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QuickBooks 2006 User Guide
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1. 11 232 12 Modify Report Display J Print J Excel Click here for help about oftering customer orders in QuickBooks QuickBooks provides details about a report s content to help you decide whether the report is appropriate for your needs To learn about Finding a report Creating a report Preset reports Search the Help index for reports finding reports creating report types all Getting information about your company 93 If you re using QuickBooks Pro or higher and Customising the look of a report Most reports can be customised 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 Create or change subtotal lines Change the sort order of transactions Change your item s units of measure on reports that include purchase sales and inventory transactions QuickBooks Pro and higher refer to Reporting in different units of measure on page 38 for more details on units of measure Microsoft Office you can export reports to a pad Bie Dera Ye help question Ask BAA Microsoft Excel spreadsheet Modify Report Memorise Print Excel Hide Header Refresh Dates LET lee As of 03 31 2003 E sort By Default 10 33 AM Grangeworth Kitchens Basic Ltd anon Un
2. If you use very Item Description Qty Rate VAT VAT AMT Class Amount general items Remodel 2 481 63 2 401 53 pA like this one your Customer isiemapemro M VAT TOTAL 366 63 7 reports won t be Message working with you Total as useful as if you 2 481 63 used detailed Tobe printed V Amts inc VAT Balance 2 481 63 items grouped Memo Final invoice Singh kitchen Save amp Close Save amp New Clear tog eth er However Stacey uses more detailed items to learn more from the sales reports Stacy breaks down the remodel cost and uses items such as fitting plumbing cabinetry sinks and work tops and labourer Stacy groups these items under one item called Remodel Even though he chooses not to print the itemsin the group on theinvoice for his customers to see he still has those details on his sales reports QuickBooks Item Description Qty Rate VAT VAT AMT Class Amount shows you Fitting Fitting kitchen 1 50 00 5 8 75 50 00 ad 5 i Plumbing Plumbing 8 60 00 S 84 00 480 00 A the items in Pine Kitchen Ca Pine base cabinet 4 140 00 5 98 00 560 00 the group Pine Kitchen Ca Pine base cabinet with 2 170 00 S 59 50 340 00 drawer onscreen Pine Kitchen Ca Pine double wall cabinet 2 150 00 5 52 50 300 00 whether Pine Kitchen Ca Pine single wall cabinet 3 70 00 S 36 75 210 00 ou choose Sinks Double sink Double sink 1 70 00 S 12 25 70 00 y N
3. If the employee is If this is a bonus or Tick the Advanced Hol This box will be paid by the hour commission cheque Payment check box to active if the type or edit the you likely don t want display the Advance employee is a number of hours sick or holiday time Holiday Payment window director Check it to worked foreachrate to accrue for it if the employee requests make this director s QuickBooks Pro fills To prevent sick and that you advance holiday NIC calculations on in the hours either holiday time from pay to him or her before the annual or pro from time data or accruing for this taki ng a holiday See rata annual method from the last payroll payment only tick Overview of advance instead of per period holiday payments in the online Help for details or for the last payroll payment of the year payment this box Preview yvyment Andrew G Turne Earninas If the employee is paid Ttem Name Rate on salary you can aay enter hours if you want to split the salary amount between jobs I Use NIC Annual Calc Method Class Sick Available 40 00 Holiday Available 320 00 Sick Accrued Hol Accrued 4 Do not accrue time Other Payroll Items Item Name Rate Quantity Salary 1 833 33 Bonus 500 00 500 00 NIC Employee not contracted 214 32 214 32 Income Tax 0 00 0 00 NIC Employee Rebate 0 00 0 00 Bonus If a bonus addition
4. Employee Quick Report Lists chronologically the transactions related to a particular employee This report is available from the Employee list by clicking the Report menu button Payroll Item Listing Shows detailed information about each payroll item you use to track payroll related expenses and liabilities Payroll Item QuickReport report Lists chronologically the payroll transactions that contain a particular payroll item This report is available from the Payroll Item list by clicking the Report menu button 224 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 This report shows liabilities incurred during the date range specified that are still unpaid or outstanding Ensure the date therm cat Grangeworth Kitchens Basic Ltd range covers the Payroll S period for which you em have outstanding BALANCE aaa Payroll Liabaities payroll liabilities income Tax gt eeo ie d MIC Employee not cont acted cat 493 65 MC tenployee Rebate ooo NIC Employee RebatediR gt 000 WC Employer wii MIC tmpioyet Rebate ooo Total Payt of Liabilities 1 965 34 If you made any statutory payments to an employee QuickBooks automatically calculates any recovery amounts for you If you qua
5. whom you are receiving the gmer Payment Account US A R zi US Dollars payment In this Received Frok US customer Customer Balance uss79 39 because the case itis a US Pmt Method 7l Date 10 08 2001 customer is customer Amount US 79 39 from the United States QuickBooks selects Cheque No an A R account that matches the currency of the selected customer If one doesn t exist I Show credit information s D Number Orig Amt Amt Due Credits Payment 00 79 39 79 39 0 00 2 Update the QuickBooks zi prompts you to 79 39 0 00 79 39 exchange rate U dP t 0 00 i create one Set Credits Clear Selections GoTo Woes ae o if necessa ry Exchange Rate 0 6298 Group with other undeposited funds C Deposit To Save amp Close Save amp New cea Did vou know you can apply credits across several different bills Depositing foreign money 1 From the Banking menu choose Make Deposits If you have payments in more than one currency to deposit the Payments to Deposit window appears 2 If necessary In the Payments to Deposit window from the drop down list select the currency for which you have payments to deposit You can only deposit payments from one currency at atime When you have made your selection click OK The Make Deposits window appears 3 Inthe Deposit To field select the account to which you want to deposit the payment You can deposit for
6. You can enter different Non stockPart Use for goods you buy but don t track like office ox lies jals fi ific job that rates for your cost and the Foe ri ha ca sales price to your Next customer However if th e E Name Number I Subitem of I buy sell this item in Custom Fields cost of the product or Spelling material varies leave the pa M Th j Puri tion I Amts Inc VAT 0 ost an d Sales Price Description on Purchase Transactions Description on Sales Transactions fields at 0 00 when you set T Ttem is inactive up the non stock part item Cost 0 00 per Sales Price 0 00 per Purch VAT Code gt Expense Account gt Sales VAT Code gt Preferred Supplier gt Income Account gt Chapter 2 Setting up anew company Tip 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 chargesincurred on ajob 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 sureto tick the checkbox for This iS a reimbursable charge Then you can designate separate income and expense accounts and separate descriptions for s
7. Type Hame Amount Actual Rate Gain Loss Account Payment 1341 2000 Girard Camping Ex 118 39 1 34 11 56 4 Payment 1441 2000 Girard Camping Ex 98 57 145 1 42 Bill Pmt Cheque 0711 2000 Bottorff Designs 154 44 1 47081 0 00 Payment 1341 2000 Graham Highcock 713 88 1 50 13 89 TOTAL REALISED GAIN amp LOSSES 776 40 0 91 Exchange rates and how they affect your transactions 157 Dealing 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 differenceisthat the currency you assign to the customer in his or her profile becomes the currency of the transaction see Create foreign customers and suppliers on page 149 Creating invoices for foreign customers 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 Once these are done you can create an invoice as you normally would As you do you also need to Create Invoices CDN A R _ of x prev E Next E Spelling a History B Journal amp Time Costs PUstomersop ecou Form Template Canadian Customer x CDN A R Y Jintuit Service Inyfice gt Tax Date Ir voice No Invoice 04 01 20 KZ 1 Select a foreign customer QuickBooks selects an A R account that matches the currency of the s
8. Expense m aClass 1A Owed account of type Other Current Liability To enter your Class 1A NIC liability 1 From the Banking menu choose Make Journal Entry 2 Inthe first detail line of the entry m Select your payroll expense account in the Account column m Enter the amount of Class 1A NIC owing in the Debit column Enter a memo for this transaction e g Class 1A NIC in the Memo column 3 In the second detail line of the entry m Select your Class 1A NIC liability account in the Account column m Enter theamount of theClass 1A NIC that you owein the Credit column m Enter a memo for this transaction e g Class 1A NIC in the Memo column 4 Click OK to record your transaction Paying payroll liabilities 209 Processing your year end Near the end of the payroll year you need to create year end payroll forms for your employees and HM Revenue amp Customs such as P11 P14 P60 and P35 forms With QuickBooks you can send P14s and a P35 to the HM Revenue amp Customs using the Internet 210 Step Procedure 1 If you have not received your employer s form pack order blank portrait format P14 P60 forms from the HM Revenue amp Customs or Intuit 2 Consult your accountant or HM Revenue amp Customs guidelines about reporting employee benefits and any items or amounts about which you are uncertain 3 Print a P11 report for each of your employees for your reference See Creati
9. If your turnover is more than 100 000 you will be required to make monthly interim payments To record your direct debit payments to HM Revenue amp Customs you should set up a QuickBooks standing order by recording the first payment memorising it and selecting the Standing Order option in the Memorised Transactions window Start the standing order at the end of the fourth month of your financial year and enter nine in the Number Remaining field to cover the next nine months Chapter 5 Tracking and paying VAT After nine standing order payments or when the Number Remaining field is reduced to zero QuickBooks deactivates the standing order Enter the tenth payment or refund directly into your current account In the following year reactivate the standing order by entering ninein the Number Remaining field You may also want to edit the amount you re paying if the install ment payments have changed To learn about Search the Help index for Creating a standing order standing orders creating Other accounting periods You can also use QuickBooks to track VAT on amonthly or bi monthly period If you report VAT monthly or bi monthly when creating VAT reports make sure you select the correct starting and ending dates for the reporting period in question Turning on VAT tracking Choose your reporting period here This is how often you remit your VAT return When you create your VAT return its time
10. Tax Code 181 tax credits payroll items for 171 tax forms P11 forms 211 P14 P60 forms 212 P35 forms 215 P35 summary 215 P45 printing 196 payroll 205 technical support phone numbers and Web sites 260 261 templates employee 178 time tracking deciding whether to make time billable 230 options for tracking 233 time paying nonemployees for 236 Timer hardware requirements 241 install disks creating 235 installing from CD 240 when to use 233 timesheets blank 235 filling out 235 titles changing forms 99 tracking cash flows 97 loans 97 payroll expenses 174 tracking different units 35 transactions audit trail 115 deleted during condensing 105 downloading 111 historical 52 retained 105 sorting in reports 94 summary created during condensing process 105 transferring data 77 foreign money 162 trial balance 3 troubleshooting printing problems 116 turning on audit trail 115 class tracking 15 numerical accounts on chart of accounts 51 payroll 164 tutorial using the QuickBooks Tutor 91 types customer compared to classes jobs and job types 15 item restrictions on changing 49 table of 31 job compared to classes jobs and customer types 15 U uncategori sed expenses 55 account adjusting at setup 55 income 55 account adjusting at setup 55 units of measure adding to forms 37 tracking 35 256 Index If you don t find the
11. Text prints Decrease the number in the Vertical field For example if the text is too high printing 2 squares that is 0 2 too high type 20 in the Vertical field Text prints Increase the number in the Vertical field For example if the text is too low printing 1 1 2 squares that is 0 15 too low type 15in the Vertical field Text prints Increase the number in the Horizontal field For example if the text is toofartothe printing a 1 2 square that is 0 05 too far to the left type 5 in the Hor left izontal field Text prints Decrease the number in the Horizontal field For example if the text is toofartothe printing 1 square that is 0 1 too far to the right type 10in the Hori right 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 horizontal and vertical alignment adjustments 12 Click OK in the Printer Setup window Solving printing problems 119 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 afont size of 10 points or less Changing fonts Font options are now available for all types of forms 1 in QuickBooks 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 change the fonts
12. W here to find it Employees Employee names addresses dates of birth and National Insurance Numbers Employee s rate of pay or salary and payroll payment additions deductions and employer contributions if any Employee NI and Tax Codes P45 information for employees who started in the current payroll year and tax credit details Is employee a director Bank details if paid by BACs Statutory payments including Statutory Sick Pay SSP Statutory Maternity Pay SMP Statutory Adoption Pay SAP and Statutory Paternity Pay SPP Holiday time accruing policies and amounts Employees Payroll cheques P45 reports or payroll ledger Employees P45 P11 reports payroll ledger and employees Company information employee existing payments reports or payroll ledger Employees Your accountant or existing payments Existing payments reports or payroll ledger Year to date amounts Each employee s payroll amounts from the beginning of the payroll year to the date you started using Quick Books m Thatis the total amount you ve paid out to the employee so far this year and m The total amounts you withheld from each of the employee s payments and what for Your payroll liability amounts from the beginning of the financial year to the date you started using QuickBooks m Thatis the total amounts you withheld from all pay roll payments you issued this year and m How
13. 43 Accounts Rece 1 883 55 4 Sandhur Materials 83 02 14 53 the Previous Transaction Sandhur Materials 0 00 0 00 shows what it was like Sandhur Labour 1 520 00 266 00 befo re the chang e 24103 7200 Admin 1603 2000 Sandhur 43 Accounts Rece 41 876 58 0 00 Sandhur Construction Inc 77 09 0 00 You can also see who Sandhur Construction Inc 0 00 0 00 made the change and Sandhur Construction Inc 1 520 00 0 00 Sandhur VAT Control 279 49 0 00 xl w hen i If your computer is older or you make a lot of changes to existing transaction QuickBooks may slow down slightly when the Audit Trail is on Also the size of your company file may increase more rapidly than it has in 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 To learn about Search the Help index for Using the audit trail feature audit trail Working with multiple users 115 Solving printing problems If you re having trouble printing try checking these areas before you ring the QuickBooks Support W hen should I reinstall my printer driver If your printer has any of these problems you may have reinstall your printer driver in Microsoft Windows or contact the printer s manufacturer for assistance m Your printer isn t printing at all from a
14. 65 at the time you issue the invoice Before the customer pays you the Pound Sterling falls and the US Dollar exchange rate climbs to 1 5 from 1 3 The 50 US that the customer owes you is now worth 75 so your unrealised gain is 10 You won t know how much money in Pounds Sterling 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 Pounds Sterling and your gain or loss is then realised Many accountants prefer you take your unrealised 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 unrealised 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 if your records show an unrealised gain or loss 1 Create an Unrealised Gains and Losses report a From the Reports menu select Multicurrency then Unrealised 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
