a markup on an invoice be sure to select this checkbox Total Selected Expenses 325 00 For a percentage marku p Print selected expenses as one invoice item Selected expenses are taxable add a sign after the viv number QuickBooks prefills Markup Amount or fiooz Total expenses with markup your preset markup Markup Account Markup Income
131. apter 5 Tracking and paying sales taxes Finding and paying your sales tax liabilities If you collect sales tax from customers you also have to make periodic payments of it to the government You can check what your sales tax liability isto the CRA and your provincial Ministry of Finance by creating GST and PST Liability reports Creating GST and PST Liability reports These reports provide completeinformation about thesalestax your company has collected on sales paid out on business related purchases where applicable and owes to or will be reimbursed from the government for a particular period The CRA requires businesses to report the GST on an accrual basis so the GST Liability Report isn t affected if you change your accounting basis to Cash in the Reports and Graphs preferences window You create GST and PST Liability reports the same way Provinces that use the HST only need to create GST reports as their provincial sales tax is included in it m From the Reports menu choose Vendors amp Payables then GST Liability or PST Liability Make sure the date accurately reflect the end of the reporting period This report includes the following information for the Goods and Services Tax Return you file at regular intervals m Total sales and other revenue not including GST or PST Line 101 Sales amp Other Revenue m Total purchases which is subtracted from Sales amp Other Revenue to calculate your Net Sales m Total
132. ar with the basic functionality of your software look to the User Guide to get more comprehensive instructions on QuickBooks and its features This guide also provides some business concepts to help you better understand some of the accounting concepts used in QuickBooks Chapter 1 Welcome to QuickBooks Chapter 2 Setting up a new company Decisions to 4 make before you start Le How to set up Setting up your 17 your business In company in r QuickBooks Q UIC k B OO ks Should I track 22 customers and jobs Why you 24 probably need to set up items This chapter tells you what information you need to Setting up items 28 gather to set up your company in QuickBooks It also Working with 41 items helps you make choices as you set up your company Final steps to 47 complete your setup and suggests things you should do after you complete your setup Things to think 54 p y p about after you re finished Connect 55 QuickBooks to the Internet Update 57 QuickBooks to the latest release Decisions to make before you start In QuickBooks a company file contains all the financial records for a single business Before you can use QuickBooks you need to tell QuickBooks about your business so that it can set up your company file Locating an advisor to help you w ith QuickBooks 4 Tip Professional accountants and consultants can help set up your company file for you To help small busine
133. as the payroll item for advances on wages Garnisheed wages Ded n Net N N N N N N N n a Labour sponsored fund Ded n Gross Y N N Y N N N n a i ti B Reimbursement one time Add n Gross y y y y y Ox N N N n a repayment 14 A Union Dues Ded n Gross Y N N Y N Box N n a 44 F Setting up your payroll items 185 Tax allow ances and Benefits Fed Qu ROE A Gross T4or GSTor ROE ROE Payroll item Type Inc CPP El Inc QPP For or Net Tax Tax RL 1 HST Eam Hrs Hin Box Automobile allowances Add n Gross Y Y Y Y Y 40L N Y N In Automobile standby charge and Co Box operating cost benefits Ctrb n n a y Y N y y 34 1 Y N N n a Fed Qu ROE f Gross T4or GSTor ROE ROE Payroll item Type Inc CPP El Inc QPP For or Net Tax Tax RL 1 HST Eam Hrs Sin Board and lodging if cash earnings Co Box paid in the same pay period Ctrb n n a y x Y X yX 30 H Note 1 y N For Board and lodging if no cash Co i Y y N Y y Box Note 1 N N i earnings paid in the same pay period Ctrb n na 30H 0S na F Co Box Counselling services in cash Ctrb n n a Y Y Y Y Y 40L Note 2 Y N In Counselli i h co j yoy N y y P Note2 N N ounselling services non cas Ctrb n n a 40L ote n a Discounts on merchandise and sales Co Box commissions Ctrb n n a y y N H x 40 L X x N in Co Box Educational allowances for children Ctrb n n a Y Y Y Y Y 40L N Y N In Gifts awards bonuses and social Box avents incash Bonus Gross Y Y Y Y Y 40
134. ask Z Area Create Print Reports Sales and Accounts Receivable Purchases and Accounts Payable Chequing and Credit Cards Inventory Time Tracking Payroll Sensitive Accounting Activities Sensitive Financial Reports Changing or Deleting Transactions Changing Closed Transactions z lt lt lt lt lt lt lt lt lt z gzZzzzzzzz z n a n a Chapter 4 QuickBooks basics T To learn about Search the Help index for The different access areas of QuickBooks The role of the QuickBooks Administrator Setting up users with passwords and access Changing passwords Deleting passwords passwords access areas admin users adding passwords changing passwords deleting Using permissions to close an accounting period Unlike most other accounting systems QuickBooks does not require you to close the books at the end of an accounting period Closing books is often a complicated process that involves transferring information from one ledger to another and summarizing it You can ask QuickBooks for reports at any time not just at the end of a period However you may want to restrict access to the transactions of prior accounting periods to be sure the transactions are not changed without your knowledge By requiring permission to delete add or edit any transaction before a chosen date you can discourage accidental or casual changes to closed periods but still make corrections in them when ne
135. ateto a folder where you can store the restored file temporarily Don t save the restored file in the same folder where you normally store your company file For example navigate to the Windows temp folder 5 In the File name field type a name for the restored file For example test 6 Click Save 7 Click Restore If you re restoring from multiple disks QuickBooks prompts you to insert the sequential disks as QuickBooks extracts the compressed data 8 QuickBooks lets you know if the restore was successful Click OK QuickBooks opens your restored company file The next time you open QuickBooks ensure that you re opening your main company file and not your this restored file By default QuickBooks remembers the last file you worked on 112 Chapter 4 QuickBooks basics Using the QuickBooks Backup Service The QuickBooks Backup Service is a scheduled backup service You don t have to do anything once you veset everything up Although if you do want to do a backup manually you still can by simply launching the QuickBooks Backup Service software Before you can use the QuickBooks Backup Service you ll need to sign up for it An Internet connection is required to use the QuickBooks Backup Service To sign up for the QuickBooks Backup Service 1 2 3 From the File menu choose Back Up and ensure the Back Up Company File tab is selected Select Online then click Tell me more The QuickBooks Backup Se
136. ayroll liabilities and subaccounts of Payroll Expenses to see more detail on your profit and loss statement of your payroll expenses For example corporations may need to report expenses for officer salaries separately from those for non officer salaries To learn about Search the Help index for Adding new accounts accounts managing adding Changing account information accounts managing editing Subaccounts subaccounts Chapter 7 Payroll and employees Setting up your payroll items The importance of payroll items Payroll items are the building blocks of your payroll system When you create any kind of payroll transaction in QuickBooks whether it s a pay cheque a payroll liability payment or an adjustment at setup time or later you use payroll items to do it in the same way that sales forms use service and inventory items There are payroll items to track employee compensation salaries and wages amounts you withhold from employee pay cheques income tax and other liabilities employer paid expenses such as company paid benefits and additions and deductions such as bonuses and loan repayments QuickBooks uses payroll items to track both theindividual amounts on apay cheque and accumulated year to date amounts for each employee QuickBooks displays your payroll items on the Payroll Item list The names of the payroll items are what you ll see on pay cheques and in payroll reports QuickBooks identifies
137. bal ances Lists the payroll liabilities your company owes to the agencies such as the CRA insurance plan administrators and labour unions Employee withhold ing Shows withholding information for each employee Employee Quick Report Lists chronologically the transactions related to a particular employee Payroll item listing Shows detailed information about each payroll item you use to track payroll related expenses and liabilities Payroll item Quick Report report Lists chronologically the payroll transactions that contain a particular payroll item Chapter 7 Payroll and employees Finding out how much you owe for payroll liabilities Let s say you want to see how much you currently owe for each payroll tax for the current payroll period You can find out quickly by creating a payroll liability balances report The report shows liabilities incurred during the date range specified that are still unpaid fiPayroll Liability Balances Modify Report Dates JMr Aa lied Ask a help question Ask How Do I gt From 01701 2003 Ej To 12 15 2003 Ej Columns Month Mountain Sports Equipment xi Memorize 2 21 PM 12 15 03 Payroll Liabilities Federal Income Tax 0 00 1 696 13 245 50 1 941 63 CPP Employee 0 00 559 25 77 91 637 16 CPP Company 0 00 559 25 77 637 16 El Employee 0 00 319 52 46 09 365 61 El Company 0 00 447 34 64 53 511 87 OPP
138. better This list shows the fixed asset items Fixed Asset Item List Ask a help question Aski v How Do I J _ oy x you ve set up to track l Nett spe cil Fuso Cesreten a Ca ty truc 1999 utility truck Trucks 0 your fixed assets You 02 14 2000 2000 pickup amp shell Trucks 16 602 91 toll 2007 delivery van 10 15 2007 2007 delivery van Trucks 44 500 00 can use this list to track Chairs 02 01 2005 Conference room chairs 10 Furniture 475 00 all transactions havi ng Conference table 05 01 2005 Conference table Furniture 3 500 00 A z Desks 06 01 2007 Desks 7 Furniture 2 100 00 to do with your fixed Desktop computer 05 01 2001 Desktop computer 1 Computers 2 000 00 i i Desktop computers 05 01 2007 Desktop computers 2 Computers 5 000 00 een si udi ng any Desktop computers sales dept 05 01 2007 Desktop computers 5 Computers 13 000 00 I oLaser printer 06 01 2001 Laser printer Computers 2 001 00 i Metal filing cabinets 10 29 1998 Metal filing cabinets 12 Furniture 1 250 00 improvements ice buildi 09 22 1998 Office building Buildings 325 000 00 damage anyth Ing i 09 22 1998 Office land Land 90 000 00 7 y e that can affect their 05 01 200 Server Computers 6 500 00 value and amount of depreciation 2 To learn about Search the Help index for eo Activities Y Reports Y Show All Price levels Pro and better only price levels Displaying the Item or Fixed Asset Item items list of list Sorting
139. by month by pay period or for the entire year to date As you work though the Enter YTD wizard it asks you to select the employee whose year to date information you want to enter When you click Enter Summary QuickBooks displays each payroll item you entered in that employee s profile Filling in the Year to Date window m Inthe Salary and Hourly Wages area enter payroll items for hours worked during the period and amounts paid out for this work This way hourly totals will appear on payroll reports and the employee s Record of Employment Also enter any commissions or bonuses paid out to the employee during this period m Also in the Salary and Hourly Wages area enter vacation pay and accrued time such as sick time taken during this period and what you paid out for them Do not include these amounts in your totals for regular salary or hourly wages Summarizing amounts for this year to date 195 If the amount you paid the employee has already come out of your bank account select this If you want you can type a description about this adjustment In this area enter the totals for salary hourly wages or vacation pay paid out during this period Enter hours worked during the period if you want them to appear on reports QuickBooks displays a message if hours are required To insert a payroll item above another press CTRLHNSERT You can skip over items not used in this period 2001 YTD A
140. cannot change its units of measure x Type the unit of NY m Inventory Unit OK measure you use I stock this item in case to stock the item Sales Unit Clear this box Same as Inventory and type the unit I sell this item by you use when Association to Inventory 12 can per case selling the item Cancel Enter the number of selling units that make up a stocking unit or vice versa Help can Purchasing Unit IV Same as Inventory I purchase this item by ca Association to Inventory 1 case per case Once a transaction has been created using this item units of measure cannot be changed If the purchasing unit is the same as the stocking unit keep this box checked If the purchasing unit is different clear the box and set up the purchasing unit the same way the selling unit was set up B 4 Click OK and continue setting up the item 34 Chapter 2 Setting up a new company Adding items with units of measure to forms Onceunits of measure are set up for an item theitem s appropriate unit of measure is then displayed on business forms Sales forms show the selling units and purchasing forms show purchasing units On forms you cannot switch to a different unit of measure Items 12 00 Bills When entering a bill an item s purchasing unit is Description Cot Tax Net Amt Customer Jok Ea shown If we were to cite the example shown above gt 6 00 5
141. cation pay by the amount entered for the pay cheque If you selected the Do not accrue checkbox in the Preview Pay Cheque window you prevented the accrued time and vacation pay from accruing for this pay cheque only Updates year to date balances for the employee Draws the amount of the pay cheque from the bank account you chose If you are using direct deposit QuickBooks does not draw the amount from your account until you go online and send the pay cheque to the payroll service m Records an increase in each affected liability account showing the extra liability resulting from this payroll transaction for both the employee s pay cheque deductions and company contributions If you are using direct deposit QuickBooks increases your Direct Deposit Liabilities account which returns to a 0 00 balance after you go online and send the payment to the payroll service Updates and tracks your payroll expenses in expense accounts Updates any other accounts you have assigned to any payroll items used in the payroll transaction To learn about Search the Help index for Previewing and adjusting pay cheques checking amounts in pay cheques Chapter 7 Payroll and employees Note ou Review ing and correcting pay cheques After you ve recorded a pay cheque you can review it at any time You should rarely need to make changes to pay cheques or void them but you can do so if necessary from the Employees menu select Edit Voi
142. ccount Therefore the entries in the General Journal should be recorded as follows Eg General Journal Entry Ask a help question Ask Previous E Next BH Print ea History E Joumal Date 13 11 2000 E Entry No Exchange Rate 7 47081 United States of ex Account Debit Credit Memo Name Exchange Gain L How Dol Jor You need to specify a customer name when a journal transaction is entered for an A R account or vendor name for an A P account When making home currency adjustments create a phony customer or vendor to which you Account Debit Credit Memo Name can assign unrealized Exchange Gain L 40 00 gains amp losses US Accounts Pay 40 00 Exchng Vendor T Home Currency Adjustment 3 Create your net worth reports 4 Reverse the General Journal entry to remove the unrealized gain or loss from your books Realized gains and losses A gain or loss on a foreign transaction because of changes in the exchange rate becomes realized once the transaction is either partially paid or paid in full When you close the transaction QuickBooks compares the value of the foreign amount when the transaction began to its value when the transaction closed QuickBooks enters the difference gain or loss in the Exchange Gain Loss account which is created automatically when multicurrency is turned on For example if you owe a vendor 500 French Francs and the dollar franc exchang
143. cess to your company s information In addition you can create your own customized reports that have a different look and layout as well as scope of information Finding the right report With the Report Finder you can quickly review and choose among the many preset reports that QuickBooks provides To help you choose an appropriate report the Report Finder displays a sample of each report as well as asummary of what the report conveys about your business IiReport Finder Ask a help question Aski v How Do 1 Choose a report category and view a general Select a type of report These reports provide information about the financial position of your company Company amp Financial age ie of vas a report view a you ICe Profit amp Loss Standar Profit and Loss Profit amp Loss Detail Ordinary Income Expense thumbnail Profit amp Loss YTD Comparison Income picture with Profit amp Loss Prev Year Comparison Labour Profit amp Loss by Job Construction sample data a Profit amp Loss by Class Subcontractors 8 832 38 to get an idea The specific Profit amp Loss Unclassified Total Const UCH Os of a report s reports available Income by Customer Summary Total Income content You Income by Customer Detail Gross Profit in the category xpenses by Vendor Summary p w can customize you selected are xpenses by Vendor Detail Equipment Rental 550 00 a report listed here income
144. cessary For example you may want to prevent your staff from making changes to old transactions after you ve paid the GST or PST liabilities for them You can grant or deny access to older transactions when you set up a user To deny users access to closed periods do not grant them permission to Change or Delete Transactions recorded before the closing date Should this user also have the ability to change or delete transactions that were recorded before the closing date C Yes No Then enter the closing date in the User List window from the Company menu select Set Up Users To learn about Search the Help index for Using permissions to close your closing periods books Working with multiple users 125 Recording who changed w hat in the Audit Trail QuickBooks can record all changes made to transactions and the name of the user who made the changes Then you can review the changes in the Audit Trail report To keep an ongoing record of changes to transactions you must make sure the audit trail is turned on and keep it on If the preference is turned off for a period of time QuickBooks does not keep a record of changes if any to the transactions in that period FiAudit Trail Ask a help question Aski How Do I x Modify Report Memorize Print Excel Hide Header e Date Entered Last Modified JITEN From 12715 2003 8 To 12 15 2003 E 9 29 AM Mountain S
145. cial Insurance Number m Pay period start and end dates m Salary or hourly rate and hours and amount of pay for the pay period m Government withholding amounts such as income tax El and CPP QPP and other deductions from and additions to wages Taxable company contributions such as the taxable portion of company paid group life insurance Optional Accrued time and vacation pay used and remaining Net pay Running payroll and paying taxes 209 Paying m Year to date amounts for the preceding items To select what information appearsin voucher pay cheques and pay stubs click the Printing Preferences button in the Payroll amp Employees preferences from the Edit menu select Preferences select Payroll amp Employees from theoptionson theleft and click the Company Preferences tab QuickBooks prints pay stubs in portrait format Employees who are set up for direct deposit should receive an Advice of Deposit form instead of a pay stub For information on purchasing blank voucher cheques pay stubs or Advice of Deposit forms from Intuit visit the Web site at http www intuitsupplies ca To learn about Search the Help index for Printing pay cheques pay cheques printing Printing pay stubs pay stubs Creating direct deposit payments pay cheques direct deposit E mailing pay stubs e mailing pay stubs to employees payroll liabilities and filing payroll forms When it s time to pay your payroll liabi
146. ckbox marked QuickBooks uses the sales price You can change the rate on the sales form Charging customers for time worked and other costs 241 To change how time activities are grouped and described on a sales form click Change After you click OK in the window QuickBooks puts all the marked time and costs on the invoice If you return to the window beforerecording the invoice the items already on the invoice have an invoice symbol in the Use field Items Expenses 0 00 Time 0 00 The invoice symbol in the weer T o a a se ate escription moun ide Use field indicates that the 11 10 98 Subs Insulatilinstall insulation 1 500 00 item has already been added 11 10 98 Subs Drywal Install drywall 1 1 000 00 to the invoice 11 14 99 Subs Metal Metal Work 1 400 00 You can put given job costs on a sales form only once If you record a sales form that has actual job costs on it and then discover you made a mistake the actual job costs you used previously are no longer available to use again The only way you can reinstate such costs is to go to the original record that is weekly timesheet single activity bill cheque or credit card charge Click the Billable field to make the cost billable again 2 Search the QuickBooks To learn about Help index for Transferring time to invoices and m invoices time and cost statement charges a statements time and cost Making time billable again if you ti
147. ckup file of your company data 9 Start your CD writing software and useit to copy the backup file from the location you saved it to your CD For those users who are very comfortable working around the limitation in Windows XP s built in CD writing software the help file includes information about setting up Windows XP so that you can back up your company files directly from QuickBooks to a CD To learn about Search the Help index for Setting up Windows XP so you can backups CD using Windows XP back up to CDs directly from Quick Books Backing up your company data 109 Backing up to a Zip drive To backup to a Zip disk 1 2 3 4 5 Insert the Zip disk into your Zip drive From the File menu choose Back Up and make sure the Back Up Company File tab is selected Click Browse Navigate to your Zip drive In the File name field type aname for your backup Tip We recommend that you give a new name for each backup for example the date of this backup This prevents you from overwriting the previous backup should there be a problem during the backup process for example a power failure 6 7 8 Click Save Optional Select the backup options you want m Verify data integrity Select to verify your data before backing up m Set Defaults Click to specify the defaults for backing up manually Click OK QuickBooks creates a backup file of your company data Backing up to a tape 110 To backup
148. ct Lifetime and click Display The amount on this report shows the outstanding accrual balances for each employee Converting data from MYOB 77 78 Note 2 Turn on the payroll feature Open the newly converted QuickBooks company file if it isn t already and from the Edit menu select Preferences In the Preferences window click Payroll amp Employees from the scroll bar on the left click the Company Preferences tab then select Full payroll features Click OK All QuickBooks payroll features are now visible Compare QuickBooks payroll items to MYOB payroll categories to ensure they fit with your payroll system MYOB payroll categories are similar to payroll items in QuickBooks Payroll items are the building blocks of the QuickBooks payroll system QuickBooks creates some standard payroll items in the Payroll Item list when you first turn on the payroll feature Compare these default payroll items in QuickBooks to your MYOB payroll categories You may need to create new payroll items to match the way you paid your employees in MYOB For example if you paid your employees hourly you need to create an hourly wage payroll item For more information on how to do this refer Setting up your payroll items on page 179 4 5 Merge MYOB payroll withholdings and payroll expense accounts with QuickBooks default payroll accounts When the payroll feature in QuickBooks is turned on two accounts are added to the Chart
149. ct Pand find Support Badip The navigators are listed here To open a navigator click the name of the navigator Related Activites s fe gt A9 Quio in this list Qh musinnea sovica S a L Reporte me iS of amp J Help amp Support Egee Saumas eying F What gmg o a The QuickBooks n Customers navigator shown here is similar to the Sales Command Centre in MYOB The flow chart depicts activities related to dealing with customers Customer Solutions of hock ghagina by ceegtine salei orderi for uag cuita End d hon vou can accact cred cad onmarts desti rto QuachOe se bom QuschBooks and secere p In this area QuickBooks Here you have easy access to reports provides suggestions for related to customer activities You can working with your also customize this by adding reports customers that you ve memorized Setting up your payroll in QuickBooks 76 Because of security reasons accounting software restricts access to various components of your accounting data Payroll data is one such component As a result QuickBooks can convert some of your payroll data but not enough of it to continue dispersing payroll to your employees Before you can pay your employees using QuickBooks you need to complete the following stepsto set up the payroll system to fit your needs and transfer your payroll data such as employees year to date summaries from MYOB so that you
150. ctivities viewing data about ities within a specified date range Changing information about a activities editing data about recorded activity Deleting a recorded activity activities deleting the record of Chapter 8 Time and cost tracking T 9 View ing and changing customer information When you import information from the listsin QuickBooks you import customer contact information as well as the customer s names If acustomer ison thelist imported from QuickBooks or if you already exported Timer data using the customer you can t change information about the customer Instead the QuickBooks user must change the information and give you an updated list file You can add anew customer to use when recording an activity However you cannot add a job for a new or existing customer The Help topic suggests what to do instead Search the Timer Help not the QuickBooks Help for To learn about Viewing contact information customers contact information for about a customer Adding editing or deleting a cus customers adding tomer a customers editing customers deleting M anaging Timer data files From timeto time you will need to update thelistsin your Timer data to makethem match those in the QuickBooks company file The QuickBooks user must prepare the updated list file and make it available for importing into the Timer If you track time for more than one QuickBooks company you must have sepa
151. ctivities involving an Accountant s Review copy There is also a third category of activities Although all the networked QuickBooks users with the correct permissions have access to these features only one person at a time can use them For information about restricting access to features see Setting up the Administrator and users on page 124 Chapter 4 QuickBooks basics Feature locked activities include m Paying bills m Running payroll m Setting up new users or maintaining existing ones Refreshing after entering data If you are creating reports while others are working in the company file you can use the Refresh button to make sure you have the most current information on your reports The Refresh button updates your screen with the information that others have entered into QuickBooks since you started the report You can refresh lists or forms as you work by pressing F5 on your keyboard or right clicking the item and selecting Refresh To learn about Search the Help index for Switching between modes multi user mode single user mode Your refresh options Refresh button Users and passw ords The QuickBooks password feature provides a basic degree of protection for your data but it is not a complete security system For example it will not prevent someone using Windows Explorer from deleting your company file Some parts of your company s data are more sensitive than others You ca
152. d choose the vendor you pay this tax to such as the Receiver General for the GST QuickBooks may warn you about creating a cheque for a sales tax vendor Click OK 4 Enter your account number with this tax vendor in the Memo field such as your business number for the GST 5 Select the Expenses tab below the cheque 6 In thefirst blank line select the Other Current Liability account you use to record instalments for this sales tax 7 In theNet Amount column enter the amount of this instalment payment 8 Save the cheque then print it as you normally would QuickBooks records the amount of this payment in the instalment account However the payment does not appear in your GST or PST Liability report That s because sales tax reports calculate how much you owe based on the entriesin your GST or PST Payable accounts and do not include subaccounts To see your current balance owing create a Balance Sheet Standard report from the Reports menu select Company amp Financial then Balance Sheet Standard Finding and paying your sales tax liabilities 149 150 To record instalments in a sales tax return At the end of the fiscal year in your sales tax return enter the total of the instalments you paid 1 2 3 7 From the Lists menu choose Vendor List Right click the tax agency then select QuickReport Set the From and To dates to your sales tax period usually the past fiscal year then click Refresh Add up
153. d Pay Cheques For example you may want to m Void a pay cheque if there was a payroll error in a recent pay cheque that your employee has not yet cashed If you file payroll tax forms Such as a PD7A for the period covering a pay cheque then void that pay cheque you may have to re file your tax forms It may be easier to write a regular cheque using the Write Cheques window to the employee for the difference and adjust your payroll liability amounts manually but you should consult your accountant before doing so m Delete a pay cheque if it isa duplicate and you haven t printed it yet To learn about Search the Help index for Editing existing pay cheques pay cheques changing Voiding pay cheques pay cheques voiding Deleting pay cheques pay cheques deleting Printing pay cheques and printing and e mailing pay stubs Tip You can print all your pay cheques at onetime but you must print them separately from other cheques Set up your printer for pay cheques the same way as for other cheques For information about aligning pay cheques in your printer see Solving printing problems on page 132 If you don t print pay cheques with vouchers you can print pay stubs for your employees or email pay stubs to your employees instead from the same screen the Select Employee to Pay window Like pay cheques pay stubs provide all required legal information including The employee s full name address and So
154. d of the Accountant s Review copy Note that the client cannot work on his or her company file while you are editing the copy that they gave you If your client has set up users and passwords you ll need to find out the user name and password assigned to you or the QuickBooks administrator Once you have opened an Accountant s Review copy it remains the current QuickBooks company unless you open a different company or you close the company If you try to record a change that is not allowed QuickBooks tells you that it cannot record the change in an Accountant s Review copy If your computer s system date and time is earlier than the date and time that your client created the Accountant s Review copy you will not be able to open that copy To correct the problem you ll need to determine which computer has the incorrect date and time change the date and time and try to reopen the copy You may need to have your client cancel the first review copy and create another one for you When you export your work from an Accountant s Review copy the changes to his or her company file are saved in a AIF file You should return this file to your client as soon as possible so it can be reintegrated with his or her QBW file To learn about Search the Help index for Creating a file to give to your accountant s review copy client Importing from exporting to other software 89 90 Chapter 3 Importing and expor
155. ders gt Sales Tax Code fs gt Preferred Vendor gt Income Account Sales gt J Purchase Information Description on Purchase Transactions T Item is inactive To further aid in tracking the item you can also specify the customer and job on the purchase order When you receive the item this information prefills on the item receipt or bill Use the open purchase orders by job report to find out which items are still on order for your customers M iscellaneous charges you pass on If you invoice for miscellaneous charges incurred on a job you can set up an other charge item for each type of miscellaneous charge For example Frank has an other charge item called Equipment Rental Be sure to select the checkbox for This is a reimbursable charge Then you can designate separate income and expense accounts and separate descriptions for sales and purchases As with products and materials you can enter different cost and sales prices or leave the fields 0 00 when you set up the other charge item Chapter 2 Setting up a new company Working w ith items After you have set up items use them to enter estimates sales purchase orders sales orders actual purchases and disposition of fixed assets Remember QuickBooks usestheterm sa es broadly it can mean the performance of services or the assessment of fees as well as the sale of products You can enter all item types listed in the table on page 30 on any
156. detailed items grouped together QuickBooks shows you the items in the group onscreen whether you choose to print them or not Entering a group of items The group item allows you to enter several items all at once on a sales form estimate purchase order cheque or bill If you often sell the same group of items together using a group item saves you the trouble of entering the same set of line items again and again When you usea group item you can enter a quantity for the group that affects the quantity and amount of each item in the group You can also edit the individual quantity of each item in the group and edit descriptions and rates Using a group item to hide details on a sales form The more detailed you arein tracking items the more information you can get from reports The QuickBooks group item allows you to be very detailed in tracking the items you sell without showing all that detail to your customers When you set up a group item you specify whether to print each item or just the group item Of course if you use a group item on a purchase order you must show the detail to the vendor so the vendor will know what you want For example Frank has a construction company that sends invoices for full jobs such as complete remodels If he used one general service item called Remodel a sales report would show his income from remodels QUANTITY DESCRIPTION RATE 9 085 04 7 AMOUNT Tax
157. different units of mea sure for inventory part items For more information on units of measure see Setting up your items with different units of measure on page 32 Inventory Assembly Assembled products you purchase or create and build track as inven tory then resell Examples Gift baskets Soaker hose starter kits On sale Increases income increases cost of goods sold and decreases inventory assets On purchase increases inventory assets QuickBooks Pro or better is required to create inventory assemblies Available only if the inventory feature is turned on Appropriate for light assembled items QuickBooks does not track inventory through the manufacturing process Price levels can be used with inventory assemblies You can set up different units of mea sure for inventory assembly parts For more information on units of measure see Setting up your items with differ ent units of measure on page 32 Non inventory Part Products you sell but don t pur chase items you purchase and resell but do not track as inven tory items you enter on purchase orders Examples Custom made slipcov ers On sale Increases income On purchase Increases expenses In QuickBooks Pro and better you can set up anon inventory part item so that it can affect either income or expenses depending on where you use it Price levels can be used with non inventory parts Fixed Asset
158. djustment for Alison Logan Smith xj Bank Account Manea Class D Next Period Cleared Prev Period Neee Date 03 31 01 To Alison Logan Smith Memo Salary and Hourly Wages Item Name Salary Period Amount Hours for Period a Commission Show Wage Bases E Pay Period In this area enter totals for all other earnings Other Employee and Company Payroll Items Summary Item Name Period Amount a From jooo E withholdings and SPP conpank 2 company paid taxes or CPP Employee To Josystjo1 Ell pany p payroll expenses for this employee Include taxes regardless of whether you have paid them yet EI Company EI Employee At the end of this wizard you ll be asked if you want to create an Employee Earnings Summary Report You should compare it to the information you enter here Entering accrual time year to date amounts a In the employee s profile enter the amount of accrual time that the employee has available as of the first day of this year not what he or she has available now See Setting up employees on page 191 In the Salary and Hourly Wages area of the Enter Year to Date Amounts window enter in the Hours for Period column the number of accrual hours that the employee used this period and in the Period Amount column thetotal amount you paid out for those accrual hours Be sure to use the correct payroll items
159. dles all of these It helps you determine how much sales tax to collect on the sales you make how to record the sales tax you pay on business purchases and how to pay what you owe when it is due You are responsible for consulting a tax advisor about the sales taxes that apply to your business For information about the GST and HST contact the CRA For information about your provincial sales taxes contact your provincial Minister of Finance 137 Sales tax information for upgraders 138 Changes in how sales tax due is calculated QuickBooks has improved the way sales tax is reported Previously in order to prepare a sales tax return you needed to generate a GST PST Summary report Now QuickBooks automatically calculates the sales tax due or refundable and generates a tax return based on that amount The sales tax amount is calculated based on the transactions you have entered into QuickBooks but which have not been included in a sales tax return yet all these unfiled transactions from any period will now be automatically included in the current period s tax return Updating from earlier versions of QuickBooks Because QuickBooks will now incorporate all unfiled sales tax transactions in the current period s tax return if you have unfiled sales tax transactions in your company file and upgrade to QuickBooks 2006 you ll need to know the ending dates of your GST HST return and or your PST QST return you last
160. do to invoice customers for work The work is done by Employees You record the cost of the work when you Pay the employees To invoice other people for the work Make the time billable Subcontractors vendors Enter bills from the subcon tractors or write cheques or enter credit card charges for the work On the bills cheques or credit card charges make the items or expenses billable OR Track the time and make the time billable Owners or partners Payments to owners or part ners for time worked area draw against equity not an expense and therefore do not affect net the profit Make the time billable OR Write a cheque to pay for the time worked and make the items on the cheque billable Because recording time has no direct effect on costs the reports about time show hours but they don t show costs If you enter bills for subcontractors or if you pay subcontractors owners or partners for time worked you must guard against making their work billable twice Charging customers for time worked and other costs 243 Timer Reference Sheet The Timer and QuickBooks gt Import Time Activities QuickBooks Pro fel List File iif QuickBooks Pro Timer fel Export File iif M Export _ Import i Lists ime Activities QuickBooks Pro Timer m Beforeyou can useit the Timer needs to import information from QuickBook
161. e anew QuickBooks company file is open containing your MY OB data and is ready for you to begin using To help familiarize yourself with QuickBooks here are some things that we suggest you do m Read the remainder of this guide You ll learn the concepts of QuickBooks and what you need to know about critical features such as collecting sales tax working in different currencies and setting up a payroll system m Complete the step by step lessons based Learning Guide It comes with two exercise company files you can use to practice entering transactions m Complete the QuickBooks tutorial To open it go to the Help menu and select Quick Books Coach This interactive tutorial lets you practice common tasks without affecting any datain your company file You can complete it in 15 minutes You may have to insert the QuickBooks Learning CD in your CD ROM drive to access the tutorial Chapter 3 Importing and exporting data Look at the help for MYOB users From the Help menu select Help for MYOB Users Here you can learn how to do in QuickBooks the same accounting tasks that you preformed through the MYOB Command Centres Look at your Chart of Accounts this is referred to as Accounts List in MYOB From the Company navigator click Chart of Accounts Fu Chart of Accounts _ jor x Chequing Accou Canadian D 1 1120 Payroll Chequing Bank Canadian D 22 161 84 lt 1 2510 Chequing US Bank United
162. e 1 47081 Rate Total 105 00 IV Tobe printed Internal Mens Save amp Close Save amp New Clear 2 Update the exchange rate if necessary As you enter items on foreign purchase orders their prices are converted to the vendor s currency If theitem has a foreign price and its currency matches the vendor s the foreign price is used instead see Set up foreign prices for items on page 162 for more information 170 Chapter 6 Doing business internationally Paying bills from foreign vendors Often you will receive bills in a foreign vendor s currency and be expected to pay in the same currency If you make purchases from a foreign vendor you should consider opening a bank account in the vendor s currency You can only pay bills in one currency at atime 1 Open the Pay Bills window as you normally would 2 IntheA P Account drop down list select the A P account that matches the currency of the bill you want to pay For example if you are paying a bill from a US vendor select your USA P account You can only display bills in one currency at a time The currency is determined by the A P account that is selected In this case we ve selected a US A P account therefore the bills listed here are from US vendors Pay Bills Ask aYelp question Ask E e How Dol op x r Select Bills to be Paid Show bills Due on ot before 20 11 2000 A P Account JUS Accounts Payable Y C Show all bills
163. e Accrual or Cash setting in the Reports and Graphs section of the Preferences window does not affect how QuickBooks tracks GST and PST it only affects how the reports display Entering sales tax liabilities as of your start date If your business collected the GST or your provincial sales tax before you began using QuickBooks you need to enter the amount you owe the government for each tax that is your sales tax liabilities as of your QuickBooks start date 1 2 From the Vendors menu select Sales Tax then choose Adjust Sales Tax Due The Sales Tax Adjustment window appears In the date field type your QuickBooks start date or click m to select it from the Quick Books calendar Optional You can keep track of this adjustment by entering a number in the Entry No field Select the vendor government agency that you are adjusting for from the Sales Tax Vendor list Select whether this is a tax transaction on items bought or items sold Enter the Adjustment Amount If you owe sales tax enter the amount as a negative number Your Sales Tax Account for example GST Payable will record the amount under the Increase column If you re entitled to a refund enter the amount as a positive number Your Sales Tax Account for example GST Payable will record the amount under the Decrease column Select Opening Bal Equity from the Adjustment Account drop down list Click OK 142 Chapter 5 Tracking and paying sale