15. Assigning a label to Service amp Non stock Part items A descriptive label can be added to Service and Non stock 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 asa title and when created are displayed on business forms and reports Setting up items 37 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 Mme f Sales by Item Detail Memorize Print Hide Header Refresh Ifyou want foates This Month to date From 01 09 2002 To 12 09 2002 sort By Default to see the ee Ruby s Tuesday purchasing onama Sales by Item Detail p p Accrual Basis September 1 SN unit on this __Type o Date o Mum Name eff X Sales Price o ___Amount__ __Balance__ gt repo rt Inventory i Soda Pop cl l ck d Invoice 1009 2002 1 Anne McMan 1 can Mod ify Total Soda Pop Report NS ToT Display Bites Header Footer Fonts Numbers r
16. amp Create Purchase Orders Iof x Previous SP Next GHPrint Spelling History Journal Supplier Ship To Form Template Euro Vendor gt gt intuit Standard PO gt T ax Date QuickBooks selects an A P Purchase Order 03 01 2001 a 1 account that matches the currency of the selected Tracey Stewart Designs supplier If one doesn t exist you are prompted to create one Expected 03 01 2001 amp z Item Description Aty Rate VAT AMT VAT Amount Customer Artwork 159 95 27 99 S v 159 95 E Vendor Oooo VAT TOTAL 27 99 Message 2 Update th h Total EUR 187 94 paate the exchange Exchange 0 312538 rate if necessary Rate pag IV Tobe printed D Amts inc VAT Memo Save amp Close Save amp New Clear As you enter items on foreign purchase orders their prices are converted to the supplier s currency If you have set up aforeign price for an item and the currency of the price matches the currency of the supplier QuickBooks uses the foreign price instead see Set up foreign prices for items sales items only on page 150 for more information 160 Chapter 6 Doing business internationally Paying bills from foreign suppliers Often you will receive billsin a foreign supplier s currency and be expected to pay in the same If you make purchases from a foreign supplier you should consider opening a bank account in the supplier s currency You can only pay bil
17. assembled items Quick Books does not track stock through the manufacturing process Price levels can be used with stock assemblies You can set up different units of mea sure for stock assembly parts For more information on units of measure see Setting up different units of mea sure for your stock on page 35 In QuickBooks Pro and higher you can set up a non stock part item so that it can affect either income or expenses depending on where you use it Price levels can be used with non stock parts In QuickBooks Pro and higher you can create fixed asset items in QuickBooks Regular you can view fixed asset items in the Item list and edit or delete transactions in which they re found but you can t create them In QuickBooks Pro and higher 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 a percentage or a flat amount On sales forms if you want to apply a discount or add a percentage charge to several items at once subtotal first 32 Chapter 2 Setting up anew company Item type Group Discount Payment Use for Fast entry of a group of individual items already on the list Example A group of ser vices amp food items pro vided by a caterer Calculating an amount to be subtracted from a total or subtotal Example A 10 dis count given to nonprofit organisations On invoices Payment received at th
18. deduction oremployer contribution is based on a quantity enter it here Employer Summary NIC Employer 249 39 NIC Employer Rebate 0 00 NIC Employee Rebate ER 0 00 Cheque Amount The Employer Summary shows employer paid taxes and contributions that The Employee Summary shows wages The net payment total do notdirectly affect the commissions withheld taxes and other amount of the payment additions and deductions that print on the voucher of the cheque or pay slip In the Preview Payroll Payment window you can do all of the following m View the amounts QuickBooks calculated for each payroll item including gross earnings taxes and all other additions deductions and employer contributions for the payment Paying employees 199 200 Note Type or edit the number of hours worked Enter sick or holiday time or prevent these from accruing on this payment only If you are not printing a payroll cheque you can enter a payment number Enter the base quantity on which to calculate commissions additions deduc tions or employer contributions that are based on quantity Add or delete wage commission addition deduction or employer contri bution payroll items Pay employees Advance Holiday Payments To suppress the payment of regular salary on a bonus payment delete the salary item in the Preview Payroll Payment window Select it and press CTRL
19. 161 blank timesheets 235 bookkeeping methods accrual basis 7 cash basis 7 bookkeeping software transferring data to and from QuickBooks 78 books closing 114 business segments tracking 14 buying units 35 C calculating sales forms on by using items 33 capital investments 57 cash basis bookkeeping 7 cash flow projector 97 cash vs accrual choosing 7 124 categories in Quicken equivalent of 74 CD update QuickBooks 63 244 Index If you don t find the topic you are looking for here try QuickBooks Help From the QuickBooks Help menu choose Help Index enter the keyword and press ENTER CD ROM installing Timer from 240 changing how dates display 64 Internet connections 60 chart of accounts adding accounts 52 automatically created accounts 8 described 8 numerical 51 reorganizing 51 checking accounts reconciling 107 checklist for setting up payroll 166 cheques alignment adjustments for 117 ordering from Intuit 260 payroll printing 203 reviewing and correcting 201 writing 200 choosing an accounting period 124 Class 1A NIC paying 209 classes adding 15 compared to jobs customer types and job types 15 employees grouping by 182 payroll expenses tracking by 174 turning on preference for 15 uses for in QuickBooks 14 closing books or period 114 closing the follow me help 89 codes for VAT creating 126 Collection of Student Loans 181 column
20. 5 30 p m English bank holidays excluded Outside United Kingdom UK 44 870 609 0601 Ordering QuickBooks stationery We can supply personalised stationery to meet your specific business needs such as Cheques Invoices Statements Envelopes Payslips Sales Orders Visiting our Web site www quickbooksstationery co uk or Ordering by fax within UK 0800 279 5893 outside UK 44 870 224 4080 Intuit Business Stationery Within United Kingdom Freephone 0800 279 5285 Outside United Kingdom 44 870 224 4020 QuickBooks activation If about Activating QuickBooks Try From the File menu choose Activate QuickBooks then follow the onscreen instructions Or ring Within United Kingdom 0845 606 2161 Monday Friday 9 00 a m 5 30 p m English bank holidays excluded Outside United Kingdom 44 870 609 0601 260 Appendix A Contacting Intuit QuickBooks delivery billing and account inquiries If about Software replacements m Billing inquiries Try Visiting our Web site http www QuickBooks co uk m Updating credit card information m Exchanges m Order status Or ring Within United Kingdom 0845 606 2161 Monday Friday 9 00 a m 5 30 p m English bank holidays excluded Outside United Kingdom 44 870 609 0601 QuickBooks Small Business Payroll If about QuickBooks Small Business Payroll Try Vis
21. 64 report ranges 95 start date 18 deductions payroll employee template adding to 179 employees individual setting up for 182 payroll item for 172 default VAT codes setting up 127 defaults accounts created 8 defaults enployee for payroll 179 deferment arrangement for VAT 131 delivery charges item for on invoice 32 departments tracking 14 depreciation tracking 27 descriptions of file types 96 Director s NI check box for 181 disable Automatic Update 62 Disabled Persons Tax Credit payroll item 171 discount items creating 40 description 33 using on sales forms 47 disks saving disk space 104 downloading transactions 111 DPTC payroll item 171 duplicate names after converting from Quicken 70 earnings based on pension 176 earnings bases employee year to date setup viewing 191 EasyStep Interview 22 EC member states VAT for 130 EC sales list 133 employee defaults 178 179 employees AEO setting up 187 BACS paying with 203 benefits for 172 categorising 182 commissions 183 custom fields 180 defaults 178 deleting 197 duplicate names 197 editing information about 195 firing 196 hiding 197 merging names 197 NI code entering 181 paying 198 200 payroll information changing 195 setting up 178 179 246 Index If you don t find the topic you are looking for here try QuickBooks Help From the QuickBooks Help menu c
22. Converting data 66 from Quicken How do I bring my data into Importing from 77 exporting to other software QuickBooks Exporting data 80 for your accountant Accountant s Review Congratulations on your decision to move 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 65 Converting data from Quicken AN 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 back up your Quicken data file If you plan to continue using Quicken with this data for example if you have both business 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 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 Not
23. Look for balp in QuickBooks Best Pomered by Wiles Tech Areimne ihtorhs Gil 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 hey words or Question such es how do I reset my cheque marss 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 To reset the sidebar area to the default layout go to the View menu and select Reset Sidebar Windows Learning w ith the QuickBooks Tutor The fastest way to get started in QuickBooks is to practise with the QuickBooks Tutor The QuickBooks Tutor is an interactive tutorial that lets you practise some common tasks in QuickBooks without affecting the datain your company file This tutorial is divided in to six lessons and you can complete it in 15 minutes When you do you ll be able to navigate in Quick
24. The value of one unit of the foreign currency in your home currency In order to keep your foreign records accurate you should update the exchange rate on a regular basis EMU Member If the country of this currency isan EMU member tick this check box and if necessary enter the EMU rate See Exchange rates and how they affect your transactions on page 154 for information on triangulation m EMU Rate The EMU rate for this currency as adopted by the EU Council Unless you are adding a currency for acountry that has recently joined the EMU this rate should never be changed Format options Symbol Position Select where you want the currency symbol placed Your options include Leading in front of the money value or Trailing behind the money value Decimal Separator Enter the symbol you want to use on forms to represent the decimal placeholder The default is a period or full stop 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 want 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 that use it To learn about Search the Help index for Creating editing or deleting a cur m currencies creating rency m currencies editing m currencies deleting Setting up multicurrency
25. To learn about Search the Help index for Changing employee information employees editing employees retrospective changes Adding custom fields employees custom fields for Giving an employee a rise employees rises for Managing payroll and employee information 195 196 Tip W hen an employee leaves When an employee leaves the company you need to first issue his or her final payroll payment and then add aleaving date to his or her profile It s a good idea to enter a leaving date for an employee only after you have created his or her final payroll payment In order to print a P45 however a leaving date must be entered When the pay period date is later than the leaving date QuickBooks no longer displays the employee s name in the Select Employees to Pay window You can t delete an employee who has left if there are transactions associated with him or her You can however hide the employee s name from the Employee list Printing P45 forms If an employee leaves your company referred to as a leaver QuickBooks can generate a P45 form and print it for you to give to the leaver To create a P45 form Issue the employee s final payroll payment In the Employee s profile enter a left or leaving date in the Left field Load the pages of the P45 form into your printer If you havetrouble aligning the P45 form in your printer see Solving printing problems on page 116 From the Employee menu sel
26. accounts QuickBooks applies VAT to the item based upon the rate s defined in the VAT list You can override this VAT Code on the sales form If this field appears you can make an item a subitem of an existing item QuickBooks displays subitems of the same item together You can set up custom fields that fill your company s needs for example size You can also customise sales and purchase forms to display a column for a custom field Then QuickBooks prefills the column with the custom field information for the item Setting up items 39 To learn about Adding a new item for one of the fol lowing m A service m An assembled product that you pur chase or build yourself m A product or part that is not held in stock m A fixed asset m A miscellaneous charge setting up different units of measure Adding a new item for a product or part held in stock Adding a new item that puts a group of several items on a sales or pur chase form Adding a new item that calculates a subtotal Adding a new item that calculates a discount on a sales form Adding a new item that records a cus tomer payment or deposit received at the time of sale Adding a new item that calculates a VAT Adding a new item that calculates the total VAT for a combination of VAT rates Creating subitems of another item Creating custom fields for items Turning VAT on Search the Help index for m items services m items stock as
27. after tax deductions 226 Chapter 7 Payroll and employees Figuring out what wage amount each tax is based on For each tax amount on employee payroll payments you want to check the amount of wages it is based on You can generate the payroll detail report to see the earnings base for all calculations on payroll payments RA Payroll Rem Detail 11 00 PM eles Mam Date Saary b 2 298003 02 28 2003 O20 AINANONI Total Salary Hourly Pay 02 28 2003 Total Hourly Pay Bonus MINARDI 02282003 Total Bonus Income Tax tern O29 SQ 2 282003 02 28 2003 C2 2 280003 02 28 2003 Total come Tax ae Kitchens Basie Ltd IEC Employee not contrasted out tem 2A SII MANONI 02 28 2003 Payroll Item Detail February 2003 gt Sowcelbme Payroll item Type Andrew G Tumer Salary G8aBacs Paym Genma T Curtis Salary GeaBACS Paym James E Mecbonaid Salary GrOQACs Paym Lynda J Ham ton Salary GraBacs Paym Crebe S Walker Hourly Pay GeaGACS Paym Andrew Turner Bonus G8aBacs Paym Chabe S Waker Bors Giroa BACS Paym Herd Revenue Feome Tax Linhaity Cheque Andrew G Turner income Tax GABacs Paym Chabe S Walker kooma Tax Giro BACS Paym Gemma T Curtis recone Tax GroQacs Paym dames E Machonaid income Tax CHaBacs Pnym Lynda J Hardon kooma Tax GeaBaAcs Paym Hern Revenue NIC Employe Lishtity Cheque Andrew G Turner NC Snpkyye CHaBacs Pnym Chw be S Waker NIC Gephoye Gio BACS Paym Eunings Base gt om 0
28. enter the keyword and press ENTER balance sheet accounts changing 51 customer or job changing 25 entering in EasyStep Interview 20 ordering cheques 260 envelopes 260 invoices 260 maintenance releases of software 260 pay slips 260 sales orders 260 software upgrades 260 statements 260 user s guides 260 other asset accounts 9 other charge items creating 40 description 32 other current asset accounts 9 other current liability accounts 9 Other Names list after Quicken conversion 69 Other on reports 96 overpayments payroll liability refund cheque for 208 owner s draws 57 owner s equity 57 owners commission sales 183 owners partners paying for time worked 236 P P11 forms 211 P14 P60 forms 212 filing online 212 P35 forms 215 filing online 212 P35 summary report 215 P45 forms printing for leavers 196 P60 forms tracking information in QuickBooks 172 partial exemption adjustment for VAT 141 partial payment on invoice 47 partners commission sales 183 partnerships described 19 income and expenses tracking by partner 14 time worked paying partners for 236 passwords 112 changing 114 close books or period with 114 deleting 114 pay slips ordering from Intuit 260 printing 203 paying employees 200 foreign suppliers 161 nonemployees subcontractors 236 payroll liabilities 205 208 small employer s relief 207 VAT liabilities 13
29. esti mates 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 Changing 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 suppliers 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 Thisinvoice is probably the first transaction in the customer register There should not be any opening balance transaction if the customer had no unpaid balance as 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 one now enter an invoice dated on or before your start date To summarise the amount owed as of your start date enter on the invoice an item set up asa nontaxable Other Charge and assign the account Uncategorised Income To learn about Search the Help ind
30. 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 financial year start m How close is today to the end of your financial year m Do you havean accurate balance sheet for your current financial year a Do you havean accurate profit and loss statement also called an income statement for your current financial 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 18 Chapter 2 Setting up anew company If it s almost the end of your company s financial year consider finishing it using your old system of bookkeeping Then set up your company in QuickBooks with a start date of your financial year end so you can use QuickBooks for the new financial year You ll have the detail for each financial year and you won t have to do a lot of work setting up If it is not near the beginning of your financial year decide which is more important to you m Do you want to
31. the time If your company does class tracking you can do the following m Filter time reports by class m If you are set up to split payroll expenses by class you can assign classes to employee time Then you can automatically track all pay roll expenses by class Chapter 8 Time and cost tracking Choosing a method to track time QuickBooks Pro comes with a separate Timer programme that can run regardless of whether QuickBooks is on the same computer You can track time with the Timer and transfer the time data into QuickBooks later You can also use the built in Stopwatch or enter time data into QuickBooks manually using weekly timesheets Situation You have access to QuickBooks and want to use a stopwatch approach to time tracking turn on atimer work then stop the timer How to track time Use the Stopwatch in the Time Enter Single Activity window in QuickBooks Pro See m Setting up QuickBooks Pro or higher to track time on page 234 search the online help and search for Stopwatch You want people who don t have access to your QuickBooks company file to track their own time Distribute copies of the Quick Books Pro Timer to these peo ple and have them give you their time data Setting up QuickBooks Pro or higher to track time on page 234 Using the Timer on page 235 search the online help for Importing Timer data into QuickBooks Installing the
32. up to track your fixed assets You can use this list to track all transactions having to do with your fixed assets including any repairs or improvements damage anything that can Information about fixed assets is available in the Fixed Asset Item List The Fixed Asset Item List is only available in QuickBooks Pro and higher Fixed Asset Item List Ask a help question Ask J How Do 1 ff _ Oo x p 2007 delivery van Chairs Conference table Desks Desktop computer Desktop computers Desktop computers sales dept Laser printer Metal filing cabinets 2 Office building Office land eServer Activities 10 15 2007 02 01 2005 05 01 2005 06 01 2007 05 01 2001 05 01 2007 05 01 2007 06 01 2001 10 29 1998 09 22 1998 09 22 1998 05 01 2007 2 2007 delivery van Conference room chairs 10 Furniture Conference table Furniture Desks 7 Furniture Desktop computer 1 Computers Desktop computers 2 Computers Desktop computers 5 Computers Laser printer Computers Metal filing cabinets 12 Furniture Office building Buildings Office land Land Server Computers 44 500 00 475 00 3 500 00 2 100 00 2 000 00 5 000 00 13 000 00 2 001 00 1 250 00 325 000 00 930 000 00 6 500 00 Reports Y Show A affect their value and amount of depreciation To learn about Search the Help index for Types of QuickBooks items Item Price levels Pro and higher only Displaying the Item
33. your business As you use m QuickBooks he Open Windows eames list keeps track of the windows that questions answered by searching our help system you er A peeks a Get your f d 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 choosetheone that best fits your work style Also many parts of QuickBooks such asthe Icon bar are customisable to fit the needs of your business The customisable Icon bar gives you one click access to the features you use most The Customers Navigator shown here contains gt ee Onti fors Qim x Possen z customer c S mam ory y w specific tasks irg like creating PR an invoice For more on the lt lt Navigators D eer ee fou iste see page 92 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 88 Tip M oving betw een w indow s QuickBooks maximises 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 If you d like to be able to see multiple windows open at the same time from the View menu select Multiple Windows To learn about Search the Help index for Customising and using the Icon bar Icon Bar Disp
34. your currentaccount keeping your records up to date and providing an ending balance of what you owe at any time Just as you use the paper cheque book register to see arecord of all thetransactions in your current account cheques you ve written withdrawals you ve made and deposits QuickBooks uses electronic registers to record the activity in its accounts The register shows 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 s an example of the register for an accounts receivable account The register shows Ask a help question ask a B x i e Nees fees pile It also shows i nfo rm ati on about S Goto g Print K Edit Transaction 4 QuickReport payments you ve Invoices written to Date Number Customer Item Qty Rate Amt Chrg Amt Paid received against customers the Ex Rate Type Description Class Billed Date Due Date G date of the invoice 03 11 2003 Cranberry s 5 000 00 A your Invoices PMT the date it s due 03 17 2003 Sutton Housing As 5 000 00 At the bottom PMT the name of the 03 18 2003 27 Carolyn Leslie 117 50 right of the customer and the cREomEm oI oeo register you see amount 03 19 2003 P Offa Kitchens 2
35. 109 Financial institutions use Web Connect for online banking connections Web Connect offers online integration through the financial institution s Web site accessible from QuickBooks or any browser With Web Connect you can go directly to your bank s Web site for online banking services Reconciling online accounts 110 Reconciling your online accounts is a three phase process 1 To download your transactions go to the Online Banking Centre select your financial institution from the drop down list and Click Go Online 2 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 with drawals as well as any transactions that were downloaded previously but not been matched QuickBooks automatically matches downloaded transactions to thosein your account register For the unmatched transactions select one of the transac tions 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 trans action in the register Match Transactions sk a hele aston Ask 7 How Do 17 k EB Seto Girt PAER tracation T iReport Match QuackSt ater trantactions to those already Quchfiocs E Sh
36. 153 Using the currency calculator The currency calculator is a handy way to convert ahome currency amount into a foreign amount or vice versa m From the Company menu choose Currency Calculator You can also get to the calculator by pressing F4 while a money value is selected Currency Calculator Value 500 00 1 Type the money value you want converted 3 Select the currency Convert From fUnited Kingdom Pound gt you want the pou nd ConvettTo Ewo nverted to 2 Select the ma EUO zh amount co d to currency of the money amount to convert Converted ive 000 A read only field that displays the result of the conversion Clipboard 4 Click here to copy the converted amount to the clipboard Than use the paste command CTRL V to paste the amount onto a field within a form Exchange rates and how they affect your transactions QuickBooks 2006 Pro and higher must be updated when you first start using multicurrency because while the exchange rates provided were accurate at the time your software was released currencies fluctuate in value You should update the exchange rates of your currencies often every week or possibly more frequently depending on thevolatility of the currency The easiest way to update exchange rates is by using the Currency List See U sing the Currency List on page 152 for more information Tip An exchange rate field also appears on some forms so th
37. 32 sick time accrual period and hours entering on employee defaults 179 single activities entering details about in QuickBooks 235 small employer s relief 207 SMP 185 207 SMP Statutory Maternity Pay payroll itemsfor 170 software upgrades ordering from Intuit 260 sole proprietorships description 19 sole traders 57 sorting lists 31 SPP 186 spreadsheets transferring data to and from QuickBooks 78 SSP 185 small employer s relief 207 SSP Statutory Sick Pay payroll items for 170 standing orders creating 125 start date 18 VAT liabilities 126 statements reconciling 107 statements ordering from Intuit 260 Statutory Maternity Pay 185 Statutory Maternity Pay payroll items for 170 Statutory Paternity Pay 186 statutory payments 184 Statutory Sick Pay 185 Statutory Sick Pay payroll items for 170 step by step instructions using the QuickBooks Tutor 91 stocking units 35 Stopwatch when to use 233 subaccounts adding to chart of accounts 51 payroll 168 subaccounts payroll 168 subclasses 15 subcontractors deciding whether to track time for 231 services performed by 42 Index 255 time worked paying for 236 subitems compared to group items 34 creating 40 subtotal items creating 40 description 32 using on sales forms 45 subtotals on reports 94 summary transactions 105 suppliers foreign 149 time worked paying for 236 T
38. 951 60 m an ending 03 26 2003 26 Hartley Furnishings 7 115 80 balance as itis iw 04 25 2003 For foreign i 03 31 2003 ze Elizabeth Allen 1 307 88 referred to in accounts registers 03 31 2003 QuickBooks of 03 31 2003 29 Franklin Guest Hou 2 941 63 show their moa 7 all your accounts tran ion i soap a nthe A Line Show open balance Ending balance 32 812 45 batten e m w now curri Sort by Date Type Number Rel youa ways urrency aS how much you re Click here for help about entering back orders in QuickBooks denomination of owed the account Getting around in QuickBooks 87 Using the Help system in QuickBooks QuickBooks provides a variety of ways for you to obtain useful information and answers to your questions These include tutorials Follow Me Help and an exhaustive search engine referred to as 1 2 3 Help that searches not only the help but our online knowledge base Sidebar Windows Help main menu Search the Help How Do I menus Seren Piet Gor owt Cent Meee Bieter Tiam O eats atom pt ee Teeter invoice LAVVO r 3 Find Use this window to get all your questions answered pe Sen isid Cooney A 1 nod for heip te Qoititasis Follow MeHelp mnn L This window ters your VIINA moves and Cheating an paska BE displays help ieus Term about what you E pantena o te omiman or are doing P manane shared on Pa currency that n ateagred to the Show Mevideos Q
39. A 4 o Q e Payroll item s Be a a 3 z g 3 A amp o Q 2 z al amp D g 9 amp Car allowance Add n J Gross J J J Earn Child Support Agency Ded n Net Commission Add n J Gross J J J Earn Company Car Ded n Net Contribution ESPP Ded n Net contribution Setting up your payroll items 175 7 i 4 g A E g a 4 Payroll item z 3 g g s a8 3 z E EI 2H 8 S Ma 0 Zz 9 g Expenses Add n J Net Give As You Earn Ded n Gross S S S Health Insurance Ded n Net Deduction Housing Add n J Gross J J J Earn Allowance Pay in Lieu Add n J Gross S TA A Earn of Notice Redundancy Add n J Net Payment up to 30 000 Save As You Earn Ded n Gross S S S Staff Loan Add n WA Net Staff Loan Ded n Net repayment Stock option exercise Add n J Gross J J I Earn Setting up payroll items for pension contributions 176 After setting up your other payroll items you can set up pension contributions that are based on a percentage of an employee s pension based earnings There are many different types of pensions As you set up pension payroll items for your employees be sure you understand how the pension works and its income tax consequences Once you have created the pension contribution payroll items using the payroll items wizard you can apply them as necessary to each employee s pay W hat are pensionable earnings A pension contribution is usually a percentage of an employe
40. Cancel To restore all the tick WARNING Once you click OK to change the name type you cannot undo the Revert Ad marks to the Other Name change If you are not sure whether to change a name now leave it as an Other Name z column click Revert Name Customer _ Supplier Employee Other Name Bayshore Auto Service 4 a Bayshore Bagel Maven Z Company car Computers Interest eamed KSAS Service charge EN Converting data from Quicken 69 If you have different versions of one name If you have slightly different versions of the same name for example John Lennon J Lennon and John L QuickBooks puts each version of the namein the Other Names list In QuickBooks you can t delete any nameused 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 supplier or employee Merging similar names merging list entries Fillin your company information From the Company menu choose Company Info and fill in the fields that apply to your company If you want QuickBooks to track tax information for you you must select the tax form you ll be filing from the drop down menu Turn on the QuickBooks features you plan to use In QuickBooks from the Edit menu choose Preferences Now you can customise QuickBooks for your needs m If youcollect VAT from customers tu
41. Company File tab is selected 3 Click Browse 4 Navigate to your Zip 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 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 backup file of your company data Chapter 4 QuickBooks basics 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 From the Windows Start button select Search then choose For Files or Folders 2 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 3 Choosea drive or folder in the Look in field 4 Click Search Now Restoring your backup file A Note If you need to restore your backup file use the Restore command Because QuickBooks backup files are compressed simply copying the backup file to your QuickBooks directory will not give you access to your data Because your backup c
42. 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 iS Converted to this in A R account QuickBooks Each transaction that increases your A R An invoice to a customer balance Each transaction that decreases your A R A payment from a customer balance and has only one split line Each transaction that decreases your A R A credit memo to a customer balance 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 Converting data from Quicken 71 Changing The conversion saves you the time of typing 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
43. If you require additional help on the above steps refer to the online Help Once you have created some payroll payments that include pension contributions generate a Payroll Pension Detail report to see a summary of the pension contributions paid on behalf of each employee Note that the Earnings Base column in this report will show amounts for pension contributions that are based on a percentage of the pension base otherwise this column shows zeros To learn about Search the Help index for Creating a payroll item to be included payroll items creating a pension earn in pensionable earnings ings base Creating a payroll item for an payroll items adding employee pension employee pension contribution contributions Creating a payroll item for an pension items adding employer pension employer pension contribution contributions Adding a pension contribution payroll employees adding a pension contribu item to an employee s record tion to Generating a Pension Detail Report payroll pension detail report Setting up your payroll items 177 Setting up employees AN Use payroll only to pay employees and directors not subcontractors or owners To pay subcontractors set them up as suppliers have them bill you and pay them with the Pay Bills feature Later for your year end forms create a report to show you how much you have paid each subcontractor and enter amounts withheld from subcontractors for income t