164. e best income tax year for mation about year is set properly your business before you set up your com pany in QuickBooks If you are not sure what your tax year is check last year s return You can use either the calendar year or a fiscal year as your income tax year but you must be consistent from year to year Check that the income tax Important If you change the tax form you company changing the Ly form for your company is set use all associations between accounts tax form you file properly and tax lines are reset to lt unassigned gt m accounts tax lines m UsetheT1 for individuals You ll need to reassign the appropriate tax unincorporated busi line to each of your accounts nesses and partnerships m Use the T2 for incorpo rated businesses Choose a tax line for each You may want to add or edit your m accounts tax lines Ly account in your Chart of accounts to more closely match your tax m accounts adding to your Accounts forms chart of accounts Check your tax situation with Create an Income Tax Detail or Income m report finder Ly income tax reports and trans fer your tax data to QuickTax For more information on this step see Reporting income tax information following Tax Summary report See Reporting income tax information on page 129 Be sure that the To and From dates cover your last income tax year correctly Follow the instructions that came with QuickTax to import data from Qu
165. e defaults employee defaults creating Payroll T ages Accrual Hours Vacation Pay How the order of payroll items affects amounts on your employee s pay cheques pay cheques affecting amounts Setting up employees Note Before setting up your employees in QuickBooks you should create the payroll items you need for your business see Setting up your payroll items on page 179 Also if you ve already set up your employee defaults see Employee defaults entering common employee information on page 191 QuickBooks can prefill much of the information when you set up individual employees The Employee list contains the names of all your employees When you add or edit an employee you may fill out three sections m Address Info the employee s contact information Social Insurance Number date of birth hire and release dates and similar information If you do not enter an employee s correct date of birth QuickBooks cannot calculate Canada Pension Plan or Qu bec Pension Plan contribution amounts for him or her CPP contributions for an employee will be zero if he or she is not between 18 and 70 In the year the employee turns 18 or 70 QuickBooks prorates the calculation according to CRA guidelines QPP contributions for an employee will be zero if he or she is younger than 18 Additional Info custom fields for tracking any information you prefer Setting up employees 191
166. e drop down list Click the Margins tab m If thereisno Margin tab you need to adjust the form s alignment instead See To adjust the alignment of forms on page 133 Set the margin you want in the Left Right Top and Bottom fields QuickBooks displays the margins in inches but you can enter margin sizes in inches in millimetres mm centimetres cm points pt or picas pi Chapter 4 QuickBooks basics If you find that QuickBooks leaves larger margins than you entered your printer may be unable to print outside a specific area Most printers cannot print with margins smaller than 25 inches Many require marginsno smaller than 5 or 67 inches Check your printer manual or contact the printer manufacturer if you have such a problem If you reusing a continuous printer you may haveto slidethe paper clamps over to get the printer to start at the position you want 5 Click OK to save the changes To adjust the alignment of forms Coarse alignments This adjustment is only needed for continuous feed dot matrix printers Use it when the printing on your forms is off vertically by more than a line or two 1 uh WN On OO If the text does not line up properly on the form determine the closest number to the pointer line rounding up In this example you d enter 81 Make sure your printer is turned on and is online with blanks of the forms you want to print inserted to the printer s paper f
167. e for each currency in which you do business Setting up multicurrency 161 4 Set up foreign prices for items By default itemsin theltem List are priced in the Canada dollar currency What that means is when an item is used in a foreign transaction the price of the item is calculated by multiplying the home currency amount with the foreign currency s exchange rate Because the price is converted based on an exchange rate there is a possibility that the price of an item may go up or down if the exchange rate changes QuickBooks allows you to set up a fixed foreign price on items you sell frequently to one particular country By doing this the foreign price of the item will not change due to fluctuations in exchange rates You can only select one other currency besides your home currency to assign to item prices To turn on foreign pricing 1 From the Edit menu choose Preferences 2 From thescroll box on the left select Accounting 3 In the Company stab select Use foreign prices on items 4 From the Foreign item currency drop down list select the currency you want to use as a fixed foreign price on items If you deal with more than one foreign currency choose the currency you deal in the most 5 Click OK x Hooo j x Company Preferences Account Numbers Multicurrency OK Cancel Accounting T Use account numbers M Use multicurency Help F Show lowest subaccount only Home currency Canada Di
168. e owed m furniture m vehicles total assets total liabilities equity Liabilities include what your company owes to other people or your company debts Examples include m unpaid bills m money you owe on credit cards m loans m Sales tax you owe Equity is the net worth of your company equity assets liabilities Rock Castle Construction Balance Sheet As of March 31 2004 ASSETS Current Assets Chequing Savings29 454 55 Accounts Receivable94 246 05 Other Current Assets93 19 Total Current Assets123 793 79 Fixed Assets43 900 00 TOTAL ASSETS167 693 79 LIABILITIES amp EQUITY Liabilities Current Liabilities Accounts Payable44 118 16 Credit Cards1 129 36 Other Current Liabilities2 655 72 Total Current Liabilities47 903 24 Long Term Liabilities8 470 96 Total Liabilities56 374 20 Equity111 319 59 TOTAL LIABILITIES amp EQUITY167 693 79 Chapter 2 Setting up anew company The profit and loss statement A profit and loss statement also called an income statement shows your income and expenses over a period of time Profit and Loss Statement Oct Dec 04 Ordinary Income Expense Income Construction P 2996575 35 540 21 3 002 20 47 946 63 AL ak 11645479 LEE aa EA Labour Materials Miscellaneous Subcontractors Total Construction Total Income 116 454 79 Cost of Goods Sold Cost of Goods Sold Total COGS 5651 36 E 5651 38 A Gross Profit 110 803 41 Expense Au
169. e rate changes from 0 25 when you ordered the products to 0 20 when you pay the bill your realized gain is 25 CDN That is when you ordered the products you owed 125 CDN but you actually paid only 100 CDN because the franc fell relative to the Canadian currency QuickBooks balances the transaction by assigning the 25 gain to the Exchange Gain Loss account To determine your realized gains and losses over time use the Realized Gains and Losses report This detailed report shows the original amount of each foreign transaction in your homecurrency theactual exchangerate when thetransaction was closed and theresulting gain or loss to you Exchange rates and how they affect your transactions 167 Dealing To print a realized gains and losses report m From the Reports menu select Multicurrency then Realized Gain and Loss fiji Realized Gains amp Losses olx Memorize Print Hide Header Dates fa From E Tof BI Total By Realized Gain Los 11 08 AM BRATS Landscaping Design man Realized Gains amp Losses On reports Accrual Basis All Transactions foreign Type Date Hame Amount o Actual Rate Gain Loss ba ances are Account converted to Payment 1341 2000 Girard Camping Ex 118 39 1 34 11 56 4 the ho me Payment 1441 2000 Girard Camping Ex 98 57 1 45 1 42 Bill Pmt Cheque 0711 2000 Bottorff Designs 154 44 1 47081 0 00 currency Payment 1311 2000 Graham Highcock 713 88 1 50 13 89 TOTAL REALI
170. e recommend that after the hardware repairs are done you reinstall QuickBooks and any updates before you proceed To learn about Search the Help index for Restoring your company data restoring from a backup Condensing your company file 114 If your company file has grown very large you can reduce its size by condensing the older transactions that you no longer need much detail about For example you might want to condense the transactions your company completed two years ago or more especially if your company filehas grown quite large morethan 75 MB Condensing large company files can sometimes improve the performance of QuickBooks When you condense data you can specify an ending date for the period of time you want to condense Transactions dated afte your selected ending date are not affected For example if your ending date is 12 31 03 all transactions dated 01 01 04 and later remain intact in your company file Chapter 4 QuickBooks basics When you condense your company file based on transactions as of a specific date QuickBooks deletes only closed transactions Open transactions are retained Therefore to condense the most possible transactions try to complete any unpaid bills or uncleared transactions you have before starting It is best to choose an end date that is six months or more in the past If you select Remove ALL transactions all transactions regardless of their dates are removed If yo
171. e sales tax payable register locate the cheque you created in Step 1 If you created the cheque with today s date it is likely the last entry at the bottom of the register Otherwise you may have to search for the cheque Select the Expenses tab below the cheque Click the first blank line and select the expense account you use for the penalty In the amount column enter the amount of the penalty or interest for this return Click the Recalculate button and confirm that the cheque amount is now correct Save the cheque then print it as you normally would Adjusting your GST Payable or PST Payable account From time to time you may need to make adjustments to your GST Payable or PST Payable account either increasing or decreasing the amount you must remit These adjustments may include writing off the GST amount of a bad debt For example Taxable items on invoice 200 00 GST due 14 00 PST due 18 00 Total 232 00 GST reported in the 4 1 2004 6 30 2004 reporting period PST reported in the 4 1 2004 6 30 2004 reporting period No payment received on invoice in 2004 Write off bad debt in 2004 Claim a GST adjustment of 7 107 x 214 14 Claim a PST adjustment of 9 109 x 218 18 Finding and paying your sales tax liabilities 151 152 To adjust your GST Payable or PST Payable account 1 From the Vendors menu choose Sales Tax then choose Adjust Sales Tax Due 2 OntheVendors menu select Sales Tax then click Adjust Sal
172. e sure that it is complete and correct Procedure Comments Search the Help index for Review your Employee list The Employee list should include names of all employees on your payroll about at any time during the current calendar lists printing year even if they have now left Review your employees dates of birth Each employee s profile should include his or her date of birth Otherwise QuickBooks cannot calculate Canada or Qu bec Pension Plan amounts for that employee Review an employee contact list report The report should include Social Insurance Numbers addresses and about phone numbers for all employees Review your Payroll Item list The Payroll Item list should list everything you need to track on about a pay cheque lists printing 200 Chapter 7 Payroll and employees employees reports employees editing employees reports payroll reports Search the Procedure Comments Help index Jv for Review your payroll summary You should be able to match the employees reports m for all employees for this amounts for payroll items in Quick about entire calendar year Books with amounts in the payroll accounts of your prior payroll system Review your a payroll You should be able to match the payroll reports m liabilities as of December amounts for payroll items in Quick about 31st of this year Books with amounts on the liabil
173. e the printer is working by trying to print something else If you have trouble printing cheques try printing a report If you can t print one of the sales forms try printing a similar form m If you can t print from QuickBooks try printing from another program such as Microsoft s Notepad If nothing prints from Notepad you know the problem is related QuickBooks Support 249 Note Note to the printer not the software Check the printer connections the printer driver the print queue and so forth Think about w hat has changed If something used to work but no longer works think about what s changed m Have you changed or added other programs on your computer recently m Have you added a new printer m Have you moved the QuickBooks company file to a new location m Have you changed a setting in the Preferences window If the program hangs or locks up on you There can be anumber of reasons why your system freezes while using QuickBooks or any program Try restarting your computer to see if that solves the problem If restarting doesn t help go through the following list of questions and take any related action m Does your computer system and network meet the minimum requirements necessary for QuickBooks See the hardware and software requirements section in the Installing amp Learning to Use QuickBooks Guide that came with your software m Areyou making the best use of available system resources by s
174. e vid here Cistamize ny kivokes This tool is useful when Customize my invoices H Print invoi t en several The plus icon E Print invoices you need Ip Open severa Send invoices via email windows but want the help means that there is Receive payments and handle r to remain on one topic help content hidden Track sales information pic When you click the X plus icon the help 4 gt topic expands so you can read it The Follow M e Help sidebar window islocated by default at the bottom of the sidebar area on the left hand side of the QuickBooks work space You can move this help window anywhere you like by dragging it to the position you want When you drag it back to the sidebar window area the window automatically docks in the sidebar You can also closethe Follow Me Help window altogether To close and open the Follow Me Help window m Toclose the Follow Me Help window click the x in the upper right hand corner of the window m To open the Follow Me Help window go to the View menu and select Follow Me Help To reset the sidebar area to the default layout go to the View menu and select Reset Sidebar Windows Using the Help system in QuickBooks 97 How Do I menus Throughout QuickBooks you ll find windows with a How Do I drop down menu in the upper right corner These menus provide quick access to information and instructions for the window you re working in The help topic is usually displayed in the Follow Me
175. ease date in his or her profile selected the reason the employee is leaving from the ROE code drop down list and clicked OK in the employee profile to save your changes m review the way your payroll items map to ROE forms if you changed from the default settings in the payroll item wizard Note Intuit recommends not changing from the default settings Create a Payroll Item Listing report at the bottom of the Payroll Item list click the Reports menu button then select Payroll Item Listing and look in the ROE Period column you may have to scroll to the right to see it Most payroll items should be mapped as For which they are paid This option means you are assigning the employee s earnings to the pay period during which the employee actually did the work even if you are paying for that work later For example an employee earns his or her salary or hourly wages when he or she does the work for you not when you issue his or her pay cheque two weeks later If you have no payroll items mapped with the For which they are paid option QuickBooks cannot create an ROE report Some payroll items can be mapped as In which they are paid This option means you are assigning the employee s earnings to the day you issued the pay cheque regardless of when the employee did the work For example if you give an employee a bonus HRDC believes that you are not rewarding any specific hour or day of work just his or her performance in ge
176. ecessary 3 Click OK to generate the report 4 Use the figures on the report to fill in your Relev 1 Summary form Creating year end T4 and Relev 1 slips 217 Getting information about your payroll QuickBooks Payroll Reports 218 Report Payroll summary Use these QuickBooks reports to gather the payroll information you need Description Shows the total wages taxes withheld deductions from net pay additions to net pay and employer paid taxes and contri butions for each employee on your payroll Payroll item detail Lists the payroll transactions on which each payroll item appears For example you could use this report to find out which pay cheques had deductions for disability insurance Payroll detail review Provides detailed information about how QuickBooks calcu lates tax amounts on employee pay cheques and in year to date transactions You can use this report as a research tool to see exactly what numbers QuickBooks used to calculate the tax amounts Employee earnings summary Shows information similar to the payroll summary report but in a different layout Payroll transactions by payee Lists payroll transactions grouping them by payee For exam ple you could use this report to create a listing of the pay cheques your company paid to each employee Payroll transaction detail Shows the line item detail that appears on each payroll trans action Payroll liability
177. ed then click OK 9 Click Close to close the user list To learn about Search the Help index for Using permissions to close closing books your books Finding and paying your sales tax liabilities 155 156 Chapter 5 Tracking and paying sales taxes Chapter 6 Doing business internationally Multicurrency an 158 overview Le How to manage iy foreign vendors Exchange rates 165 CUS to mers an d and how they affect r j cece currencies Dealing with 168 foreign customers i fete If you do business outside of Canada you can set Dealing with 170 Pewee up QuickBooks Pro and QuickBooks Premier Editions Transferrin 172 foreign funds to easily handle foreign currency transactions At the conclusion of thischapter you ll know how to set up prices in foreign currencies for items you sell internationally enter information for foreign customers and vendors and deal with the exchange rates of the foreign currencies you use 157 M ulticurrency an overview Note In QuickBooks Pro or better you can record transactions in currencies other than the Canadian dollar With the multicurrency feature turned on QuickBooks tracks foreign transactions and accounts for them correctly regardless of the currency you use For example if you sell goods to the United States you might enter some transactions in US dollars and others in Canadian dollars Tracking these foreign currency transactions is
178. ed Payment 0 00 Set Discount Set Credits lear Selections GoTo eee nt Exchange Rate 7 5439 Applied To Payment 2 Update the exchange rate if necessary Group with other undeposited funds FP C Deposit To E Save amp Close Save amp New Clear Explore the Business Services Directory to learn how QuickBooks can help you run your business Depositing foreign money 1 2 A e2 From the Banking menu choose Make Deposits The Payments to Deposit window appears In Currency drop down list select the currency in which you have received payments and want to deposit You can only deposit payments from one currency at a time Then from the list of payments you ve received select the payment s you want to deposit Click OK The Make Deposits window appears In the Deposit To field select the account to which you want to deposit the payment You can deposit foreign money into ahome currency account the amount is converted using the currency s exchange rate or a foreign bank account as long as it matches the currency of the deposit In the Exchange Rate field update the exchange rate if necessary Fill in the remaining fields as you normally would If you are getting cash back from a foreign deposit you need to set up a Petty Cash account that matches the currency of the money you are depositing and account for the holdback in it Dealing with foreign customer
179. ed to be made to your new QuickBooks company to take advantage of the QuickBooks features that MYOB does not offer To convert MYOB data to QuickBooks I Install QuickBooks Instructions on installing QuickBooks are included in the Installing amp Learning to Use QuickBooks Guide Before converting verify and optimize your MYOB company file to ensure that there are no data integrity issues with your data If there are data integrity issues the need to be resolved before you can convert to QuickBooks 2 Open QuickBooks The Welcome to QuickBooks window appears 3 Click the Convert from button then select MYOB The MYOB to QuickBooks Assistant appears 4 Follow the onscreen instructions to convert the data in your MYOB file The assistant does not change anything in your original MYOB company file it only reads the data from your MYOB file The conversion process may take some time depending on the size of your company file When the assistant is done converting your data the Congratulations window is displayed At this time you can view the log file to see the results of the conversion Click the Finish button to close the assistant and start using QuickBooks W hat s Next after conversion 74 Note If you want to set up your payroll in QuickBooks refer to Setting up your payroll in QuickBooks on page 76 You ll also need to read Chapter 7 Payroll and employees beginning on page 173 When the conversion is don
180. eeder From the File menu choose Printer Setup Choose the form you want from the Form Name drop down list Click Align If the Align button is not available that form cannot be aligned If alist of templates appears select the one you want and click OK QuickBooks displays a window where you can choose coarse or fine adjustments Click Coarse Click OK to print a sample form Look at the pointer line that QuickBooks prints across the middle of the sample form Determine the number that it points to Do not adjust your printer at this time Di 58 a 60 36 Labour hours drywall instal TS e lt lt lt POINTER LINE Solving printing problems 133 134 9 Type the number in the Pointer Line Position field in the window that appears then click OK Coarse Alignment x Do not adjust your printer Find the closest number in the margin to the Pointer Line Enter that number and click OK Cancel If necessary the paper will automatically be moved and another sample will be printed Hel elp ekt Pointer Line Position 181 If necessary QuickBooks advances the paper in the printer to correct the alignment and then prints another sample 10 Note the correct position of the form for future positioning Visually line up part of your printer such as the sprocket cover or print head with one of the position numbers along the edge of the form Make a note of this spot so
181. eign accounts in your company file give him or her a copy of your company file as opposed to the Accountant s Review copy Note that while the accountant is editing a copy of your company file you cannot make changes to the master file that you have 86 Chapter 3 Importing and exporting data Note To learn about Search the Help index for Setting up your accountant as a user with all privileges if you have set up users Creating an Accountant s Review copy of your current company file Merging the accountant s file into the master company file Making the accountant s revised copy your master company file Cancelling an Accountant s Review copy permissions accountant s review copy accountant s review copy restoring data accountant s review copy W hat can and can t be changed The Accountant s Review feature may not be right for everyone The accountant can make some kinds of changes but not others The advantage of using the Accountant s Review feature is that you can continue to work normally with your master company file that is the regular company file from which you make the Accountant s Review copy After the accountant has made changes you can merge the changes into your master file If you have set up users for your company see Working with multiple users on page 122 your accountant will need the user name and password of the QuickBooks Administrator The table s
182. either system m f you used postdated cheques to track your bills treat cheques you ve already entered the same way you did in Quicken m If you had an Other Liability account in Quicken for accounts payable it is now an Other Current Liability account in QuickBooks No matter which method you were using in Quicken from now on use the Enter Bills window to track your bills The Enter Bills window tracks your bills in the Accounts Payable account To create this account you can either m Usethe Other Current Liability account only for currently outstanding bills and let QuickBooks create a new Accounts Payable account for you the first time you use the Enter Bills window m Or you can move the transactions in your Other Current Liability account to an Accounts Payable account see below Converting data from Quicken 69 70 T To move your Other Current Liability transactions to the Accounts Payable account 1 Ww 6 In Quicken create a report that gives you the total balance you owe each of your vendors M ake sure the date range is set to Include all dates then print the report for reference Start QuickBooks From the Banking menu choose Make General Journal Entries On thefirst line m In the Account field choose Accounts Payable from the drop down list m In the Namefield choose the vendor s name m In the Credit field type the open balance you ll need to do this for each vendor On the second l
183. eived at the time of sale Use a payment item when you receive a partial payment at or before the time you create the If you receive a partial payment toward the amount of an invoice at the time you create the invoice you ll need to enter a payment item The payment item tells QuickBooks to subtract the amount of the payment from the total invoice amount To record the payment on the invoice enter a payment item for the amount you ve received after you ve entered all the items sold Description eee emer CE 400 99 499 99 siz QuickBooks subtracts a Down Payment 50 down payment Remainder due 50 0 250 00 payment item amount on delivery from the invoice total Customer ithank you for your v GST 35 00 Total 324 99 44 Chapter 2 Setting up a new company T You can set up a payment item so that it automatically deposits the payment directly to a chequing or other account Alternatively you can set it up so that QuickBooks automatically puts the payment amount into your Undeposited Funds account so you can deposit it with other funds To learn about Search the Help index for Receiving and depositing payments receiving payments Receiving payments toward a statement If you need to track the payment method cheque cash credit card charge you can have different payment items for different methods of payment Using a payment item isnot the only way to record a payment For some types of payment yo
184. eived payment It shows expenses as soon as you record bills even if they are unpaid You can see any report except transaction reports on a cash basis by changing the reporting preference For more information search the Help index for Reports cash vs accrual Chapter 2 Setting up anew company W hat accounting do I need to know Using QuickBooks requires very little accounting knowledge You need to understand a chart of accounts and the different types of accounts on it You don t have to know about debits and credit journal entries or closing periods Your company s chart of accounts When you keep books for a business or organization you want to track where your income comes from where you put it what your expenses arefor and how you pay them You track thisflow of money through alist of accounts called the chart of accounts Your QuickBooks chart of accounts can have m Balance sheet accounts Income accounts Expense accounts Cost of goods sold accounts Non posting accounts includes purchase orders and estimates which don t appear on your balance sheet Some of these accounts are created for you automatically For example the first time you create an invoice or statement charge QuickBooks automatically creates an accounts receivable A R account You ll add other accounts such as your chequing account during setup using the EasyStep Interview You can create and modify your accounts as needed a
185. elease dates and custom information you define To learn about Search the Help index for Using an external payroll service payroll services other than Intuit If you have employees but aren t payroll not using using QuickBooks payroll Chapter 7 Payroll and employees Setting up payroll an overview ae The amount of time it takes to enter your payroll information into QuickBooks varies with the size of your company Often it can take from one to two hours If you have never operated a payroll system before or are using a Premier Edition of Quick Books we recommend that you set up payroll outside of the EasyStep Interview If you are familiar with payroll systems you can use the EasyStep Interview to set up your employees and their year to date payroll amounts quickly To set up your payroll system 1 2 Become a member of the QuickBooks Payroll You cannot use the payroll features of the product unless you sign up for this service see page 174 In the Payroll amp Employees preferences check that the payroll features are turned on and are configured properly for your needs For example you can choose how you want your Employee list sorted and what prints on employee pay cheques and vouchers or pay stubs Gather the information you need to set up payroll see page 176 Confirm that the payroll liability and expense accounts that QuickBooks creates for you meet your needs see page 179 Set up
186. elp you enter information consistently and correctly You fill out most QuickBooks forms by selecting entries from a list For example when you re filling out an invoice form you select a customer name from the Customer ob list QuickBooks then fills in the customer s name address payment terms and other data To re sort the This list includes each list by name A Customer Job List arep aeron Aa l clickthe e n a Balance Estimate Total customer and job and their Holowka Kelly 0 00 0 00 a outstanding balances Howard Poon 0 00 Jones Rob 0 00 0 00 Jutras Jordan 0 00 Kelm Massage Therapy Kim Glen Klepacz Catherine Lessons By Livia Lin Jeffrey Lucas Kim eLudwick Dave MacDonald Katrina Madrid Jennifer Mahe Louise column header An X besidea name shows it s inactive You can create notes on many lists Use the menu buttons at the bottom of lists foravarietyof Smniaughten outters tasks creating F A activities new entries editing existing ones creating reports about items on the list and using them in transactions To show the items marked inactive tick Show All To hide these items clear the checkbox Reports v I Show All Getting around in QuickBooks 93 x Enter Bills Using forms You record most of your daily business transactions on a QuickBooks form which looksjust like the paper forms you re
187. en if the disk is labelled as preformatted it s a good idea to fully format a new disk before using it Sometimes new disks can be stripped of their formatting during shipping For your convenience QuickBooks can format disks during the backup process We recommend you keep multiple backups on different sets of disks and that you periodically replace the disks with new disks To backup to a 3 5 floppy disk I Insert a disk into your floppy disk drive 2 From the File menu choose Back Up and ensure the Back Up Company File tab is selected 3 Click Browse 4 Navigate to your floppy disk drive 5 In the File name field type a name for your backup We recommend that you give a new name for each backup For example the date of this backup This prevents you from overwriting the previous backup should there be a problem during the backup process for example a power failure 6 Optional Select the backup options you want Verify data integrity Select to verify your data before backing up m Set Defaults Click to specify the defaults for backing up manually 7 Select Format each floppy disk during backup 8 Click OK QuickBooks prepares to format the floppy disk The format dialog box appears 9 Click Start A warning appears that all the data on the floppy disk first be erased 10 Click OK The floppy disk is formatted 11 When formatting is complete click OK then click Close to closethe Format dialog box QuickBooks begi
188. endor list vendors adding Setting up a vendor for T4A forms T4A forms Service items for nonemployee time data If you plan to transfer time for nonemployeesto achequeor bill the time data should have a service item assigned to it QuickBooks uses the rate for purchases of the service item when calculating how much to pay a nonemployee for the hours worked m Service items for subcontractors vendors When you pay a subcontractor set up as a vendor the payment is an expense to the business Therefore you need to have at least one service item that affects an expense account when used in paymentsto the person This service item should not be used for owners or partners When tracking time for a vendor assign the time to a service item set up to track costs in an expense account m Service items for owners or partners When you pay an owner or partner the payment is a draw against equity rather than an expense to the business Therefore you need to have at least one service item that affects the person s equity account when used in payments to the person This service item should not be used for vendors When tracking time for an owner or partner assign the time to a service item set up to track costs in the person s equity account Chapter 8 Time and cost tracking ae ae To learn about Search the Help index for Setting up a service item that service items billing work by includes both costs and income subcontract
189. er To understand how much detail you should includein an activity see How much detail should I track for time activities on page 223 Setting up and using the Timer 229 230 New Activity Date 9 9 02 Your Name Jocelyn Heinbigner x CustomerJob Spade Sam Study v I Billable Service Item Surface Preparation X Duration Class Remodel 7 03 a 23 Ee Notes Begin work on extension Help If you have previously set up an activity for a given customer job and type of work you can choosetheactivity from a drop down list and useit asa template for the new day s work instead of setting up asimilar activity for the new day You can add a note while timing an activity or after completing it Search the Timer Help not the QuickBooks Help for To learn about Timing an activity while you are m activities setting up for timing doing it a activities timing Recording an activity after doing it activities entering time for manually Recording notes about an activity activities adding notes to View ing and editing recorded activities You can view a list of the activities you ve recorded in the Timer However you can t print this list or anything else in the Timer After you export time data to QuickBooks the QuickBooks user can print the list of activities Search the Timer Help not the QuickBooks Help for To learn about Viewing a list of all recorded activ a
190. erence between the value of the foreign currency when you created the transaction and its current value as of today is your unrealized gain or loss For example say a customer purchases an item from you for 100 USdollars which is 130 CDN at the time you issue the invoice Before the customer pays you the Canadian dollar falls and the USdollar exchange rate climbsto 1 5 from 1 3 The 100 USthat the customer owes you iS now worth 150 CDN so your unrealized gain is 20 CDN You won t know how much money in Canadian dollars the customer actually pays you until you receive his or her payment and deposit it in a bank At that point the bank converts it to Canadian currency and your gain or lossis realized Many accountants prefer you take your unrealized gains and losses on open foreign transactions invoices and bills into account when you create reports about your company s net worth as doing so gives a more accurate picture of the value of your company on that date Check with your accountant to see what he or she recommends To determine your unrealized gains and losses and make a home currency adjustment To ensure your net worth reports show the true value of your foreign currency accounts and therefore your company at the end of a reporting period your accountant should make a home currency adjustment in the general journal 1 Create an Unrealized Gains and Losses report a From the Reports menu select Multicurrency
191. ermining a start date on page 17 You will need a summary of the transactions for each employee and also one of any payments you ve made for your payroll liabilities m Enter your payroll transactions pay cheques and liability cheques for the period between your QuickBooks start date and today A wizard will help you enter your year to date YTD information To start it from the Employee menu choose Enter YTD Amounts After you ve entered your YTD information QuickBooks updates it as you issue pay cheques during the remainder of the payroll year to keep your payroll tax amounts correct Entering year to date summaries for each employee For each employee both current and former you paid during the current calendar year you must enter a summary of his or her earnings and the amounts you deducted from it The summary should cover the period from January 1st of the year to the day you started using QuickBooks In the summary include gross pay income tax Employment Insurance Canada Pension Plan or Qu bec Pension Plan and any other amounts you tracked by pay cheque from January 1st to your QuickBooks start date You need to enter both the amounts you withheld from the employee s earnings and the amounts that your company paid as a result of the employee s earnings For example you must enter both the employee s and employer s parts of CPP QPP and El Depending on how you ve kept your records you can enter amounts summarized
192. es Tax Due 3 Select the Sales Tax Vendor from the drop down list usually the Receiver General for GST or the Minister of Finance for PST 4 Select the Sales Tax Account from the drop down list usually GST Payable for GST or PST Payable for PST 5 Select an appropriate adjustment account from the drop down list It should be an expense account 6 Ente the adjustment To make a negative adjustment enter a negative amount 7 Select the Tax on Purchase or Tax on Sales option Selecting Tax on purchasewil make an adjustment against sales tax paid on purchases Selecting Tax on sales will make an adjustment against sales tax collected on sales m Thetable below shows how the selections affect your sales tax balance Positive Negative Adjustment Adjustment Tax on purchase option Decreases what you owe Increases what you owe Tax on Sales option Increases what you owe Decreases what you owe 8 Click OK W orking w ith filed and unfiled transactions By default the GST and PST Liability reports show all transactions that are not marked as filed up to the date of the report For example if you create a GST Liability report for March 31st it shows all transactions that are not marked as filed from the start date of your company up to and including March 31st Then when you complete your GST return for March 31st all transactions included with the return are marked as filed F Any transactions entered subsequent
193. es like to see which customers and jobs create the most work and so the most expenses for them To track payroll expenses by customer and or job do the following m In QuickBooks Basic turn on Use customer job tracking in the Accounting prefer ences IN QuickBooks Pro or better this option is always enabled Turn on the following Payroll amp Employees preference Report all payroll taxes by Review your addition and company contribution payroll items to make sure the checkbox for Track Expenses by Job is selected This option is always on for salary hourly wage commission and bonus payroll items m In QuickBooks Pro and better set up each employee to use time transfers by selecting the Use time data to create pay cheques checkbox in the Payroll Info tab of their employee profiles Then have them assign their work to customer jobs as they go m When you create a pay chequefor an employee select the correct customer job or jobs from the drop down menu for all earnings payroll items you enter Tracking expenses by class Some businesses prefer to classify expenses such as not for profit organizations that need to do fund accounting To track payroll expenses by class do the following m Turn on Use class tracking in the Accounting preferences m Turn on the following Payroll amp Employees preference Report all payroll taxes by Then choose whether you want to assign one class to an employee s enti
194. ese closed accounting periods but still make corrections when necessary To deny users access to closed periods when you set up user names and passwords for your staff do not grant them permission to Change or Delete Transactions recorded before your closing date Then enter a closing date that is later than the date of your payment For more information about setting up user names and passwords see Users and passwords on page 123 To lock older transactions after paying sales tax liabilities 1 To set up or edit user names for your staff from the Company menu select Set Up Users 2 Do oneof the following m Select an existing user name from the list then click Edit User or m Click Add User to create a new user name 3 If you do not want this user to have access to your historical transactions give him or her access only to Selected areas of QuickBooks when the wizard prompts you 4 Work through the wizard until you reach the Changing or Deleting Transactions screen 5 Select No to the question Should this user also have the ability to change or delete transactions that were recorded before the closing date 6 Work through the rest of the wizard for this user then any other users in your user list or that you are adding 7 Atthe bottom of the user list click Closing Date m f you closed the user list from the Company menu select Set Up Users 8 Typethe date up to which your books are clos
195. ess goals and profitability m PR m Consulting Construction industry standard categories General Site Work Concrete Construction contractors Masonry and so on Departments m Businesses that budget by department m Retailers Funds General Building Outreach and so on m Nonprofit organizations You could start with two main classes for restricted and unrestricted funds and m Religious groups then make each fund a subclass of a main class Locations if the business has more than one m Restaurants m Retailers m Service businesses Manufacturers m Distributors m Manufacturing reps Partners m Law firms m Consulting m Any other partnerships Product lines m Distributors m Manufacturing reps m Sales agents 12 After you set up classes you can enter them on any income or expense transaction including payroll transactions You can t assign classes to transactions that involve only balance sheet accounts for example transfers from chequing to savings setup of inventory setup of fixed assets You can set up subclasses of existing classes if you need to subtotal information about classes on reports To learn about Search the Help index for Turning on the preference for using classes turning on in QuickBooks classes Entering a class on a transaction classes assigning to a transaction Adding classes and subclasses classes adding Chapter 2 Setting up anew company Shou
196. event these from accruing on this pay cheque Enter the base quantity on which to calculate commissions and additions deductions or company contributions that are based on quantity m Add or delete wage commission bonus addition deduction or company contribution payroll items You cannot delete other tax payroll items in this window Note To suppress payment of regular salary on a bonus cheque delete the salary item in the Preview Pay Cheque window select it and press CTRL DEL or edit the amount of the salary to zero in the Rate column Running payroll and paying taxes 207 208 ae m Edit the amount for any payroll item After reviewing the employee s pay cheque click Create to go on the next employee or if you ve paid all your employees return to the Select Employees to Pay window If you re using direct deposit when you click Send Direct Deposit after you ve entered all of your employees pay cheques QuickBooks asks if you want to send the pay cheques to the payroll service now Click OK to go online and send the pay cheques When you pay an employee QuickBooks does the following m Updates the pay period end date of the last cheque written for the employee m Creates a pay cheque for your employee for the net amount showing the deductions in the voucher area or a direct deposit payment to be sent to the payroll service later m Increases or decreases the employee s accrued time by the number of hours and va