44. It is a legal entity in its own right separate from its owners Check with your accountant or HM Revenue amp Customs to make sure you understand the tax responsibilities for your type of business ownership Setting up your company in QuickBooks 19 Other important information you ll need The following table lists the information that you will need to complete the Easy Step Interview and also where you will find it You should be able to enter most of the information in the Interview but there may be some areas that you will need to come back to after completing your company setup You can leave and come back to the interview at any point Information you need W here to find it y Company legal name and address Owner your accountant or tax forms g VAT registration number You must have a registration HM Revenue amp Customs LJ number if you collect the VAT or m sell or purchase goods from EC member states The dates of your accounting period Your records or accountant g m first month of your financial year m first month of your income tax year and m your QuickBooks start date Income tax form your business will file Your accountant HM Revenue amp Ly Tip When the EasyStep Interview asks you select an Customs or tax forms income tax form QuickBooks uses this information to associate accounts with tax form lines and create tax reports Chart of accounts for your business Your accountant or pr
45. Old Barm Address ttle Hampdon hours worked Iver SL8 6YT Memo V Tobe printed r Payment Summary Eamings 1 833 33 Pay Period 01 03 2000 31 03 2000 Click Payment Detail Additions 500 00 Hours Worked 0 00 A to see more detail or Taxes 623 50 to edit the payment z Deductions 0 00 Payment Detail Save amp Close Save amp New Revert 7 Optional Change the cheque number memo address or the To be printed status directly in this window 8 Optional Click Payment Detail QuickBooks displays the Review Payment window Here you can make any necessary corrections When you finish click OK Paying employees 201 202 Note Note To ensure the accuracy of subsequent tax calculations you cannot change certain things On payroll payments you cannot edit the payment date amount payee or Advance Holiday Payment you can t edit the Advance Holiday Payment at all To do so you must delete and re enter the payment as well as any subsequent payments to the employee On BACS supercheques you cannot edit the payment date 9 To printa copy of the payment click Print You can print pay slips to provide your employees with the detailsof the payment see Printing payroll cheques and pay slips on page 203 Deleting or voiding a payment You cannot void BACS payment cheques Instead you must delete and if necessary re enter them However with the exception of thel
46. Print Invoices 2 Add a Customer eur p Customer Centre i lt S Finance Statements Refunds es and Credits QR Customer Detail Centre Rect QuickBooks Credit Card Service 2 z 3 a 5 Use this drop Sa Memorised Reports ia down list for Receipts E Customers Items amp Templates Services Customer Re r legister Whte Customer Letters Centre A R Ageing Summary Customer Balance Detail Customer Balance Summary Open Invoices Display or Print this Group Memorised Report List Report Finder convenient access to reports you ve added to the memorised reports list To learn about Search the Help index for Using the Company Centre Using other QuickBooks centres Decision Tools Company Centre centres decision tools 92 Chapter 4 QuickBooks basics Creating reports QuickBooks provides a wide variety of preset reports and graphs designed to give you quick and easy access to your company s information In addition you can create your own customised 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 asa summary of what the report conv
47. QuickBooks Pro Timer from the CD ROM on page 7 You and others in your com pany have access to Quick Books and want to enter time data after the work is done Enter time data directly into QuickBooks Pro either on a weekly timesheet or as separate activities one at a time Setting up QuickBooks Pro or higher to track time on page 234 search the online help for Entering time manually in QuickBooks Your employees submit paper timesheets One person can enter every one s time data directly into QuickBooks Pro on a weekly timesheet for each person Setting up QuickBooks Pro or higher to track time on page 234 search the online help for Entering time manually in QuickBooks Should track time 233 Setting up QuickBooks Pro or higher to track time Note What to set up Turn on time tracking Comments The timesheet starts with the day you choose as the first day of your work week You must do this preparation before other users can install and use the Timer Search the Help index for m preferences time On the Customer ob list set up the customers and jobs you want to track time for If you don t plan to track time fora customer or job you don t need that name on the Customer ob list now customers adding new jobs adding new On the Item list set up service items for the work to be tracked Service items are required onl
48. QuickBooks creates a completely new set of files for you to use in QuickBooks Quicken XG 2002 2001 2000 and 98 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 Install QuickBooks 2003 according to the instructions on page 4 Open QuickBooks by double clicking the QuickBooks icon on your desktop From the File menu select Import then Convert from Quicken The Important Documentation window appears Click View Help for information about converting from Quicken Close the help window then click OK Choose the Quicken file you want to convert and click Open Follow the instructions on your screen to convert your file On CF UAWN 68 Chapter 3 Importing and exporting data Fine tuning your data after converting to QuickBooks Prior retained earnings After you convert your data from Quicken you may need to makesome 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 XG 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
49. Registered businesses track the VAT collected from customers output tax and paid on purchases input tax Usually you collect more output tax from sales than input tax on purchases and must pay the difference to HM Revenue amp Customs If more input tax has been paid than output tax charged you will be refunded by HM Revenue amp Customs If you require more information on whether you should be registered to collect VAT contact HM Revenue amp Customs National Advice Service 0845 010 9000 or consult with your accountant How QuickBooks tracks VAT Keeping track of VAT can bea challenge Someitems you sell may be taxable while others may not and some items may be taxed at different rates than others Also most customers must be charged VAT while certain ones may be exempt Fortunately QuickBooks can help you automate these complexities Take the time to set up your QuickBooks company for VAT carefully so you can enter sales and purchases quickly you ll have accurate information about the VAT you ve collected and paid when it comes time to remit it QuickBooks automatically creates an account called VAT Control when you set up your company As you enter sales invoices cash sales receipts credit memos bills credit card transactions and cheques that have a VAT component QuickBooks automatically records the VAT amount in the VAT Control account QuickBooks flexible VAT reports make it easy for you to understand your VAT
50. The QuickBooks Backup command does not simply copy your company file Instead it compresses the data into a compact backup file which only QuickBooks can open You can name the backup file whatever you want QuickBooks automatically give your backup file the extension QBB For a description of the various file types QuickBooks creates for your company file see Understanding QuickBooks file types on page 96 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 Regular not QuickBooks Pro or higher you are always working in single user mode and do not need to worry about switching m If other people are working with the company file ask them either to close the file or exit QuickBooks m From the File menu choose Switch To Single User Mode Chapter 4 QuickBooks basics Recommended backup routine If you use QuickBooks Pro 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 111 Prepare several sets of backup media Label the backup media QuickBooks Backup Monday Tuesday etc By having oneset of backups for each business day you likely won t lose more than one day s records if a disaster strikes nu QuickBooks Backup Each day back up onto a media of
51. a business owners drawings Setting up employees 183 Setting up and paying Statutory Payments Asan employer you must pay statutory pay to employees as long as they qualify QuickBooks calculates Statutory Sick Pay Statutory Maternity Pay and Statutory Paternity Pay automatically If employees are entitled to statutory pay simply enter the details of their paymentsin their employee record QuickBooksthen automatically begins paying the employee his or her statutory pay and calculates the recovery portion in the Pay Liabilities window SSP SMP and SPP payments and the amounts you can recover are also tracked on the P35 and P14 P60 tax forms If setting up Maternity Pay QuickBooks calculates the end 2 Once you know when your employee will be off on statutory leave enter the day date of the statutory the payments are to pay period for you begin and end QuickBooks uses Average Eamings these dates to Socuesnaneer er z mom Calculations To see determine when to ANEA an employee s calculate based on iaaa a oaee l average earnings Mabir mee tr 2 Cute of wet statutory pay CET pe select the statutory entry type in the Employee J ournal then click this button Enter the details of the statutory pay here Note QuickBooks does not automatically calculate SAP However you can still set up Stat utory Adoption Payments in QuickBooks Refer to the online Help and s
52. aC you must enter two YTD entries one to cover the time frame during which the employee had an A code and another to cover the C NI code time frame After you ve entered the amounts for this period click OK to finish If you have another period to enter click Next Period instead 190 Chapter 7 Payroll and employees Option Do not affect accounts Should my year to date information affect my accounts W hen to choose Most people should choose this option at setup m 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 m 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 adjust ment W hat QuickBooks does m Affects no balance sheet accounts and adds no expenses Adjusts payroll year to date amounts that print on cheque vouchers and pay slips display in payroll reports and determine annual limits for taxes deductions and additions Affect liability and expense accounts You may want to choose this option at setup if you have never used a payroll lia m Enters an increase in each liability account associated with a payroll but not the bank bility account before and you want a cor item used for the period account rect balance in the account m Tracks an expense for each expense This option
53. and services My QuickBooks account details QuickBooks Support telephone number QuickBooks Customer Number QuickBooks Licence Key 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 If you are upgrading to QuickBooks 2006 2 Setting up a new company 5 Decisions to make before you start 6 Locating an advisor to help you with QuickBooks 6 How many companies should you set up 6 What accounting method should use 7 What accounting do need to know 8 What s the best way to track my type of detail 11 Reports that measure profitability 16 Setting up your company in QuickBooks 18 Determining a start date 18 Information to collect 19 Using the EasyStep Interview 22 Should I track customers and jobs 24 What does QuickBooks mean by a customer 24 What does QuickBooks mean by ajob 24 Changing the opening balance for a customer or job 25 Why you probably need to set up items 26 Items for what you sell 26 Items for services or products you purchase 27 Deciding how items should affect accounts 28 How many different items do you need 29 Setting up items 30 Where to find information about your items 30 Types of QuickBooks items 31 Setting up different units of measure for your stock 35 Reporting in different units of measure 38 Adding items to your Item or Fixed Asset Item list 39 Items f
54. 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 it uses accrual basis accounting by default For example it shows income on a profit and loss statement for invoicesassoon as you record them even if you haven t yet received 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 Decisions to make before you start 7 W hat accounting do I need to know Using QuickBooks requires very little accounting knowledge All you need to understand is what a chart of accounts is 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 enterprise you want to track where your income comes from where you pu
55. business 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 more information about using classes see Tracking income and expenses with classes on page 14 6 Chapter 2 Setting up anew company W hat accounting method should I use 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 It s best not to switch to a different accounting system after you choose one However you can switch between cash and accrual reports in QuickBooks at any time without affecting your accounting 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 Somesmall businesses record income when they receive the money and expenses when they pay the bills This method is known as bookkeeping on acash 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 the time you first receive the bills you ve been using cash
56. canceling before completing 107 online accounts 110 skipped months 107 transactions added earlier 107 record Index 253 exempt input tax 142 import VAT 131 import VAT paid by direct debit 131 VAT on private fuel 132 records keeping for VAT 138 refreshing data 112 refund cheques payroll liability 208 receiving from HM Customs amp Excise 136 registers described 87 entering transactionsin 54 reimbursable expenses items for 41 miscellaneous charges items for 43 remove VAT rounding 142 reorganising transactions in reports 94 reorganizing accounts on chart of accounts 51 columns on forms 99 fields on forms 99 lists 51 Rep field in New Employee window 183 Report Finder 93 reports changing the scope of the information 95 customising 94 date ranges 95 descriptions of payroll 224 227 payroll item detail 227 payroll liabilities 225 payroll summary 226 EC sales list 133 filtering 95 finding the report you want 93 fonts on 94 for VAT 133 memorising 94 Other on 96 realised gains amp losses 157 saving the customisation and filtering 94 trial balance 3 unrealised gains amp losses 155 VAT 100 133 VAT detail 133 VAT summary 133 resetting help windows 89 restoring company data 103 retained earnings adjusting for during setup 56 transactions 105 retained earnings account 57 description 9 retirement contributions creating payroll it
57. cannot have subac counts 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 lia bility accounts However by using payroll items you can put all your payroll liabilities into a single account To ensure the correct calcu lations are done for payroll accounts you should subscribe to the Quick Books Payroll Service Converting data from Quicken 75 New and renamed balance sheet accounts 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 creates automatically For example Quicken sometimes uses liability accounts instead of equity accounts In QuickBooks you can use equity accounts m QuickBooks changes your Quicken categories and subcategories into income and expense accounts with subaccounts Quicken account Converted to QuickBooks account type type Bank Bank Credit Card Credit Card Cash Other Current Asset Asset Other Current Asset Liability Other Current Liability Investment Other Current Asset W hen you convert from Quic