197. f you re using classes to track your employees m Whether you want to record time data for the employee and base pay cheques on it QuickBooks Pro and better only m Additions deductions and company contributions that appear on pay cheques for most employees The order in which you enter payroll items in the Addition Deductions and Company Contri butions area can affect how QuickBooks calculates each item and income taxes m Theprovincein which your employees work and what payroll taxes they are subject to m TD1and in Qu bec TP 1015 3 basic amounts m How employees will accrue time such as sick time or timein lieu and vacation pay Chapter 7 Payroll and employees In QuickBooks Pro or better this checkbox appears if time tracking is turned on You can turn time tracking on and off in the Preferences section under the Edit menu Employee Defaults Ask a help question Aski w How Dol Earnings Biweekly OK Item Name Hourly Annual Rate Pay Period Biweekly Hourly Wages 825 anes j a Cancel The Class field is available only if you have class tracking turned on Help v TF Use time data to create pay cheques r Additions Deductions and Company Contributions ltem Name Amount Limit You can turn class tracking on and off in the Accounting section of your Preferences located in the Edit menu To learn about Search the Help index for Setting up the employe
198. field choose Opening Bal Equity from the drop down list If you have not entered an opening balance for any of your accounts you will have to create an Opening Bal Equity account 8 Click Record Final steps to complete your setup 51 52 These accounts may also need adjusting m If you collect GST or PST record the amount you owe as of your start date If you have entered your historical invoices and purchases do not include the amount you owe since your start date as the GST and PST you collected is included on them Instead check whether you owe more than the invoices cover and if so adjust your GST or PST liability accordingly Select GST PST Activities from the Vendors menu then GST or PST Adjustment For more information see Gathering income tax infor mation on page 127 To learn about Search the Help index for Recording the GST or PST you owed as GST historical data of your start date PST historical data Adjusting your GST or PST liability GST adjusting PST adjusting m Adjust the Uncategorized Income and Uncategorized Expenses accounts if you re using accrual basis accounting When you enter unpaid opening balances for customers the income is assigned to an account called Uncategorized Income Similarly when you enter unpaid balances for vendors QuickBooks assigns the expenses to the Uncategorized Expenses account If you keep your books on a cash basis you record income when you
199. filed Not sure what the ending date is If today were February 15 2004 and the last return that was filed for GST HST was for the period October 1 2003 to December 31 2003 then the ending date of your last filed GST HST return would be December 31 2003 W hat happens to the unfilled transactions w hen I upgrade QuickBooks takes the ending date you enter and marks as filed all entries that were made on or before that date That is it assumes your sales tax accounting is correct as of your last GST return Then later on when you need to file your sales tax return for the current period open the Files Sales Tax window to see a summary of all entries to the sales tax accounts that haven t been filed yet including any that you may have back dated This prevents any missed entries in your sales tax returns You can view the filing status of transactions by looking at their entries in the register of the sales tax account Filed transactions are marked with an F Uncategorized transactions eliminated Previously amounts could appear as uncategorized in GST PST reports and in the File Sales Tax window QuickBooks labelled transactions as uncategorized when forms or items were used in different ways from how they were intended to be used For example some users incorrectly use the Make Deposits window to enter a cash sale instead of using a sales receipt This type of transaction entry would result in an uncategorized amount
200. fiscal year m How far back in time are you willing to enter historical transactions old invoices bills bank account transactions m Will you be tracking payroll in QuickBooks Although you can change your start date later your start date determines much of your setup It s much easier to decide on the best start date now than change it later If it s almost the end of your company s fiscal year consider finishing it using your old system of bookkeeping Then set up your company in QuickBooks with a start date of your fiscal year end so you can use QuickBooks for the new fiscal year You ll have the detail for each fiscal year and you won t have to do a lot of work setting up Setting up your company in QuickBooks 17 If it is not near the beginning of your fiscal year decide which is more important to you m Do you want to have full detail in QuickBooks for the current fiscal year OR m Do you want to enter relatively few historical transactions covering the period between your start date and today If you re not going to enter your historical infor mation for the full fiscal year you may want to choose a start date at the beginning of a calendar quarter especially if you re going to use QuickBooks payroll If your business generates a lot of invoices bills or cheques you probably don t want to enter more than three months of historical transactions On the other hand if your business has relatively few transact
201. for business Thistable lists the most important differencesin terms It does not list the many completely new QuickBooks features and terms Quicken term Account QuickBooks term Balance sheet account Definition A grouping of records related to one kind of asset liability or equity These accounts appear on a balance sheet Category Income or expense account A grouping of transactions related to one kind of income or expense These accounts appear on a profit and loss state ment income statement Category and Transfer List plus Account List Chart of Accounts The QuickBooks Chart of Accounts is like the Quicken Account list balance sheet accounts plus the Quicken Category list income and expense accounts Feature differences The following table lists features that exist in both Quicken and QuickBooks but that work differently in QuickBooks than in Quicken Feature Entering transactions Quicken QuickBooks Enters most transactions in regis Enters most transactions in forms ters cheque window invoice window and so on Write Cheques Displays a cheque that looks like a Displays a business cheque with paper cheque voucher area so the split is part of the cheque form Converting data from Quicken 71 Feature Quicken QuickBooks Classes Uses a slash to separate a cate Enters classes in separate fields No gory from a class
202. for example when he or she leaves the company VacPay Accrued VacPay Paid Out Federal Income Tax Vacation Pay Vacation Pay Payroll Taxes Earned but not yet paid out vacation pay for an employee Vacation pay paid out to an employee who is paid out every pay period Federal income tax withheld from the employee Also includes provincial income tax except in Qu bec CPP Company Payroll Taxes Canada Pension Plan company contribution CPP Employee Payroll Taxes Canada Pension Plan employee contribution El Company Payroll Taxes Employment Insurance company contribution El Employee Payroll Taxes Employment Insurance employee contribution QPP Company Payroll Taxes Qu bec Pension Plan company contribution QPP Employee Payroll Taxes Qu bec Pension Plan employee contribution Qu bec Income Tax Payroll Taxes Qu bec income tax withheld Chapter 7 Payroll and employees Creating new payroll items As you set up your payroll system you will need to create new payroll items to match how you pay your employees To create new items use the Add New Payroll Item wizard To start the Add New Payroll Item wizard m With the Payroll Items list open click the Payroll Item menu button then select New Payroll item type Yearly Salary Use for Compensation to employees whose annual salary is independent of the number of hours actu
203. from any drop down lists that use items You do not need to change or delete any transaction that uses the item If you start to use the item again you can make it active at any time You can display all your items including the inactive ones on the Item list by selecting Show All Inactive items still appear on reports but never display on drop down lists Chapter 2 Setting up anew company Deleting items You can delete an item only if it isnot used in any transaction or group item To locate all transactions that use a given item create a QuickReport for the item for all dates If you condense your QuickBooks data through a specified date to reduce the file size and remove detail you can also remove items that are not used after that date Fixed asset items are not condensed To learn about Search the Help index for Changing item types items changing type of Changing information about an item items editing information Hiding and showing items on the Item list items hiding and showing and drop down lists in Item fields Making hidden items visible on the Item lists hiding and showing list as well as on drop down lists Deleting items items deleting Final steps to complete your setup Fine tune your accounts QuickBooks sets up a chart of accounts for you during the Interview Before you begin entering transactions make sure your chart of accounts is complete and that it accurately represents how your bu
204. fter your accounts are mapped to the correct tax lines QuickBooks tracks tax related transactionsas you enter them At any time you can create reports and financial statements that show your company s tax status and meet the requirements of the CRA To learn about Search the Help index for Setting up accounts to track tax related income and expenses income taxes setting up for W hat QuickBooks can track for you QuickBooks can track information for various tax forms and schedules QuickBooks tracks Income tax information including information for the T1 General T2 for Incorporated Busi nesses Schedule 3 Schedule 4 T777 T2124 T2124C T2032 T2042 T2121 Rental and Medical Expenses This list is not exhaustive Your options will vary depending on your busi ness Output created A report detailing the amounts to be recorded on each line of the tax form you chose when you set up your company Much of this information can also be imported into QuickTax and ProFile Chapter 4 QuickBooks basics Setting up income tax tracking Use this checklist to make sureincome tax tracking is set up properly You may have set up some parts of income tax tracking when you created your company but not others Search in the Taak Comments Help Index for v Check that the first month of Likely you or your accountant will have company changing infor Ly your company s income tax determined th
205. ge 244 for them as well If you distributed the Timer program that came with an earlier version of QuickBooks replace those copies with the Timer program that comes with this version of QuickBooks The newer version of the Timer can update company files created by the earlier version This flowchart shows the relationship between the Timer and QuickBooks Import Time Activities QuickBooks Pro Timer f Export File iif j Export _ Import Time Lists Activities QuickBooks Pro Timer The two programs share information this way QuickBooks exports lists for the Timer to use m TheTimer imports those lists m TheTimer records data about time activities for the jobs then exports it m QuickBooks Pro QuickBooks Premier editions or QuickBooks Enterprise Solutions imports the time data and makes it part of the company file If you simply want to time an activity in QuickBooks not gather time data from others use the Stopwatch instead See Using the Stopwatch to time an activity on page 233 Setting up and using the Timer 227 Setting up the Timer Before you can set up the Timer you must first install it Refer to the reference sheet on page 244 Also be sure to do all the tasks on the following task list The task list for setting up the Timer shows whether the QuickBooks user or the Timer user has to do the task in case they are not the same person W hich user Task and w hich He
206. hanges to existing transactions QuickBooks may slow down slightly when the Audit Trail is on Also the size of your company file may increase more rapidly than it hasin the past These changes occur because instead of writing over transactions you change QuickBooks records both the original transaction and all changes to it However for most users the performance of QuickBooks should not change P To learn about Search the Help index for Using the audit trail feature audit trail 126 Chapter 4 QuickBooks basics Gathering income tax information You are responsible for consulting a tax advisor or the Canada Revenue Agency about your tax circumstances Tax laws change often and their application can vary based on the specific facts of your business This information is not intended to be exhaustive How QuickBooks tracks tax information As you set up your company in QuickBooks you select which tax form your business uses m TheT1 General form for individuals unincorporated businesses and partnerships or m TheT2 form for incorporated businesses Creating New Company Please enter your company name address Next and the first month of your fiscal year Company Cancel Legal Name Help Address Phone FAX E mail Web Site First month in your fiscal year January B First month in your income tax year January 7 Income Tax Form Used lt Other None gt gt Default Pr
207. he Help index for Settings preferences Re enable your online banking accounts If you use online banking you ll need to re enable your online accounts after you import them into QuickBooks To re enable your online accounts 1 From the Lists menu in QuickBooks choose Chart of Accounts 2 Select your online account Then click the Account menu button at the bottom of the window and choose Edit 3 Inthe Edit Account window click the Account Details tab If the account has no Account Details tab in the Edit Account window it isnot online in QuickBooks An account that was online in Quicken will not be online in Quick Books if the financial institution does not work online with QuickBooks m Select Online Account Access then click OK To learn about Search the Help index for Enabling accounts for online banking online banking enabling accounts Converting data from Quicken 67 If your financial institution does not w ork online w ith QuickBooks If your financial institution does not work online with QuickBooks your online accounts are converted to standard not online accounts m Notify the financial institution that you will no longer be using its online services m Alternatively you could open an account with a financial institution that does work online with QuickBooks Adjust your Opening Bal Equity account QuickBooks automatically creates an Opening Bal Equity account for you When you create
208. he difference to the CRA Occasionally you may pay out more than you collect and claim a refund Many provincial governments also require you to register to collect a provincial sales tax PST or in Qu bec QST In most provinces for provincial sales taxes you track only the amount you collect instead of the amount you collect and the amount you pay and remit that amount to the government In Qu bec however the QST works much the same way as the GST businesses may be able to deduct the amount of QST paid on business related purchases from the amount of QST collected from customers then remit the difference Check with the CRA your province s Ministry of Finance or your accountant about how your business should handle federal and provincial sales taxes How QuickBooks calculates the GST and PST 140 QuickBooks uses your company address to determine what rates of GST and PST apply in your province and assigns these rates to default sales tax codes It then calculates the GST and PST separately for each item on sales or purchase forms according to the sales tax code you assign to it QuickBooks displaysthe GST and PST totals in boxes at the bottom of the form then adds these amounts to the total The HST is calculated as one rate in the GST field Tax amounts are tracked in your GST Payable and PST Payable liability accounts When you make a sale QuickBooks records the GST on the transaction as an increase in your GST liab
209. he same item You can use the same cus tom field for customers ven dors and employees if you choose Custom fields for items are only for items you sell or purchase services parts and other charges You can filter a relevant report to limit the transac tions to forms that have spe cific text in a custom field On reports that summarize amounts by account Quick Books provides an amount for each subaccount and then a subtotal for all subac counts of the same account For more search the Help index for customer types job types vendors adding report customiza tion search the Help index for subtotals on sales forms search the Help index for custom fields about estimates customiz ing search the Help index for subaccounts then click the link Why use subaccounts Decisions to make before you start 11 Tracking income and expenses w ith classes Do you need to track income and expenses for separate parts of a business or organization The following table has examples of what you can track by using classes in QuickBooks The word dasshas nothing to do with teaching or learning instead it is a way of classifying income or expenses jn addition toassigning an income or expense account Use classes to track the follow ing Industry examples Account executives particularly useful if you plan on using an employee incen m Advertising tive program linked to the employee s busin
210. hecking these areas before you call technical support You can also visit http www quickbooks ca for information about specific printers W hen should I reinstall my printer driver If your printer has any of these problems you may have to reinstall your printer driver in Microsoft Windows or contact the printer s manufacturer for assistance Your printer isn t printing at all from any program Your printer prints garbage from any program Your printer won t feed paper correctly Nothing happens when you try to print The form 132 There are several things you can try Make sure the printer is turned on and is online Try printing from another application to verify that Windows can still communicate with the printer Check for stalled printing jobs on your printer a From the Start menu select Settings then Printers b In thelist double click the printer you re using c Select the stalled print job in the list d From the Document menu select Cancel is clipped on the top bottom left or right Likely you only need to adjust the form s margins and alignment However some printers can t print the entire width needed for the standard forms that come with QuickBooks In this case you ll need to customize the form in QuickBooks to have larger margins To adjust the margins for forms 1 2 3 In QuickBooks from the File menu choose Printer Setup Choose the form you want from the Form Nam
211. hen setting up a new account for owner s draws enter a negative opening balance to show the total draws prior to the QuickBooks start date The negative opening balance indicates that the draws have reduced the company s equity Or enter a zero opening balance and simply record draws from now on Things to think about after you re finished Create reports to check your setup After you ve finished setting up your company in QuickBooks and making any adjustments create reports to check that QuickBooks has the right numbers In both QuickBooks and your former accounting system create a profit and loss statement and a balance sheet Each report should cover the beginning of your fiscal year through to your QuickBooks start date For example if your fiscal year began on July 1 and your start date was September 1 create reports that cover July 1 to Seotember 1 Both reports should show the same balances for your accounts M aintain your previous accounting system 54 If your business existed before you began to use QuickBooks make sure you keep your previous accounting system complete in case the Canada Revenue Agency requires information from your previous years of business You should keep any software and the hardware your former accounting system requires or have printouts of all the information and accounting reports Chapter 2 Setting up anew company Set up other company files if needed If you use QuickBooks w
212. hheld Net Pay Employer Taxes and Contributions CPP Company El Company Total Employer Taxes and Contributions For taxes and company contributions the amounts are liabilities accrued during the period Vacation Pay Accrued VacPay Accrued Total Vacation Pay Accrued Getting information about your payroll 219 220 Pi Figuring out w hat w age amount each tax is based on For each tax amount on employee paycheques you want to check the amount of wages it is based on You can generatethe payroll detail report to see the amount for every wage base and tax transaction on paycheques 7 50 AM Mountain Sports Equipment Tens Payroll Item Detail December 2003 o Hum Date gt Sourcellame gt Payrollitem gt Type o WageBase gt Amount gt CPP Employee 349 1245 2003 Alison Logan Smith CPP Emplo Pay Cheque 750 00 28 40 350 1245 2003 Anita Joly CPP Emplo Pay Cheque 345 00 9 36 351 1245 2003 Luis Barata CPP Emplo Pay Cheque 1 000 00 4015 Total CPP Employee 2 095 00 7731 CPP Company 349 1215 2003 Alison Logan Smith Pay Cheque 750 00 350 12 5 2003 Anita Joly Pay Cheque 345 00 351 1215 2003 Luis Barata Pay Cheque 4 000 00 Total CPP Company 2 095 00 El Employee 349 1245 2003 Alison Logan Smith Employee Pay Cheque 750 00 350 12 5 2003 Anita Joly Employee Pay Cheque 345 00 351 4125 2003 Luis Barata Employee Pay Cheque 4 000 00 Total El Employee 2 095 00 El Company 349
213. hone numbers and Web sites 251 253 templates for payroll 189 testing testing backing up 112 time tracking 235 deciding whether to make time billable 222 options for tracking 224 recording time manually in Pro or Premier 234 recording time with the Stopwatch 233 time paying nonemployees for 236 Timer data backing up restoring or condensing 231 exporting to Pro or Premier 232 files creating 228 importing into Pro or Premier 232 hardware requirements 245 installing from CD 244 lists exporting from Pro or Premier 228 importing from Pro or Premier 228 updating to match changes in Pro or Premier 231 recording activities in 229 setting up 227 when to use 224 Index 273 timesheets blank 226 235 filling out 235 viewing 226 titles changing forms 106 TP 1015 3 employee defaults and 189 192 TPZ 1015 report 213 tracking GST PST 141 payroll expenses 184 tracking different units 32 transactions audit trail 126 deleted during condensing 115 downloading 122 historical 49 retained 116 sorting in reports 102 summary created during condensing process 116 transferring data between other software and QuickBooks 84 foreign funds 172 troubleshooting printing problems 132 problems 249 support plans 248 turning on audit trail 126 class tracking 5 12 numerical accounts on chart of accounts 48 payroll 174 tutorials Learning Centre 99 types c
214. hoosing 6 reporting 131 categories in Quicken equivalent of 71 CD backing up to 109 installing Timer from 244 updating QuickBooks from 60 changing how dates display 60 Internet connections 56 chart of accounts adding accounts 49 automatically created accounts 7 described 7 numerical 48 reorganizing 48 checklist for setting up payroll 176 177 cheques alignment adjustments for 133 pay stubs printing 208 payroll creating 207 printing 208 reviewing and correcting 208 chequing accounts historical transactions and 50 reconciling 118 classes adding 5 12 compared to jobs customer types and job types 13 employees grouping by 191 payroll expenses tracking by 183 turning on preference for 5 12 uses for in QuickBooks 5 12 closing books or period 125 closing the follow me help 97 columns changing for reports 102 changing on forms 106 combining names after converting from Quicken 66 commission for PST 148 commissions employee template adding to 189 employees on 192 company backing up to atape 110 111 backing up to CD 109 backing up to Zip drive 110 backing up with QuickBooks Backup Service 111 backup up 107 company file described 4 described 4 multicurrency and 158 passwords 123 restoring data 114 sample 99 setting up 20 setup preparing for 20 testing 112 company contributions employee template adding to 189 employees individual set
215. hows every transaction for that account as well as the account balance Although you usually would use forms for entering and viewing transactions you can also do so directly in registers Here san example of aregister for an accounts receivable account amp Accounts Receivable Ask a help question Ask E How Dol op x It also shows rie Goto Print Edit Transaction E QuickReport you ve receive against Date Number Customer ltem Oy Rate AmtChg AmtPaid your Invoices Type Description Billed Date Due Date 12 04 2002 Michel L Heureux 517 50 4 At the bottom right of Pmt the register you see a 12 05 2002 1026 Dino DeGuzman lin SHOR running balance or 12712 2002 1027 Peter Kozak ending balance as itis INV 12 12 2002 i 12 13 2002 1028 Christine Girard referred to in 12713 2002 QuickBooks of all your accounts receivable so you always know how much you re owed 12 15 2002 Roy Uchman F tlie I Show open balance Ending balance Sortby Date Type Number Fiel Record Restore For foreign accounts registers show their transaction amounts in the currency denomination of the account 94 Chapter 4 QuickBooks basics QuickBooks Keyboard Shortcuts General Key Activ
216. hows what an accountant can and can t do while using an Accountant s Review copy of your file and any restrictions on you while this copy is out Your accountant Your accountant can cannot m View all existing m Enter transactions other than transactions and lists Add new items to the Chart of general journal transactions Accounts Item list To Do Add new items to the Notes list and Memorized Payroll Item list Transaction list general jour Memorize transactions other nal transactions only than general journal transac tions You cannot m Delete any items from lists m Reorganize lists move items make one item a subitem of another Importing from exporting to other software 87 Your accountant can m Create edit and print PD7A a T4 and Relev 1 forms m m Edit existing account names and numbers m Edit account and tax E information for existing items on the Item list m Enter general journal transac m tions E m Reconcile new trans actions 5 m Adjust inventory values or quantities P m Create reports m m Change preferences temporarily Py m Print T4A report Your accountant cannot You cannot Edit existing payroll items Edit or delete existing trans actions including pay cheques Reorganize lists move items make one item a subitem of another Rename accounts or items Make items inactive Edit names of existing items on Item list Adjust payroll
217. hutting down other programs that may be running Check for programs that may be running in the back ground without your knowledge m Do you have enough hard disk space available Thisis particularly common for those working in a multi user peer to peer network situation m Do you have any conflicts with sound or video drivers If you encounter system freezes while using QuickBooks you may want to call for technical support See QuickBooks product support on page 253 But first see Speaking with a Quick Books Product Expert below The Rebuild utility requires that you back up your company first If a technical support represen tative asks you to run Rebuild you will need to have formatted disks on hand for the backup Speaking w ith a QuickBooks Product Expert 250 Be prepared when you call If you need to call for assistance you can speed up the time it takes to get an answer by doing the following before you call m Please have your License Key and Customer Number available To display this infor mation choose My License Information from the Help menu m Beat your computer with QuickBooks running m Make notes of the windows you opened and the tasks you did prior to encountering the problem Know the exact wording of any message that appeared on the screen Have a pencil and paper handy to take notes If your company file is set up for multiple users who have access to different areas of QuickBooks
218. ice is for an American customer then the dollar values reflected on the form will be in U S dollars 3 ional Enter the class es w ee information iF 9 Customer GST 0 00 Message PST 0 00 Balance 0 00 Save amp Close Save amp New Clear To be printed Memo 96 Chapter 4 QuickBooks basics Context sensitive help In QuickBooks 2006 we have added many ways in which you can access our context sensitive help system Follow Me Help Follow Me Help follows you as you work in QuickBooks and displays the topics that are related to what you are doing If you havean Invoice form open you will seehelp on how to create an invoice with How Do I links listed underneath Index opens the Index in the Find 1 2 3 Help window Search opens the search engine in the Find 1 2 3 Help window Print prints the help topic 5 elp x Make sure the help you Back Next moves q alg a want printed is expanded backwards or forward aj i e click E to expand the through help topics text before you print it that have already been displayed in this E How DoI window Create an invoice Show Me Video il Handle GSTJPST Pin anchors a help topic or Create invoices Invoice for reimbursable time ar stops the window from Topiccontenta e E Edit an invoice an invoice l following your activities pi Customize my forms Show M
219. ickBooks Note that QuickTax imports data from the last company file you opened with Quick Books QuickTax Reporting income tax information Once you ve assigned tax linesto your accounts QuickBooks tracks tax related income and expenses automatically throughout the year To check your business tax situation at any time use QuickBooks income tax reports These reports show your accounts the tax lines you ve associated with them and the amount to be recorded on your tax form and can be printed for later reference Gathering income tax information 129 130 Use the Report Finder under the Reports menu to create income tax reports In the Report Finder select Accountant and Taxes from the drop down menu then choosetheincometax report you want from the list Remember that the To and From dates must cover your last income tax year correctly To make completing your income tax return even simpler you can transfer your tax information from QuickBooks to one of Intuit Canada s tax products see Transferring tax information to Intuit tax products on page 131 Getting the numbers you need to file your income taxes Whether you fill out your income tax forms by hand pass your company s tax information on to your accountant or transfer your tax data from QuickBooks to one of Intuit Canada s tax products complete the following steps to make sure your numbers are correct m Check the tax line a
220. ickBooks Maintenance releases are offered free of charge throughout the year some shipping and handling charges may apply and can include bug fixes latest payroll or legal requirements and feature additions When wepublish amaintenance release anumber is associated with it for example R4 R5 etc This number is important when it comes time to install a newer version of QuickBooks asit is a way for Quick Books to determine which maintenance release you have installed To see what version and release you currently have installed on your computer press CTRL 1 with QuickBooks open multicurrency A feature that when turned on gives you the ability to deal in foreign currencies multi user mode More than one person can access your company file at the same time net profit The sum remaining after all expenses have been met or deducted synonymous with net earnings and net income or net loss online banking Doing bank transactions through the Internet partnership An unincorporated company owned by two or more persons patch See maintenance release payroll taxes A blanket term for all deductions you withhold from an employee s pay cheque and remit to a level of government Examples are income tax deductions Employment Insurance premiums and Canada or Qu bec Pension Plan contributions payment item A type of item on your Item list You can set up a different payment item for each method of payme
221. ickBooks Product Updates section There you ll find a list updates for the various versions Before installing the update from www quickbooks ca 1 Write down your QuickBooks license key in case you need it later m To find it select About QuickBooks from the Help menu 2 Back up your company file s To update from www quickbooks ca 1 From the Product Updates page click the update link for the version you are using The File Download window opens By default the Save this program to disk option is selected This option saves a copy of the update to your computer for you to later install Click OK The Save As window appears Navigate to a folder to save the update file to or keep the default Click Save When the download is complete the WinZip Self Extractor opens If it does not start automatically double click the file you downloaded Extract the files to a temporary folder where you can find them again easily uh WN 6 Shutdown all open programs including QuickBooks and any virus protection software you may have Some virus protection programs can interfere with the installation 7 Using Window Explorer open the folder you specified in Step 5 8 Doubleclick the Setup exe file and follow the instructions on your screen Sharing updates among multiple users If you use QuickBooks Pro or better in multi user mode you need to install maintenance releases on each computer that has QuickBooks installed on it You c
222. igning tax codes to customers Using If you have regular customers who have special tax status for example who are exempt from paying the GST or PST you can assign them customer tax codes that override item sales tax codes on all forms First ensure the Allow customer tax codes is selected in the GST PST preferences Then you can add the tax code to the customers profile in the Customer Job list To learn about Search the Help index for Turning on the Customer Tax tax codes turning on Codes Setting up customers customers adding new tax codes on sales and purchases Once you have assigned tax codes to the items you sell and buy and assigned customer tax codes to customers with special tax status QuickBooks automatically applies the correct taxes as you fill in forms The tax code appears to the right of the Amount column and the amount of tax above the total If you need to apply a different tax code to an item you can change the item s tax code from the form In therare event that you need to adjust the amount of tax on a transaction manually adjust the amount directly in the GST or PST box g Create Invoices Accounts Receivable Ask a help question Ask w How Do 1 x Previous wPnext GBprint Eemal amp Find WM Spelling BWHistory E Journal g Timefcosts Customer Job Class Account Template Customize Ludwick Dave gt Guided T gt Accounts Receivable gt custom Invoice ha Inv
223. ility because you must remit the amount of tax to the government When you makea purchase the GST on the transaction is a decrease in your GST liability because you can claim the expense as an input tax credit Similarly the PST on salesis recorded as an increasein your PST liability However whether you record the PST you pay on purchases as a decrease in your PST liability depends on whether your provincial government allows you to claim input tax credits for it At regular intervals you must file GST and PST returns and create cheques to remit the amount you owe to the federal and provincial governments As your business grows you have to file GST PST returns more often Once a sales tax entry isincluded on a GST or PST return that you ve filed it is marked as reported If you enter a transaction from a previous reporting period after you ve already sent your return it will automatically be included in the next return you send Chapter 5 Tracking and paying sales taxes Setting up sales taxes One of QuickBooks very useful features is its ability to track the GST or HST and your province s sales tax if it has one After you turn on sales tax tracking QuickBooks automatically applies the correct taxes to sales and purchases and records the tax in the appropriate accounts To turn on sales tax tracking 1 From the Edit menu select Preferences 2 Select GST PST from the scroll box then click the Company Preferences tab 3
224. ility for keeping these forms current An employee should fill in new personal tax credit forms when they arehired m theemployee wants to change the tax credits he or she is claiming For example say that an employee becomes a student and wants to claim the student tax credit He or she should complete new tax credit forms within a week of the change Setting up employees 193 194 m the federal or provincial tax credit amounts change In this case QuickBooks notifies you that your employees TD1 and TP 1015 3 claim amounts need to be updated and you should update the forms as soon as possible Note According to the CRA it is a serious offence to knowingly accept a Form TD1 that contains false Tip T information If you think an employee is entering incorrect information contact the CRA After your employees have completed these forms you need to copy the total claim amounts from them into QuickBooks QuickBooks will then withhold the correct amounts of income tax from their pay cheques To enter an employee s TD1 tax credit claim into QuickBooks 1 in the employee s profile click the Payroll Taxes button in the Payroll Info tab 2 From the Tax Table drop down list choose the province or territory where the employee works not where the employee lives or where your company is located 3 In the Subject To area do the following m Inthe Federal TD1 field enter the total claim amount Line 12 from the empl
225. ine m In the Account field choose the Other Current Liability account from the drop down list m Inthe Debit field typethe same amount that you entered in the Credit field of the first line Click Save amp New Changing your payees to QuickBooks vendors If you haven t already you need to move your Quicken payees from the Other Names list to the Vendor list See Edit your Other Names list on page 65 If a Quicken payee had a balance that you converted to QuickBooks use Write Cheques until the balance of your old Quicken A P account equals zero you ve paid off all your bills for that vendor Enter any new bills into QuickBooks accounts payable You also need to delete and re enter any memorized transactions that QuickBooks converted for you from Quicken accounts payable as they will not work properly in QuickBooks accounts payable To learn about Search the Help index for Deleting memorized transactions memorized transactions deleting QuickBooks accounts payable accounts payable Chapter 3 Importing and exporting data Comparing QuickBooks and Quicken Once you understand the few terminology and feature differences between the programs QuickBooks will feel very familiar Terminology differences Quicken uses terms familiar to anyone who has used a cheque book QuickBooks uses a few terms that are standard in business bookkeeping and that reflect the increased power and convenience of QuickBooks
226. ion go back to the employee s profile and confirm that the vacation pay amount is correct It should now take your year to date entry into account m Inthe Other Employee and Company Payroll Items area enter totals for all other earnings withholdings company paid contributions and payroll expenses for this employee for this period Enter all liabilities created because of compensation paid even if you have already paid them or they were company expenses For example if you provide an employee benefit and track it as a payroll expense for each pay period you must enter amounts for this employee in this window Later you will also enter the amounts you ve already paid towards this liability so that QuickBooks can keep track of how much you still owe You do not have to enter non payroll adjustments such as reimbursements for office supplies m In this area also enter all accrued taxes for this employee regardless of whether you have paid them yet Theseincludethe amounts for the employee and company portion of CPP QPP and El Enter separate amounts for the employee and company portions of CPP QPP and El QuickBooks uses the employee amount to track employee with holding it uses both amounts to track your total payroll liability m f you decide to track company paid expenses such as insurance as a payroll expense for each pay period you must enter amounts for the employee in the Other Employee and Company Payroll Items area of this wind
227. ions you may be willing to enter several months of historical detail Information to collect 18 W ho owns your business First determine how your business is owned Is it a sole proprietorship a partnership or a corporation Thedifferencesincludethetax form you file T1 or T2 your income tax filing deadlines and how your profits are apportioned Soleproprietorships A sole proprietorship is an unincorporated company owned by one person a Partnerships A partnership is an unincorporated business owned by two or more persons In a partnership each partner owns a share of all assets and liabilities Each partner may have invested in the partnership and each receives a specified share of profits Partners do not receive salaries but they may withdraw money against their share of profits Corporations A corporation is owned by its stockholders Unlike a sole propri etorship or a partnership a corporation can pay a working owner a Salary Are you registered to collect sales taxes Although very small businesses are exempt the Canada Customs and Revenue Agency CCRA recommends that all businesses register to collect the GST When your company s sales exceed a certain level the CCRA requires you to register Check with your local CCRA office about whether your company needs to be registered and if so how to go about it Registered businesses track the GST or HST paid on purchases for the business and collected from
228. ions your cheque register will be mostly up to date To learn about Search the Help index for Entering historical information historical transactions Final steps to complete your setup 49 50 Entering current transactions w ith historical ones You don t have to enter all your historical transactions before you start using QuickBooks for your current ones Enter current transactions as they occur so you don t get behind Then catch up with historical transactions when you can Remember though that your account balances will be off until you ve entered all the past transactions If current and historical transactions are related enter the earlier one first For example if you receive a payment today for an invoice you have not yet entered enter the invoice first then use QuickBooks to record the payment That way QuickBooks links your transactions correctly to each other Entering historical payroll information If you are going to use QuickBooks payroll enter historical payroll information so QuickBooks has complete year to date records of wages and salaries you ve paid QuickBooks needs this information to compute accurate tax information and payroll reports See Setting up payroll an overview on page 175 for more information To learn about Search the Help index for Entering historical payroll information payroll setup year to date amounts Entering bank account information If you e
229. is billable to customers it becomes billable as soon as you record the timein QuickBooks It doesn t matter whether you have paid the employees yet Some businesses track time without making it billable For example if you agree to do ajob at a fixed price you would not invoice for time However you might still want to track time so you can decide after completing the job whether you set the right price Also you can track accrued time like sick time which is normally not billable Chapter 8 Time and cost tracking Should I track time for subcontractors Most businesses don t need to track time for subcontractors with a few exceptions On time reports you want to see all time for a particular job whether for an employee a subcontractor or an owner Glenn s company has only one employee now By tracking time worked by subcon tractors he ll know what to expect when he has employees doing this type of work in the future You want to track subcontractor time independently of the time subcontractors report on the bills they submit to you Jill gives subcontractors copies of the Timer program and asks them to return time data to her weekly so she can track how many hours have been spent on her project long before she receives the bills You want to pay subcontractors based on time worked using the time information entered in QuickBooks Eric tracks time for subcontractors and pays them within 30 days On a weekly basi
230. ith more than one company and therefore have more than one company file you should keep them all in the same directory If you update QuickBooks download tax tables receive tax alerts and so forth you may have to download multiple copies of the new information if the company files are in different directories Connect QuickBooks to the Internet Note W hat you need Your PC must be connected to the Internet through an Internet Service Provider ISP Your work PC may be connected through a local area network LAN If you can read e mail or browse the Web you are connected to the Internet W hy connect QuickBooks to the Internet You don t need Internet access to use QuickBooks but the ability to go online can easily double the power and flexibility of your software It allows you to take advantage of Internet only features in QuickBooks Consider these additional possibilities m Explore other opportunities with QuickBooks connected services From the Company menu select Business Services Navigator m Receive QuickBooks updates Download and install QuickBooks software updates as they become available Download tax table information If you ve signed up for the QuickBooks Payroll you can download the latest tax tables If you are a new user After you install QuickBooks you are prompted to activate QuickBooks and if you choose to do so online QuickBooks helps you set up your Internet connection It s a