58. class tracking currency Adios P 5 eral View Prompt to assign classes g Australia Dollar land A Canada Dollar Denmark Krone Euro Hong Kong Dollar ew Iter Ask a help question ask Japan Yen Mev Jisui iiba asx is E Ets New Zealand Dollar Type Norway Krone ype INon stock Part _ V Use for goods you buy but don t track like office z shores Kro sled Item Name Number Description This item is purchased for and sold to a specific customer job supplies or materials for a specific job that you charge back to the customer Cancel Next Custom Fields Spelling Subitem of Price Amts Inc Foreign Price Item is inactive 0 00 Sales VAT Code Account United Kingdom Pound United States of America Dollar you ll see an extra field on the New Item window where you can enter a fixed foreign price for an item QuickBooks uses an item s Foreign Price in transactions where the currency matches the currency that you chose in the foreign pricing preference Setting up multicurrency 151 Using the Tip Inactive currencies are not shown in this list There are more than 40 currencies created in QuickBooks To display all currencies tick this check box AN Update the exchange rate often to keep your records up to date Currency List TheCurrency List isa list of all the currencies that are set up in QuickBooks We ve inclu
59. copy of alist or You can use the file in a Only lists and reports can be report in a format com spreadsheet or word printed to disk mon to other software processing programme QuickBooks cannot read files programmes printed to disk Export Puts lists into a file in IIF You can share lists with QuickBooks can export only format with one record per line and one column for each field other company files or databases word processors or spread sheets You can add to the list and then import it back into QuickBooks lists not transactions or reports 78 Chapter 3 Importing and exporting data To learn about Search the Help index for Exporting lists to another company file exporting data Transferring information to M icrosoft Word Excel Outlook or Symantec ACT You can easily export data to Microsoft Word or Excel and synchronise your contacts with Microsoft Outlook or Symantec ACT m_ If you use Microsoft Word as your word processor you can use customer supplier enployee and other names in letters m If you use Microsoft Excel you can export your QuickBooks report data to Excel for further customisation and filtering m f you use Outlook or ACT you can synchronise your contact information with QuickBooks To learn about Search the Help index for Writing letters letters Exporting data to Excel reports exporting to Microsoft Excel Synchronising contact information contact man
60. currency This allows you to track transactions specific to each currency you set up in QuickBooks You can also set up foreign currency Bank and Credit Card accounts To set up multicurrency you need to complete these tasks Turn on the multicurrency preference on page 147 Set up foreign accounts on page 148 Create foreign customers and suppliers on page 149 Optional Set up foreign prices for items sales items only on page 150 BWNE Turn on the multicurrency preference If you invoice receive payments or pay billsin a currency other than the currency denomination of the country you livein you should turn on the multicurrency preference You can do so in one of two ways in the EasyStep Interview as you create a new company or if your company is already set up in the Preferences window Once multicurrency isturned on you cannot turn it off W e recommend that you back up your company file before turning this feature 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 thescroll box on the left select Accounting 3 In the Company Preferences tab select Use multicurrency and choose your home currency The home currency isthe currency denomination of the country in which you live If you livein the Republic of Ir
61. default ransel choice in the Agent Last Name A Information box If the company s return was prepared by someone else click on i the arrow and select Postcode o from this drop down menu the choice which best describes them If you choose any of the Agent options fill in name of agent company and contact information for the agent who prepared your return Country Agent Contact Information EMs Teaghona Dt Did you review your P14 P60s after all changes were made If you made changes in your P14 P60s you need to rereview them before completing the rest of the process to make sure that your changes were reflected QuickBooks automatically incorporates most adjustments but any discrepancies will cause your return to be rejected by HM Revenue amp Customs so it is best to cancel the online filing process and re review the data first Processing your year end 221 222 W hat happens when I click File Online When you press the File Online button your return will be transmitted to HM Revenue amp Customs s secure server The P14 and P35 forms sent over the Internet and accepted by the HM Revenue amp Customs s systems have the same legal validity and implications as a signed paper form delivered to an HM Revenue amp Customs office Filing onlinewill takesometime depending on traffic on the receiving end Please do not cancel the process if you feel it has taken too long Wait unti
62. e ore on an RPE appropriate boxes All ra Pic me Pus questions must be Z Yes ae these employees nuded n the Continuation Sheet answered before you can Fw F Yes proceed 1 dechme and certily that P forma Pr Dad of Year Summary for each employes or Grector for whore I wat required to complete When you click OK you form P11 Dextera Workin Sheet or ecpevaiert Arna the year P I ae edoi will be returned to the aan es Payroll Year End Process F wercesed ret dun dialogue box at which completed form P1 1D and P1 0x Returns of experce payments benefits and Class 1A contributions I we ecooed I willbe sort later I are rect due time you can print your P35 form a ee emma Printing your P35 form The printable P35 form looks like the official HM Revenue amp Customs P35 form but it is your file copy only Note It is important to keep this copy in your files as you will need it if you file any amendments This safeguard is important because at present P35 amendments must be filed using paper forms If you adjust the figures in QuickBooks to create a new P35 form you will not have access to the figures used to createthe form you are printing now You will need to compare the new data with the data in this form in order to create an amended P35 If you arenot using thefile onlinefeature yet print thisform and transfer the data manually to the official form from HM Revenue amp Customs Either way keep the QuickBoo
63. file will contain all the basic information about your business that is needed to maintain your books 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 the General section is completed first m Income amp Expenses Lets you review the income and expense 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 Quick Books 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 suppliersto whom you owe money as of your start date and balances in your balance sheet accounts as of your start date m Payroll Lets you enter information like NI numbers and date of birth for your employees set how often you will pay them and set up payroll items which you use to assign rates of pay 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 af
64. format 77 income accounts choosing for items 28 opening balances 56 uncategorised 55 income statement described 17 income tax form 20 payroll items for 171 index 90 Inland Revenue payroll liabilities and 205 Internet changing your connection 60 connecting QuickBooks to 59 requirements 59 setting up a connection 60 updating QuickBooks from updating QuickBooks from the Internet 61 using to file payroll tax forms 211 Intuit phone numbers 260 261 Web sites 260 261 inventory assembly items vs groups 34 inventory part items description 32 248 Index If you don t find the topic you are looking for here try QuickBooks Help From the QuickBooks Help menu choose Help Index enter the keyword and press ENTER investment tracking only in Quicken 77 invoices ordering from Intuit 260 payment items on 47 items 35 about 54 accounts how affected by 28 adding to forms with units of measure set 37 benefits of setting up 26 changing prices 49 custom fields for 40 deleting 50 depreciation 27 editing 50 foreign prices 150 hiding 49 inventory assembly 32 34 list of 30 non inventory part 32 40 other charge 32 40 payroll 169 176 prices changing 49 reimbursable costs for 41 service 31 40 setting up units of measure 36 subitems 34 40 types restrictions on changing 49 table of 31 VAT codes for 127 J jobs compared to classes customer types and j
65. from an employee s payment Tax Credit Tax Credit Tax Credits awarded to employees from HM Rev enue amp Customs Income Tax Payroll Taxes Income tax withheld from an employee NIC Employee contracted out Payroll Taxes National Insurance for a contracted out employee NIC Employee not contracted out Payroll Taxes A regular not contracted out employee s portion of National Insurance NIC Employee Rebate Payroll Taxes National Insurance rebate respecting a contracted out employee NIC Employee Rebate ER Payroll Taxes Employer portion of National Insurance Rebate respecting a contracted out employee NIC Employer Payroll Taxes The employer s portion of National Insurance for an employee NIC Employer Rebate Payroll Taxes National Insurance rebate for the employer of a contracted out employee SMP Recovery Statutory Pay Recovery Tracks the Statutory Maternity Pay recovery amount that is used to reduce the total liability payments If you qualify for SER also tracks the NIC compensation amount SPP Recovery Statutory Pay Recovery Tracks the Statutory Paternity Pay recovery amount that is used to reduce the total liability payments If you qualify for SER also tracks the NIC compensation amount SAP Recovery Statutory Pay Recovery Tracks the Statutory Adoption Pay recovery amount that is used to reduce the total liability payments If you qua
66. from 3 5 inch disks 6 Choose your own name from the drop 1 Insert the first Timer install disk in your Gown lis 3 5 inch disk drive 7 If your timeis always billableto a customer 2 Select Run from the Start menu or job select the checkbox then click OK 3 Type the letter of your floppy drive then setup for example a setup then click OK 4 Follow theinstructions on your screen 240 Chapter 8 Time and cost tracking Setting up an activity to time 1 Inthe main Timer window click New Activity 2 Fill in the fields you need and click OK Timing an activity 1 If the activity you want to time is 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 Ifyou choosefrom Activity Templates the Timer will start with zero time 2 To sart timing click Start or Resume 3 To stop timing click Stop Entering time manually 1 Choose the activity from the Activity Templates section of the drop down list in the Current Activity field If theactivity isnot on thelist set it up first 2 When the activity isin the Current Activity field click Edit Activity 3 Inthe Edit Activity window change the date if you did not perform the work today 4 Inthe Duration field type the time You may enter timein any of thefollowing formats Hours and minutes for example 01 30 m Hours as decimals for
67. goods and related services to other EC Member States Total value of all acquisi tions of goods and related services to other EC Mem ber States plied goods to or acquired goods from another EC Member State Include related services such as transport costs where these form part of the invoice or contract price The figures should exclude VAT Determining your VAT liability 135 Completing a cash basis VAT return Note This method of paying your VAT does not mark your VAT Control transactions as Filed You will have to correct this situation if in the future you switch to accrual basis reporting 1 6 Open the VAT 100 report from the Reports menu select VAT This shows you the amounts you need to fill in your VAT return including your EC VAT amounts if any Select the VAT return period dates When you use this option QuickBooks prepares two reports one report includes the VAT amounts and the other includes the net amounts for each item bought or sold You can tile or cascade the reports to see them both on the screen at the same time If the Net VAT to pay box 5 amount is positive from the Suppliers menu select Pay VAT Liability The Write Cheques window is automatically filled in with the relevant VAT liability information Leave the rest of the Expenses tab and all of the Items tab blank Complete the remainder of the cheque then click Save and Close When you record the cheque QuickBooks a
68. in the Payroll amp Employees preferences from the Edit menu select Preferences select Payroll amp Employees from the options on the left and click the Company Preferences tab To learn about Search the Help index for Printing payroll cheques payroll cheques printing Printing pay slips pay slips Using BACS to pay employees When used in conjunction with specialist BACS software QuickBooks can send bill and payroll payments to UK banks On receipt of this information banks transfer thefundsfrom your bank account then distributes it to your suppliers and employee s bank accounts QuickBooks offers two BACS services m QuickBooks ePayment Solutions a subscription based Web service available from Intuit that is seamlessly integrated with QuickBooks for more infor mation on this service open the Resource Area Paying employees 203 204 m You can also create an export file that can be read by any 3rd party BACS software You will need to purchase this software separately as it is not available from Intuit To configure QuickBooks for BACS payments I1 From the Edit menu choose Preferences then Banking Click the Company Preferences tab 2 Select from the following m If you are using QuickBooks e Payment Solutions select I am signed up for e Payment Solutions or m If using a 3rd party software to distribute your BACS payments select Create BACS export files 3 Enter BACS User Number and choos
69. inactive Martina Freeman F p Customer Job Activities v Reports To show the items marked inactive select Show All To hide these Use the menu buttons at the bottom of lists for a variety of items clear the check tasks creating new entries editing existing ones creating box reports about items on the list and using them in transactions 86 Chapter 4 QuickBooks basics Using forms You record most of your daily business transactions on a QuickBooks form which looks just like the paper forms you re used to After you fill it in QuickBooks does the accounting Enten Bils Ask a help question sil O Credit 4 Previous gt Next Find History Journal v Bill Received Supplier British Gas Memo Amount Due Ref No Date 03 31 2003 m Bil Due 04 10 2003 i 231 00 Egpenses 231 00 Items 0 00 Amts inc VAT Account VAT Net Amt VAT Amt Memo Customer Job E Class Ltilities Gas BAS DA 196 60 34 40 hd Al E Totals 196 60 34 40 Clear Splits Recalculate Save amp Close _Save amp New Clear Using registers When you record a bill and then write a cheque using the Pay Bills window to pay for the business expense QuickBooks enters transactions in your accounts payable register to show the expense you incurred and the payment you made It also records the cheque in
70. is also appropriate after you account associated with a payroll start using payroll if you need to adjust item used for the period the amount owed for a payroll item a 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 You are unlikely to want to choose this m Enters a payment in the designated expense and option at setup since it affects your bank bank account for the net amount paid bank accounts account balance to the employee during the period m Enters an increase in each liability account associated with a payroll item used for the period m Tracks an expense for each expense account associated with a payroll item used for the period About earnings basis An earnings basis is the total of an employee s earnings used to calculate payroll taxes It s also called taxable income or for NI purposes insurable NI able earnings An employee s earnings base for payroll taxes is calculated in this way First it totals all salary hourly wages and commissions Then it adds to gross those additions and employer contributions that affect gross and are subject to that specific tax Summarising amounts for the year to date 191 m Finally it subtracts from gross those deductions that are deducted prior to calculating that specific tax If the year to date total of an earnings basis exceeds