231. ity report of your prior payroll system Print a balance sheet as of It should match the balance sheet from balance sheet m December 31st of this year your prior accounting system as of reports December 31 of this year Print a balance sheet as of It should match the balance sheet from balance sheet m December 31st of last year your prior accounting system as of reports December 31 of last year Print a profit and loss state It should match the profit and loss profit and loss m ment for the entire calendar year statement from your prior accounting reports system for the entire calendar year M anaging payroll and em ployee information Changing As your business grows and changes you will probably find it necessary to add or remove payroll items hire and sometimes release employees and track additional information about your payroll payroll item information By default the Payroll Item list is organized by payroll item type Earnings items for yearly salaries hourly wages and commissions are at the top of the list To re sort the list click a column header You can use the same payroll item for many employees For example you can customize the amount or percentage of earnings payroll itemsin the setup window for each employee to allow for different rates of pay You can change the information for existing payroll items although you probably do not want to change whether the item is subject to income tax how i
232. ity Key To start QuickBooks without a company file CTRL double click Account list display CTRL A To suppress the desktop windows ALT QuickFill and Recall type first few letters abc TAB at Open Company window while opening of name and press Tab name fills in Display information about QuickBooks F2 Copy transaction in register CTRL O Cancel ESC Customer ob list display CTRL J Record when black border is around OK Next Delete cheque invoice transaction CTRL D or Prev button or item from list Record always CTRL Edit lists or registers CTRL E Cheque write CTRL W Dates Key Find transaction CTRL F Next day plus key Go to register of transfer account CTRL G Previous day minus key Help in context display F1 Today T History of A R or A P transaction CTRL H First day of the Week W Invoice create CTRL 1 Last day of the weeK K List for current field display CTRL L First day of the Month M Memorize transaction or report CTRL M Last day of the montH H Memorized transaction list display CTRL T First day of the Year Y New invoice bill cheque or list item CTRL N Last day of the yeaR R Paste copied transaction in register CTRL V Date calendar ALT down arrow Print CTRL P QuickZoom on report Editing Key QuickReport on transaction or list item CTRL Q Edit transaction selected in register CTRL E Register display CTRL R Delete character to right of insertion point DEL Show list CTRL S Delete character to
233. k Off for the Automatic Update option and click Save 4 Close the Update QuickBooks window M anual updates If you choose to manually update QuickBooks you should check for updates about oncea month With this method QuickBooks only beginsthe downloading process once you click Get Updates in the Update QuickBooks window Download times for updates vary depending on the speed of your Internet connection the size of the update file s and the amount of traffic on the Internet After QuickBooks downloads an update the program installs the necessary files to the correct directories or folders on your computer To perform a manual update 1 From the File menu choose Update QuickBooks 2 Click Update 3 Select the updates you want to download by clicking the checkbox next to the update name A check mark means the update is selected 4 Click Get Updates Manual updates can also be performed when the Automatic Update option is turned on Once the download process is complete QuickBooks displays the date and time of the download in the Last Checked column In the File Received column QuickBooks displays the status of the download Click thetext in the Files Received column for additional details about the download Chapter 2 Setting up anew company Updates from www quickbooks ca Visit the QuickBooks web site at http www quickbooks ca to download updates At the site under Quick Find click Product Update then see the Qu
234. k here to generate a Payroll QuickBooks displays month that are not yet paid Change these dates if you Liabilities report for this period this date on the pay more than once a month liability cheque as the paid through date z Pay Liabilities If you use QuickBooks i cr liability che to print cheques ARE C aoit revenn a select this checkbox a Review liability cheque to enter expenses penalties If you write cheques Payment Date by hand clear it 11241572003 al Show Payroll Liabilities Dates Ei From 1170172003 E Through 1173072003 Sort By Payable To Bs This is the date the Z Payrol Item Payable To Amt Due i Pies transaction affects CPP Company Receiver General 559 25 00 j Mark the liabilities A CPP Employee Receiver General 559 25 H your chequing EL Company Receiver General 447 34 i you want to pay account EI Employee Receiver General 319 52 i Qu ickBooks creates Federal Income Tax Receiver General 1 696 13 one cheque per liability payee like the Receiver Select this checkbo eI a General not one to show all payroll Sa La cheque per liability liabilities for the To add a name that s period including any If you want you can missing in the credits and zero change the amount Payable To column of amounts you re paying in this this window edit the column payroll item 212 Chapter 7 Payroll and employees ae 4 Select whether you wa
235. kBooks Names of possible Timer users Employee Vendor and Other Names lists 228 Chapter 8 Time and cost tracking Information Timer needs Source in QuickBooks Names of customers and jobs if time will be Customer ob list billable to a customer or job Type of work that the customer may be invoiced Service type items from the Item for if time will be billable list Names of QuickBooks classes if time will be Class list assigned to classes T To learn about Search the Help index for Preparing a file of information Timer exporting lists to from QuickBooks that the Timer can use Using the Timer After you have done the tasks described in Setting up QuickBooks to track time on page 225 and in Setting up and using the Timer on page 227 you are ready to track time with the Timer Recording activities in the Timer You can use the Timer either to timean activity while you are doingit or to record thetime after you have finished You can run the DAN QuickBooks Pro Timer ox LEGG Of xi Timer in a larger 02 15 window that a l shows detail or m New Activity Edit Activity 02 z 1 5 Stop Current Activity in a very small one far right chon obey Eerie oilics Repairs Timin X Click this button to switch between minimal size and full size The first time you do an activity for a given customer job and type of work you have to set up the activity in the Tim
236. kBooks uses several types of files Here are some of the more common ones m QBW Your company file This contains your company set up and all the information you enter customers vendors transactions etc for your company QBB A compressed backup of your company file m QBX A compressed version of an Accountant s Review copy of your company file See Exporting data for your accountant Accountant s Review on page 86 m QBA An Accountant s Review copy of your company file that s not compressed that is what your accountant gets when he or she opens the QBX file you provided m AIF A special file containing the changes your accountant made to your company s booksin the QBxX file you provided You merge theinformation from this file back into your regular company file QBW Chapter 4 QuickBooks basics Customizing your forms Note You can customize any sales or purchase form template and create any number of versions to suit your business needs If you plan to print your invoices or statements on preprinted forms from Intuit you should make only minor adjustments to the Intuit templates For example adding a logo adding your company name and address or changing fonts still allows you to use preprinted forms and double window envelopes you purchase from Intuit You can t however add change delete or move columns unless you have purchased custom designed forms For each form you customize yo
237. king inventory inventory accounts If you purchase a fixed asset you normally associate a fixed asset account with it When you sell a fixed asset you normally associate a fixed asset account with the asset Before you set up your items you have to decide how much detail from your sales and purchases needs to show up in reports about your accounts The profit and loss statement for example isa report on your income and expense accounts You can see details of your sales such as number of units and dollar amount of each item sold on the QuickBooks sales reports You don t need to have the same level of detail on your profit and loss statement For example m Cynthia has a single income account for all sales income She doesn t want to see any further breakdown on her profit and loss statement and she doesn t need it for her tax returns m Derek on the other hand wants to split up income from services and income from materials he buys for a job and then puts on the customer s invoice Thus he uses one income account for all his service items and asecond income account for all his non inventory part items for his materials Like Cynthia he has far more items than income accounts Chapter 2 Setting up anew company How many different items do you need Every business is different but knowing how QuickBooks works can help you decide how specific your items should be First once you usean item in atransaction you
238. king payroll items inactive lists hiding and showing entries hiding them or showing them Deleting payroll items payroll items deleting Merging payroll items lists merging two entries employee information You can change an employee s personal or payroll information whenever necessary The changes will affect all future pay cheques you write to him or her Changesto an employee s name address or Social Insurance Number are reflected in previously written pay cheques but do not affect the amounts of those pay cheques These types of information must be changed individually for each affected employee Changing the associated payroll item doesn t affect the enployees who use it m Annual limits for a deduction m Rateor amount changes for a deduction addition company contribution or other tax item 202 Chapter 7 Payroll and employees Tip Note Change the information in the employee defaults first In many cases QuickBooks asks if you want to also change the information for all matching employees QuickBooks also provides a notepad with which you can make notes about an employee To learn about Search the Help index for Changing employee information employees editing Giving an employee a raise employees raises Adding custom fields for an employees custom fields for employee Hiring and releasing employees When you hire a new employee add the employee to the Employee list see Setting up em
239. kup file which only QuickBooks can open You can give the backup file any name you want QuickBooks automatically gives your backed file the extension QBB For a description of the various file types QuickBooks creates for your company file see Quick Books Keyboard Shortcuts on page 95 It s a good idea to store at least one recent backup off site That way in case of theft or natural disaster you ll have a copy of your company data in a safe place You must be in single user mode to backup your company file In single user mode only one person at a time can access and work with your company file If you have QuickBooks Basic you are always working in single user mode and do not need to worry about switching If other people are working with the company file ask them either to close the file or exit QuickBooks Then from the File menu choose Switch To Single User Mode Backing up your company data 107 Recommended backup routine 108 T If you use QuickBooks Pro or better in multi user mode you must switch to single user mode to create a backup For more information on single user mode see Working with multiple users on page 122 m Prepare several sets of backup media If you re using 3 5 floppy disks to backup you may require multiple disks depending on the size of your company file m Label the backup media QuickBooks Backup Monday QuickBooks Backup Tuesday etc If you
240. l and Employee Preferences When you ve selected the employees you want to pay click Create to display pay cheque information for the first employee Tip You can pay employees in groups For example first select all of your salaried employees whose pay cheques you don t need to review and the Create cheque without preview option then click Create Next select your hourly employees and the Enter hours and preview option then click Create The pay cheques of the hourly employees appear so you can enter their hours worked 206 Chapter 7 Payroll and employees Preview ing adjusting and creating pay cheques When you select Enter hours and preview cheque before creating in the Select Employees To Pay window then click Create QuickBooks displays the Preview Pay Cheque window To prevent vacation pay and accrued hours from accruing Preview Pay Cheque Ask a help question Ask How Dol x If the employee is IL Walker Pay Period 12 01 2003 m 12 15 2003 m paid by the hour type Eamings Item Name Rate Hours CustomerJob Service ltem Cl X i or editthenumber of fsz H o H a a Z on this pay cheque Sick Avail hrs 0 00 only for example if hours worked at each Vacation Avail S 0 06 rate of pay Sick Ace hrs 0 ea eee Leen s7 itis acommission or UuICKBOO ro TIS Quantity 4 bonus pay cheque select this checkbox zi I Do not accrue in hours worked Other Pay
241. ld I use classes jobs or types Ask yourself Am I trying to track income or expense activity associated with a particular customer or group of customers or group of jobs If your answer is Yes then you use jobs customer types or job types or track expenses by job The following table shows what you can do with each of these To do the follow ing Keep track of sales for separate jobs or projects for one customer Do this in QuickBooks Set up and use jobs for the cus tomer on the Customer ob list Examples of reports you can use Sales by customer summary which shows each job separately See income or expenses for one type of cus tomer as distinguished from another type Example A PR writer wants to compare a res taurant with retail clients QuickBooks Pro and better only See income or expenses for one type of job as distinguished from another type J obs of the same type can be for different customers Example A construction contractor wants to compare kitchen remodels with office remodels When entering or editing a cus tomer assign a customer type When entering or editing a job assign a job type Sales by customer summary filtered for one customer type Profit amp loss by job filtered for one customer type Sales by customer summary filtered for one job type Profit amp loss by job filtered for one job type Assign expenses to a customer or to a particu lar j
242. ld QuickBooks that you have a direct connection you should be able to access QuickBooks Internet features by connecting to your ISP before opening QuickBooks Update QuickBooks to the latest release Tip From time to time Intuit provides updates to QuickBooks that are available for downloading from the Internet These updates might be m A maintenance release which Intuit creates when a problem is discovered and fixed after QuickBooks is delivered to customers A new feature or service Timely information that is relevant to your business If you don t have a company file but want to update QuickBooks open one of the sample company files included with QuickBooks then update the software as you normally would If you signed up for the QuickBooks Payroll QuickBooks checks for new tax tables whenever you check for other updates to your software Getting updates from the Internet In QuickBooks the Update QuickBooks window gives you a convenient way to download updates from the Intuit server to your computer To download an update you need to have set up QuickBooks to work with an Internet connection see Connect QuickBooks to the Internet on page 55 There are several ways to update your version of QuickBooks through the Internet Automatic Update This option prompts you when a new release is available for your version of QuickBooks If you choose to update when prompted QuickBooks down loads the necessary files
243. le if you condense last fiscal year s data you can still create profit and loss reports that compare last year s results to this year s This is because QuickBooks adds summary transactions to your company file to preserve monthly account balances Transaction detail After you condense your data you won t be able to create reports that show daily detail for the period of time you condensed This is because QuickBooks has deleted the individual transactions that would have provided the detail In addition you won t be able to create reports that show balances for individual customers or vendors over that period of time As a result the totals for sales revenue on GST PST liability reports will be incorrect As a precaution QuickBooks creates a backup filein case you need access to the deleted transactions later Cash basis reports After you condense your data you won t get an accurate cash basis report for data that includes a condensed time period This is because QuickBooks has deleted the individual transactions that would have provided the information about whether transactions were paid As a result the totals will be incorrect To learn about Search the Help index for Condensing QuickBooks company file condensing data Restrictions for condensing data if you re condensing data using the QuickBooks Payroll Condensing your company file 117 Reconciling bank and credit card accounts 118 You should
244. liability and expense accounts but not the bank account You may want to choose this option at setup if you have never used a pay roll liability account before and you want a correct balance in the account This option is also appropriate after you Start using payroll if you need to adjust the amount owed for a payroll item Enters an increase in each liability account associated with a payroll item used for the period Tracks an expense for each expense account associated with a payroll item used for the period Enters a decrease in the Opening Bal Equity account for the net amount paid the employee during the period This adjustment keeps your books in balance Affect liability expense and bank accounts You are unlikely to want to choose this option at setup since it affects your bank account balance Enters a payment in the designated bank account for the net amount paid the employee during the period Enters an increase in each liability account associated with a payroll item used for the period Tracks an expense for each expense account associated with a payroll item used for the period 198 Chapter 7 Payroll and employees About wage bases A wage base is the portion of an employee s earnings that s actually used to calculate payroll withholding amounts It does not include any earnings or wages that may be tax exempt It s also called taxable income insurable earnings or pe
245. lities QuickBooks shows you how much you owe and to whom lets you choose which liabilities to pay and creates the cheques for you It also helps you fill in the forms to send to the government with your payment Some types of businesses and businesses in some regions have to complete different payroll formsfrom the ones discussed here Be sure to discuss your business with the CRA and your accountant to ensure your payroll meets all the regulations that apply to it Step Procedure 1 Create a Payroll Liabilities report from the Reports menu select Employ ees amp Payroll then Payroll Liability Balances to see how much you owe to whom and for what 2 Adjust the amounts you owe if necessary It usually isn t 3 Use the Pay Payroll Liabilities window to create cheques for the amounts you owe 4 Fill in a PD7A form to send to the CRA along with your payment 5 In Qu bec fill in a TPZ 1015 form to send to the Minister of Revenue with your payment 210 Chapter 7 Payroll and employees Enter the date you want this adjustment to affect your payroll liability account Select a payroll item to adjust Adjusting a payroll liability In rare cases you may find that the amount for a payroll item tracking a liability doesn t match what you actually owe For example there may be a discrepancy due to rounding You can adjust your payroll liabilities with the Liability Adjustment window 1 FromtheEmployees
246. ll data is complete 199 Managing payroll and employee information 200 Changing payroll item information 200 Changing employee information 201 Running payroll and paying taxes 205 Selecting employees to pay 205 Previewing adjusting and creating pay cheques 206 Printing pay cheques and pay stubs 208 Paying payroll liabilities and filing payroll forms 209 Creating year end T4 and Relev 1 dips 213 Preparing year end payroll forms 213 Getting information about your payroll 217 QuickBooks Payroll Reports 217 vii Chapter 8 Appendix A Time and cost tracking 221 Should I track time 222 Should make time billable 222 Should track time for subcontractors 223 How much detail should track for time activities 223 Setting up QuickBooks to track time 225 Setting up to use time tracking with payroll 226 Viewing editing and printing time data 226 Setting up and using the Timer 227 How the Timer works with QuickBooks 227 Setting up the Timer 228 Using the Timer 229 Importing Timer data into QuickBooks 232 Using the Stopwatch to time an activity 233 Entering time manually into QuickBooks 234 Paying for time worked 235 Charging customers for time worked and other costs 238 Timer Reference Sheet 244 Contacting Intuit 247 QuickBooks Support 248 Telephone support 248 Web based support 248 Miscellaneous services 249 Solving problems on your own 249 Speaking with a
247. lp index Search the Help index for Export QuickBooks lists for the QuickBooks Timer exporting liststo Timer and give the file to the Timer user Prepare Timer install disks ifthe QuickBooks Timer creating disks m Timer user can t use the Quick for Books CD ROM Install the Timer on the user s Timer See Timer Reference m computer Sheet on page 244 Create a Timer data file for the Timer data files creating m QuickBooks company file that search the Timer help will be using the Timer data Import the QuickBooks lists in Timer lists importing m the IIF file into the Timer data search the Timer help file From the Timer s list of users Timer default user m choose the name of the person search the Timer help whose work will be recorded in this Timer file Exporting lists from QuickBooks for the Timer The first step in getting the Timer ready to useis to prepare a file with the information the timer needsin order to work with QuickBooks The Timer must describe activities using the same names that are on the lists in QuickBooks To create an IIF file for the Timer from the File menu in QuickBooks select Timer then Export Lists for Timer Now follow the instructions on your screen If the Timer will be used on another computer the exported IIF file should be copied either to a 3 5 inch disk or on a network that both computers can access Information Timer needs Source in Quic
248. lues arein hundredths of an inch For example 25 means 0 25 of an inch m For continuous feed printers if the printing is off to the left or right by a large amount move the form over in the printer to correct the problem Use the Fine Alignment window for changes of less than 0 25 inch only Chapter 4 QuickBooks basics Fine Alignment x oer Print Sample to use the Alignment Print Sample Enter amount to move the text in 1 100 OK inch increments Vertical E Cancel Horizontal 04 gt Help Problem Solution The text prints too Decrease the number in the Vertical field For example if the text is high printing 2 squares that is 0 2 too high type 20 in the Vertical field The text prints too Increase the number in the Vertical field For example if the text is print low ing 11 2 squares that is 0 15 too low type 15 in the Vertical field The text prints too far Increase the number in the Horizontal field For example if the text is to the left printing a 1 2 square that is 0 05 too far to the left type 5 in the Hori zontal field The text prints too far Decrease the number in the Horizontal field For example if the text is to the right printing 1 square that is 0 1 too far to the right type 10in the Hori zontal field 10 Click Print Sample to see if the form is now aligned correctly 11 When you are finished making adjustments click OK QuickBooks saves the ho
249. lumn for each field files or databases word proces sor or spreadsheets Add to the list then import it back into QuickBooks lists not transactions or reports T To learn about Search the Help index for Exporting lists to another QuickBooks company exporting data Transferring information to M icrosoft W ord Excel Outlook or Symantec ACT If you use QuickBooks Pro or better you can easily export data to Microsoft Word or Excel and synchronize your contacts with Microsoft Outlook or Symantec ACT m f you use Microsoft Word as your word processor you can use customer vendor employee and other names in letters m If you use Microsoft Excel you can export your QuickBooks report data to Excel for further customization and filtering If you use Outlook or ACT you can synchronize your contact information with Quick Books To learn about Search the Help index for Writing letters Exporting data to Excel Synchronizing contact information letters reports exporting to Microsoft Excel a contact manager contact management synchronizing with Importing from exporting to other software 85 Give your accountant permission to access your QuickBooks file remotely If your accountant has QuickBooks Premier Accountant Edition they can use the QuickBooks Remote Access to work with your file directly from their computer This can save your accountant the time and expense
250. m employees or paid as a company expense m Each deduction you withheld and then paid for example for benefits such as an employee paid dental plan m Each company contribution you paid for example for benefits such as a company paid health plan This adjustment is just for your payroll liabilities and your expenses for employer paid payroll withholding It is not for expenses paid directly to employees such as salaries bonuses or hourly wages Summarizing amounts for this year to date 199 Prior Payments of Taxes and Liabilities x E For Period Ending 12 31 2002 Payment Date MAMATE Type the date A Taxes and Liabilities gt gt Next Payment Typethe ending date of the period you are summarizing you made the Item Name Amount Memo liability Union Dues payment Federal Income Tax CPP Company CPP Employee El Company El Employee QPP Company OPP Employee Quebec Income Tax To learn about Entering YTD liability payments Cancel lt lt Pev Payment y Done Accounts Affected Search the Help index for year to date amounts liability payments M aking sure your payroll data is com plete Because QuickBooks bases new payroll transactions on existing ones it s very important that you enter all of your payroll data accurately After you set up your payroll information in QuickBooks you should mak
251. m Hours as decimals for example 1 5 m Hoursas fractions for example 1 1 2 m Number of minutes for example 90 No matter which format you use the Timer displays hours and minuteswhen you tab out of the field 5 Click OK to record the activity and its time Shrinking the Timer m Click the Resize button to the right of the Start button m To make thetimer full size again click the Resize button on the shrunken Timer Exporting Timer data for QuickBooks 1 FromtheFile menu of the Timer choose Export Time Activities 2 Inthe Export Activities window change the date through which to export all unexported activities if the date is not correct 3 Click Export 4 Inthe Create Export File window specify a name drive and folder or directory for the IIF file you are creating 5 Click OK Using the Timer s Help system For onscreen help while using the Timer press F1 or choose Help for this Window from the Help menu To find out how to use other Timer features such as entering notes or viewing your activity data choose Help Contents from the Help menu System requirements for the Timer The Timer requires the following hardware and software m 486 PC or higher with aminimum of 8 MB megabytes of RAM random access memory 16 MB is recommended m Hard disk with at least 8 MB of free disk space plus space for your data file m Windows 3 1 or later VGA monitor or better Charging custome
252. mates and all sales forms invoices sales receipts credit memos require items So do QuickBooks statement charges which print on statements If you re a professional you may not think of your statements as sales forms but they are m You can fill out sales forms or enter statement charges quickly QuickBooks automati cally enters the description and rate or price you entered in the item s setup window When you enter a quantity QuickBooks calculates the amount m When you record a sale remember it can be for a service QuickBooks automatically tracks the income in the appropriate income account You can fill out a sales form or enter a statement charge keep track of your sales and keep track of income all in one step m You can create reports that show total units of each service or product sold as well as dollar amount totals 24 Chapter 2 Setting up anew company Items for If you re still not sure you need items Here are some examples of businesses or organizations that use items m Rebeccaisthe bookkeeper for a country club where memberssign for meals drinks and fees and receive a statement at the end of the month Rebecca uses itemsin QuickBooks for each of these She uses the items to enter statement charges for each member and create monthly statements m Mario isa dentist He has items set up for the various services he provides to his patients cleaning x rays filling cavities and so on In con
253. mational emails access to an online forum and referral programs If you like you can also have your name listed on our Web site to attract new QuickBooks clients To become an IntuitAdvisor or find one near you visit the QuickBooks Web site http www quickbooks ca Chapter 2 Setting up anew company How many companies should you set up The Canada Customs and Revenue Agency formerly called Revenue Canada requires that for each business you have you clearly show its income and expenses For tax purposes it s usually best to set up a separate QuickBooks company for each business that files its own tax return For example if you have two shops and file one tax return for each you need to set up two company filesin QuickBooks However if you havea farm that grows wheat and raises pigs and you file only one tax return for the entire operation you only need one company file in QuickBooks In cases like these in which you have one business but need to track different segments of it set up one company file in QuickBooks and use Classes These are a way of categorizing income or expenses within income or expense accounts For example Use classes to track the following Industry examples Account executives Advertising Consulting Partners Law firms Consultants Construction industry standard categories General Site Work Construction contractors Concrete Masonry and so on Departments Businesses that budget
254. me making billed time billable billed for it mistakenly again 242 Chapter 8 Time and cost tracking Recording the cost of work vs invoicing for it Don t make both a worker s time and your payment to that worker for the time billable m If you make a subcontractor s bill for time worked billable you can invoice your cus tomer in turn for the subcontractor s charges When you invoice the customer open the Choose Billable Time and Costs window and select the subcontractor s bill from the Expenses or Items tab whichever you used on the subcontractor s bill This is the recommended method m If you pay a subcontractor owner or partner for time worked by using the Write Cheques window you can make the service items on the cheque billable Then when you invoice your customer open the Choose Billable Time and Costs window and select the time from the Items tab m If you make the time itself billable you can invoice for the time from the Time tab of the Choose Billable Time and Costs window m If you make both the time and the bill or payment billable you are in danger of invoicing the customer twice for the same work When you record time you are not recording any costs To record costs you have to take additional action The sameis true when you bill your customer for time worked you are not recording its cost to you The following table shows how you record costs for time worked and what you have to
255. ment of cash flows 16 statements reconciling 118 stocking units 32 Stopwatch timing activities with 233 when to use 224 subaccounts adding to chart of accounts 48 payroll 178 subclasses 5 12 subcontractors deciding whether to track time for 223 paying 189 services performed by 39 272 Index If you don t find the topic you are looking for here try QuickBooks Help T4A forms for 236 time worked paying for 236 subitems compared to group items 32 creating 38 subtotal items creating 38 description 31 using on sales forms 42 subtotals on reports 102 summary transactions 116 support contacting technical 253 support plans explained 248 T T4 forms 213 E filing 215 filing 213 prepare 213 printing 215 tracking information in QuickBooks 182 T4 Summary prepare 213 report 216 T4A forms setting up 236 tape drive 110 tax codes adjustments 151 customer 145 for items 144 items for 181 paying GST PST liability 148 Zero Rated about 144 tax forms payroll 209 PD7A 212 Relev 1 forms 213 Reev 1 printing 215 RLZ 1 S V report 216 T4 and T4 Summary preparing 213 T4 forms 213 T4 Summary report 216 T4 E filing 215 T4 printing 215 TPZ 1015 report 213 tax lines assigning to accounts 129 taxes preparing information 129 QuickTax 129 reports about 130 TD1 forms employee defaults and 189 192 technical support 248 p
256. mit them to the CRA through the Internet rather than through the mail If you do be sure to m install MSXML 4 0 or later on your system available at no cost through http download microsoft com if QuickBooks prompts you to m contact the CRA for a Web Access Code and a Magnetic M edia Number also called a Transmitter Number if you do not have one You can visit their Web site at http www ccra adrc gc ca tax business t4internet menu e html E File all your T4s at once rather than in batches ensure that T4s for employees with more than six other or special boxes have been returned to their original state after printing their second T4 slips Note Check the business number that the CRA issued to you From the Edit menu select Prefer ences then select Employees amp Payroll from the list on the left and click the Company tab The business number should be in this format your nine digit registration number then a two letter program identifier then four more numbers If your business number does not contain the letters RP contact the CRA You cannot E File T4 slips until your business number is updated 216 Chapter 7 Payroll and employees Note To E File year end T4 slips with the CRA 1 Confirm that the employees whose slips you want to E File are selected 2 Click E File T4s 3 Fill in the E File window m Enter your Magnetic Media number in the Transmitter Number field m If your company is a sole p
257. must first subtotal the items On the other hand if you want to discount one particular item you ve sold and not the entire sale add a discount item directly beneath the one discounted item Description Amount Tax X Fixtures Tub Jet Jetted bathtub Canadian Classic 1 365 00 1 365 00 S The first line shows a total Fixtures Washbasir Oval Cdn Classic washbasin marble 364 00 364 00 5 for all materials fsbo Materials subtotal 1723 00 Labour Constructio 16 5 Labour Framing 40 00 660 00 E The third The second subtotal shows Labour Constructio 8 a ets 75 00 i pi 26 btotal line abour subtotal a l a total for all labour Materials amp Labour subtotal 30 0 2 989 00 adds up the Markup Profit amp Overhead 896 70 two previous The second subtotal also subtotals so makes the third subtotal a Sadi P include the amounts on E mas e apple the invoice so a Customer z Gr T280 to the entire k Message business sale percentage markup can PST 210 06 apply to the total sale Total 4 279 56 If you give discounts of different percentages you can either set up a separate discount item for each percentage or edit the amount right on the sales form Don t use a discount item for discounts that you give for early payment Enter discounts for early payment through the Receive Payments window Search the help index for receiving payments about Show ing partial payments rec
258. n as they work Examplesincludesick time and time off in lieu of paid overtime aging The tracking of due dates and amounts of outstanding invoices and of your unpaid bills QuickBooks has preset accounts receivable and payable aging reports assets Assets include what you have and what people owe you Examples include m cash on hand and in your chequing account m money you are owed m furniture m vehicles total assets total liabilities equity balance sheet A report that summarizes the financial position of a business A balance sheet shows the value of your company s assets liabilities and equity as of a particular day It is called a balance sheet because the value of the assets is always exactly equal to the combined value of the liabilities and equity billable Time worked or purchases made for a particular customer or job that you want to charge back to that customer or job in QuickBooks After you put the time or purchase on a sales form QuickBooks marks it non billable so you won t charge twice for the same thing cash basis A method of bookkeeping in which you regard income or expenses as occurring at the time you actually receive a payment or pay a bill CRA Canada Revenue Agency formerly Canada Customs Revenue Agency class Anything in your business other than a customer or job for which you need to track both income and expenses condense To remove detail you no longe
259. n from it nor does it create any connection between it and your new QuickBooks company You can continue to use your original file with Quicken Once you re using QuickBooks for your business you ll probably want to continue using Quicken for your personal finance and investment accounts Do not use online banking for the same account in both programs If you track the same account in both Quicken and QuickBooks you can only use online banking in one program If you try to use online banking for the same account in two different programs it will not work correctly Here are some personal finance activities you can perform only with Quicken m Track investments Quicken includes investment tracking and reporting Quicken updates the market values when you enter the latest share prices and it reports on average annual total return capital gains and investment income m Amortize mortgage loans Each time you record a payment on aloan Quicken updates the number of payments made and calculates the amount credited to principal and interest m Create reports for personal finances Quicken has many preset reports designed for personal use Converting data from Quicken 73 Converting data from MYOB Note This section explains how to convert your MYOB data to QuickBooks data set up your payroll and goes over some of the differences between the two programs After you have finished converting some adjustments may ne
260. n sales forms the tax default code you assign to customers overrides the tax codes you assign to items Should I track my provincial sales tax separately When you buy an item for your business in most provinces you are either exempt from paying the PST on it if the item is to resell or else you cannot claim the PST you paid on it as an input tax credit unlike the GST That means that for accounting purposes you can consider the PST on an item you buy as part of its cost and not bother tracking it separatel y However if you can claim back the PST you pay on items for your business as in Qu bec or want to record the amount of PST you pay for your own information you can track the PST separately In the first case the PST you pay is assigned to your PST Payable account to reduce your PST liability to the government in the second case the PST you pay is assigned to a PST expense account for your information only Setting up sales taxes 141 To change your GST PST reporting period 1 2 3 Make sure you are working in the appropriate area either the Goods and Services Tax Preferences or the Provincial Sales Tax Preferences Select either Monthly Quarterly or Annually next to Reporting Period Select the ending date for each reporting period from the Ending drop down list To change the accounting basis of your sales tax reporting In Canada the accounting basis for GST and PST is accrual not cash by law Th
261. n use passwords to make sure that each employee you have can only access those parts of QuickBooks you want him or her to use Areas you can protect include sales and accounts receivable purchases and accounts payable chequing and credit cards inventory time tracking payroll sensitive accounting activities and sensitive financial reports In this way you maintain the security of your business data even when several people access your company file simultaneously Until you set up users and passwords in your QuickBooks company file any person who accesses the file will have full access to all features of the program Working with multiple users 123 124 Note Setting up the Administrator and users About the QuickBooks Administrator When you create a QuickBooks company file QuickBooks creates a user called Admin This user is the QuickBooks Administrator for the company file You can set up a password for the Administrator When you assign a password to the Administrator QuickBooks prompts you to log on when you open the company file Do not forget the Administrator s password Once you ve decided on a password for the Administrator write it down and store it in a safe place An Administrator s password if forgotten cannot be recovered If you forget this pass word you ll have to send your company file to Intuit there may be a fee for this service The QuickBooks Administrator has unlimited acce
262. n which you can make notes about an employee P To learn about Search the Help index for Adding new employees employees adding Changing information about an employees editing existing employee Setting up payroll information for employees payroll information an employee How the order of payroll items pay cheques affecting amounts affects amounts on your employee s pay cheques Categorizing employees by class employees grouping by department or location Adding notes for an employee employees notes about 192 Chapter 7 Payroll and employees T If you pay on com mission QuickBooks Pro and better If your employees earn commissions for items they sell after setting them up on the Employee list you should also set them up on the Sales Rep list When you enter an invoice sales receipt or estimate select the employee s initials from the Rep drop down list on the sales form to give him or her credit for the sale Then you will be able to produce reports showing sales by employee Pay commission employees with commission payroll itemson a pay cheque not a regular non payroll cheque For more information turn to Previewing adjusting and creating pay cheques on page 208 To track commission sales for owners or partners add them to the Sales Rep list like employees but pay them with an owner s draw instead of a pay cheque To learn about Search the Help index for Paying the owner s of a b
263. nd 66 navigators 92 net worth 8 networks how QuickBooks works on 122 sharing QuickBooks on 123 non inventory part items creating 37 description 30 non posting accounts on chart of accounts 7 notes adding to Timer activities 230 numbers changing how numbers display 60 for accounts 49 formats in reports 102 numerical accounts on chart of accounts 48 O officer salaries 181 online accounts downloading transactions 122 PIN password 120 reconciling 121 reenabling after converting 67 online banking converting from Quicken 64 67 going online 120 setting up 120 online registration activation for QuickBooks 252 onscreen help 97 98 how do I menus 98 Learning Centre 99 Open Window list 92 Opening Bal Equity account 53 adjusting balance during setup 53 described 53 opening balances balance sheet accounts changing 48 customer or job changing 23 entering in EasyStep Interview 19 for accounts 51 order creating sales 36 other asset accounts 8 other charge items creating 37 description 31 other current asset accounts 8 other current liability accounts 8 Other Names list after Quicken conversion 65 other tax items 181 Other on reports 104 overpayments GST PST liability refund cheque for 150 payroll liability refund cheque for 212 Index 267 owner s draws 54 owner s equity 54 owners commission sales 192 paying 189 paying for time wo
264. nd Relev 1 slips L How to pay employees and create payroll forms QuickBooks helps you track employee information and compensation With the payroll features you can create pay cheques and administer vacation pay bonuses benefits end of year payroll forms such as T4 and Relev 1 slips and more To pay your employees with QuickBooks you must be a member of the QuickBooks Payroll Some versions of QuickBooks include a membership in the service This convenient hassle free service provides you with the latest tax tables and payroll forms whenever the federal or a provincial government changes them plus a new version of the software whenever Intuit updates it To sign up from the Employees menu select Set Up QuickBooks Payroll Service then Sign up Now For more information turn to page 174 173 Payroll before you begin Membership in the QuickBooks Payroll Before you can use QuickBooks to pay your employees you must become a member of the QuickBooks Payroll Some QuickBooks products include either a full or limited membership If you receive a limited membership you must become a full member to continue to pay your employees with QuickBooks when the limited membership expires Your membership in the Payroll Service ensures that you receive updated tax tables from Intuit whenever income tax Employment Insurance Canada Pension Plan Qu bec Pension Plan or other payroll rates or pa
265. neral Therefore the employee is considered to have earned the bonus on the day you issue the cheque for it If your payroll items are not mapped to the ROE properly in the Payroll Item Listing report double click the payroll item to change QuickBooks starts the payroll item wizard Click Next until you reach the Record of Employment Tracking screen then choose the correct options for this payroll item Click the Help button in the payroll item wizard for more information Chapter 7 Payroll and employees ae T T m confirm you have used the correct payroll items to pay the employee so that he or she has For which they are paid payroll items QuickBooks can use to calculate the ROE Search the Help index To learn about for Hiring a new employee employees adding Releasing an employee employees releasing Creating a Record of Employment record of employment for an employee Hiding show ing or merging employees You can t delete an employee who has existing payroll transactions Instead you can hide an employee on the Employee list by making the employee inactive When you makean employeeinactive QuickBooks keepstheinformation for theemployee but hides the employee s name on the Employee list and removes it from most drop down lists that use employees However the employee s payroll figures still appear on payroll reports You do not need to change or delete any transaction that uses the employee You
266. neral contractor who uses subcontractors and invoices for their costs at a higher ratethan what they chargehim Tinaisan interior designer who buys furniture at wholesale and sells it to the client at retail In QuickBooks Pro or better only service items non inventory parts and other charge items each have a checkbox that allows you to pass through their costs at a markup and track costs and revenues in separate accounts Then you can track both the expenses and the income for these items for a particular job For example the checkbox for a non inventory part is Thisitem is purchased for and sold to a specific customer job If you don t have QuickBooks Pro or better use expense accounts not items for reimbursable costs To learn about Search the Help index for using expense accounts for reimbursable reimbursable expenses assigning to a cus costs tomer or job 38 Chapter 2 Setting up anew company T There are several advantages to using items for reimbursable costs in QuickBooks Pro or QuickBooks Premier editions Itiseasy to associate the cost of an item with an expense account and the income with a separate income account when you set up the item You can track the number of units or hours purchased or sold You can use items on estimates and purchase orders If you write a purchase order for an item you can create a bill from the purchase order and assign a job Then you can invoice the custome
267. net you can modify the connection settings You can also set up other ways QuickBooks can connect to the Internet Doing so gives you an alternate way to connect to the Internet if your regular connection is down for some reason To change your Internet connection 1 From the QuickBooks Help menu choose Internet Connection Setup The Internet Connection Setup displays 2 Select Use my computer s Internet connection settings to establish a connection when this application accesses the Internet 3 Click Next In the Connection Setting window click Advanced Connection Settings The Internet Properties dialogue box appears A 5 To create a new dial up networking connection click Add Follow the onscreen instructions click Next to move through the screens Each Internet connection profile you create is listed on the first screen of the Internet Connection Setup Chapter 2 Setting up anew company If QuickBooks doesn t detect your Internet connection for example you re using certain versions of AOL or CompuServe try the following m Close QuickBooks then connect to your Internet Service Provider ISP m When you have successfully connected to the Internet reopen QuickBooks Goto thelnternet Connection Setup and on the How do you want to connect to the Internet screen select Use my computer s Internet connection settings to establish a connection when this application accesses the Internet Once you have to
268. ng Lessons Snowboarding lessons Tour Design Tour planning and x Camp Cutlery 20 Piece Camp Cutl Coolman Canoe Coolman 15 Canoe GST a Pst ooj Dawaiee Reel Dawaiee Reel 44 45 o Fishing Jacket Sportsman Fishing Total Tackle Box Black PCB Tackle Box Zebra Rod FR6 Zebra 6 Spincast Freeze Dry Freeze Dry Camp Food Hockey Jerseys Jersey s Calgary Flames Calgary Flames Pro Working with items 41 Each item on theltem list can contain all the information you need to fill in one line You can always change the information such as the description and rate as you re fillingin a form When you enter a quantity QuickBooks automatically calculates the amount for you When you enter The Item column lists the item QuickBooks multiplies the Quantity by items QuickBooks name you entered when you the Rate to calculate the Amount keeps track of how created the item much of each item Description Amount Tax you sell and to Coolman Canoe Coolman 15 Canoe whom Fishing Dawaie Dawaiee Reel 44 456 Spinning Reel Each item that you Fishing Fishing Sportsman Fishing Jacket sell is associated Fishing Tackle Box 1 Black PCB Tackle Box with an income Fishing Zebra R Zebra 6 Spincast Rod Part 654 account a Customer Thank you for your bat This association Message business allows QuickBooks to provide useful sales and income reports You ll have separate items not only for each
269. ng again you ll need to re enter your ending balance and your service charges and interest earned You ll also need to check off additional payments and deposits When you reconcile be sure to add any bank service charges interest earned and finance charges To learn about Search the Help index for Reconciling a bank account reconciling bank statements Reconciling a credit card account reconciling credit card statements Adjusting for differences reconciling adjusting for differences Chapter 4 QuickBooks basics M atching bank deposits and credit card deposits QuickBooks Credit Card Service users As a QuickBooks Credit Card Service user you can use QuickBooks to help match your customers credit card payments with the ump sum deposit on your bank statement as well as account for banking fees To do this in the Receive Payments or Enter Sales Receipts window select the Group with other undeposited funds option In the Make Deposits window you can display credit card payments views grouped by credit card type which lets you see the individual credit card transactions that make up each lump sum deposit Often the bank deposit total is less than the payments you received from individual customers due to credit card transaction fees QuickBooks calculates the difference for you automatically and lets you assign the transaction fee to an expense account be Make Deposits Previous Next lt
270. ns to backup your company file to the floppy disk s Backing up your company data 111 Note If you need more than one disk QuickBooks asks you to insert an additional disk as each disk fills up Label the disks so that you ll know which one was first which was second and so on This will help you if you ever need to restore the data from the disks If you selected to format before backing up the disk QuickBooks formats sequential disks as you place them into the drive Testing your backup Due to the volatility of floppy disks we recommend that your test the data that you ve stored on your floppy disk You ll use the Restore feature to test your backup This procedure uncompresses your backup file and creates a new company file using the data from the backup Unfortunately testing the backup data doesn t ensure the integrity of your floppy disk There is still a risk of your backed up data becoming corrupt Corruption can occur due to age environmental changes over use or for reasons beyond your control To test the data you ve backed up I Insert the 3 5 floppy disk that contains your backup file or if you re restoring from multiple disks insert the first disk 2 From the File menu choose Restore 3 In the Get Company Backup From section select Disk then click Browse to navigate to the file on your floppy disk drive and click Open 4 In theRestore Company Backup To section click Browse and navig
271. nsionable earnings For every government withholding payroll item such as income tax CPP QPP and El in thelower half of the YTD Adjustment window QuickBooks tracks the employee s wage base for reports You can view the employee s wage bases by clicking Show Wage Bases QuickBooks calculates wage bases for government withholding amounts in this way m First it totals all salary hourly wages and commissions m Then it adds the payroll items that increase the gross amount m Finally it subtracts the payroll items that decrease the gross amount If the year to date total of a wage base for a withholding amount exceeds the maximum annual earnings limit for that withholding amount the wage base equals the maximum earnings limit If you entered amounts for earlier periods this year QuickBooks counts the wage base from the earlier periods towards the maximum 2 To learn about Search the Help index for Wage bases wage base Entering year to date summaries of liability payments Note Skip this section if your company has not made any payments for payroll withholdings such as deducted income tax this calendar year For this adjustment you ll need to know how much you paid from January 1 of this year up to your QuickBooks start date for each of the following m Income tax and other payroll withholding amounts Employment Insurance Canada Pension Plan or Qu bec Pension Plan and other payroll taxes whether withheld fro
272. nt Use payment items on cash sales receipts only when you need to show two or morekinds of payments on the same receipt 256 Glossary profit and loss statement This report shows how your cash position changed over a period of time It shows the amount of cash earned from profit where you received additional cash and where your cash was spent progress invoice One of a series of invoices all based on the same estimate for the same job Use progress invoices when you want to invoice for thejobin phases that is by milestone or by percentage complete QuickBooks keeps track of the amount you have already invoiced and the amount not yet invoiced QuickReport A report that shows a list of transactions you are likely to want to see for the name you have selected The particular report depends not only on the name you select but also where you select it realized gains and losses For transactions that involve foreign currencies the difference between what the foreign currency was worth when the customer paid you and what it was worth when you converted it to your home currency by depositing it into your financial institution or if you haven t converted the foreign currency to your home currency what it is worth today Contrasts with unrealized gains and losses reconcile accounts An analysis explaining the difference between a company s book balance of cash and it s bank statement balance reimbursed
273. nt to review the cheques then click Create m After you create a cheque the Payroll Liabilities report shows a decrease in the amount you owe to reflect the payment However the PD7A Summary report shows the amount you owed for the period regardless of payments you ve made To learn about Search the Help index for Paying payroll liabilities payroll liabilities paying Adding a name missing in the payroll items editing Payable To column Creating a report that shows your payroll reports about payroll liabilities Entering a discount for payroll payroll liabilities discounts liabilities Entering a penalty for payroll payroll liabilities penalties liabilities Entering a refund cheque for payroll liabilities refund cheque overpayment of payroll liabilities Creating a PD7A report Along with your monthly payment to the CRA you need to submit a PD7A Current Source Deductions Remittance form On this form you report the federal incometax amounts El premiums and CPP contributions you withheld from your employees pay cheques over the past month To help you prepare this form QuickBooks provides a PD7A Summary report 1 From the Reports menu choose Employees amp Payroll then PD7A Report 2 Check that thedates show the correct payroll deductions period they probably don t and type new dates if necessary 3 Click OK to generate the report 4 Usetheinformation on this report to fill in your PD7A form
274. ntered all your historical transactions your chequing account or savings account register already contains entries reflecting bills you ve paid cheques you ve written for other purposes and deposits you ve received But there are other transactions that you must enter to make your account registers complete m Chequesor other payments you created before your start date but weren t cashed until after your start date for example cheques written a few months ago but not cashed until recently m Deposits you made before your start date but which didn t appear on statements until after your start date m Cheques or other payments you made after your start date that were not for bills or accounts payable credit card payments for example Deposits made after your start date that were not customer payments Bank charges fees or interest paid to your account To learn about Search the Help index for Entering information in account registers registers entering transactions in Chapter 2 Setting up anew company Complete your customer vendor and item information Note 9 Adjusting Note After you enter information about customer and vendor open balances you can enter more information about them such as addresses phone numbers and credit limits though it s not necessary to enter this information for all customers and vendors at once If you use QuickBooks Pro or better and Symantec ACT or Microsoft
275. o re enable access in both Quicken and your online accounts in Quick QuickBooks Books after conversion See Re enable your online bank ing accounts on page 67 Supports online account You are not able to use online Select between the two access in Quicken but not account access in QuickBooks choices described in If your in QuickBooks for this account You could con financial institution does not tinue to use online account workonline with QuickBooks access in Quicken on page 68 Converting your Quicken file to QuickBooks 64 When QuickBooks converts a Quicken data file it doesn t change it in any way Also QuickBooks does not create any sort of link between your Quicken data and your new QuickBooks company Instead QuickBooks creates a completely new set of files for you to use m If you ve been using Quicken for Windows 5 0 or earlier Quicken for DOS or Quicken for Macintosh call Technical Support for instructions see page 253 Chapter 3 Importing and exporting data Quicken XG 2003 2002 2001 2000 98 and 6 0 for Windows QuickBooks can directly convert data from these products 1 If your Quicken file is protected with a password start Quicken and then remove the password If you re not sure how check the documentation that came with your Quicken software for instructions Exit from Quicken if it is running N 3 Install QuickBooks Instructions on installing QuickBooks are included in the
276. ob for a customer On every expense transaction for that customer or job enter the customer name or the cus tomer and job name in the Customer ob field The following reports always break down amounts by customer If you have jobs they also break down amounts by job Profit amp loss by job J ob profitability QuickBooks Pro and better only Profit amp loss budget vs actual If you are tracking a segment of your business that is independent of your customers and jobs set up a class for the particular business segment Then enter the class name in the Class field of every income or expense transaction for that segment Decisions to make before you start 13 Reports to measure profitability 14 The value and performance of your company can be summarized by two reports the balance sheet and the profit and loss statement How you set up your accounts will greatly influence the level of detail you can get on these reports You may also want to create the statement of cash flows report which details the net change in your cash during a period The balance sheet A balance sheet is a financial snapshot of your company on one given date This report is useful when applying for a businessloan or at year end to get an account of your company s equity assets and liabilities Assets include what you have and what people owe you Examples include m cash on hand m money in your chequing account m money you ar
277. of work that will be tracked Service items are required only if you make the time billable to a customer or job Be sure to create different service items for subcontracted services service items LJ setting up subcontractors service items for On the Class list set up classes for Class tracking is optional classes adding m the work to be tracked On the Payroll Item list set up Required only if you will track m hourly wages salary or hourly wage payroll items time for employees and pay Salaries to use when paying employees for time tracked them using the QuickBooks Pay roll Setting up QuickBooks to track time 225 Search the Help W hat to do Comments nae for J Set up the people whose time will If you plan to use timetrackingto m employees adding m be tracked help with payroll for any employ other names list of Each person must be on one ofthe ees you must also setup payroll vendors adding following lists information for those employees m Employee See Other Name for owners and m Setting up to use time track ing with payroll below a Setting up employees on page 189 partners m Vendor for subcontractors Setting up to use time tracking w ith payroll As part of the payroll setup for employees be sure 7 to select the checkbox Use time data to create pay cheques on the employee s Payroll Info tab Pay cheques will then automatically have the em
278. oice Dave Ludwick Ottawa ON KSR 2K9 5455 Rue De Terrebonne The tax code that is being applied to this item is shown in the TAX column QuickBooks gets this tax code from the Item List where you assign a default tax code to items 12 15 2003 Dave Ludwick 5455 Rue De Terrebonne Ottawa ON KSR 2K9 Tour Des Tour Design Description Tour planning and research If you need to create a new tax code you can do so from the Tax Codes List under the Lists menu Cust ees Gunter It s been a nena M or 1260 ck serving you i Echano Gii 1490 These fields can be edited ate xchange 1 Total Can 207 00 M Tobe p_Rate Memo Accepting credit cards means customer convenience so you can manually change the amount of tax that QuickBooks calculates Save amp Close Save amp New Clear for you Using tax codes on sales and purchases 145 146 ae Charging GST PST to out of province customers Generally you should charge GST and PST to all your in country customers regardless of where they live Customers who are exempt from the GST and PST can usually claim a refund directly from the CRA formerly the CCRA or your provincial Minister of Finance However each province has different regulations regarding Provincial Sales Tax PST Depending on the number of business locations you may have across the country Intuit recommends tha
279. omes unreadable a data recovery service is available Depending on the support options you choose a fee may be charged for this service See QuickBooks product support on page 253 for contact information Passw ord removal If you forget your password a password removal service is available Depending on the support options you chose a fee may be charged for this service See QuickBooks product support on page 253 for contact information Solving problems on your own Note We recommend you back up your data on CD ROMs or to the Internet before you start For more information see Backing up your company data on page 107 Guidelines for solving typical problems Use the following examples as a guide to solving the problems you are having Try the procedure again Start at the beginning Examine windows where you filled in fields to be sure you are asking the program for what you want For example if invoices you just entered arenot showing on your Profit and Loss statement You should ask questions such as Does the date of the report include those invoices m Do the invoices appear if you change the report from Cash to Accrual basis m Doesthis problem occur with only invoices for one particular customer m Haveyou changed any filters on the report Try to create a new report from scratch to see if the problem is solved Try a related procedure For example if you havea printing problem m Ensur
280. on Materie Interior Interior wood door Inventor Part Construction Materie Activities Y On sales forms you use subitems the same way you use other items On reports based on items QuickBooks subtotals each group of subitems Group and inventory assembly items have a completely different purpose from subitems Group and assembly items allow you to enter a group of items that is several different items at once on a sale or purchase Group items are appropriate for combining several types of items such as catering services and food items on onelinein a sales receipt For an example of entering a group of items see page 43 Assembly items available only in QuickBooks Pro or better are appropriate for indicating products you combine and sell as aunit such as agift basket containing one wicker basket and three jars of homemade jam You can t group fixed assets or make them subitems of other items Setting up your items with different units of measure 32 In QuickBooks Pro and QuickBooks Premier you can set up different units of measure for inventory and inventory assembly type items You would set up items with different units of measure if you purchased in one unit eg a case but sold that item using another unit eg can For example you can buy soda pop in cases with 12 cans to a case and sell them by thecan Then when you sell onecan QuickBooks understands this transaction to mean 1 12 of your inventory
281. onciling bank and credit card accounts 118 Matching bank deposits and credit card deposits QuickBooks Credit Card Service users 119 Setting up online banking account access and payment 120 Going online for the first time 120 Reconciling online accounts 121 Working with multiple users 122 Users and passwords 123 Recording who changed what in the Audit Trail 126 Gathering income tax information 127 How QuickBooks tracks tax information 127 Reporting income tax information 129 Chapter 5 Chapter 6 Solving printing problems 132 When should reinstall my printer driver 132 Nothing happens when you try to print 132 The form is clipped on the top bottom left or right 132 Dates and the bottoms of letters are clipped on forms 135 Printingisslow 136 Tracking and paying sales taxes 137 Sales tax information for upgraders 138 Does your business need to be registered 140 How QuickBooks calculates the GST and PST 140 Setting up sales taxes 141 Entering sales tax liabilities as of your start date 142 Changing the default tax codes 143 Assigning tax codes to items 144 Assigning tax codes to customers 145 Using tax codes on sales and purchases 145 Finding and paying your sales tax liabilities 147 Creating GST and PST Liability reports 147 Recording reductions in PST compensation or commission 148 Remitting your tax liability to the government 148 Adjusting your GST Payable or PST Pay
282. ooks Administrator 124 company files 5 comparing with Quicken 71 dates changing format 60 file types 95 104 network sharing on 123 numbers changing format 60 Payroll Service 174 sample company 99 technical support 253 transferring data 84 updating 57 updating from aCD 60 updating from Web site 59 updating multiple users 59 QuickBooks Backup Service 111 Quicken 62 72 accounts payable converting 65 69 accounts receivable after conversion 68 categories equivalent of 71 comparing with QuickBooks 71 converted data differences 72 converted data fine tuning 65 converting to QuickBooks 62 67 converting from 65 for Macintosh converting from 64 setting preferences 67 QuickStatement for online accounts 121 QuickTax 129 R rates items changing 46 realized gains and losses 167 reconciling accounts 118 canceling before completing 118 online accounts 121 skipped months 118 transactions added earlier 118 Record of Employment report payroll items and 182 preparing 202 troubleshooting 202 refreshing data 123 refund cheques GST PST 150 payroll liability 212 registering activating QuickBooks 252 registers described 94 entering transactions in 50 reimbursable expenses items for 38 miscellaneous charges items for 40 QuickBooks 239 QuickBooks Pro 240 241 release date for an employee 202 Relev 1 forms 213 printing 215 tracking information in
283. ooks you can t delete any name used in atransaction However you can merge the names to shorten the Other Names list To learn about Search the Help index for Changing the name type to a cus other names list of tomer vendor or employee Merging similar names merging list entries Fill in your company information From the Company menu choose Company Info and fill in your company information If you want QuickBooks to track tax information for you you must also select the tax form you file from the drop down menu Chapter 3 Importing and exporting data T Turn on the QuickBooks features you plan to use In QuickBooks from the Edit menu choose Preferences Now you can customize QuickBooks for your needs If you collect sales taxes from customers such as GST HST PST or QST turn on the GST PST tracking preferences For more information about tracking GST or PST see Gathering income tax information on page 127 m Ifyou track inventory or write purchase orders turn on the preferences for inventory and purchase orders m Ifyou deal internationally turn on the preference for multicurrency For more infor mation about multicurrency see Doing business internationally on page 157 m f you plan to use QuickBooks to pay your employees you must sign up for the QuickBooks Payroll To learn more about payroll see Setting up payroll an overview on page 175 To learn about Search t
284. opening balances decrease the equity m Retained Earnings If you have data for more than one fiscal year the QuickBooks balance sheet has a balance for the Retained Earnings account equal to thenet profit from prior fiscal years The balance for the Retained Earnings account does not display on the chart of accounts Some people like to track owner investments owner s draws and retained earnings prior to the QuickBooks start date by putting them in separate equity accounts If you decide to add additional equity accounts QuickBooks still adds the Retained Earnings and Net Income lines on your balance sheet Final steps to complete your setup 53 Tip Equity accounts for sole proprietorships Because all equity of a sole proprietorship company belongs to one person tracking equity can be very simple Asof your QuickBooks start date all equity isin the Opening Bal Equity account You have several options m Keep the equity in this account and perhaps rename the account to something such as Owner s Equity m Transfer all the equity out of Opening Bal Equity into Retained Earnings This action is appropriate for companies that have built up assets as a result of earnings prior to the QuickBooks start date From now on you can take owner s draws out of the Retained Earnings account m Setup additional accounts or subaccounts to track owner s investments owner s draws and earnings before your QuickBooks start date W
285. ormat tab to add your logo and to change fonts including font style italic bold etc and size Columns Use the Columns tab to change the order in which columns display The Amount column always displays furthest to the right You can also rename add or delete columns Printer Use the Printer tab to change the page orientation 2 To learn about Search the Help index for Creating custom business forms customizing forms about 106 Chapter 4 QuickBooks basics Backing up your company data Note Note Your data is valuable No recovery technique can repair all possible file damage or protect against theft or natural disasters To guard against and minimize data loss you should make regular backup copies of your QuickBooks company or companies In the event of data loss you can restore your data from the backup When it comesto backing up your company file you have several options You can backup to m your hard drive m tape m 3 5 floppy disks m asecure server on the Internet if you subscribe to the QuickBooks CD Ror CDRW Backup Service m Zip disk QuickBooks Backup Service is an online backup through the Internet It s fast and convenient and stores a copy of your company file on secure third party server away from the physical location of your company The QuickBooks Backup command doesn t just copy your company file Instead it compresses the data into a compact bac
286. ors or owners Transferring nonem ployee time to a cheque or bill When you pay anonemployee for time worked use the Write Cheques window To pay employees always use the payroll system When you write the cheque or enter the bill QuickBooks alerts you if there is time data for the payee for dates after the end period for the last time payment to this payee If you answer that you want to pay for time you can specify the date range of the time to pay for Then QuickBooks prefills the Items tab of the cheque with the service item customer and job if any rate number of hours and amount QuickBooks does not track whether time is paid for If you pay for time and then edit the time data or import data from the Timer Quick Books does not track which time has been paid for and which has not All it tracks is the end date of the last payment for time If you always pay for time dated after the end date of the last payment you will not pay for the same time twice Otherwise print a time by job detail report and mark the activ ities you are paying for To learn about Search the Help index for Paying nonemployees for time time paying nonemployees for worked Paying for time worked 237 Charging customers for time worked and other costs 238 Charging your customer for the actual time and costs for ajob is a two step process I Track the time and costs assigning them to the specific job 2 Transfer
287. osts vary be sure to enter a sales price on the sales form On the Expenses tab of QuickBooks Pro or better you mark which billable expenses to add to the invoice You may add a markup to your actual expenses 240 Chapter 8 Time and cost tracking For a percentage markup add a sign after the number QuickBooks prefills your preset markup percentage if you set one up in sales and customer preferences Choose Billable Time and Costs Time and Costs For tems 2250 00 Expenses Markup Amount or Select All 75 0 E Melton Johnny Dental office Markup Account Construction Miscellar Most people use an income Use Date Payee Memo account for marku p J 12208298 City of Middlefield To make the marked expenses taxable on the Building permit Amount Hide 175 00 S invoice select this checkbox X 175 00 Total Selected Charges Selected expenses are taxable To hide the markup on an y invoice be sure to select this checkbox Note You can set up so that QuickBooks assigns V Print selected time and costs as one invoice item oms ue This total includes the markup Total expenses with markup 201 25 Total bilable time and costs 2 451 25 income for a reimbursed expense to an income account If you don t do this setup the income cancels the original expense in the expense account Your net income is the same in ei Finally on the Time t
288. other current asset 8 other current liability 8 accounts working with alphabetical order 48 automatically created accounts 7 items choosing for 26 names changing 48 numerical 48 opening balances changing 48 payroll 178 reconciling 118 reorganizing order of 48 accounts payable account for 8 converting from Quicken 69 historical transactions 49 accounts receivable account for 8 after converting from Quicken 68 historical transactions 49 accrual basis bookkeeping adjustment during setup 52 defined 6 accuracy of QuickBooks payroll compared to printed tax tables 206 activating QuickBooks 252 Index 259 activities detail how much to track 223 editing or viewing Timer data about 230 exporting from the Timer 232 importing into Pro or Premier from the Timer 232 invoicing for 241 recording in the Timer 229 recording time manually in Pro or Premier 234 single recording 235 timing with the Stopwatch 233 additions payroll item for 181 adjusting income and expense accounts 53 item prices or rates 46 liabilities for GST PST 151 liabilities for payroll items 210 administrator 124 advisor 4 alignment adjusting for printing 133 alphabetical order for accounts and lists 48 amortization of loans only in Quicken 73 archiving seecondensing data assets accounts for 8 balance sheet viewing on 14 current accounts for 8 defined 14 audit trail 126 autoload p
289. ovince used for Sales Tax Ontario gt Business Number You can select a tax form either in the EasyStep Interview as you set up your company or in the Company Information window from the Company menu choose Company Information It s important to select the correct tax form for your business as you set it up in QuickBooks changing it later can be very time consuming Later you choose the type of industry your business falls into When you do QuickBooks sets up a suggested Chart of Accounts for your company and maps the accounts in it to the most appropriate lines of your tax form If you change your tax form for example from T1 to T2 all the mapping between your accounts and tax lines is lost You ll need to reassign the appropriate tax lines to your accounts It s best to select the correct form as you set up your company QuickBooks uses CRA standards to map the accountsin your Chart of Accounts to the best tax lineon your return If you select the T2 tax form QuickBooks uses the General Index of Financial Information GIFI GIFI is a standardized financial statement that allows the CRA to compare industries more easily It simply classifies the accounts you use and that you list on the financial statement you file along with your tax return each year usually a balance sheet a statement of retained earnings and an income statement Gathering income tax information 127 128 Yo
290. ow Later in the wizard you must also enter amounts you paid so that QuickBooks can keep track of how much you owe m Also in the Other Employee and Company Payroll Items area enter vacation pay earned or accrued See Entering vacation pay year to date amounts above m Leave the Period Amount field blank if there was no amount for the payroll item you are entering during this period Do not enter 0 00 After you ve entered the amounts for this period click OK to finish If you have another period to enter click Next Period instead Summarizing amounts for this year to date 197 Entering YTD amounts for employees To learn about Search the Help index for year to date amounts employee Should my YTD information affect my accounts Option Do not affect accounts W hen to choose Most people should choose this option at setup You need to enter all your account opening balances in QuickBooks as of your start date and you do not want these amounts to change the balances of your accounts If your start date is midyear and you make an adjustment for all income and expense accounts you do not want these amounts to affect that adjustment W hat QuickBooks does Affects no balance sheet accounts and adds no expenses Adjusts year to date amounts to print on pay cheques to display in payroll reports and to observe annual limits for taxes deductions and additions Affect
291. owever transferring money between two foreign bank accounts can only be done if the currency of the accounts are the same 1 From the Banking menu choose Transfer Funds 2 With the Transfer Funds Between Accounts window open Transfer Funds Between Accounts _ oO x Previous E Next Journal Transfer Funds Date 13 11 2000 E Transfer Funds From SITE TREE gt Ending Balance Can 21 984 68 Update the exchange rate to match the rate Transfer Funds To jus Chequing Account gt Ending Balance US 3 399 49 of exchange on the Exchange Rate fi 47081 Transfer Amount 5 000 00 day of the transfer Transfer Currency Memo Funds Transfer Save amp Close Save amp New Revert Fill in the rest of the window as you normally would Enter the amount of the transfer Select the currency denomination of the amount you want to transfer For example if you know the transfer amount in Canadian dollars select Can then enter the Canadian amount If you know the transfer amount in US dollars then select US to specify the amount in US dollars 172 Chapter 6 Doing business internationally Chapter 7 Payroll and employees Payroll before 174 you begin Setting up 175 payroll an overview Setting up your 179 payroll items Setting up 191 employees Running payroll 207 and paying taxes Paying payroll 211 liabilities and filing payroll forms Creating year 215 end T4 a
292. oyee s federal TD1 form m If the employee wants you to hold back extra income tax from his or her pay cheques say to avoid paying a large sum when filing a tax return in the spring enter the amount to withhold from each pay cheque in the Additional Tax field You can only enter a dollar amount not a percentage m Inthe Provincial TD1 field enter the total claim amount from the employee s provincial TD1 form Line 12 or in Qu bec TP 1015 3 form Line 20 4 Click OK Often employees only claim the basic amount If your enter the basic amount into your Employee Defaults QuickBooks will prefill it when you set up payroll for an individual employee To learn about Search the Help index for Setting up TD1 information for an TD1 forms employees employee Entering default TD1 information TD1 forms employee defaults Setting up TP 1015 3 information TP 1015 3 forms for an employee Chapter 7 Payroll and employees Summarizing amounts for this year to date Note Skip this section if your company has not done payroll before or has not issued any pay cheques so far this year You are ready to start writing pay cheques If you re just starting to use QuickBooks for payroll and you ve already issued pay cheques in the current calendar year you need to m Enter year to date information to summarize your payroll transactions from January 1 up to your QuickBooks start date For information about start dates see Det
293. p 1 Year to date amounts can also be retrieved from the last payroll stub that you printed for an employee The date range should be from the beginning of the payroll year to the date you converted to QuickBooks Date 06 26 2003 To Tracey Stewart 1 111 64 Memo Salary and Hourly Wages Item Name Period Amount Hours for Period hourly 1 600 00 160 mal a Other Employee and Company Payroll Items Item Name Period Amount CPP Company CPP Employee 62 56 El Company 49 28 El Employee 35 20 Federal ax 390 60 z El At the end of this wizard you ll be asked if you want to create an Employee Earnings Summary Report You should compare it to the information you enter here xi gt gt Next Period K Prev Period Accounts Affected _Show Wage Bases _Show Wage Bases Historical Pay Cheque 0170172003 06 26 2003 m Ifyou still owe vacation pay that an employee has accrued you need to add this outstanding balance to the VacPay Accrued payroll item Look to the Employer Chapter 3 Importing and exporting data Accrual Expense Balance detail report that you printed in step 1 to determine how much accrued vacation pay that you still owe an employee 2003 YTD Adjustment for Alison Logan Smith x a H Next Period Prev Period Date 01 15 2003 To Alison Logan Smith 1111 64 oe Memo Salary and Hourly Wages Item Name
294. payable 69 Comparing QuickBooks and Quicken 71 New and renamed balance sheet accounts 72 When you convert from Quicken 73 Should you continue using Quicken for some things 73 Converting data from MYOB 74 What s Next after conversion 74 Setting up your payroll in QuickBooks 76 Importing from exporting to other software 84 Importing from other software 84 Exporting to other software 85 Give your accountant permission to access your QuickBooks file remotely 86 Exporting data for your accountant Accountant s Review 86 Chapter 4 QuickBooks basics 91 Getting around in QuickBooks 92 About the Getting Started window 92 Navigating in the working area 92 Using lists forms and registers 93 QuickBooks Keyboard Shortcuts 95 Using the Help system in QuickBooks 96 Context sensitive help 97 Getting your questions answered 98 Learning with the QuickBooks Learning Center 99 Exploring QuickBooks with asample company 99 Getting information about your company 100 Creating reports 101 Understanding QuickBooks file types 104 Customizing your forms 105 Backing up your company data 107 Recommended backup routine 108 Backing up to aCD R or CD RW 109 Backing up to aZip drive 110 Backing up to atape 110 Backing up to a 3 5 floppy disk 111 Using the QuickBooks Backup Service 113 Searching for your backup file 113 Restoring your backup file 114 Condensing your company file 114 Rec
295. payroll items are a combination of liabilities and expenses For example the portion of Employment Insurance El that you withhold from an employee s pay cheque isa liability while the portion that you pay is an expense Payroll items for company paid taxes and company contributions are usually assigned to both a liability account and an expense account How to set up common payroll items Payroll Taxes Fed Qu ROE A T4or GSTor ROE ROE Payroll item Type Inc CPP El Inc QPP For or Net Tax Tax RL 1 HST Eam Hrs osin Ontario Employer Health Tax Qu bec Health Services Fund Other Manitoba Payroll Tax Tax N N N N N N N N na Northwest Territories Payroll Tax Non benefit payroll deductions and additions Fed Qu ROE Gross T4or GSTor ROE ROE Payroll item Type Inc CPP El Inc QPP 2 For or Net Tax Tax RL 1 HST Eam Hrs AA Alimony or maintenance payment tax deductible Ded n Gross Y N N Y N N N n a Alimony or maintenance payment i not tax deductible Dedni Ner N N N N E N N na Canada Savings Bond payroll Ded n Net N N N N N N N n a deduction Box Charitable donation payroll deduction Ded n Net N N N N N 46 N N n a Employee Purchase or Loan this payroll item should be assigned Add n Net N N N N N N N N N n a to an asset account not a payroll expense account Employee Purchae or Loan this payroll item should be assigned Ded n Net N N N N N N N n a to the same asset account
296. penses an Expense account m Payroll Liabilities an Other Current Liability account To keep your balance sheet and your profit and loss statement accurate QuickBooks associates each payroll item with the appropriate account or accounts Whenever you create a new payroll item QuickBooks helps you assign it to the correct account or accounts by prefilling the account nameto use However you can usea different account if you like For example an accountant for a corporation may want to create subaccounts of the Payroll Expenses and Payroll Liabilities accounts to report expenses for officer salaries separately from non officer salaries Some types of payroll items should be assigned to different accounts For example payroll items for employee loans advances should be assigned to an asset account not the payroll expense account Payroll items for enployee loan repayments should be assigned to the same asset account as the payroll item for the loan To learn about Search the Help index for Payroll Liabilities account payroll liabilities account Payroll Expenses account payroll expenses account Customizing payroll accounts 178 You may change the names of the payroll liability account and payroll expense account that QuickBooks provides If you use numbered accounts you may change the account numbers QuickBooks provides You can also use subaccounts of Payroll Liabilities to see more detail on your balance sheet for p
297. ployees 1 The rent portion of the lodging benefit is subject to GST HST if the dwelling is occupied for less than one month the utility portion is subject to GST HST unless municipality supplied 2 Certain counselling services are subject to GST HST If the services you pay are subject to GST HST include it in the value of the benefit 3 The rent portion of the housing benefit is subject to GST HST if the dwelling is occupied for less than one month the utility portion is subject to GST HST unless municipality supplied 4 If itis a non cash benefit it is insurable if it is received by the employee in addition to cash earnings in a pay period If no cash earnings are paid in the pay period it is not insurable 5 Enter the home relocation loan deduction under code 37 6 Some medical expenses are subject to GST HST For more information contact any tax services office or tax centre 7 Enter the exempt amount under code 70 8 Certain fees are subject to GST HST If the fees you pay are subject to GST HST include it in the value of the benefit 9 Enter the amount of the stock option and shares deduction under code 39 or 41 as applicable 10 Enter the amount of medical travel assistance under code 33 Setting up your payroll items 189 Setting up employees A Use payroll only to pay employees not subcontractors or owners To pay subcontractors set them up as vendors have them bill you and pay them with the Pay Bill