71. 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 asales or purchase form You can also typein the Item field and let QuickBooks fill in the rest of the item s name Description VAT VAT AMT Amount Qty Class Enter an item in the Item field by typing or by choosing from the drop down list lt Add New gt Fitting Plumbing Chairs Oak chair Pine chair Dressers Oak Welsh dresser Pine Welsh dresser Pine Kitchen Cabinets Pine base cabinet Pine base with drawer Pine double wall Pine single wall Sinks Butler s sink Double sink Tables Oak table Fitting kitchen Plumbing Oak chair Pine chair Oak Welsh dresser Pine Welsh dresser Pine base cabinet Pine base cabinet Pine double wall c Pine single wall c Butler s sink Double sink Oak table 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 filling in a form When you enter a quantity QuickBooks automatically calculates the amount The Item column lists the item name you entered when you created the item QuickBooks multiplies the Qty by the Rate to calculate the Amount Description Rate VAT VAT AMT Amount When you enter Oak chair items QuickBooks keeps trackofhow much of each item you sel
72. item setting up 127 setting 126 setting a default 127 Zero Rated about 129 VAT refund receiving 136 voiding payroll payments 202 W wage bases viewing on reports 227 wages employee changing hourly rates or salary 195 entering hourly rates 180 entering salary 180 hourly payroll item for 172 year to date entering for setup 188 Web sites connecting QuickBooks to 59 products and supplies 260 Week 1 Month 1 Tax Code 181 WFTC payroll item 171 Index 257 Windows Y converting Quicken to QuickBooks 66 76 i i 241 software requirements for Timer year to date amounts windows within QuickBooks 85 payroll entering 188 193 withholding paying 208 word processors Z transferring data to and from QuickBooks 78 AT 12 Working Family Tax Credit 171 Pepe VA Cede tee Zip drive 102 258 Index AppendixaA Contacting Intuit _ How dol getall my questions answered If you are unable to solve a problem you can get assistance by telephone fax and the Internet Intuit also offers services to help you make the most of your software 259 Intuit Contact Information Ordering QuickBooks cheques and business stationery If about Ordering Intuit products Software upgrades Additional user guides Try Visiting our Web site www quickBooks co uk Or ring Within United Kingdom UK 0845 606 2161 Monday Friday 9 00 a m
73. items for entering sales only If you purchase assets such as buildings vehicles computers or heavy machinery that will contribute to the operating capacity of your company for several years QuickBooks Pro and higher 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 27 Deciding how items should affect accounts 28 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 stock and other charges you normally associate an income account with it If you purchase the sameitem QuickBooks Pro or higher provides a way to associate a second account usually an expense account to be used on purchases See Items for reimbursable costs QuickBooks Pro or higher on page 41 To learn about Search the Help index for accounts for tracking stock s
74. liability directly in your VAT Control account Instead you must make a general journal entry To correct an error From the Banking menu choose Make Journal Entry Check that the Date field shows today s date For your reference fill in an Entry Number for this adjustment Leave the Show on VAT reports as option clear In the Account column choose the VAT Control account In the Debit or Credit column enter the amount to adjust your VAT Control account by m To decrease your VAT liability that is if your VAT control account shows that you owe more to the government than you actually do enter a positive amount in the Debit column AUARWNE Chapter 5 Tracking and paying VAT Tip Note m Toincrease your VAT liability that is if your VAT control account shows that you owe less to the government than you actually do enter a positive amount in the Credit column 7 Leavethe VAT code and VAT Amount columns clear These columns are only used to account for VAT when making adjustments to other accounts Because you are adjusting your VAT Control account directly you don t need to select a VAT code or enter a VAT amount 8 Enter anotein the Memo column as to why this adjustment was needed 9 On anew linein the Account column select another account to increase or decrease m If you are decreasing your VAT liability select the account that will receive money from the VAT Control account If you are
75. m Phone numbers m Outstanding bills Your company records Value of your assets For fixed assets you also need the original cost and accu mulated depreciation Balance sheet prepared by your accoun tant Equity information 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 Your accountant Payroll information See Setting up payroll an overview on page 165 for details Setting up your company in QuickBooks 21 Using the EasyStep Interview 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 The EasyStep Interview remembers where you left off Tip For a list of the questions that appear in the Interview see the EasyStep txt file in your QuickBooks directory You can use this list to organise your information for the Interview Starting the Interview the first time you start QuickBooks m Thefirst time you start QuickBooks it displays a window with several options Oneisto createanew company Choosethis option and click OK to start the EasyStep Interview You can also start the EasyStep Interview by choosing New Company from the File menu Opening the EasyStep Interview at other times With your company file
76. much you already remitted to the HM Revenue amp Customs benefits providers etc as a result of these liabilities Method of calculation for director NICs annual pro rata annual or per period Copies of employee payroll cheques payroll slips former payroll service payroll reports accountant payroll ledger Former payroll service accountant payroll ledger Former payroll service accountant payroll ledger Setting up payroll an overview 167 Payroll expense and liability accounts Q When payroll is turned on QuickBooks adds two accounts to your Chart of Accounts m Payroll Expenses an Expense account Payroll Liabilities an Other Current Liability account m Attachment Deductions an Other Current Liability account to track AEOs To keep your balance sheet and 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 name to use However you can use a different account if you like For example an accountant for a limited company may want to create subaccounts of the Payroll Expenses and Payroll Liabilities accounts to track expenses for directors versus other employees It is also correct for some types of payroll items such as a deduction for a loan repayment to be associated with an account other than an exp
77. 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 Equity accounts for sole traders Because all equity of a sole traders company belongs to one person tracking equity can be very simple As of 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 some thing 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 drawing out of the Retained Earnings account m Setup additional accounts or subaccounts to track owner s investments owner s drawings and earnings before your QuickBooks start date When setting up a new account for owner s drawings enter a negative opening balance to show the total drawings prior to the QuickBooks start date The negative opening balance indicates that the drawings have reduced the company s equity Or enter a zero opening balance and simply record drawings from now on Final steps to comple
78. original P35 and kept it on file You will need it Have you backed up your company data to a secure location which isseparate from your regular backups You should keep a permanent record of the data used to create your original P14s and P35 This safeguard is important because at present P14 and P35 amendments must be filed from QuickBooks by hand using paper forms If you adjust the figures in QuickBooks to create a new P14 or P35 form you will not have access to the figures used to create the original form You will need to compare the new data with the data in the original form in order to complete and file an amendment to your P14s or P35 To learn about Search the Help index for Filing your End of Year forms online online filing Payroll End of Year process payroll end of year Reviewing and printing P14 P60 forms P14 P60 Reviewing P35 data and printing P35 P35 Amendment process for P35 P35 amending Processing your year end 223 Getting information about your payroll QuickBooks Payroll Reports Use these QuickBooks reports to gather the payroll information you need Report Payroll Summary Description Shows the total wages taxes withheld deductions from net pay additions to net pay and employer paid taxes and contributions 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
79. supplies to a VAT registered business in an EC member state without charging that business VAT However on your VAT return you still need to account for the VAT that would have been charged on your transactions with businesses in EC member countries QuickBooks standard VAT 100 report can track your sales to and purchases from businesses in EC member states To track these values you need to create additional separate VAT codes with the EC Code check box ticked m EZ 0 0 Eurosales and purchases zero rated This code should be used for all sales to and purchases from EU member states that would be zero rated acquisitions in the UK m ES 17 5 Eurosales and purchases standard rated This code should be used for all sales to and purchases from VAT registered companies in EU member states that would be standard rated acquisitions in the UK When you create an EC VAT code be sure to tick the EC Code check box in the New VAT Code window If the business you are dealing with is registered for VAT you must also enter its VAT registration number m Ifyou buy suppliesfrom the business enter its VAT registration number in the Additional Info tab of its Supplier profile m If you sell itemsto the business enter its VAT registration number in the Addi tional Info tab of its Customer profile If the business you buy from or sell to is in an EC member state but is NOT registered for VAT leave the VAT registrati
80. to the amount shown then shows the new total To reduce the total put a minus sign before the amount 8 To approve the form with changes if any click Next 9 Repeat Steps 5 through 8 for the remaining marked employees 10 On the last form click OK Processing your year end 213 214 Note Note Printing P14 P60 forms QuickBooks prints P14 P60 information for employees on laser portrait style P14 P60 form blanks only You can order blank P14 End of Year Summary forms and P60 End of Year Certificates from HM Revenue amp Customsor from Intuit visit lt www QuickBooksStationery co uk gt or ring us You must review the P14 P60 forms before you can print them 1 Load the forms into your printer m You must use a pageoriented printer such as a laser or inkjet printer Do not collate the forms Instead start by loading all the P14 NI copy forms When you have printed them load and print the P14 Tax copy forms Finally load and print the P60 forms 2 Beforeyou print forms test that your printer prints them correctly and if not make necessary adjustments see Solving printing problems on page 116 3 Print the forms a Confirm that the employees whose forms you want to print are selected and that the correct payroll year is showing b Click Print P14 P60 forms c InthePrint P60s window select the correct style of form and change your other printer settings as required d Click Print e Load the
81. 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 suppliers or both in that currency For example if you have customers in the US and South Africa you ll need two additional A R accounts one with its currency set to the US Dollar and another set to Rand You cannot use the same A R and A P accounts that you use for your home currency transactions because the currencies rarely trade as equals Note Once a transaction is recorded in an account the currency of the account cannot be changed To set up a foreign account 1 Fromthe Company menu select Chart of Accounts The Chart of Accounts appears 2 On theChart of Accounts window click the Account menu button and choose New 148 Chapter 6 Doing business internationally The currency of the account is selected here Note 3 With the New Account window open fa New Account Ask a help question Ask w How Do I BAR Type Accounts Receivable OK A Cancel Name Next Account is inactive Subaccount of Description 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 Note D Currency Denmark Krone Exchange When you select a currency the Exchange field shows its exchange rate If you want to update
82. used in your accounts receivable account This list may contain not only the names of customers suppliers and employees but also descriptions such as Deposit Transfer and Interest You should change the names on thelist to the correct type If you don t change them now they remain on your Other Names list You can change them later from the Other Names List See instructions below If you want to use QuickBooks accounts payable be sure to move your Quicken payees other than employees from the Other Names List to the Suppliers List For more information see Changing to QuickBooks accounts payable on page 72 Once you change the type for a name you cannot undo it You can move names from the Other Names List to the Suppliers Cus tomer 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 1 From the Lists menu choose Other Names List 2 In theOther Names List window click the Activities menu button and select Change Other Names Type 3 IntheChangeNameTypes window click the corresponding column for each name you want to move When all the names are ticked correctly click OK Change Name Types To change the name type for any names below click the column for the new name type Customer Supplier Employee next to each name whose type you want to change
83. your choice and keep them in your office At least once a week make a second backup to keep off your premises Alternate between two sets of media for your weekly off site 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 At theend of the financial 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 Backing up to a CD R or CD RW A Although Windows XP can write data directly to a CD R or CD RW we strongly 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 QuickBooks 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 it to your CD with reliable third party software To back up to a CD R or CD RW 1 2 3 Insert the CD into your CD R drive From theFile menu choose Back Up and ensurethe Back Up Company File tab is selected Click Browse Navigate to a place
84. 0 Total Professional Fees 250 00 Rent 2 400 00 Repairs Computer Repairs Total Repairs 0 00 Tools and Machinery 1 135 00 Utilities Gas and Electric 154 40 Telephone 100 71 Water 61 55 Total Wilities 316 96 Total Expense 56 654 94 S_ Het Ordinary Income 23 946 47 Other Income Expense Other Income Interest Income 93 42 Other Income 12 50 Total Other Income 105 92 Het Other Income 105 92 Het Income 24 054 39 Decisions to make before you start 17 Setting up your company in QuickBooks Determining a start date Note New Business 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 19 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 theInterview and afterwards For example you could choose today as your start date in which case you will need to enter how much money you have in each of your accounts and the amounts that your customers owe you and what you owe your suppliers Or you could choosean 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
85. 00 Om om 000 000 om 000 om 233333 383 25 100W 15000 1 250 00 6476 233333 383 25 Amount ba a 1 833 33 d 1 000 00 1 500 00 1 260 00 583 33 296 00 00 00 97 25 597 25 304 20 36876 1 50 117 64 227 64 172 64 99 02 344 93 233 33 082 To learn about Search the Help index for payroll reports about payroll reports Getting information about your payroll 227 228 Chapter 7 Payroll and employees Chapter 8 Time and cost tracking Should I track 230 time L How do bill for employee and Paying for time 236 worked Charging 238 subcontractor customers for Hoa sone time and costs QuickBooks Pro 240 Timer Reference Sheet Timetracking available only in QuickBooks Pro and higher allows you to track hours worked by yourself employees or subcontractors You can make the time billable for specific jobs QuickBooks can then transfer the tracked timeto pay cheques regular cheques and bills from subcontractors Cost tracking allows you to pass costs along directly to your customers 229 Should I track time 230 QuickBooks Pro and higher provide time tracking capability to suit your needs m TheStopwatch When you re working in QuickBooks and want to take a stop watch approach that is turn on a timer work and then stop the timer use the Stopwatch on the Time Enter Single Activity window m
86. 1 00 2 541 00 Mark the liabilities you want to pay QuickBooks creates one cheque per f you want payee not one you can cheque per liability change the To add aname that s amount missing in the you te Payable To column paying In this column of this window edit Tick this check box to show all payroll liabilities for the payroll item the period including any credits and zero amounts To learn about Search the Help index for Paying payroll liabilities Adding an agency name missing in the Payable To column Creating a report that shows your pay roll liabilities Entering a discount for payroll liabilities Entering a penalty or fine for payroll liabilities Entering a refund cheque for overpay ment of payroll liabilities payroll liabilities paying payroll items editing payroll reports about payroll liabilities discounts payroll liabilities penalties payroll liabilities refund cheque 208 Chapter 7 Payroll and employees Tracking and paying Class 1A NIC If you providea car to an employee for private use usually in addition to business use HM Revenue amp Customs collects from you a percentage of the value of this benefit At the end of the payroll year you must calculate and remit to HM Revenue amp Customs the amount you owe Before you can do so you should havethe following accounts set up in your Chart of Accounts m a Payroll Expense account of type
87. 2 payment items creating 40 description 33 using on sales forms 47 payments partial on invoice 47 pay slips printing 203 payroll 200 payroll accounts 168 AEO setting up 187 BACS using 203 checklist for setting up 166 condensing payroll data 104 customising accounts for 168 Index 251 customizing accounts for 168 employee template adding to 179 employees individual setting up for 182 expenses 173 filing forms online 212 historical transactions entering 188 193 paying employees 198 preferences for 165 reports 225 226 service 164 setting up 165 setting up SMP 185 setting up SSP 185 SPP 186 subaccounts 168 tracking expenses 174 turning on or off 164 payroll cheques seepayroll payments payroll expenses class tracking by 174 customer tracking by 173 job tracking by 173 reports 173 service item tracking by QuickBooks Pro only 174 payroll forms P11 forms 211 P14 P60 forms 212 P35 forms 215 P35 summary report 215 P45s printing 196 payroll items 169 176 additions 172 changes effects of 194 commissions 172 created by QuickBooks 170 creating new 172 deductions 172 displayed by QuickBooks 170 editing 194 195 employer contributions 172 examples of common items 175 holiday 170 hourly wages 172 liabilities adjusting 206 order of effect on amounts and gross pay 182 reports 227 payroll items creatin
88. 87800 D the foreig n amount by its show Al exchange rate which gives you the amountin your home currency We recommend that if you decide to assign hotkeys for foreign amounts only use alphanumeric values Using numerical values for hotkeys may cause problems when enter currency values into invoices 2 Atthe bottom of the Currency List click the Currency menu button and select New The New Currency window appears Tick this check box to New Currensy aBa nake a currency cas Name eae 120 00 Lx inactive This hides the Bets ae ee Leading Cancel currency from the list as Decimal Separator D Next Currency Symbol ee aa z opposed to del eting it Hotkey EE active Minimising the Exchange Rate 1 Currency List makes it i easier to read from drop down lists on forms 152 Chapter 6 Doing business internationally 3 On the New Currency window fill in the options at the very least the Currency Name Country and Country Code fields must be filled in m Currency Name The name of the currency m Country The country in which the currency is used m Currency Code The internationally recognised code for the currency m Currency Symbol The letter and or symbol such as to represent this currency on forms m Hotkey A unique letter or symbol to use with the SHIFT key to multiply an amount by the currency s exchange rate m Exchange Rate
89. Books set up customers and items make sales and receive money To start the QuickBooks Tutor 1 From the Help menu choose QuickBooks Tutor 2 Select Start QuickBooks Tutor to go through each lesson sequentially You can also select a specific lesson that describes the feature you want to learn how to use Using the Help system in QuickBooks 91 Exploring QuickBooks with a sample company 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 IntheOpen a Company window choose any one of the samples provided A QuickBooks company file has a QBW extension Getting information about your company The flowchart shows activities for dealing with one customer Click the icons for quick access 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 eight navigators Company Customers Suppliers Employee Banking Business Services Reports and Help amp Support Otis touisy Navigator E amp x Customers Navigators Click these icons Related Activities for quick access to features you use to manage all your customers 3 7 ices Receive Deposits r Payments a
90. Click Save amp Close When you record the deposit QuickBooks adjusts your VAT Control liability account to show that you now owe less VAT to HM Revenue amp Customs UARWNE How QuickBooks handles late VAT accruals basis only A If you use the cash basis reporting as your VAT scheme QuickBooks cannot mark your VAT transactions as filed nor can it handle late VAT Unfiled transactions QuickBooks automatically calculates the due or refundable VAT and generates a VAT return based on these amounts The calculated amount of the VAT return includes transactions that were recorded in a previous VAT period but have not yet been included in a VAT return These outstanding VAT return transactions are referred to as unfiled Any unfiled transactions are included in the current VAT period s return Updating from earlier versions except 2003 to QuickBooks 2006 Since the release of QuickBooks 2003 we have made changes to the tracking of VAT transactions for companies that are on the Standard VAT reporting scheme All entries that are included in a VAT return arenow marked as filed in the VAT Control account You can see this when you look at the VAT Control account Filed transactions are marked with an F This means that if you find a bill or invoicein the office after you have submitted your VAT return for the period you can enter that transaction using the original date on thebill or invoice QuickBooks a
91. DEL Edit the amount for any payroll item When QuickBooks creates a payroll payment it does the following Updates the pay period end date of thelast payment written for the employee and removes the tick mark in the Select Employees to Pay window Creates a payroll payment a cheque or pay slip for your employee for the net amount showing the deductions If paying via BACS creates an export file to send to the BACS agency Increases or decreases the employee s accrued sick and holiday time by the amount entered for the payroll payment If you ticked the Do not accrue time check box in the Preview Payment window you prevent the sick and holiday time from accruing for this payment only Updates year to date balances for the employee Draws the amount of the payment from the bank account you chose usually your current account Records an increase in each affected liability account showing the extra liability resulting from the payroll transaction for both the employee s payroll deductions and employer contributions 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 payroll payroll payments checking amounts in payments Chapter 7 Payroll and employees Review ing and correcting payroll payments After you ve recorded a payrol
92. M anual updates If you choose to manually update QuickBooks you should check for updates about onceamonth With thismethod 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 programme 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 theupdates you want to download by ticking the check box next to the update name A tick mark means the update is selected 4 Click Get Updates Note Manual updates can also be performed when the Automatic Update option is turned on Oncethe 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 the text in the Files Received column for additional details about the download 62 Chapter 2 Setting up anew company Sharing updates among multiple users If you use QuickBooks Pro or higher in multi user mode you need to install maintenance releases on each computer that has QuickBooks installed on it You can either connect to the Internet from each computer that has QuickBooks
93. New Create a new item called VAT ADJ Assign an expense account to this item Chapter 5 Tracking and paying VAT To adjust the VAT total to remove rounding 1 From the Customers menu select Create Invoices and click Previous until the invoice you want to edit appears On one line add the VAT ADJ item with a VAT code of A 100 and enter the amount If the VAT amount is to be decreased to correct the rounding enter 1 in the QTY column 2 On thenett line add the VAT ADJ item with a VAT code of B 0 and enter the amount If increased enter 1 in the QTY column ia sret carter AAJ teow Oe Br jet xii Pe Da vee lat Commery Cates Santas Daie Retry Aoii e fem alti x Geos Diet Gor Geet A eee retry Dow G were Game Jd moet toler Coton fae E Making adjustments to your VAT liability account 143 144 Chapter 5 Tracking and paying VAT Chapter 6 Doing business internationally Multicurrency an 146 overview L How can I manage Setting up 146 m y o reig n multicurrency Exchange rates 154 C u S to mMm e rs a n d and how they s Suppliers affect your transactions Dealing with 158 i foreign QuickBooks easily handles multiple currencies customers i At the conclusion of this chapter you ll know Dealing with 160 foreign suppliers how to set up prices in foreign currencies for Transferring 162 foreign funds items you sell internationally enter information for
94. Only send your forms when you have reviewed them all for accuracy 1 From the Employees menu choose Process Payroll Year End QuickBooks displays a list of all employees you paid during the year 2 Select the correct payroll year from the drop down list 3 Select the employees whose P14 P60 forms you plan to review now m To mark or clear an employee click in the tick mark column next to the name m Optional To include only certain employees tick only the names you want Click Review P14 P60s Carefully review each employee s form To correct employer or employee information click Cancel and make the changes in the following places m To correct or enter the name address or other information about the employer that is your company select Company Information from the Company menu m To correct or enter the employee s name address or National Insurance number select Employee List from the Employee menu then double click the employee to edit m To correct tax office name or numbers go to the Edit menu select Pref erences then select Payroll amp Employees 7 To change the amounts in any of the boxes double click it to open the adjustment window then enter the adjustment Consult with your accountant before modifying any amounts on the P14 P60 forms m Optional Type a description to as a reminder of what the adjustment is m Type the amount then click OK aus Note QuickBooks adds the adjustment
95. Pro and higher only Some businesses track expenses by service item A service item is what you use on sales forms to charge your customers for services you provide such as labour To track payroll expenses by service item do the following 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 entire payroll payment or to each of the payroll items you use on the payroll payment m Review all of your commission addition or employer contribution payroll items to make sure the check box for Track Expenses by Job is ticked m Makesurethatin the record you set up for each of your employees the check box for Use time data to create payments on the Payroll amp Compensation Info tab is ticked m Haveyour employee create timesheets using service items associated with the Customer Job he or she worked on m Pay your employee using the data from the time sheets or send an invoice to your customer using the time and costs feature To learn about Search the Help index for Keeping track of payroll expenses by cus payroll tracking expenses tomer job class or service item Chapter 7 Payroll and employees Payroll items and liabilities Often you have to deduct amounts from your employees pay and pass them on to the government For example when you pay an employee your company temporarily keeps t
96. Report Date Range From the first day of the current month through today Because this is a Inthe Modify Ts ot eee sales report by Report Shew Qty and Unit in default theselling window R ow this report calculates income and expenses unit is shown select N Purchasing TC Purchasing Unit aca Unit so that ae FE the data on Purchasing Unit the report is G Seling Unit f shown in the Name Put a tick next to each column QuickBooks converts pu rchasing Source Name that you want to appear in the report ene ree the qu antity whi ch in unit of selling units is one can measure to 08333 of a case 2 ME TT M sales by Item Detail Rates Ths Moreh to date PM Ruby opnze7 Sales p The report changes Aceria Baste Sepy to show theitems in nie eam ame Qty Unit pwes ameme omme their purchasing j re ooon n amem 0 08333 case yy a 1504 4 units Total Soda Pop Pi 12 10 TOTAL 18 1 38 Chapter 2 Setting up a new company Adding items to your Item or Fixed Asset Item list As the table starting on page 31 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 list Information to enter Type of item Item name or code Item description optional on all but fixed assets Ra
97. Stock Y N N Time Tracking Y N N Sensitive Accounting Activities Y N N Sensitive Financial Reports Y N n a Y N Changing or Deleting Transactions Changing Closed Transactions To learn about Search the Help index for The different access areas passwords access areas The role of the Administrator admin Setting up users with passwords users adding Changing passwords passwords changing Deleting passwords passwords deleting Using permissions to close an accounting period Unlike mos 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 summarising it You can generate reports at any time not just at the end of the year 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 when necessary For example you may want to prevent your staff from making changes to your older transactions after you ve paid the VAT liabilities for them see Locking past VAT quarters on page 139 You can restrict users from accessing older transactions when you set them up To d
98. T in the Debit column HE General Journal Entry _ Oo x Previous Next Print By History E Journal These radio buttons appear once a VAT _ Input Purchase Date 20 03 2000 mi Entry No 25 Show on VAT reports as Oy tout Sale code has been Account Debit Credit VAT _ VAT Amount Memo Name selected in the VAT Motor Expense 232 09 column Motor Expense 197 52 5 34 57 Save amp Close Save amp New Clear 4 Onthesecondline enter thenet amount i e exclusive of VAT in the Credit column then choose the VAT code 5 Select the Output radio button 6 Click OK to record your entry Determining your VAT liability You must filea VAT return each period even if you do not owe money or expect a refund AN If you are using cash VAT reporting follow the steps under Completing a cash basis VAT return on page 136 132 Chapter 5 Tracking and paying VAT Creating VAT reports At any time QuickBooks can create reports to show your VAT situation You can create reports that are cash or accrual based To prepare your VAT return you should run a VAT 100 report covering your reporting period You should also create VAT Summary and Detail reports to verify the accuracy of your VAT 100 report QuickBooks offers several VAT reports You should print all when you prepare your VAT return then file them in a safe place for future reference VAT 100 T
99. The QuickBooks Pro 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 When you record time worked for a particular customer or job one option is to mark it as billable Then when you invoice the customer you can add the billable time to the invoice After you put the time on a sales form QuickBooks marks it non billable so you won t charge twice for the same thing If the work done by your employees is billable to a customer it becomes billable as soon as you r