298. ployees on page 192 If you have set up employee defaults see page 191 this information is copied from the defaults into the new employee profile Then if you need to you can change any of the information for this particular employee When an employee leaves the company you need to enter the employee s release date into his or her profile and select the reason the employee is leaving from the Record of Employment code drop down list It s a good idea to enter a release date for an employee only after you have written his or her final pay cheque Once you enter a release date in the employee s record QuickBooks doesn t display the employee s name in the Select Employees To Pay window when the pay period end date is later than the release date You can t delete a released employee if there are payroll transactions for him or her You can however make the employee inactive to hide his or her namein the Employee list Preparing a Record of Employment When an employee leaves or is terminated or laid off you must issue him or her a Record of Employment ROE form within five calendar days The ROE determines whether the former employee qualifies for Employment Insurance benefits The employee should receive one copy and Human Resources Development Canada HRDC should receive one QuickBooks provides a report to help you fill in an ROE that looks the same as an ROE form from HRDC However because HRDC requires that ROE forms have
299. ployees time data including job class and type of work for the period covered by the pay cheque QuickBooks keeps track of your payroll expenses for hourly or salaried gross pay employer taxes and other payroll overhead by job class and type of work View ing editing and printing time data In addition to creating reports about time data you can view print and edit time data as follows m View a timesheet for one person s work during a particular week m Print timesheets each with one person s work for one week or part of a week m View the full text of the note entered for a particular activity m Edit time data To learn about Search the Help index for Viewing and printing timesheets timesheets Adding notes about an activity to invoices time and cost an invoice Adding notes about an activity to time reports about a time report Editing time data time entering 226 Chapter 8 Time and cost tracking Setting up and using the Timer How the Timer works with QuickBooks Note Note The QuickBooks Timer is designed to track and record time data which you can then export to QuickBooks Pro or better Usethe Timer when you want to gather time data from people who don t have access to QuickBooks but do have access to a computer You can make copies of the Timer program to give to other people whose time you want to track in QuickBooks When you do photocopy the two page Quick Reference Sheet on pa
300. ports Equipment 121503 Audit Trail Choose the date range you want to see on the report v The Current Transaction entry shows All Transactions what the Trans o Type Entered Last Modified Last modified by o Date Name E 4 H Current Transaction tra nsaction is 1275 2003 10 29 15 Admin 1245 2003 Receiver General like now the Receiver General Previous Transaction shows what it was like before the change You can also Deleted Transaction by Admin on 10 08 2002 23 03 34 170 Deposit 10 08 2002 22 59 55 Admin 03 31 2003 Cairns Alison Henvie s Hunting a Buff tt Up Brault Martin Previous saction see who made 10 02 2002 09 28 37 Admin 03 31 2008 the change and PanypMariha when amis sea a of If you report financial information to the Qu bec Minister of Revenue MRQ N we strongly recommend that you turn on the Audit Trail feature permanently Doing so helps you comply with legislation from the MRQ The legislation states that your accounting software cannot allow you to modify or delete data without keeping a record of the original data To turn on the Audit Trail permanently install QuickBooks according to the instructions in the Installing amp Learning to Use QuickBooks Guide Then when you start Quick Books click Yes when QuickBooks asks if you report any information to the MRQ If your computer is older or you make a lot of c
301. r Premier 232 transferring to and from QuickBooks 85 dates changing how they display 60 report ranges 103 start date 17 deductions payroll employee template adding to 189 employees individual setting up for 191 payroll item for 181 defaults accounts created 7 employee for payroll 189 delivery charges item for on invoice 31 departments tracking 5 12 descriptions of file types 95 disable Automatic Update 58 discount items creating 38 description 31 using on sales forms 44 discounts and GST PST 146 discrepancies between QuickBooks and printed tax tables 206 disks saving disk space 114 downloading transactions 122 duplicate names after converting from Quicken 66 262 Index If you don t find the topic you are looking for here try QuickBooks Help EasyStep Interview 20 turning on GST PST tracking 141 E filing t4 forms 215 El Employment Insurance payroll items for 180 employee defaults 189 TD1 information in 189 192 TP 1015 3 information in 189 192 employees adding 204 advances for 178 benefits for 181 categorizing 191 commissions 192 custom fields 190 defaults 189 deleting 204 duplicate names 204 editing information about 191 hiding 204 loans for 178 merging names 204 notes about 191 paying 205 207 payroll information changing 191 setting up 189 year to date summaries 194 preferences for 175 raises 202 releasing 202 2
302. r Your company records or the CRA Current tax tables covering payroll with You can download them through holding amounts such as El premiums and QuickBooks after you sign up for the CPP QPP contributions Payroll Service Compensation benefits and other payroll items How you pay your employees and officers Your accountant or company records hourly wages salaries and or commissions Things you add to your employees pay Your accountant or company records cheques m Examples include bonuses travel expenses employee loans Things you deduct or withhold from your Your accountant or company records employees net pay au Examples include union dues repay ments of employee loans or advances health or life insurance paid by the employee deductions for pension plans Expenses your company pays that are Your accountant or company records based on employee pay cheques company contributions m Examples include health or life insurance paid by the company your portion of Employment Insurance etc 176 Chapter 7 Payroll and employees Information you need Employees W here to find it Employee name date of birth and Social Insurance Number SIN Contact information for the employee including the province of employment Federal and provincial TD 1 forms for the employee completely filled out see Entering information from employee TD1 forms on page 194 Employee s rate of pay or salary and
303. r accountant or previous bookkeeping J Tip If you do not have an existing chart of accounts don t worry The method EasyStep Interview helps you choose an appropriate chart of accounts for your industry Names of the people in your company who will use QuickBooks and See Working with multiple users on Ly which areas of your financial records you want them to have access page 122 to Balances for these accounts m Statements covering your start date up J m Credit card to today for all bank accounts including m Line of credit chequing savings and GICs Loan m Alluncleared cheques deposits or other Bank items credit card receipts for example m Balance sheet prepared by your accoun tant How much GST PST you owe Accountant CCRA or provincial Minister of g Finance List of types of items you sell products and services including Your company records J m Item number or name m Current sales price or hourly rates m The tax code that is usually associated with the item m Income account for tracking sales of the item For inventory only m Purchasing cost Quantity in inventory Total value of inventory for the item Setting up your company in QuickBooks 19 Information you need W here to find it y List of customers including Your company records J m Addresses m Contact names m Phone numbers m Outstanding invoices List of vendors including Your company records T m Addresses m Contact names m
304. r and vendor m Usea currency list which includes many common currencies and the latest exchange rates as of QuickBooks release Generate a report to calculate unrealized and realized gains and losses Quickly convert foreign dollars to Canadian dollars or Canadian to foreign dollars with the Currency Calculator m Usethe Exchange Gain amp Loss expense account to track gains and losses due to fluctuations in exchange rates Set a foreign price for items you sell frequently to foreign customers Locate multicurrency transactions with two new filters in the find function Set up foreign accounts You can choose a foreign currency for Bank Credit Card Accounts Receivable A R and Accounts Payable type A P accounts You do not need to set up foreign Bank and Credit Card accounts to track foreign transactions However for each foreign currency you deal in you must create an A R account if you have customers an A P account if you have vendors or both in that currency For example if you have customers in the USA and England you ll need two additional A R accounts onein US Dollars and the other in UK Pounds You cannot use the same A R and A P accounts you use for your Canadian dollar transactions because the Canadian dollar and other currencies rarely trade as equals Once a transaction is recorded in an account the account s currency cannot be changed To set up a foreign account 1 From the Company menu select
305. r for the item m When you enter a bill cheque or credit card charge QuickBooks Pro or better fills in the description of the item and the unit cost after you choose the item from the drop down list on the Items tab m When you invoice the customer for the cost of the item QuickBooks Pro or better fills in the sales description of the item and the sales price m You can create reports that compare costs to revenues for each item To learn about Search the Help index for invoicing for reimbursable time and costs reimbursable expenses assigning to a cus tomer or job Services performed by subcontractors or ow ners If you charge for services performed by outside subcontractors or you pay owners or partners for time worked set up a service item for each type of service Be sure to select the checkbox This service is performed by a subcontractor owner or partner Then you can designate separate income and expense or equity accounts and separate descriptions for sales and purchases You can enter different hourly rates for your cost and the sales price to your customer If you write cheques based on time tracked or enter the item on a purchase order purchase or estimate QuickBooks fills in the rate from the Cost field If you enter the item on a sales form QuickBooks fills in the rate from the Sales Price field However if the subcontracted service is usually billed as a flat fee and the fee varies leave the Cost
306. r gives you one click access to the features you use most The Customer Navigator shown here contains customer specific tasks like creating an invoice For more on the Navigators see Getting information aboutyour company on page 100 The Follow Me Help window displays help related to what you are doing in QuickBooks For more on Help see Using the Help system in QuickBooks on page 96 92 Chapter 4 QuickBooks basics M oving betw een windows Tip If you d like to be able to see multiple windows open at the same time from the View menu select Multiple Windows QuickBooks maximizes your workspace by displaying one window at atime at its full size Because QuickBooks keeps a list of the windows you have open you can quickly switch between windows as you work 2 To learn about Search the Help index for Customizing and using the Icon bar Icon Bar Displaying the navigators navigators Displaying and using the Open Win windows list of open dow list Showing hiding or customizing items desktop on the QuickBooks desktop Using lists forms and registers When you re working in QuickBooks you ll spend most of your time using a form a list or a register Since these are the basic elements to QuickBooks so take a few minutes to become familiar with them Using lists Lists store information about customers vendors employees items or services you sell and so on They save you time and h
307. r need from older transactions in your QuickBooks company file with the result that your company file shrinksin size and QuickBooks performs better corporation A business organization that has been incorporated A corporation is owned by its stockholders Glossary 255 customer Any person business or group that buys or pays for the services or products that your business or organi zation sells or provides equity Thenet worth of a company equal to the total assets minus the total liabilities All the equity belongs to the owners equity assets liabilities inventory The most common kinds of inventory are merchandise or stock in trade raw materials work in process finished products and supplies that physi cally become a part of the item intended for sale item A service you provide or a product you sell which you set up on your Item list In addition you can haveitems for miscellaneous charges and for various calculations on your sales forms job A project for a particular customer liabilities Liabilities include what your company owes to other people or your company debts Examples include m unpaid bills or credit card accounts m loans m money you collect for the government like income tax from employee pay cheques or GST PST from customers maintenance release R Also called an update or a patch A revision of QuickBooks that you download or install over an existing version of Qu
308. r payroll tax information remains up to date These steps teach you how to quickly set up your employees in QuickBooks For details on how to use QuickBooks payroll features read Chapter 7 Payroll and employees beginning on page 173 Werecommend that you read this chapter in its entirety before you remit your first payroll cheque You can open the manual from under the Help menu You can also search the Help index or click Fl on any window in QuickBooks for context sensitive help Chapter 3 Importing and exporting data 1 Gather payroll information that QuickBooks needs from your MYOB company file When you convert your MY OB data to QuickBooks the information displayed on each employee s Profile tab is copied into QuickBooks General payroll information such as the province in which your company operates and your business number are also converted to QuickBooks M Ei DX Card Information Each employee in MYOB is added to the Employee List in QuickBooks Card Details Payroll Details History Card Type Employee Designation Individual I Inactive Card First Name Tracey Address Info Payroll Info Additional Info Location Address 1 xi Address eres City Edm Phone 1 Phone t2 Phone 3 780 123 4 Mr Ms First Name Tracey Mi PrintAs Tracey Stewart Phone 780 123 4567 Province AB Postcode T5 142 Fa
309. r sales tax payable account When you file a sales tax return the sales tax payable account may not balance properly To avoid amountsin your tax payable account that don t appear on tax reports leave the amounts in the original transaction as they are and create a second transaction for the difference For example suppose that three months ago you accidentally entered 30 for widgets on a bill when you should have entered 20 and that you have since created a GST return for that period Instead of changing the original transaction enter a credit for the 10 difference by selecting Enter Bills from the Vendor menu then selecting the Credit option on the form Changes that do not involve dollar amounts in a transaction show up immediately in reports customer or vendor registers or the other area of QuickBooks you usually use to track this information If you do change a dollar amount in a filed transaction QuickBooks shows the change like this m GST and PST Liability reports Vendors amp Payables section of the Reports menu by default these reports only show unfiled transactions which determinehow much sales tax you owe Thechange does not appear in these reports because the transaction is still marked as filed so the reports do not include it m Prior GST and PST returns to ensure that your records agree with the CRA s formerly the CCRA sales tax returns do not change once they are filed For this reason they do not show
310. rate Timer data files You can back up aTimer data file To back up a Timer file from the Timer s File menu select Backup To use the backed up file again from the Timer s File menu select Restore You can reduce the file size by using the Condense feature The Condense feature in the Timer unlike the one in QuickBooks doesn t remove or consolidate any information Select Condense from the Timer s File menu Search the Timer Help not the QuickBooks Help for To learn about Updating the Timer s lists of cus lists updating tomers jobs service items and classes to match changes in the QuickBooks file Backing up your Timer data onto data files backing up a 3 5 inch disk or your hard disk Restoring a backup of Timer data data files restoring from a backup so you can use or view it disk Setting up and using the Timer 231 Search the Timer Help not the QuickBooks Help for To learn about Reducing the size of your Timer data files condensing to save disk file space Creating a new Timer data file to data files creating for the Timer use with a different QuickBooks company file Switching to a Timer data file fora data files opening different QuickBooks company Exporting Timer information to QuickBooks When you arefinished recording time you need to export your recorded activities to an IIF file that QuickBooks can import From the Timer s File menu select Export Time
311. re are items you purchase but never sell but that are not fixed assets supplies for your office for example you probably shouldn t bother to put them on your Item lists They will lengthen your list and you ll find it harder to pick out the items that you do sell However if you plan on using QuickBooks purchase orders you ll need to set up the items you purchase even though they are only for your office use Why you probably need to set up items 27 Setting up items This section is about adding items to QuickBooks You can add items at any time as part of setting up QuickBooks or whenever you think of an item you need to use Remember items are for the services or items you buy and sell You also may need special calculating items that calculate subtotals and discounts and that apply specific sales tax rates The EasyStep Interview helps you set up a few items so you may already have some items Fixed asset items are not set up in the EasyStep Interview W here to find information about your items When you set up an item you enter information you can use over and over again without retyping such as the following m Nameor code Description a m Price per unit or rate per hour if applicable a For items you sell the income account to assign income from the sale for items you purchase the expense account for purchases of the item QuickBooks stores information about your items on the Item list
312. re pay cheque or to each of the earnings payroll items you use on the pay cheque m Review all of your addition and company contribution payroll items to make sure the checkbox for Track Expenses by Job is selected This option is always on for salary hourly wage commission and bonus payroll items Setting up your payroll items 183 184 ae m When you create a pay cheque for an employee either select the correct class for the entire pay cheque or assign a separate class to each earnings payroll item on the pay cheque according to the Payroll amp Employee preference you chose Tracking expenses by service item QuickBooks Pro and better only Some businesses track expenses by service item to see what types of work they are doing for customers A service item is what you use on sales forms to charge your customers for services you provide like labour To track payroll expenses by service item do this m Turn on the following Payroll amp Employees preference Report all payroll taxes by m Review your addition and company contribution payroll items to make sure the checkbox for Track Expenses by Job is selected This option is always on for salary hourly wage commission and bonus payroll items m In QuickBooks Pro and better set up each employee to use time transfers by selecting the Use time data to create pay cheques checkbox in the Payroll Info tab of their employee profiles Then have them a
313. rency The easiest way to update exchange rates is by using the Currency List See Using the currency list on page 163 for more information Tip An exchange rate field also appears on some forms so that you can enter the latest exchange rate on the fly without having to go to the Currency List You should when reconciling your chequing accounts for example update the exchange rate used for cheques and deposits to reflect the actual rate that was used by your bank at the time the cheques were processed or your deposits accepted It is these changesin exchange rates that can affect the profits you make from foreign sales and your costs for foreign purchases Basically as a business owner you want to track the potential effect of exchange rate changes on foreign transactions that haven t been completed referred to as unrealized gains and losses as well as the actual effect of the changes on transactions that havebeen completed referred to as realized gains and losses QuickBooks provides a report to help you track both types of gains and losses Exchange rates and how they affect your transactions 165 Unrealized gains and losses 166 When you create a foreign transaction the foreign currency is worth a certain amount in your home currency which is determined by its exchange rate on the day of the transaction However the exchange rate likely changes before the transaction is closed Until the transaction closes the diff
314. return 1 2 3 From the Customer menu select Receive Payments In the Received From drop down list select the sales tax agency that gave the refund For example for a GST refund select Receiver General c In the Amount field enter the amount of the refund In the Applied To area confirm that QuickBooks has selected with a the correct GST Refund invoice for this payment m Note the amount of the refund should exactly match an invoicein this window If it does not review your last sales tax return and contact the sales tax vendor Select the bank account to deposit the refund into or group it with other undeposited funds Click Save amp Close Chapter 5 Tracking and paying sales taxes Recording penalties or interest on late GST PST payments If you pay a sales tax liability late the government may assess a penalty against you or charge late payment interest on the amount you owe You can record a penalty or late payment interest by entering it on the cheque you use to pay your sales tax liability 1 Ona us Create a sales tax return as you normally would by selecting Sales Tax then File Sales Tax from the Vendor menu m Do not adjust your sales tax return for the penalty At the end of the process create and save the sales tax liability cheque but do not print it yet From the Banking menu select Use Register then select the sales tax account from the drop down menu and click OK In th
315. rinter feature aligning forms with 134 Automatic Update turn off 58 backing up 107 114 overview 107 recommended routine 108 restoring backups 114 testing your backups 112 to a tape 110 to CD 109 to floppy disk s 111 to Zip drive 110 with QuickBooks Backup Service 111 backups searching for 113 bad debt adjusting GST or PST owed 151 balance sheet accounts types of 8 balance sheet described 14 bank accounts description 8 reconciling 118 benefits for employees payroll item for 181 billable status deciding whether to make time billable 222 making billed time billable again 242 bills paying foreign vendors 171 blank timesheets 226 235 bonuses payroll item for 181 bookkeepers 4 bookkeeping methods accrual basis 6 cash basis 6 bookkeeping software transferring data to and from QuickBooks 85 books closing 125 business number 141 business segments tracking 5 12 buying units 32 C calculating by using items on sales forms 31 payroll taxes and discrepancies 206 calendar year 129 Canada Pension Plan calculations and employee s date of birth 190 payroll items for 180 Canada Revenue Agency GST and 140 income tax and 127 payroll liabilities and 209 capital investments 54 260 Index If you don t find the topic you are looking for here try QuickBooks Help cash basis bookkeeping 6 cash flow forecast reports 16 cash vs accrual c
316. rive or folder Click OK The person who works with QuickBooks must make this IIF file available to you 5 Fromthe File menu of the Timer choose Prefer ences then Default Name 6 Choose your own name from the drop down list 7 If your time is always billable to a customer or job select the checkbox then click OK 8 Fill in the fields you need and click OK For help with this window click Help 244 Chapter 8 Time and cost tracking Setting up an activity to time 1 In themain Timer window click New Activity 2 Fill in the fields you need and click OK Timing an activity 1 If theactivity you want to timeis not already in the Current Activity field choose it from the drop down list m If you choose from Today s Activities the Timer will add time to the time already shown for today m If you choose from Activity Templates the Timer will start with zero time 2 To start timing click Start or Resume 3 To stop timing click Stop Entering time manually 1 Choosetheactivity from the Activity Templates section of the drop down list in the Current Activity field If the activity is not on thelist set it up first 2 When the activity isin the Current Activity field click Edit 3 In the Edit Activity window change the date if you did not perform the work today 4 Inthe Duration field type the time You may enter time in any of the following formats m Hours and minutes for example 01 30
317. rizontal and vertical alignment adjustments 12 Click OK in the Printer Setup window Dates and the bottoms of letters are clipped on forms The font you re using may be too large In the Printer Setup window click Font Try a font size of 10 points or less Changing fonts 1 From the File menu choose Printer Setup 2 Choose the form you want from the Form Name drop down list Note You can t change the fonts on some forms here You can t change the fonts on some forms here You can change the fonts on these forms by clicking the Customize button on the forms 3 Click the Fonts tab and then the Font button Solving printing problems 135 4 Choose the font you want Not all options are available for all fonts Select Font Choose the font Font Font Style Times New Roman Regular NewCenturySchlbk egula A NuptialScript Italic You can change to italic bold or a combination Selectone or both of these Paces me E Choose a point size Most checkboxes to strikeout A Onyx MT Bolditaic people prefer a size between 9 and underline text A and 12 points Effects l Sample T Strikeout You can see what the font Choose a colour not TO Underline AaBbYyZz looks like here available for cheques Color I If you have a colour Black AWE Srpe war oceniioetonariieaane tere be A description for the selected used on both your printer and your screen printer
318. rked 236 P partial payment on invoice 44 partners commission sales 192 paying for time worked 236 partnerships described 18 income and expenses tracking by partner 5 12 time worked paying partners for 236 passwords 123 changing 125 close books or period with 125 deleting 125 pay cheques deleting 208 editing 208 historical entering 194 pay stubs for 208 printing 208 voiding 208 writing 207 pay stubs printing 208 paying employees 207 foreign vendors 171 GST PST liabilities 148 nonemployees subcontractors 236 payroll liabilities 209 212 payment items creating 38 description 31 using on sales forms 44 payments partial on invoice 44 payroll accounts 178 checklist for setting up 176 177 condensing payroll data 115 customizing accounts for 178 employee template adding to 189 employees individual setting up for 191 expenses 182 historical transactions entering 194 199 MYOB setting up in QuickBooks 76 83 paying employees 205 preferences for 175 reports 218 service for 174 setting up 175 subaccounts 178 tracking expenses 184 turningon or off 174 payroll expenses class tracking by 183 customer tracking by 183 job tracking by 183 reports 182 service item tracking by Pro and better only 183 payroll forms PD7A 212 Record of Employment 202 Relev 1 forms 213 Relev 1 printing 215 RLZ 1 S V report 216 T4 forms
319. roll items 181 182 Note ae Payroll item type Use for Other Tax Miscellaneous taxes based on employee wages These taxes may be paid by the company or the employee Examples include payments to the Workers Compensation Board the Ontario Employer Health Tax and the Qu bec Health Services Fund Other Taxes can be flat amounts or calculated on a quantity such as the hours the employee works You can limit payroll items to a maximum amount either annually e g an employee s union dues cannot be more than 150 per year or absolutely e g an employee s loan repayment cannot ever be more than 2000 the amount of the loan As you create an item in the Add New Payroll Items wizard you should m Confirm that the expenseand liability accounts assigned to it meet your needs and change them if you need to m Choose how to track the payroll item on T4 and in Qu bec Relev 1 forms if it s an addition deduction or company contribution If you are not sure how to tax a payroll item check with the Canada Revenue Agency your provincial Minister of Revenue or your accountant From the Tax Tracking Type drop down menu you can choose tracking options for T4 forms only listed first for both T4 and Relev 1 forms listed next or for Relev 1 special cases last m Accept the default setting for how to track the payroll item on Record of Employment forms unless you fully understand the guidelines from Human Resource
320. roll tems i either from time data ltor Name Union Dues 14 00 or from the last pay cheque Amount 1 000 00 4 000 00 S 14 00 56 00 27 62 110 48 24 00 95 00 74 70 El Employee Federal Income Tax If an addition deduction or company contri bution is based on The Employee Summary shows El Company quantity enter the Eain signe AARET i C Cancel H quantity here Eee cme He amounts and other additions and The Company Summary shows company The cheque total deductions that paid taxes and contributions that do not print on the voucher affect the amount of the pay cheque of the cheque f QuickBooks is more accurate than printed tax tables You may notice differences between the calculations in QuickBooks and the CRA s printed tax tables for different wage brackets Because QuickBooks uses a very accurate method to calculate withholding amounts and tax tables that are annualized rather than weekly biweekly or monthly it may differ from printed tables by a few dollars In the Preview Pay Cheque window you can do all of the following m View the amounts QuickBooks calculated for each payroll item including gross earnings government withholding and all other additions deductions and company contributions for the pay cheque Type or edit the number of hours worked Enter accrued time or vacation pay or pr
321. rom the Other Nameslist to the Vendor list For moreinformation see Changing to QuickBooks accounts payable on page 69 Converting data from Quicken 65 66 Once you change the type for a name you cannot undo it You can move names from the Other Names list to the Vendor Customer ob or Employee lists However once moved you cannot move a name again If you re not sure whether to change a name now it s best to leave it as is To change types for names m Inthe Change Name Types window click the corresponding column for each name you want to move When all the names are marked correctly click OK Change Name Types x To change the name type for any names below click the column for the new name type Customer Yendor Employee next to each name whose type you want to change Cancel To restore all the check marks to the Other Name column click Revert WARNING Once you click OK to change the name type you cannot undo the change If you are not sure whether to change a name now leave it as an Other Name Revert Customer Vendor Employee Other Name Bayshore Auto Service Bayshore Bagel Maven Prior retained earings Service charge If you have different versions of one name If you have slightly different versions of the same name for example T Stewart Tracey Stewart and Tracey L Stewart QuickBooks puts each version of the name in the Other Names list In QuickB
322. roprietorship or partnership enter your and your partner s Social Insurance Numbers in the SIN fields 4 Click Send m QuickBooks compiles an xml file containing your T4 data This file has the name T4Slips xml and is stored in your QuickBooks directory You will need to enter thepath to and name of this xml file your Business Number and your Web Access Code when QuickBooks opens the CRA Web site for you Filling in a T4 Summary form Along with your employees T4 slips you need to send a T4 Summary form to the CRA To help you prepare this form QuickBooks provides a T4 Summary report If you sent your employees T4 slips to the CRA through the Internet E File you do not need to create a T4 Summary form 1 From the Reports menu choose Employees amp Payroll then T4 Summary 2 Make sure the date range is correct for your reporting period it probably isn t and enter new dates if necessary 3 Click OK to generate the report 4 Use the figures on the report to fill in your T4 Summary form Filling in an RLZ 1 form In Qu bec when you send your employees Relev 1 slips to the Minister of Revenue you also need to include an RLZ 1 form To help you prepare this form QuickBooks provides a Relev 1 Summary report 1 From the Reports menu choose Employees amp Payroll then Relev 1 Summary 2 Make sure the date range is correct for your reporting period it probably isn t and enter new dates if n
323. rs for time worked and other costs 245 246 Chapter 8 Time and cost tracking Appendix A Contacting Intuit Telephone 248 support L Getting your questions Web based 248 support Miscellaneous 249 ans were d services Solving problems 249 on your own Speaking with a 250 QuickBooks Product Expert If you re unable to solve a problem you can get intuit Contact 251 assistance through the help built into your software via the Internet or by phone Intuit Canada also offers services to help you make the most of your software 247 QuickBooks Support We have added many help enhancements to QuickBooks 2006 to help you get your questions answered These include a Follow MeHelp window and an exhaustive search enginethat accesses the Frequently Asked Questions FAQ knowledge base on our Web site If you are experiencing a problem with your software be sure to look to this new Help system before contacting a QuickBooks Product Expert It could save you money See Using the Help system in QuickBooks on page 96 for more details Telephone support To find out more about this these telephone support options visit our Web site at http www quickbooks ca or see QuickBooks product support on page 253 to get contact information Before you call a QuickBooks Product Expert about a problem you have with QuickBooks read through the section Solving problems on your own on page 24
324. rvice overview opens Click Get Started Now The QuickBooks Backup Service Web site opens In Service Level Options table click Download Now for the level of service you want QuickBooks File Backup Select to protect up to 100 MB of data including your QuickBooks files with this low cost backup solution Your QuickBooks files will automatically be selected for backup Additional individual files can be selected manually Premium Data Backup Select to protect all of the company files on your PC up to 4 GB m Premium Plus System Backup Select to protect all files and software applications on your PC and automatically heal your PC from virus attacks corrupted applica tions or files up to 10 GB You re prompted to open the installation file Click Open then click Install The installation begins Follow the prompts as they appear Once you ve signed up you re prompted to start the backup process When the back up is done you ll receive a report about the back up and if there were problems The QuickBooks Backup Service also displays your next scheduled back up To perform a backup manually click the amp icon on your desktop to launch the Quick Books Backup Service software Searching for your backup file If for some reason you can t locate your backup file QBB you can use the Windows search feature to help you find it To search for the backup file 1 2 3 From the Windows Start button select Search
325. s To learn about Search the Help index for Adjusting payroll liabilities payroll liabilities adjusting A w Paying payroll liabilities and filing payroll forms 211 Creating a cheque to pay your payroll liabilities Most businesses must send a cheque to the CRA for last month s payroll deductions by the 15th of the current month Check with the CRA or your accountant to see what s right for your business Then consider setting up a reminder note in the To Do list To pay your payroll liabilities Always use the Pay Payroll Liabilities window to write cheques for your payroll liabilities Do not use the Write Cheques window If you do QuickBooks does not update your payroll liability accounts and your payroll reports will not be accurate 1 From the Employees menu choose Process Payroll Liabilities then Pay Payroll Liabil ities 2 Type the date range for the liabilities you want to pay then click OK Note Check these dates carefully as QuickBooks uses them to create the PD7A report You use this report to fill in a PD7A form to submit with your liability payment each month 3 In the Pay Payroll Liabilities window mark the payroll items you want to pay m These liabilities can be selected and paid only as a group CPP Employee CPP Employer El Employee El Employer Federal Income Tax Withholding and other federal withholding items The window shows liabilities owed as of the end of last Clic
326. s Then use the Timer to time your activities Finally export a file of time data for Quick Books Pro and QuickBooks Premier editions to import Installing from the QuickBooks CD ROM Other users can only install the Timer from the QuickBooks CD ROM I Insert the Installation CD ROM in your CD ROM drive 2 If the Installer asks you if you want to install QuickBooks select No Open the Timer Installer from the CD m Select Run from the Start menu m Typetheletter of your CD ROM drive then qbtimer install exe For example D qbtimer install exe Click OK 3 Follow theinstructions on your screen Installing from 3 5 inch disks I Insert the first Timer install disk in your 3 5 inch disk drive 2 Select Run from the Start menu 3 Typethe letter of your floppy drive then install for example a install then click OK 4 Follow theinstructions on your screen Starting the Timer Click Start Programs then QuickBooks Pro or whatever name you chose for the program group during installation then QuickBooks Timer Setting up the Timer 1 In the Open Timer File window displayed the first time you start the Timer choose Create New Timer File then click OK 2 Typeaname for the Timer file and the location to save it then click OK 3 From theFile menu of the Timer choose Import QuickBooks Lists 4 Select thename of the IIF file to import from QuickBooks You may have to navigate to a new d
327. s If your business has no financial transactions yet that is you are starting up your business at the same time you are setting it up in QuickBooks your start date is today You can go on to Information to collect on page 18 Existing Business Your start date is the date on which you begin managing your business finances in QuickBooks It determines what information you need to enter in the Interview and afterwards For example you could choosetoday as your start date in which case you will need to enter how much money you havein each of your accounts and the amounts that your customers owe you and you owe your suppliers Or you could choose an earlier date in which case you ll also need to enter all the business transactions you ve made between your start date and today The advantage of choosing today as your start date is that you don t need to enter many historical transactions which saves you time The advantage of choosing an earlier date and entering your business historical transactions is that you ll be able to see a lot more detail in your business reports To choose a start date that s best for your company consider these questions m When does your company s fiscal year start m How close is today to the end of your fiscal year m Do you havean accurate balance sheet for your current fiscal year E Do you have an accurate profit and loss statement also called an income statement for your current
328. s Eric enters a bill for each subcontractor and transfers the time worked during the previous week How much detail should I track for time activities Describe an activity You track time based on activities Each activity needs at a minimum the following to describe it m Nameof person who did the work Datethe work was done m Time spent doing the work The level of detail you include when tracking an activity depends on whether or not it s billable and how much detail you want in your reports Comment by specifying Name of person who did Required the work Date the work was done Required each activity can be for only one date Time spent doing the work Required If you use the Timer or the Stopwatch to time an activity fill in the time spent Customer and job the Required only if you plan to invoice for the time work is for Even if you don t invoice for the time m Allows you to report on hours worked by customer and job a Allows you to track payroll expenses by customer and job Should track time 223 Describe an activity by specifying Type of work described by a service item from the Item list Comment Required only if you plan to invoice for the time Even if you don t invoice for the time a Allows you to report on hours worked by type of work a Allows you to track payroll expenses by type of work Whether time is billable Time must be bill
329. s 169 Dealing w ith foreign vendors Working with foreign vendors is much the same as working with vendors in your home currency The steps involved in making purchases and paying bills doesn t change The only thing that is different is the currency of the transaction which is determined by the vendor See Create foreign customers and vendors on page 161 for instructions on how to create a foreign vendor Creating purchase orders for a foreign vendor Before you can create a purchase order for a foreign vendor you must set him or her up in the vendor list create a foreign A P account and have the purchase order turned on Create a purchase order for a foreign vendor as you normally would As you do 1 Select a foreign vendor Because the currency of this vendor is US Dollars for example the currency of the transaction will also be US Dollars amp Create Purchase Orders _ Of x Previous m Next HP E Spelling ra History E Joumal Vendor Ship To Form Template Bottorff Designs gt gt Custom Purchase Or gt Purchase Order ae w 3 BRATS Landscaping Design QuickBooks selects an A P account that matches the currency of the selected vendor If one doesn t exist it prompts you to create one Desplat Amount Tat Snowboard Artw Fill out the Create Purchase Order window as you normally would Vendor needed by Dec 15 GST 0 00 meee PST 0 00 Exchang
330. s Development Canada and the effect that changing the payroll item will have To learn about Search the Help index for Changing the name of payroll payroll items editing items Adding payroll items payroll items adding Adding a payroll item for a payroll items other tax miscellaneous tax Payroll items and expenses An expense isa debt that you pay as soon as you oweit Common payroll expenses include gross pay e g wages before taxes company paid payroll taxes e g the employer s part of Employment Insurance and company paid benefits for employees e g premiums for a company paid health plan Chapter 7 Payroll and employees For all payroll expenses QuickBooks suggests using the Payroll Expenses account When you run your payroll QuickBooks keeps track of your company s expenses for each employee You can then see totals for your expenses on the Payroll Summary report and on the Profit and Loss Statement Keeping track of payroll expenses You can break down company paid payroll expenses by job class and service item Expenses you can break down include m salary wages hourly wages commissions and bonuses m additions and company contributions employee benefits m company paid payroll taxes QuickBooks prorates the employee s company paid payroll expenses i e the company s portion of CPP QPP in the same proportion as the employee s earnings Tracking expenses by customer and job Some business
331. s feature Then you can create a T4A or Contractor Edition T5018 report To pay owners use an owner s draw from an equity account Generally an employee is a person you pay on a regular and ongoing basis to perform services for your company using materials and equipment you provide If your business is a sole proprietorship or an unincorporated partnership owners and partners are not usually employees If your company isincorporated corporate officers who work in the business are usually employees If you re not sure whether a person providing services for you is an employee owner or subcontractor contact the Canada Revenue Agency or your accountant To set up employees for payroll you need to m Optional but recommended Set up your employee defaults m Add new employees to your Employee list or add payroll information for employees already on your Employee list Employee defaults entering common employee information 190 Note The employee defaults help you set up payroll for several enployees quickly You enter payroll information that most employees have in common These defaults then show up every time you enter information for anew employee If the information isn t right for a particular employee you can change it for him or her You can set up the following information as employee defaults m Salary or hourly wage or commission payroll items with or without rates of pay m Pay period m Class i
332. s is the case you ll receive up to date install instructions with the Update package 1 Write down your QuickBooks license key in case you need it later m To find it select About QuickBooks from the Help menu 2 Back up your company file s To install your QuickBooks update 1 Shut down all open programs including QuickBooks and any virus protection software you may have Some virus protection programs can interfere with the installation Insert the CD ROM in your computer s CD ROM drive Open Windows Explorer and select the correct CD ROM drive 2 3 4 Open the folder containing the installer for your version of QuickBooks 5 Doubleclick Setup exe and follow the instructions on your screen 6 Review the Readme txt file on your CD ROM It containsimportant information about how your software is affected by this update and what you should do next Set number currency time and date formats in QuickBooks 60 Your settings in the Regional Options of Microsoft Windows affect how QuickBooks displays numbers currency time and dates To check your Windows Regional Options settings 1 From the Windows Start button select Control Panel 2 Choose Regional Options or Regional Settings depending on the version of Windows you re using Chapter 2 Setting up anew company Chapter 3 Importing and exporting data Converting data 62 E LH O W to bring fromMYOR S your data into Importing from
333. s set up a discount item with a rate of 15 He must use a subtotal item because the discount is based on the entire amount For examples of how to use items that calculate see page 42 for subtotals page 44 for discounts and page 137 for sales tax Setting up items 31 In this example Name Hardware is a Hard parent item with Subitems vs group and inventory assembly items Just as you can set up an account with related subaccounts under it on your chart of accounts you can havean item with related subitems For example Cherril keeps the books for her symphony association s gift shop which sells T shirts and other items She has an item called T shirts and subitems called Adult and Child each with its own price Subitems enable you to put similar items together on your Item list so you can locate them easily on the drop down list in any Item field Each subitem can have its own rate or price and its own description Each subitem can even have its own account although you would probably assign the same account to all subitems of the same parent item Fs Item List Description Type Account ware Inventory Part Construction M ateriz Doorknobs Std Standard Doorknol Inventory Part Construction Materie Lk Doorknobs Locking interior d Inventory Part Construction M aterie two subitems Wood Door Doors Inventory Part Construction Materie under it Exterior Exterior wood door Inventory Part Constructi
334. s taxes Changing the default tax codes In rare cases you may need to adjust the default sales taxes that QuickBooks sets up For example if your province charges an increased amount of sales tax on an item your business sells you may want to set up a new Sales tax code for the higher rate To create a new tax code 1 From the Lists menu choose Tax Codes List E Tax Code List Ask a help question Ask w How Do I x Description A check mark in this column means stick Used that the PST is calculated on the ax Exempt 0 0 GST Only sale price after the GST has been PST Only Standard added to it piggybacked on the Zero Rated GST If the column is clear the PST is calculated on the sale price independently of the GST Reports 7 show All 2 Click the Tax Code menu button then choose New 3 Fill in theinformation for your new tax code Enter a unique letter or number H New Tax Code _ of x to identify this oe ox tax code and a WES EEE Cancel If either the GST or PST does not apply description to a new tax code you re setting up GST pPST i Rate Rate select its Tax Exempt box Code i l A i Enter the GST 0 0 0 0 nse Note that selecting this box is not the and PST T Tax Exempt I Tax Exempt same as leaving the percentage at zero See What the Zero Rated Z tax percentages for code is for following this tax code
335. sales form You can enter all but payment items on estimates and sales orders However you can t enter the following item types on purchase orders or purchases on the Items tab of bills cheques and credit card charges m Other charge items set up as a percentage m Discount items m Payment items To learn about Search the Help index for Recording discounts from vendors discounts from vendors Entering payments to vendors vendors paying then Paying bills Using items saving time Enter an item in the Item field by typing or by choosing from the drop down list When you fill out a sales form you list each service product or fixed asset you re selling on its own line of theinvoice or sales receipt along with the amount the customer owes for that item Similarly when you write a purchase order or receive a bill each service product or fixed asset is listed on its own line Because information about individual items is listed on separate lines the items are called line items In QuickBooks you enter line items by choosing from the drop down list in the Item field of a sales or purchase form You can also type in the Item field and let QuickBooks fill in the rest of the item s name Amount Tax Description lt Add New gt Franchisee Consulting Consulting and hea Lessons Biking Lessons Hockey Lessons Skiing Lessons Snowboarding Lessons Biking Lessons 1 hour of hockey I Skii
336. se year to date summaries you want to add and click Enter Summary If a message pops up asking if you want to set up sick hours accrued click Later You ll be setting this up when you customize each employee s profile Converting data from MYOB 79 80 m Onthe2003 YTD Adjustment window enter the employee s year to date amounts using the totals from each employee s last payroll stub or the Payroll Register detail report as shown in the example below with the exception of accrued vacation pay see the step below for instructions on vacation pay E Payroll Register Detail E Year to Date 6 26 2003 Page 1 4 48 25 PM Employee Category 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter YTD Total stewart tracey None Wages Base Hourly 0 00 400 00 1 200 00 0 00 1 600 00 Hours 40 120 160 Total 0 00 400 00 1 200 00 0 00 1 600 00 Taxes CPP Employee Contribution 0 00 15 64 46 92 0 00 62 56 El Employee Contribution 0 00 8 80 26 40 0 00 35 20 Income Tax 0 00 97 65 292 95 0 00 390 60 Total 0 00 122 09 366 27 488 36 Expenses CPP Employer Contribution 0 00 15 64 46 92 El Employer Contribution 0 00 12 32 36 96 Total 0 00 27 96 93 88 4 32003 YTD Adjustment for Tracey Stewart Each employee s year to date amounts are totalled on this MYOB report Enter the totals you see on this report into QuickBooks For details on how to generate this report refer to ste
337. see income and expenses by fund The payroll reports show all your payroll information If you set up customers and vendors by using the Quick Add option go back later to add missing information For more search the Help index for items Also see Setting up items on page 28 search the Help index for jobs setting up search the Help index for customers adding new profit and loss reports search the Help index for classes turning on in QuickBooks See Setting up payroll an over view on page 175 search the Help index for customers adding new customers editing information for vendors adding adding a vendor vendors editing information for 10 Chapter 2 Setting up anew company Situation You want to see reports for a particular group of custom ers jobs or vendors Examples residential vs commercial customers remodeling jobs vs new con struction vendors that sell materials vs subcontractors On your Item list you want to group similar items together Example A school store wants to group clothing items and also group book items You want to track information that QuickBooks doesn t already track for customers vendors employees or the items you sell Examples patient s insurance company item size or colour On your profit and loss state ment you want to see subto tals for accounts that have something in common Example
338. ses the exchange rate from the Currency List to convert the foreign amount into the home currency amount You should rarely need to make changes to the Currency List except to add and delete currencies and update exchange rates You cannot delete your home currency To create a currency 1 From the Lists menu choose Currency List Pee eae Ask a help question Ask BE Hotkeys help you convert foreign Curency Echange Rate Hokey J amounts to your home currency quickly Australia Dollar 0 00 4 Canada Dollar To use them on any form select the Euro foreign amount you want to convert tance Franc Germany Deutsche Matk then type that currency s hotkey Hong Kong Dollar QuickBooks multiplies the foreign amount by its exchange rate which gives you the amount in your home currency n Japan Yen Netherlands Guilder Switzerland Franc United Kingdom Pound United States of America Dollar Ov OxI Nnm Currency Inactive currencies are not shown in this list There are more than 40 currencies defined in QuickBooks To display all currencies click the Show All checkbox Setting up multicurrency 163 164 2 At thebottom of the Currency List click the Currency menu button and select New The New Currency window appears New Currency olx r Format Currency Name Sample fi 23 456 00 try ountry Symbol Position leading Decimal Separator Currency Code Currency Symbol Decimal
339. siness works Change account names and edit delete or add accounts to make your chart of accounts reflect your company s financial activity if you have to You can adjust the opening balances of the accounts in your Chart of Accounts too For more information see Adjusting opening balances for balance sheet accounts on page 51 It s important to decide on an account structure that meets your needs now Although you can edit your chart of accounts later if you need to it s much easier to make changes before you start entering transactions Final steps to complete your setup 47 You can fine tune your chart of accounts at any time by doing the following m Add new accounts or subaccounts You can add subaccounts to balance sheet accounts for example fixed asset accounts as well as to income and expense accounts m Turn on and use account numbers QuickBooks has an option for specifying account numbers in addition to names If the account is one that QuickBooks added for you it already has anumber but you can change it Change the name or number of an existing account Enter or edit an opening balance for a balance sheet account if the original opening balance is incorrect m Arrange accounts of the sametype in alphabetical order or numerical order if account numbers are turned on Rearrange the order of accounts within the same account type Make one existing account the subaccount of another or
340. so need to complete a T4 Summary form which summarizes your employee s T4 slips for the CRA and in Qu bec an RLZ 1 form which summarizes your employee s Relev 1 slips for the Minister of Revenue QuickBooks helps you fill in these forms too Preparing year end payroll forms 214 Step Procedure 1 Consult your accountant the CRA and provincial guidelines about how to report any benefits or amounts you re not certain about 2 In QuickBooks create and review a T4 slip for each employee who worked for you during the last year See Creating and reviewing year end payroll slips below Enter any adjustments you need to make 3 For each employee print two copies of his or her T4 slip Give them to the employee by the last day of February Chapter 7 Payroll and employees Step Procedure If you created 70 or fewer T4 slips file them electronically with the CRA through the Internet If you created more than 70 slips or you do not have an Internet connec tion print one T4 slip per employee and to mail to the CRA by the last day of February If you printed T4 slips for the CRA fill in a T4 Summary form to send to the CRA along with the slips If you E Filed the T4 slips you do not need to fill in a T4 Summary form In Qu bec repeat Steps 2 and 3 for Relev 1 forms In Qu bec fill in an RLZ 1 form to send to the Minister of Revenue Creating and review ing year end payroll slips Yo
341. ss to the entire company file and is the only person who can add additional users and change access privileges For each user heor she sets up the Administrator designates m A password The password can contain up to 16 letters and numbers and is not case sensitive The user can change the password later but the Administrator will still be able to make changes to the user s access privileges and can assign the user a new password if necessary m Full access selective access or no access to each area of QuickBooks Setting up and customizing users After you ve set up the Administrator you can add new users Use the New User Setup Wizard to select the parts of QuickBooks you want the new user to use m From the Company menu choose Set up Users You can set up as many users as you want However only five users can access the company file simultaneously In Windows 2000 and XP using the Users and Passwords control panel you can set up each employee with a log in profile Be sure that Windows XP users have at least Standard user rights and that Windows 2000 users have Power Users Group rights or QuickBooks won t run properly When the Wizard finishes a summary screen for all your users appears Kee Access for user Drell Page 10 of 10 SS ko RS KS You have finished setting this user s access rights and password ORE Below isa summary of this user s access rights Click the Finish button 5 or to complete this t
342. sses find these professionals Intuit Canada manages a referral service through the IntuitAdvisor program The referral service connects small businesses working with QuickBooks with accountants or consultants who are knowledgeable in QuickBooks The service is free you simply pay the advisors fee for specific services you need These accountants and consultants possess the tools resources and knowledge to help you set up and maintain and optimize QuickBooks so that you can manage your business better You can locate a QuickBooks IntuitAdvisor in your area by using our no cost online referral service on the QuickBooks web site http www quickbooks ca We suggest that you select two or three advisors and contact each to determine who would be right for your business The advisor you select will provide you with information about his or her fees Becoming an IntuitAdvisor If you are an accountant bookkeeper or computer consultant who supports small to medium business clients you may want to consider becoming a member of this unique community The program is intended to provide additional support to those people who service the needs of small business clients It s a great way to learn more about QuickBooks as well as help you build your business By joining the program you will receive the latest version of QuickBooks plus all updates for it and payroll changes additional training materials invitations to training courses infor
343. ssign the service items they use to customer jobs as they go m On each pay cheque you write associate the service items for the employee with the customer jobs he or she worked on To learn about Search the Help index for Tracking payroll expenses by cus payroll tracking expenses tomer job class or service item Payroll items and liabilities Often you have to deduct an amount from an employee s payment and pass it on to the government or another institution For example when you pay an employee you hold back the income tax that the employee owes the government and remit that money to the government later These types of deductions are not expenses because the money you pass on comes from the employee not your company Instead because you temporarily keep someone else s money these deductions are liabilities Payroll items for liabilities are usually assigned to the Payroll Liabilities account When you do your payroll QuickBooks calculates how much you owe the government or other agency for each tax deduction and company contribution payroll item and records it in the Payroll Liability account With each pay cheque you write the balance of this account increases When you pay your payroll deductions and other payroll liabilities in the Pay Payroll Liabilities window QuickBooks decreases the balance of the liability account Chapter 7 Payroll and employees Combinations of expenses and liabilities Some
344. ssignments for your accounts The accuracy of your tax reports depends on each tax related account being assigned to the correct tax line see How QuickBooks tracks tax information on page 127 An easy way to check that all your accounts are assigned to the proper tax lines is to create an Income Tax Preparation report It lists the accountsin your Chart of Accounts and which tax lines are assigned to them m Check that the amounts in your Income Tax Summary report are correct Oneway to check isto compare your Income Tax Summary report to your Trial Balance make sure they cover the same period of time Check that the account totals Trial Balance are the same as the matching tax line totals Income Tax Summary report If they renot an account may not be mapped properly to atax line Remember too that you may have more than one account mapped to a tax line If so the sum of the account totals should be the same as the tax line total To learn about Search the Help index for Checking tax line assignments to income taxes filling out tax forms ensure the accuracy of your income tax summary report Checking the amounts distributed to income taxes filling out tax forms various accounts Income Tax Summary report The Income Tax Summary report shows the amount associated with each tax line for the tax form you specified during setup Chapter 4 QuickBooks basics Note Income Tax Detail report The Income Tax
345. st Name Stewart 1234 12 Ave 123456789 City DOB 05 26 1973 EJO Province PostalCode Hired 12 21 2001 E ae a E 152 Released S Edm Chapter 3 Importing and exporting data On the Payroll Info tab in the Earnings box select how this employee is paid salary or hourly for example and then enter the annual rate if the enployeeis on a salary or an hourly rate if paid on an hourly basis In the Pay Period field select how often you issue pay cheques to the employee This information is available from the Employee Payroll List report Enter additional adjustments you make to the gross or net pay here with the exception of tax adjustments Such adjustments can include payments to a retirement plan or union dues company contributions for dental or life 7 4 2002 3 34 36 PM Andrew s Bike Shop Employee Payroll List insurance to Address Info Additional Info Payroll Info Name Tracey Stewart SIN 123456789 nameafew If A Sw None TaxTable AB you set up Eamings irst Address He Hire Date 12 21 2001 item Now Hourly Annual Rat Pay Period MEN Terminate Date employee Salary 20 000 00 Ed oe Poet anon nee ase Pay i defaults aa Espey x Class z Canada Pay Periods 52 these gj 780 123 4567 Federal Allowances 7534 00 adjustments T Use time data to create pay cheques Phone 2 Federal Extra Withheld 0 00 Additions Deductions
346. stomer search the help index for estimates by job m QuickBooks reports about jobs apply to customers as well You don t have to set up jobs in order to use these reports For example the profit and loss by job report actually applies to both customers and jobs If you have customers but not jobs you will still see information about your customers the opening balance for a customer or job When you first set up a customer or job you have a chance to enter the opening unpaid balance for the customer or job as of a specific date The date should be your QuickBooks start date that is the date when you enter opening balances for all accounts customers and vendors When you enter the customer s opening balance in the EasyStep Interview or New Customer window QuickBooks creates an invoice for the amount and date you specify This invoice is probably the first transaction in the customer register There should not be any opening balancetransaction if the customer had no unpaid balanceas of the start date You can change the customer s opening balance invoice by finding it in the customer s register and then editing it If you failed to enter an opening balance but want to create onenow enter an invoice dated on or before your start date To summarize the amount owed as of your start date enter on the invoice an item set up as a nontaxable other charge and assign the account Uncategorized Income To learn about Search
347. t any time Types of accounts Balance sheet accounts Your chart of accounts includes ba ance shat accounts These accounts track the following What you have assets m What people owe you accounts receivable m What your company owes to other people accounts payable and other liabilities m Thenet worth of your company equity Decisions to make before you start 7 The following table describes the various types of QuickBooks balance sheet accounts Balance sheet account type Asset QuickBooks account type Bank Accounts Receivable A R Other Current Asset Fixed Asset Other Asset Use to track What you have and what people owe you Transactions in chequing savings and money market accounts You can also use this type of account for petty cash Transactions between you and your customers including invoices statement charges payments from customers deposits of customer payments refunds and credit memos QuickBooks automatically creates an A R account when you first create an invoice or statement charge Assets that are likely to be converted to cash or used up within one year such as the value of your inventory on hand notes receivable due within a year prepaid expenses and security deposits Depreciable assets your business owns that aren t liquid not likely to be converted into cash within a year such as equip ment furniture or a building Any asset that is neither a curren
348. t appearsin T4 and Relev 1 forms or how it is mapped to Record of Employment forms You may want to change a payroll item for example because m Theannual limit for a deduction changes m Your accountant wants you to assign it to a different account Managing payroll and employee information 201 T T Changing You can t delete the payroll items for income tax and other government deductions that QuickBooks creates for you but you can hide these items if you don t use them To learn about Search the Help index for Changing payroll items payroll items editing W hat the changes to payroll items affect Changes you make to payroll items are reflected in the new pay cheques you write Certain changes can also affect how payroll amounts are classified historically on tax forms reports and pay cheque details Employee information and existing pay cheques are affected when you change any of the following information for payroll items m Payroll item name m Account s assigned to it liability or expense m Assigned box on T4 or Relev 1 forms or its mapping to Record of Employment forms Changing the following information affects future pay cheques only unless you change an existing pay cheque so that QuickBooks recalculates it m Payroll taxes affected for additions to or deductions from gross pay m How the payroll item is calculated on the pay cheque To learn about Search the Help index for Ma
349. t asset nor a fixed asset such as long term notes receivable Liability Accounts Payable A P Credit Card Other Current Liability Long Term Liability What your company owes to other people Outstanding bills When you first enter a bill QuickBooks auto matically creates an A P account Credit card transactions for your business expenses One account per credit card Liabilities that are scheduled to be paid within one year such as sales tax payroll taxes accrued or deferred salaries and short term loans Some businesses include the current portion of long term liabilities in this kind of account Liabilities such as loans or mortgages scheduled to be paid over periods longer than one year Equity Equity Net worth of your com equity assets liabillties A company builds equity from three sources mg Investment of capital in the business by the owners m Net profit from operating the business during the current accounting period m Retained earnings or net profits from earlier periods that are carried forward into the current fiscal year and that have not been distributed to the owners 8 Chapter 2 Setting up anew company Balances for balance sheet accounts The Chart of Accounts window shows a balance for each balance sheet account except for the special equity account Retained Earnings Fu Chart of Accounts Oy x 7 aa One of the first things you Tem leek ee should do
350. t m Online banking accounts Memorized Transaction list m Names of customers on accounts receivable transactions Convert only the accounts you want to use in QuickBooks Before you convert to QuickBooks delete all accountsin Quicken that you know you won t want in QuickBooks In QuickBooks you can t delete accounts that have transactions but you can in Quicken So it s easier to delete the accounts you know you won t want before you move to QuickBooks All transfers to and from the deleted accounts will be converted as transactions to your opening balance equity account to ensure that your accounts balance You might want to delete accounts from your Quicken file in these situations m You have personal accounts as well as business accounts in your Quicken file m You haveinvestment accounts in your Quicken file If you do not delete your investment accounts they will be converted to QuickBooks Other Current Asset accounts because QuickBooks doesn t track investments like Quicken does You can either Chapter 3 Importing and exporting data Note 9 m Keep the QuickBooks Other Current Asset accounts as a way to include the value of your investments in your QuickBooks balance sheet In this case you should continue tracking your investments in Quicken and update the balance of your QuickBooks Other Current Asset accounts periodically m Or deletetheinvestment accounts from your Quicken file so they arenot bro
351. t to be sub tracted from a total or subtotal Example A 10 discount given to nonprofit organizations Either decreases income or increases expenses depending on item setup Available for sales forms only not available for statement charges or pur chase forms Payment On invoices Payment received at the time of invoicing so that amount owed on invoice is reduced On sales receipts summaries To show totals for each type of pay ment cash cheques credit card charges Increases the balance of either a specific che quing account or the account for undepos ited funds depending on item setup Available for sales forms only not available for statement charges or pur chase forms Items that calculate The table of items includes some items used to perform a calculation on one or more lines above it on a sales form For example if you need to subtotal on sales forms then you need a subtotal item A subtotal item adds the amounts of the items above it on the sales form and enters the subtotal on the form Finally there are some items that can be set up either as percentages or with flat amounts depending on what you need For example Carol adds a 10 service charge to her invoices She has set up an other charge item with a rate of 10 She uses a subtotal item before the service charge so that the 10 will be based on the subtotal amount Steve gives a 15 discount to certain customers He ha
352. t to use on forms to represent the thousand placeholder The default is a comma 4 Click OK The new currency is added to the Currency List and is available on forms To learn about Search the Help index for Creating editing or deleting a m currencies creating currency m currencies editing Chapter 6 Doing business internationally Using the currency calculator The currency calculator isa handy way to convert a dollar amount into a foreign currency or vice versa m From the Company menu choose Currency Calculator Currency Calculator Value 50 00 Convert From Canada Dollar x Convert To United States of America gt 1 Type the dollar value you want to convert 2 Select the currency of the dollar amount you want converted 4 Click hereto copy the converted amount to the clipboard Then use the paste command CTRL V to paste the amount into a field on a form 3 Select the currency you want the dollar amount converted to Converted Clipboard A read only field that displays the result of the conversion Exchange rates and how they affect your transactions The exchange rates provided in QuickBooks Pro or better were accurate at the time your software was released However because currencies fluctuate in value you should update the exchange rates of your currencies often every week or possibly more frequently depending on the volatility of the cur
353. t tracking ae To learn about Search the Help index for Blank timesheets timesheets blank Filling out a weekly timesheet timesheets Entering details for a single single activity entries activity Using the Stopwatch to time an Stopwatch activity Paying for time worked QuickBooks does not track whether you have paid workers for time or not only whether you have passed time costs on to your customers If you pay a worker employee owner or subcontractor for time and then edit the time data or import new information from the Timer QuickBooks does not track which time has been paid for and which has not All it tracks is the end date of your last payment for time to the worker To avoid paying for the same time twice make sure your worker has submitted all his or her time data for a period before you create a pay cheque covering that period that is pay a worker only for work that takes place after the end date of your last time payment to him or her If you accept late time data print a Time by J ob Detail report and mark the activities you are paying for QuickBooks automatically transfers time data when you create pay cheques for employees who are set up for transferring time data That is it fills in the number of hours for each payroll item for salary or hourly wages included in the time data for the payroll period If customers or jobs service items or classes are assigned to an employee s time acti
354. t you contact your provincial Minister of Finance for specific instructions on charging PST to out of province customers You do not have to charge GST if your company is registered for GST you have a GST number and you sell to a foreign company How sales taxes are affected by a discount added to an invoice QuickBooks applies discounts before calculating the GST or PST When you use a discount item on an invoice you must decide if you want the discount to apply only to one item on the invoice or to all items on it m Ifthe discount applies to only one item use the discount item immediately after the item you want to discount m lIfthediscount appliesto morethan oneitem enter them on the invoice first then use a subtotal item then use the discount item Discount items should have tax codes When you create a discount item renember to assign it a tax code Then when you apply the discount to an item match its tax code to the item s QuickBooks will then recalculate the affected sales tax es correctly Percentages vs dollar amounts If you enter a specific dollar discount instead of a percentage the sales tax might appear less than you expect because the discount gets spread proportionally over all the line items appearing aboveit If you enter a percentage discount it applies only to the line item directly above To learn about Search the Help index for Using a tax code on a form tax codes changing on forms Ch
355. te anew company Choosethis option to start the EasyStep Interview You can also start the EasyStep Interview by choosing New Company from the File menu QuickBooks displays the EasyStep Interview window Chapter 2 Setting up anew company Opening the EasyStep Interview at other times With your company file open choose EasyStep Interview from the File menu Theinterview picks up where you left it and you can continue on You can t change information by returning to the EasyStep Interview and answering the questions differently If you need to change information you entered in the EasyStep Interview change it directly in QuickBooks The EasyStep Interview is designed to help you with the initial set up of your company file not for editing it Getting around in the EasyStep Interview The EasyStep Interview is broken into six sections After you complete all the sections your company file contains basic information about your business m General Lets you enter company information choose a chart of accounts appropriate for your business decide on QuickBooks preferences and specify a business start date Complete the General section of the Interview before going on to other areas QuickBooks won t know enough about your company to ask the rest of the Interview questions unless you fill in your basic company information and start date first m Income amp Expenses Lets you review the income and e
356. tem Payroll Item Notes Z 8 9 10_ 11 12 Total whether the time Bi Harris Piotr Consulting Regular Pay 8 00 6 00 6 00 6 00 billable not billable Natiello Erne Sick Hourly Zi or already billed Pretell Real E Framing Regular Pay 2 00 Name Tracey Stewart x Pay Period Dec 6 to Dec 12 2002 8 00 6 00 6 00 8 00 16 00 0 00 44 00 Set Date Copy Last Sheet Save amp Close Save amp New Revert If you enter a lot of detailed notes about your activities or prefer to enter time data as you complete each activity use the Time Enter Single Activity window Time Enter Single Activity Ask a help question Ask ix Previous Next E Spelling E Timesheet Not Billed Date 08 12 2002 F Billable Name Tracey Stewart Payroll Item Regular Pay Customer Job Harris Piotr Service Item Consulting Time Notes Consulting on how to manage multimedia Duration development timelines 4 6 00 Start Stop Pause Save amp Close Save amp New Clear When you fill in and record a Time Enter Single Activity window you can later view the information on a weekly timesheet Conversely when you fill in and save a weekly timesheet you can view Time Enter Single Activity windows that each show the work on one job on one day The two are simply different views of the same data similar to views of individual cheques versus your cheque register 234 Chapter 8 Time and cos
357. that has an opening balance applied to an invoice Even though the invoice is paid QuickBooks retains the invoice because it has alink to an open transaction the undeposited payment The transaction is linked to a transaction after the condense date Summary transactions The summary transactions that QuickBooks creates appear in the registers of your balance sheet accounts Bank Accounts Receivable Accounts Payable and so on Each balance sheet account has one GENJ RNL summary transaction for each month in which QuickBooks deleted transactions The transaction amount is the total of the transactions that QuickBooks deleted for the month For a given month the register may also show other transactions that QuickBooks did not delete These are transactions that could be affected by transactions you have yet to enter When opening a register you can spot the summary transactions by looking for GENJRNL in the Type field To view a breakdown of amounts by account select a GENJRNL transaction and click Edit The General Journal Entry window shows the breakdown of amounts by account for all summarized transactions for this month Note You cannot edit or delete a GENJRNL summary transaction Chapter 4 QuickBooks basics T How condensing data affects your reports Account balances After you condense your data you can still create reports that summarize financial activity for the period of time you condensed For examp
358. the Item List Some items require both the GST and PST others just the GST or PST and some are tax exempt If you are unsure what taxes apply to the items you sell and buy or the services you provide check with your accountant the CRA or the office of your provincial Minister of Finance Once you have assigned tax codes to items QuickBooks applies the correct sales taxes to them on sales and purchase forms You can override an item s tax code on a sales form if you need to Also customer tax codes see Assigning tax codes to customers on page 145 override item tax codes To assign tax codes to items 1 From the Lists menu choose Item List 2 Select theitem you want in thelist then choose Edit from the Item menu button 3 If you buy theitem for your business select the correct tax code from the drop down list next to Purch Tax Code in the Purchase Information area 4 Ifyou sell the item to customers select the correct tax code from the drop down list next to Sales Tax Code in the Sales Information area 5 Click OK In the preferences window you can choose a default tax code This code will be assigned auto matically to all new items you create Choosing a default sales tax code does not affect the sales tax codes assigned to items already in your Item list To learn about Search the Help index for Assigning tax codes to items items assigning tax codes to Chapter 5 Tracking and paying sales taxes Ass
359. the Item list and other lists sorting list entries Moving items and other list entries lists reorganizing entries Setting up items 29 Types of QuickBooks items Item type Service Inventory Part In addition to items for services or products QuickBooks has several other types of items This section explains what each type of QuickBooks item is designed to do Use one of the Part item types for any product not just a part of another product If you decide to use QuickBooks inventory to track your products set up inventory parts for them Otherwise set up non inventory parts for your products Use for Services you charge for or ser vices you purchase Examples professional fees labour Products you purchase track as inventory then resell Examples Electrical outlets T shirts Usual effect on accounts On sale Increases income On purchase Increases expenses On sale Increases income increases cost of goods sold and decreases inventory assets On purchase Increases inventory assets Comments In QuickBooks Pro and better you can set up a Service item so that it can affect either income or expenses depending on where you use it Price levels can be used on service items Available only if the inventory feature is turned on Search the help index for inventory turning on Price levels can be used with inventory parts Search the help index for price levels You can set up
360. the Time Enter Single Activity window m TheQuickBooks Timer The Timer is a separate program that runs on Windowson any computer Because it s separate you can distribute copies of the Timer to people who don t have access to QuickBooks such as employees and subcontractors Then you can merge their time data into the QuickBooks company file m You can also enter time data manually into QuickBooks in the Weekly Timesheet window or Time Enter Single Activity window Tracking time can help you make better decisions about work capacity future hiring needs and employee productivity Furthermore if you track the time you your employees or your subcontractors spend on each job you ll be able to do the following Invoice customers based on the number of hours of work done for them Automatically fill in hours on pay cheques When paying subcontractors automatically fill in hours on cheques and bills Track payroll costs by job class or type of work Report hours worked by person job or type of work Track billable versus non billable time Should I make time billable 222 When you record time worked for a particular customer or job one option isto mark it as billable Then when you invoice the customer you can add the billabletime to theinvoice with a few clicks After you put the time on a sales form QuickBooks marks it as billed so you won t charge a customer twice for the same thing If the work done by employees
361. the custom field information for the item To learn about Search the Help index for Adding a new item for one of the following m A service m items services m An assembled product that you purchase or build m items inventory assembly yourself m A product or part that is not held in inventory m items non inventory parts m A fixed asset m items fixed assets m A miscellaneous charge m items miscellaneous charges Adding a new item for a product or part held in inventory items inventory Setting up items 37 Items for To learn about Search the Help index for Adding a new item that puts a group of several items on items grouped together a sales or purchase form Adding a new item that calculates a subtotal items subtotal types Adding a new item that calculates a discount on a sales items discount types form Adding a new item that records a customer payment or items payment types deposit received at the time of sale Adding a new item that calculates the total sales tax fora items subitems combination of sales tax rates Creating subitems of another item items subitems Creating custom fields for items items custom fields on Turning sales tax on sales tax setting up reimbursable costs QuickBooks Pro and better Perhaps your business purchases services or products for specific customers or jobs then invoices the customer for the items with or without markup For example Frank isa ge
362. the instalment payments you made during the sales tax period Tip the Split column shows cheques to the vendor that were created using your sales tax instalment account Open the File Sales Tax window and fill it in as you usually would then click Next In the Instalments line of the return enter the amount you noted in Step 4 For example if you made three instalment payments of 500 each towards your GST liability your total should be 1500 which you enter in line 110 of your GST return Finish processing the return as you usually would If you receive a sales tax refund You create and file asales tax return the same way in QuickBooks regardless of whether you have to remit tax or you have a refund due When you file your sales tax return if you are receiving a refund QuickBooks sets up the tax agency asa customer if it isn t set up already so that it appears on both your customer and vendor lists Use the entry on the Vendor list to pay your sales tax liability and the one on your Customer list to deposit a sales tax refund Note that the nameon each list isslightly different such as Receiver General on the Vendor list and Receiver General c on the Customer list creates an invoice for the amount of the refund using the pre generated Receiver General Receivable item When you receive the refund you should enter the amount as a payment received against this invoice To receive a sales tax refund after filing a
363. the report but uses your latest financial data When you memorize a report QuickBooks adds it to the Memorized Report List To display thislist from the Reports menu choose Memorized Reports then choose Memorized Report List 102 Chapter 4 QuickBooks basics We encourage you to explore the extensive list of filters _Ielimemoe _ Your options here will include filtering for data you entered in your custom fields Changing the scope of the information in a report Creating your own version of an existing report can also include filtering or changing the scope of the information that displays on a preset report fiji Collections Report x Modify Report Memorize Hide Header Dates Today gt 12 15 2003 Past due 1 Sort By Default 8 51 AM 12 15 03 Collections Report As of December 15 2003 Type Date _Terms Due Date Aging Open Balance Cook Brian Kitchen Brian 415 555 2248 Brian work n Modify Report Collections Report 415 555 0220 Invoice Total Kitchen Total Cook Brian Jacobsen Doug Kitchen Doug or Lind 415 5554411 Invoice Total Kitchen Customer Type Filter Choose the customer type from the drop down list To select several customer types choose Selected customer types To learn about Search the Help index for Changing date ranges reports dates in Customizing a report report customization Adjusting adding
364. then Unrealized Gain and Loss b In the Exchange Gain Loss window update the exchange rates for the purpose of this report Note that doing so does not update the Currency List c Click OK QuickBooks summarizes open foreign transactions and the potential gains or losses on them Rf Unrealized Gains amp Losses _ Of x Memorize Print Hide Header On reports foreign Dates an Y From Ej To Bl Total By Unrealized Gain Lc amounts are 12 16 PM BRATS Landscaping Design displayed in the AAAS Unrealized Gains amp Losses home currency as vall Transsetons In this example the Current balance Adjusted balance Gain Loss Aiii home currency is USAR gt 349 99 4 443 99 100 00 Canadian therefore US Accounts Payable 360 35 400 35 40 00 TOTAL UNREALIZED GAIN amp LOSSES 60 00 these amounts are in Canadian dollars Chapter 6 Doing business internationally Select this checkbox to ensure these amounts are recorded as an adjustment to the home currency without affecting the foreign balance of that account 2 Usetheinformation in the report to create a home currency adjustment in the General Journal entry to account for your gain or loss Select the Exchange Gain Loss expense account as the other account that will be affected by this entry In this example the Unrealized Gains and Losses report shows a currency gain for the USA R account and a currency loss for the US A P a
365. ting data Chapter 4 QuickBooks basics Getting around in 92 QuickBooks QuickBooks 95 Keyboard Shortcuts Using the Help 96 system in QuickBooks Getting 100 information about your company Customizing your 105 forms Backing up your 107 company data Condensing your 114 company file Reconciling bank 118 and credit card accounts Setting up online 120 banking account access and payment Working with 122 multiple users Gathering 127 income tax information Solving printing 132 problems Le What you need to know to work in QuickBooks Thischapter explainsthe basics of using QuickBooks so you can get up and running quickly Once you know how to get around in QuickBooks and whereto go for more information you ll learn about the options you have and how to use the features of QuickBooks that require additional setup like backing up and restoring data allowing different users to access your company file and linking your company accounts to your income tax return 91 Getting around in QuickBooks QuickBooks gives you many ways to get to the information or feature you want About the Getting Started window When you first open QuickBooks the QuickBooks Getting Started window appears usually it is underneath the Automatic Update window The Getting Started window lists the steps you need to complete to finish setting up your new company file tells you how to find the
366. ting up for 191 payroll item for 181 company files 5 compensation payroll items for 181 PST and 148 sales tax and 148 condensing data 114 how it affects reports 117 summary transactions 116 when using Payroll Service 115 connecting QuickBooks to the Internet 55 Index 261 connection changing for the Internet 56 construction industry standard categories tracking 5 12 consultants 4 contacting technical support 247 context sensitive help 97 98 converting MYOB data 74 83 Quicken data 62 73 corporations described 18 officer salaries 181 CPP Canada Pension Plan payroll items for 180 creating foreign invoices 168 sales order 36 credit cards accounts 8 reconciling 118 currency list 163 currency see multicurrency current assets accounts for 8 custom fields filtering reports for 103 for employees 190 for items 38 customers foreign 168 opening balances changing 23 payroll expenses tracking by 183 products and materials purchased for 40 tax codes for 145 customizing reports 102 D data audit trail of 126 backing up overview 107 backing up to a tape 110 backing up to CD 109 backing up to floppy disk s 111 backing up to QuickBooks Backup Service 111 backing up to Zip drive 110 condensing 114 exporting 84 exporting from the Timer 232 files 5 importing from other software 84 refreshing 123 restoring 114 Timer importing into Pro o
367. tising or office supplies There are no registers for income and expense accounts but you can create reports to show totals for these accounts over a period of time Cost of goods sold COGS account Many businesses that track inventory have one cost of goods sold account which is similar to an expense account A COGS account contains the cost of inventory you have sold Decisions to make before you start 9 W hat s the best way to track my type of detail The following table describes situations that require a business to track a particular type of detail The table suggests the best way to track this detail in QuickBooks Situation You need to track details of services you re providing or products you re selling You need to track multiple jobs for the same customer You need to track expenses by customer or job You need to track income and expenses by fund location department or business seg ment Examples religious and arts organizations retail stores with multiple locations You have employees and need to see detail about pay roll taxes and other payroll expenses Example any com pany with employees You need to track certain details about your customers and vendors Example pay ment terms customer s sales tax customer s ship to address T4 A information your account number with a vendor How to record in QuickBooks Set up items on the Item list for your services and products
368. to March 31st even if they are back dated will not be marked as filed and will show up in your GST and PST Liability reports Chapter 5 Tracking and paying sales taxes M anually filing or unfiling transactions You can change a transaction s status if you need to For example you may need to manually change the status of transactions from filed to unfiled if there was a problem on a sales tax return you created but did not yet send to the CRA formerly the CCRA In this case you could mark all transactionsincluded on thereturn as unfiled correct the problem and create the return again Note that unfiling a transaction from a return without recreating the return will result in your sales tax reports not matching the actual balance owing in your sales tax payable account Also your sales tax payable account not balancing to zero properly when you file a sales tax return Because unfiling a transaction may mean adjusting the sales tax you owe contact your accountant for guidance To manually mark a transaction as filed or not filed 1 Open the original transaction and note its date reference number and the amount of GST or PST on it 2 From the Lists menu choose Chart of Accounts 3 Doubleclick the sales tax account to open its register m The default sales tax accounts in QuickBooks are GST Payable and PST Payable 4 Locate the GST or PST entry in the register that matches the original transaction 5 In the transaction right
369. to your computer via the Internet in the background with little impact on your computer s performance Manual Download With this method you decide when to download an update via the Internet to your computer You can use this method at any time even if your computer is set up to download updates automatically From www quickbooks ca Visit our Web site to download the latest release Multiuser Update When updating multiple users the new update is downloaded via the Internet to a local server for each user to then download to their computer Update QuickBooks to the latest release 57 58 Note Automatic updates By default QuickBooks is set to receive updates automatically QuickBooks periodically checks the Intuit server for new updates and downloads theinformation gradually at times when your open Internet connection is not being used by another process or application Some of the advantages of this method include the following m You can download updates without interrupting a QuickBooks session or other tasks you perform with your computer m You can download updates whether or not QuickBooks is running as long as your computer is connected to the Internet m You can disconnect from theInternet at any time When you reconnect to theInternet QuickBooks resumes downloading at the point it was previously halted To turn off Automatic Update 1 On theFile menu select Update QuickBooks 2 Click Options 3 Clic
370. tom of the register Otherwise you may have to search for the cheque Select the Expenses tab below the cheque Click the first line below the PST Payable entry and select the income account you use for PST compensation In theamount column enter the amount of compensation for this return as a negative number m For example if you received compensation of 250 enter 250 Click the Recalculate button and confirm that the cheque amount is now correct Save the cheque then print it as you normally would Remitting your tax liability to the government 148 Use the File Sales Tax function to create cheques for the sales tax you ve collected which you can then print and send in to the CRA or your provincial Minister of Finance along with your return You must file a return for each reporting period even if you do not owe money or expect a refund For reporting periods with no business transactions file a nil return 1 2 3 From the Vendors menu choose Sales Tax then File Sales Tax In the File Sales Tax window QuickBooks shows the last day of the previous month in the Show Sales tax through field Enter the date that the current sales tax period ends Select which tax agencies Vendors to pay by clicking in the Pay column Note The Payment Account field shows your chequing account To draw the cheque on a different account just select it from the drop down menu Chapter 5 Tracking and paying sales taxes
371. tomer Write Ed Register Letters Centre Customer Solutions Manage your business more efficiently using chegues quaranteed to work with QuickBooks Handle out of stock situations by creating sales orders for your customer Find out how you can accept credit card payments directly into QuickBooks Get paid faster Email invoices from QuickBooks and receive payments online Send important or confidential documents securely with QuickBooks Secure Document Delivery Related Activities QuickBooks Credit Card Service amp QuickBooks Secure Document Delivery Service amp Print Invoices a Add a Customer Customer Centre QR Customer Detail Centre Memorized Reports _Heb Customers A R Aging Summary Customer Balance Detail Customer Balance Summary Open Invoices Display or Print this Group Memorized Report List Report Finder Click these icons for quick access to features you use to manage all your customers Use this drop down list for convenient access to reports you ve added to the memorized reports list To learn about Search the Help index for Using the Company Centre Company Centre Using other QuickBooks centres centres Decision Tools decision tools 100 Chapter 4 QuickBooks basics Creating reports QuickBooks provides a wide variety of preset reports and graphs designed to give you quick and easy ac
372. tomer or vendor profiles in the correct currency Once a transaction has been recorded for a foreign customer or vendor you cannot change the currency assigned to him or her You cannot assign a foreign currency to the Receiver General and Minister of Finance vendors To create a new foreign Customer Vendor or Other Name Open anew profileand fill itin as you normally would with the following exceptions noted on the graphic below is New Customer Ask a help question Ask w How Dol M Iof x 1 Optional Enter an opening balance if applicable Once a transaction is recorded for a customer you cannot enter an opening balance in this window How do determine f Opening Balance as of 99 17 2002 E the opening balance Address Info Additional Info Payment Info Job Info Categorizing and Defaults Type Terms Rep E Business Number Price Level x Custom Fields Define Fields pr Customer is inactive Currency Nethetlands gt 2 Select the currency you Exchange Rate want to associate with woes this profile If the currency you want is not in the drop down list select lt Add New gt to create a new currency Also if the exchange rate is out of date update it Only one currency can be associated with a Customer Vendor or Other Name If you deal with a customer or vendor in more than one currency you ll need to create an additional customer or vendor profil
373. tomobile Fuel Repairs and Maintenance Total Automobile Bad debt Bank Service Charges Freight amp Delivery Insurance Disability Insurance Liability Insurance Work Comp 150 00 1 050 00 625 00 Interest Expense Finance Charge Interest Expense Other Total Interest Expense Job Expenses Equipment Rental Job Materials Permits and Licenses Subcontractors Total Job Expenses Payroll Expenses Professional Fees Accounting Total Professional Fees Rent Repairs Computer Repairs Total Repairs Tools and Machinery Utilities Gas and Electric Telephone Water Total Utilities Total Expense Oct Dec 04 5 65 539 80 850 00 15 395 36 700 00 40 099 00 60 044 36 19 780 38 250 00 250 00 2 400 00 1135 00 154 40 100 71 6155 316 96 56554 94 ETAT Total Insurance 2 025 00 Het Ordinary Income 23 945 47 Other Income Expense Other Income Interest Income 93 42 Other Income 12 50 Total Other Income 105 92 Your cost of goods sold account always appears after income accounts and before any other expense accounts so you can see what your net income is before subtracting your business s indirect expenses such as utilities and office supplies Pees nema 1m Het Income 24 054 39 Net income income expenses Decisions to make before you start 15 The statement of cash flows report The statement of cash flows summarizes your sources inflows and uses outflows
374. tracking only in Quicken 73 invoices payment items on 44 items 32 about 51 accounts how affected by 26 adding to forms with units of measure set 35 benefits of setting up 24 calculating 31 changing prices 46 custom fields for 38 deleting 47 editing 47 foreign prices 162 GST PST codes for 144 hiding 46 inventory assembly 30 32 list of 28 non inventory part 30 37 other charge 31 37 payroll 179 201 prices changing 46 reimbursable costs for 38 service 30 37 setting up units of measure 34 subitems 32 38 Index 265 types restrictions on changing 46 table of 30 J jobs compared to classes customer types and job types 13 opening balances changing 23 payroll expenses tracking by 183 products and materials purchased for 40 K keyboard shortcuts 95 L Learning Centre 99 learning QuickBooks with the Learning Centre 99 liabilities accounts for 8 adjusting for payroll item 210 adjusting GST PST 151 balance sheet viewing on 14 defined 14 GST PST 142 148 payroll see payroll liabilities line items defined 41 see also items lists activating inactive entries 47 alphabetizing 48 described 93 exporting 85 exporting for usein Timer 228 item 28 reorganizing 48 sorting 29 updating for Timer 231 loan amortization only in Quicken 73 locations tracking 5 12 locking sales tax after paying 125 155 login 124 long term liability accounts
375. trast some businesses or organizations probably don t need items Here are some examples m John is keeping the books for his church The church has members who pledge and contribute money but the church doesn t sell anything or charge for specific services so John doesn t need to create any sales forms m Marina does facials in her home evenings and weekends Her clients pay at the time of their visit Marina simply wants to track the income received She doesn t care to track in QuickBooks how many facials she gives or to whom m Rick isa commissioned sales representative He takes orders for a manufacturer that then invoices the customers directly Rick tracks the orders in a spreadsheet not Quick Books because the sales are income for the manufacturer not Rick When Rick receives acommission cheque he enters it in QuickBooks as a deposit services or products you purchase Once you ve decided to set up items for the services or products you sell you might want to use items for the services and products you purchase If you purchase services or products for a specific customer or job QuickBooks Pro and better allow you to set up items that you can use for both purchases and sales See Items for reimbursable costs QuickBooks Pro and better on page 38 On the other hand if you don t have QuickBooks Pro or better and you don t track inventory you should not use the same items for both purchases and sales Instead
376. u create both T4 and Relev 1 slips the same way 1 2 au kh WwW 8 9 From the Employees menu choose either Process T4s or Process Relev 1s Choose the correct year from the drop down list Usually you create year end slips for the year that just ended Select the employees to create year end slips for Click either Review T4s or Review Relev 1s Carefully review the first employee s slip To correct employer or employee information click Cancel and make the changes in the following places m To correct the name address or business number of the employer that is your company select Company Information from the Company menu m To correct the employee s name address or Social Insurance Number select Employee List from the Employee menu then double click the employee to edit To adjust the amount in abox double click the box then enter the adjustment in the window that appears m Optional Type a description to remind you about what this adjustment is for m Typethe adjustment then click OK QuickBooks adds the adjustment to the amount in the box To reduce the amount in the box put a minus sign before the adjustment To approve the form with changes if any click Next Repeat Steps 5 through 8 for the remaining employees 10 On the last form click OK Creating year end T4 and Relev 1 slips 215 Printing or E Filing year end payroll slips After you ve created and reviewed year end T4
377. u decide which fields including custom fields and columns to include what they are labelled and where to place them Once you ve created your forms you can save them to use whenever you want and modify them whenever you want You can also purchase custom forms to match To purchase custom forms see Ordering QuickBooks products and services on page 251 To customize a form template 1 With any sales or purchase form open for example an invoice or purchase order click the Customize button located at the top of the form 2 Select the template you want to customize and click Edit The Customize window appears Or If you want to customize an Intuit template select the one you want to customize and click New Don t forget to give your new template a name Customizing your forms 105 The following diagram shows the areas of the form that you can change using various tabs of the Customize window Header Use the Header tab to change the title of a form or other information in this part of the form Fields Use the Fields tab to change the information shown on this part of the form Footer You can enter up to 1 000 characters in the Long text area on the Footer tab to print on your custom form This information could include legal disclaimers or warranty information Rock Casile Construction 1735 County Road Bayshore CA 94326 Invoice ome moar eS J Format Use the F
378. u may have noticed that as you choosean industry type for your business in the EasyStep Interview QuickBooks lists GIFI for Small Business Corp as an option If you choose it your business Chart of Accounts will contain most of the GIFI accounts that the CRA specifies and you Construction Contracting Consulting Farming Ranching General Business IFI for small business corp Taphic Design Printing can delete the ones you don t need However no matter what typeof industry you choosein the EasyStep Interview QuickBooks uses GIFI to match the accounts for that industry to your T2 tax form As you create new accounts you must manually map them to the correct tax line Otherwise your income tax data will not be correct If you are unsure about what tax line you should map an account to consult a tax professional or the CRA for advice Other Current Asset gt Type Name gsTPayable F Subaccountof ss lt CSs z Description O O BankAcctNo p S SSSSCSs Tag Line Unassoned gt SSC OK Cancel Account is inactive The choices that appear in the Tax Line menu as you edit an account depend on which tax form you select for your company As well as letting you export tax data to Intuit Canada s tax products mapping your accounts properly lets you generate accurate tax reports which keep you informed about your tax situation and help you prepare your income taxes A
379. u report financial information to the Qu bec Minister of Revenue MRQ you must keep the archive file the Condense function creates in case you need to refer to it during an audit Doing so helps you comply with legislation from the MRQ The legislation states that your accounting software cannot allow you to modify or delete data without keeping a record of the original data If you use payroll If you use QuickBooks to pay your employees QuickBooks will not condense payroll data for the current payroll year or the previous one For example if you choose to condense your company filein March 2004 QuickBooks would not condense payroll data from 2004 or 2003 It would condense payroll transactions from the date you started using QuickBooks through to December 31 2002 You must keep the archive file the Condense function creates in case you need to refer to your payroll transactions during an audit The Canada Revenue Agency CRA requires that you keep your payroll transactions for seven years Since an archive file contains your payroll transactions for a given period you must keep it Also you should make sure you have printed records of your most important payroll transactions before you condense your data and create an archive Examples of transactions that w ould be deleted m Ifan invoice has been paid in full QuickBooks deletes the details and includes the amount in asummary transaction showing income
380. u should use a different method Type of payment How to record in QuickBooks Partial payment received at time of sale Enter payment item on invoice Full payment received at time of sale Use sales receipt not invoice No payment item is necessary because Quick Books assumes sale is fully paid Summary of payments by method for Use sales receipt to summarize the daily sales Enter a different payment item daily sales summary for the summary of each payment method Payment from customer to pay outstanding Enter payment in Receive Payments window Indicate which invoices or state invoice or statement ment charges have been paid by the payment Advance payment from customer before Use oneof the following options work is done or sale is made m Enter payment in Receive Payments window m Enter payment item on a credit memo m Record a retainer See the QuickBooks and Your Industry help for law firms or Look in the Help Index for retainers Avoid entering double payments If you receive payment before the sale and record a deposit before you record the invoice do not also enter a payment item on the invoice or you will record a double payment Working with items 45 Changing prices or rates You can change the prices or rates of many items at one time through the Change Item Prices window In this window you can tell QuickBooks to raise or lower prices or rates by aspecified amount or percentage
381. ubject to change without notice We at Intuit are committed to bringing you great online services through QuickBooks Occasionally we may decide to update our selection and change our service offerings so please check www quickbooks ca for the latest information including pricing and availability on our products and services My QuickBooks account details QuickBooks License Key QuickBooks Customer Number Installation Key Code IKC Chapter 1 Chapter 2 Contents Welcome to QuickBooks 1 Where to start 2 If you re new to QuickBooks 2 Using this guide 2 Setting up a new company 3 Decisions to make before you start 4 Locating an advisor to help you with QuickBooks 4 How many companies should you set up 5 What accounting method should use 6 What accounting do need to know 7 What s the best way to track my type of detail 10 Reports to measure profitability 14 Setting up your company in QuickBooks 17 Determining astart date 17 Information to collect 18 Using the EasyStep Interview 20 Should I track customers and jobs 22 What does QuickBooks mean by a customer 22 What does QuickBooks mean by ajob 22 Changing the opening balance for a customer or job 23 Why you probably need to set up items 24 Items for what you sell 24 Items for services or products you purchase 25 Deciding how items should affect accounts 26 How many different items do you need 27 Setting up items 2
382. ugh QuickBooks you ll need to open one online banking financial institutions Submit an application for online bank ing to your financial institution Application information can be accessed over the Internet or contact your institution directly There may be a waiting period until you get confirmation online banking setting up Select an online service for setup by completing the apply Now section of the Online Banking Setup interview Enables you to submit an application for online banking at your financial institution online banking setting up When you receive your confirmation and a PIN password from your finan cial institution complete the Enable Accounts section of the Online Bank ing Setup interview Verify that the information sent to you by the finan cial institution is correct online banking enabling a QuickBooks account To start using online banking in QuickBooks 1 From your bank s Web site select the Download to QuickBooks option This option looks different for each bank 2 Choose Create a new QuickBooks account and type the name of your account in the field provided then select Continue Going online for the first time You should use online banking within the first month of enrolling for online services The first time you go online we recommend that you download the most recent transactions that have cleared at your financial institution
383. ught into QuickBooks at all and continue to track the investments in Quicken The investments still appear in the copy you made of your Quicken data Review your memorized and your scheduled transactions If you have overdue scheduled transactions in your Quicken file record them before converting For example print any cheques you have pending If the QuickFill option for memorizing all transactionsisturned off in Quicken QuickBooks converts both your memorized transactions and your scheduled transactions On the other hand if the option is turned on QuickBooks converts only scheduled transactions and your transaction groups It does not convert stand alone memorized transactions So if you have memorized transactions in Quicken that you d rather not retype in QuickBooks you need to do one of two things m Turn off the QuickFill option for memorizing all transactionsin Quicken If your list of memorized transactions is very long you may want to delete the ones you won t need in QuickBooks or m Put these transactions into a transaction group in Quicken QuickBooks always converts transaction groups After the conversion is complete you can remove the memorized transactions from the group and use them as you did in Quicken For information about transaction groups in Quicken look in your Quicken documentation Memorized transactions from Quicken accounts payable will not work properly in QuickBooks accounts pay
384. uickBooks Learning Center The fastest way to get started in QuickBooks is to learn with the QuickBooks Learning Center that include many tutorials on some common tasks in QuickBooks To start the QuickBooks Coach m From the Help menu choose Learning Center Exploring QuickBooks w ith a sam ple com pany Use the sample company that comes with QuickBooks to get familiar with the software explore the features enter test data and run reports To view the sample company 1 From the File menu choose Open Company 2 Inthe Open a Company window choose sample qbw Using the Help system in QuickBooks 99 Getting information about your company The flowchart shows activities for dealing with one customer Click the icons for quickaccess In this area Customers Items amp Templates QuickBooks sata provides you i with suggestions for working with your customers Navigators are the best starting point to see how your company is doing at a glance They gather information from your QuickBooks data and display it in one location so you can manage your business more effectively There are six navigators Company Customers Vendors Employees Banking Reports Customers Navigators wast a a s 4 Estimates Invoices Receive Deposits ee j Payments er p Sales Orders Kf aS Finance Statements Refunds ues Charges and Credits Sales Receipts a ot Ve AS 7 Cus
385. ulticurrency If you invoice receive payments or pay billsin a currency other than the Canadian Dollar you should turn on the multicurrency feature You can do so in one of two ways in the EasyStep Interview as you create a new company or in the Preferences window Once multicurrency is turned on you cannot turn it off We recommend that you back up your company file before turning multicurrency on That way you can go back to the way your company was if for some reason you don t want to use the multicurrency feature anymore To turn on multicurrency from the Preferences window 1 From the Edit menu choose Preferences 2 From the scroll box on the left select Accounting 3 On the Company Preferences tab select Use multicurrency Z Hon do fx ga n m Company Preferences Account Numbers OK Accounting Multicurency Cancel IV Use multicurrency I Use account numbers Help th 2 F Show lowest subaccount only Home currency Canada Dollar gt Chequing i Default 3 I Use foreign proces on items IV Require accounts en saja Foeignitem E Also See I Use class tracking currency Desktoj ss View P M Use audit trail Germ IV Automatically assign general journal entry number Financ 4 Click OK Multicurrency is now turned on and the home currency is set to Canada Dollar Setting up multicurrency 159 160 Note You can now m Assign a foreign currency to a custome
386. usiness owners draws Entering information from employee TD1 forms The Canada Revenue Agency CRA requires you as an employer to keep a current federal and provincial TD1 form on file for each of your employees For Qu bec employees you must keep a federal TD1 form and a provincial TP 1015 3 form on file TD1 and the Qu bec TP 1015 3 forms help employees calculate the personal tax credits they will claim when they file an income tax return The totals from these forms tell QuickBooks how much income tax it should deduct from the pay cheques you create for an employee Most employees should fill in both the federal TD1 form Personal Tax Credits Return as well asthe TD1 form for the province they work in Employees who work in Qu bec should fill in a federal TD1 form and a provincial TP 1015 3 form You can download blank TD1 forms from the CRA web site http www ccra adrc gc ca and blank TP 1015 3 forms from the Qu bec Minister of Revenue web site http www revenu gouv qc ca Some employees who are paid on commission and who claim their business expenses may ask to use Form TD1X Statement of Commission Income and Expenses for Payroll Tax Deductions In this case you should consult your accountant as you will have to perform special payroll calculations for this employee An employee s TD1 and or TP 1015 3 forms must be updated within a week of any change in his or her tax status You and your employee share the responsib
387. ustomer compared to classes jobs and job types 13 item restrictions on changing 46 table of 30 job compared to classes jobs and customer types 13 U uncategorized expenses 52 account adjusting at setup 52 income 52 account adjusting at setup 52 sales tax amounts 138 units of measure adding to forms 35 tracking 32 unrealized gains amp losses report 166 updating automatically turn off 58 exchange rates 165 QuickBooks 57 QuickBooks automatically 58 QuickBooks by Internet 57 QuickBooks for multiple users 59 QuickBooks from a CD 60 QuickBooks from Web site 59 QuickBooks manually 58 US dollar see multicurrency users auditing 126 login 124 maximum number of 124 passwords 123 setting up 124 V vacation pay employees setting up for 191 entering 191 payroll item 180 year to date entering 194 vacation time accrual period and hours entering on employee defaults 189 vendors foreign 170 paying subcontractors 189 T4A forms for 236 time worked paying for 236 274 Index If you don t find the topic you are looking for here try QuickBooks Help version information accessing 256 voiding pay cheques 208 W wage bases employee year to date setup viewing 198 viewing on reports 219 wages employee changing hourly rates or salary 202 entering hourly rates 191 entering salary 191 hourly payroll item for 181 officer salary payroll item for
388. vities this detail is also included For example out of 40 hours altogether 19 may be assigned to Job A 11 to Job B and the remaining 10 hours to Job C QuickBooks then splits the payroll expenses for the employee according to how you assigned the time Paying for time worked 235 236 Paying nonemployees for time w orked Some businesses need to pay people who are not employees such as owners partners or subcontractors based on time worked QuickBooks can transfer time data for a specified date range to your payment That is it can fill in the number of hours worked and the rate you pay for that type of work To pay a subcontractor or other vendor you can either write a cheque if you want to pay immediately or enter a bill to be paid at a later time To pay an owner or partner someone on your Other Names list you can write a cheque Always set up subcontractors as vendors and use their vendor names when you track time and pay them Then QuickBooks will show payments to subcontractors for time worked on reports Remember when you set up a subcontractor as a vendor select the T4A tracking checkbox in the vendor profile so you can create reports to make it easier to create year end T4A slips If you have the Contractor edition of QuickBooks Premier you can track T5018 data the same way To learn about Search the Help index for Setting up an owner or partner m owners m partners setting up Adding a name to the V
389. vity in time entries QuickBooks Viewing a report on activities time reports about exported to or recorded in Quick Books Using the Stopw atch to time an activity Use the Stopwatch on the Timg Enter Single Activity window in QuickBooks Pro or better when you want to time an activity simply start the Stopwatch work and stop it when you ve completed the work m From the Employees menu select Time Tracking then Time Enter Single Activity Time Enter Single Activity x lt Previous amp Next Wf Spelling E Timesheet Once recorded the time Not Billed shows up in both this Date 1271572002 a M Billable window and in the Weekly Name Michele Bottorff 7 Payroll Iter egua Py E Timesheet window Customer Job Dean Hamp Kitchen 7 Service Item Repairs x Save amp Close Save amp New Clear To see how much detail to include when you timean activity see How much detail should track for time activities on page 223 Using the Stopwatch to time an activity 233 Entering time manually into QuickBooks If you want to enter time data a week at atime and you generally don t enter alot of detailed notes about your activities use the W eekly Timesheet window to enter time data manually Weekly Timesheet elp question Ask x GPrevious SPMext Sprint dip Single Ack On the weekly Timesheet timesheet the far right column shows Tu W Th F Sa Su Customer Job Service I
390. w een QuickBooks companies You can transfer a list like the Customer Job list from one QuickBooks company to another by exporting it to an IIF file then importing it into the new company When you import a list into an existing QuickBooks company QuickBooks replaces any duplicate entries with ones from the import file If you import customers or vendors from an IIF file you ll need to edit each one to add information such as payment terms Also if you have unpaid balances for a customer or vendor you must enter an invoice or bill that at least tells the total amount owed Chapter 3 Importing and exporting data Exporting to other softw are When you export a list from QuickBooks it is automatically formatted as an IIF file You can then import the IF file into spreadsheets word processors database programs or other QuickBooks companies You can t export transactions from QuickBooks but you can create a report based on transactions and print it to afilethat another program can import M ethod W hat it does Advantages Disadvantages Print to disk Makes a copy of a list or You can import the file Only lists and reports can be report in a format com into a spreadsheet or printed to disk mon to other software word processing program QuickBooks cannot read files programs printed to disk Export Puts lists into a file in IIF Share lists with other company QuickBooks can export only format with one record per line and one co
391. x LastName Stewat APH Country Canada E mail Ema aaa p EU M Add Salutation tess 1234 12 Ave SIN Emp No City Em m gt Letter Province PostalCode Hired 12 21 2001 as H TLIAR Released mj Before you can start paying your employees however QuickBooks requires additional data about your payroll in order to keep your payroll tax information correct You can get this data from the following MYOB reports Print these reports as you ll need them when you complete your employee set up in step 5 m Employee Payroll List report listing employee information tax status and pay basis From the Index to Reports window click the Payroll tab select Payroll List then click Display m Payroll Register Detail report listing the year to date amounts for each employee From the Index to Reports window click the Payroll tab select Register Detail then click Customize In the Period field of the Report Customization window select Year to date ensure the date range is from the beginning of the payroll year to the date you started using QuickBooks then click Display m Employer Accrual Expense Balance detail report totalling expenses such as vacation pay that the employer has yet to pay out to his or her employees From the Index to Reports window click the Payroll tab and under Employer Accruals select Accrual Balance Detail then click Customize In the Period field of the Report Customization window sele
392. xample QuickBooks version 2001 2002 etc wage base The total amount of employee wages or earnings on which a payroll tax is calculated zero rated Under the GST certain goods and services are taxed at a rate of 0 instead of the usual 7 These items are called zero rated Zero rated items are not tax exempt If you sell a zero rated item you charge your customers 0 GST on it This means that you do not collect any GST to remit to the government However because the item is taxable you can claim input tax credits the GST you paid on the materials you needed to producethe item for it 258 Glossary index If you don t find the topic you are looking for here try the QuickBooks Help Symbols AIF 104 QBA 104 QBB 104 QBW 104 QBX 104 Numbers 123 help 98 3 5 floppy disk s 111 A account numbers chart of accounts 48 accountant s review feature 86 89 accountants 4 accounting accrual 6 cash basis 6 accounting software transferring data to and from QuickBooks 85 accounts account numbers for 49 affecting during payroll setup 197 creating 51 editing 49 foreign 160 opening balance for 51 payroll 178 Quicken equivalent of 71 tax lines assigning to 129 accounts types accounts payable 8 accounts receivable 8 asset 8 balance sheet 7 bank 8 credit card 8 equity 8 fixed asset 8 liability 8 long term liability 8 non posting 7 other asset 8
393. xpense accounts on your business s chart of accounts and create new accounts if needed m Income Details Lets you specify whether your business income is from services and or products you sell Based on the information provided QuickBooks determines which income tracking and accounts receivable features you need m Opening Balances Lets you enter information about the customers who owe you money asof your start date vendors to whom you owe money asof your start date and balances in your balance sheet accounts as of your start date m Payroll Lets you enter information like Social Insurance Number and birth date for your employees set how often you will pay them and set up payroll items which you use to assign rates of pay income taxes and other deductions and additions to pay cheques for employees m What s Next Describes some common tasks in QuickBooks that you may want to complete after you have finished the Interview Some questions ask you to make a decision that is not easily reversed When this is the case you ll see a warning symbol A Setting up your company in QuickBooks 21 Should I track customers and jobs W hat does QuickBooks mean by a customer In QuickBooks a customer can be any of the following A person or company that buys products from your retail business A company that buys products from your wholesale business A client of your consultant business or law firm A patient of
394. y accrued time or other variations receive a standard pay cheque for this bank account from pay period to pay period select this option pay period select this option If you print cheques select this checkbox If you write them by hand clear the checkbox and enter the number of the first cheque in the field Select Employees To Pay ska hep question Ask 7 How Do POD r Cheque Options Enter hours and preview cheque IGE AS Bank Account Cheguing gt amp before creating al Print Pay Cheques First Cheque Number gt Create cheque without preview 1108 using hours below and last quantities Print Email Paystubs To be handwritten Leave or direct deposited Mark All Send Direct Deposit To be printed The Pay Period Ends field shows the next date that an employee in thelist should be paid according to the pay frequencies you set up If you have not yet paid an employee in the list the field shows today s Last Date Alison Logan Smith 12 15 2007 Andrew Holmes 11 30 2007 Anita Joly i 12 15 2007 Carol L Walker date QuickBooks creates a pay cheque for each employee When you create a pay cheque you select You can sort the list by either the this date changes to the next The cheque field employee s first or last name according to the setting pay period end date defaults to today s date in Payrol
395. yee List On the Employee List window click the Employee button and select Employee Defaults m On the Employee Defaults window in the Additions deductions and company contributions box enter additional adjustments you make to the gross or net pay that apply to most of your employees Employee defaults for payroll taxes accrual hours or vacation pay will not be applied to your existing MYOB employees that were brought over during the conversion These properties must be set up when you customize each employee Enter employee year to date amounts For each employee both current and former that you paid during the current payroll year you must enter a summary of his or her earnings income taxes and other amounts from January 1 to your QuickBooks start date otherwise your employee s T4 amounts will be incorrect Year to date amounts for your MYOB employees are available from an employee s last payroll stub or from the Payroll Register detail report that you printed in step 1 For more information on year to date amounts refer to the section Summarizing amounts for this year to date on page 194 m Open the Set Up YTD Amounts wizard from the Employees menu select Set Up YTD Amounts m Click the Next button On the following two windows enter the dates as appropriate You should be entering the date that you converted to QuickBooks m When you get to the Employee summary information window select the employee who
396. your medical or dental practice A homeowner who buys your home repair or remodeling services A condominium owner who pays fees to your condo association A renter who pays rent to your real estate management firm Some businesses don t need to keep track of the names of customers An exampleisa retail store or service business that always receives payment with the sale or service However here are some situations in which you would want to track customer names m Customers receive your goods or services and then pay you later m Customers are supposed to pay a regular monthly fee and you want to track who has paid and who hasn t m You want to track income and perhaps expenses as well by customer If you re using QuickBooks for an organization that receives money but doesn t really sell anything you likely don t need to set up customers For example a nonprofit or religious organization with members making contributions or paying dues can track the deposits without making the members customers Specialized membership software can keep track of membership details such as pledges contribution history and names of family members Recently Intuit Canada released a version of QuickBooks for this type of business QuickBooks Premier Association and Nonprofit Edition is designed to help you get the most out of your programs in achieving your organization s goals For more information about this and other business specific QuickBooks
397. yroll forms change The Payroll Service also helps you make the most of your software investment by keeping it current While you area member you receive all updates and upgrades that Intuit releases for your software at no additional charge To become a member of the QuickBooks Payroll select Set Up QuickBooks Payroll from the Employees menu then Sign up Now Intuit will assist you in updating your QuickBooks user licence to show your membership You can get information about your membership by selecting My License from the Hap menu You can get information about your tax table by selecting Set Up QuickBooks Payroll from the Employees menu then About the Payroll Service To learn about Search the Help index for Signing up for the QuickBooks QuickBooks Payroll Payroll If you don t use the payroll feature in QuickBooks 174 If you are not a member of the QuickBooks Payroll you can still turn the payroll features on That s because you must still track your payroll expenses and liabilities in QuickBooks even if you use an accountant or payroll company to pay your employees rather than the QuickBooks Payroll Otherwise your accounts will not be correct However you cannot create pay cheques for your employees without a full membership With the payroll features turned off the Employee list allows only very basic information about each employee his or her name contact information Social Insurance Number hire and r

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