100. Work Tops Gra Granite worktop 1 85 00 5 14 88 85 00 to print Labour ye Cabinet amp Work top install 24 20 00 ba BA nd 20 00 them or not Customer iv VAT TOTAL 366 63 Message Total 2 481 63 Chapter 2 Setting up anew company The first line shows a total for all materials The second subtotal shows a total for all labour The second subtotal also makes the third subtotal include the amounts on the invoice So a percentage markup can apply to the total sale AN 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 isa percentage theitem reduces the amount due by a percentage of the line above it To take a percentage off several items at once you 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 Fotures Tub Jet Jetled bathtub Canadian Class 1 365 00 135500 sz Frauses Washhasin Oval Cdn Chaesic washbasin marble 364 00 Bem S Matenats subtotal 1729300 Labour Constructia 16 5 Labour Framing 40 00 66000 E The third Labour Constructo 8 Electrical Pumbing 75 00 smm E subtotal Labour subtotal 1 29 00 line adds Motetisls amp Labour subtotal 3 0 2 989 00 up the two 4 X y Profit i Overhead 898 70 5 previous subtotals so thata mark
101. a separate help window and not the Follow Me Help window Getting your questions answ ered 90 Using the index To find help on aparticular subject choose Help Index from the Help menu or click the book icon on the Follow M e Help window The Index appears in 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 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 search 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 sees Click Search type your question in the 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 gt 1
102. ab to change the page orientation To learn about Search the Help index for Creating custom business forms Payments Credits Balance Due 4 i customising forms about The following diagram shows the areas of the form that you can change using various tabs of the Customise window Format Use the Format 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 Customising your forms 99 Backing up your company data 100 Note Your data is valuable No recovery techniquecan repair all possible file damage or protect against theft or natural disasters To guard against and minimise data loss make regular backup copies of your QuickBooks company or companies In the event of a data loss you can restore your data from the back up It s a good idea to store at least one recent backup off site When it comes to backing up your company file you have several options You can backup to your hard drive m Zip disk CD R or CD RW You can back up your company fileto your hard drive but 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
103. about each employee his or her name contact information National Insurance Number hire and release dates and custom information you define Once you turn payroll on moreitems will appear in your Employee list To learn about Search the Help index for Using an external payroll service payroll services other than Intuit 164 Chapter 7 Payroll and employees To learn about Search the Help index for If you have employees but aren t payroll not using using QuickBooks payroll Setting up payroll an overview The amount of time it takes to enter your payroll information into QuickBooks varies depending on the sizeof your company Often it can take oneto two hours You can use the EasyStep Interview to help you set up payroll for your company To set up your payroll system 1 2 Subscribe to the QuickBooks Payroll Service You cannot create payments or calculate payroll amounts unless you subscribe see page 164 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 an employee pay slip or payroll payment and voucher Gather the information you need to set up payroll see page 166 Confirm that the payroll liability and expense accounts that QuickBooks creates for you meet your needs see page 169 Set up in this order m Payr
104. abs of the Review P35 window which mimic Part 1 and Part 2 of the paper P35 form Click How Do I in the Payroll Year End Process window for more information about preparing your forms Employee Summary tab All employees and directors for whom you issued a P11 should be listed here gt The amounts in the NI Contributions and Income Tax columns are from the payroll data entered in QuickBooks If the amounts are incorrect click Cancel then review your payroll data and review the P14 P60s again Deector If you are filing online the Employee Summary will be automatically fitted to the P35 form If you are still filing a paper return Part 1 of the HM Revenue amp Customs paper P35 form has only ten lines for employees and directors If you have more than ten employees in your PAYE scheme list the rest on a Continuation Sheet paper form P35 CS You will find summary amounts on Working Sheet 1 for both the P35 Part 1 and P35 CS Filing online eliminates the need for the P35 CS Comprehensive help topics exist in QuickBooks to guide you if you need to change the amount showing for an employee s NICs or income tax deducted Processing your year end 215 216 Note Working Sheet 1 tab QuickBooks automatically combines the data for all the employees in your PAYE scheme If you are filing online totals are done automatically and will appear in this window in greyed out boxes equivalent to thos
105. after you successfully file your return online HM Revenue amp Customs credits it to your payment record and you can offset it against payments you makein the following payroll year or claim it back and get a cheque For details go to the HM Revenue amp Customs Web site or consult HM Revenue amp Customs Before you file your end of year forms you must be registered for HM Revenue amp Customs Online Services on the IR Web site the Government Gateway or the Businesslink Web site When you register you will be sent a User ID and Password PIN by post You cannot file online without your PIN so register early enough to receive the PIN before the May 19 filing deadline Your User ID and Password are held securely on the Government Gateway and arenot made available to other government departments Important Keep your User ID and Password in a safe location QuickBooks does not save them for you Sending or receiving information online is secure and quick more reliable and more efficient than using paper and can cut down on storage space post and administration Because data passes between computers without manual intervention thereisless chance of misinterpretation or mistakesin information You can file online yourself or someintermediaries like agents or payroll bureaux can file online on your behalf Filing online has the same deadlines as filing paper returns you can file as early as April 6th and haveuntil May 19th After May 19
106. agement synchronising with a contact manager Give your accountant permission to access your QuickBooks file remotely If your accountant has QuickBooks Accountant 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 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 a time with your accountant to start the session Your accountant gives you an Internet address and licence 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 Importing from exporting to other software 79 Exporting data for your accountant Accountant s Review The Accountant s Review feature allows an accountant to make certain kinds of changes in a special copy of your company file Meanwhile you can continue to enter daily transactionsin the original master file After the accountant has made the changes you merge them into the master company file Sert loy Cerine en Continue using your Merge Your Accountant s OAN O ECEN accountant s You Review copy of your eo AN adjustments into data for yo
107. alance of your QuickBooks Other Current Asset accounts periodically m Or delete the investment accounts from your Quicken file so they are not brought into QuickBooks and continue to track the investments in Quicken The investments still appear in the copy you made of your Quicken data Review your memorised and scheduled transactions If you have overdue scheduled transactions in your Quicken file record them before you convert to QuickBooks For example print any cheques you have pending If the QuickFill option for memorising all transactions is turned off in Quicken QuickBooks converts both your memorised 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 memorised transactions So if you have memorised transactionsin Quicken that you d rather not retypein QuickBooks you need to do one of two things m Turn off the QuickFill option for memorising all transactions in Quicken If your list of memorised 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 memorised transactions from the group and use them as you did in Quicken For information about transactio
108. ales and purchases As with products and materials you can enter different cost and sales prices or leave the fields at 0 00 when you set up the other charge item 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 uses the term sales 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 31 on any 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 suppliers discounts from suppliers Entering payments to suppliers suppliers paying then Paying bills Working with items 43 Using items saving time When you fill out a sales form you list each service product or fixed asset you re selling on its own line of the invoice 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
109. also stored in this list When you add or edit an employee s record you will see that it is broken down in to three tabs or sections Personal Payroll and Compensation Info and Statutory Pay Info Use this table to help set up arecord of each of your employees Employee record tab Personal Info Used to set up Address Info the employee s contact information National Insurance number date of birth joining and leaving dates and similar information Additional Info custom fields for tracking any extra information you want to record that is not covered in Address Info Payroll and Compensation Info Set up the employee s salary or hourly wages com missions and additions and deductions AEOs or employer contributions that apply to him or her You ll need payroll items for most of this informa tion which you select in the Item Name column of the tables If you have not already set up all the pay roll items you need QuickBooks gives you a chance to add them as you work If you track and pay your employees using the QuickBooks Pro Timer or the Stopwatch tick the Use Time data to create pay ments check box For information on time tracking see Time and cost tracking on page 229 If an employee has a tax credit QuickBooks pro vides a Tax Credit payroll item for you to set up The Payroll and Compensation Info tab is broken down further with the use of four buttons Click these buttons to set up the f
110. an modify the details of your loan at any time i e change your payment interest rate etc and the Loan Manager will automatically update your payment schedule to reflect the new information Additionally the Loan Manager allows you to run several what if scenarios to evaluate different loan situations on existing loans as well as for new loans Specifically the QuickBooks Loan Manager can help you by m Preventing you from missing aloan payment eliminate late fees m Automatically calculating principal and interest payments to produce more accurate loan balances Getting information about your company 97 m View payment schedules and loan payoff dates m Makesloan payments quicker and easier m Analyse different loan what if scenarios on existing loans and new loans Tracks all of your loansin one user friendly location To open the QuickBooks Loan Manager m On the Banking menu select Loan Manager or Customising your forms 98 Tip Note You can customise 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 window envelopes you purchase from Intuit You can t however add change
111. ance 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 Multiuser Update When updating multiple users the new update is down loaded via the Internet or a CD to a local server for each user to then download to their computer Make sure the each copy of QuickBooks you own is always using the same release Update QuickBooks to the latest release 61 Automatic updates By default QuickBooks is set to receive updates automatically QuickBooks periodically checks the Intuit server for new updates and downloads the information 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 QuickBooksis running as long as your computer is connected to the Internet m You can disconnect from the Internet at any time When you reconnect to the Internet QuickBooks resumes downloading at the point it was previously halted To turn off Automatic Update 1 From the File menu select Update QuickBooks 2 Select Options 3 Click Off for Automatic Update 4 Click Save 5 Close the Update QuickBooks window
112. and employer paid benefits for employees e g premiums for an employer paid health plan For all payroll expenses QuickBooks suggests using the Payroll Expenses account When you run 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 employer paid payroll expenses by job class and service item Expenses that you can break down include m salary wages hourly wages and commissions Employer paid payroll taxes m Additions and employer contributions such as bonuses QuickBooks can pro rate the employer paid expenses for an employeein the same proportion as the amounts of the employee s earnings Additions commissions or employer contributions can also be pro rated Tracking expenses by customer and job Some businesses 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 Regular turn on Use customer job tracking in the Accounting preferences In QuickBooks Pro or higher this is always on Tick the following Payroll amp Employees preference Report all payroll taxes by Then choose whether you want to assign one class to an employee s entire payroll payment or to each of the payroll items you
113. arch the Help index for Using a VAT code on a form VAT codes changing on forms W hat the Zero Rated Z VAT code is for Certain goods and services are zero rated meaning they are taxed at a rate of 0 instead of the standard 17 5 To see whether the items you sell are Zero Rated check with HM Revenue amp Customs or your accountant Some examples are books newspapers young children s clothing and shoes and exported goods If you sell a Zero Rated item you charge your customers 0 VAT on it This means that you do not collect any VAT to remit to HM Revenue amp Customs but because the item is taxable you can reclaim the input tax you paid on the purchase For that reason do not use the Exempt VAT code for Zero Rated items you sell Use the Zero Rated code instead Setting up and using VAT codes 129 Handling VAT for EC member states 130 AN Note EC VAT regulations vary between goods and services Check with HM Revenue amp Customs or your accountant about the exact EC VAT regulations that apply to your business Asa VAT registered business if you purchase supplies for your company from another VAT registered business in an EC member state you may be able to receive them net of VAT That is you provide your VAT number to the supplier in the other country and the supplier sends the supplies to you without charging you VAT on them The same holds true for the reverse you may be able to ship
114. aries and hourly wages amounts you withhold from employee payroll payments taxes and other liabilities employer paid expenses such as employer paid benefits and additions and deductions such as bonuses and loan repayments QuickBooks uses payroll items to track the individual amounts on a payroll payment and the accumulated year to date wage and tax 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 payroll payments and in payroll reports To learn about Search the Help index for Payroll items payroll items defined payroll items editing Setting up your payroll items 169 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 name Type Use for Holiday Salary Salary Amount paid for holidays taken by a salaried employee Salary Salary Amount paid per year irrespective of hours worked Salary Backpay Salary Amount paid per year to cover a previous period irrespective of hours worked Sick Salary Salary Amount paid for sick time taken by a salaried employee Holiday Hourly Hourly Pay Amount paid per hour to an hourly employee for holiday time Hourly Backpay Hourly Pay Amount paid per hour to cover a previous period Hourly Pay Hourly Pay Amount paid pe
115. ast payroll payment of the previous payroll year s you can only edit delete or void the last payroll payment that you issued You may want to do so if m a payroll cheque mis printed and you need to reprint it but also need to account for all the cheque numbers used an employee s payroll cheque is lost or stolen and you need to reissue it there was an error in arecent payroll cheque that your employee has not yet cashed m you need to make a retrospective change of information for example retro spectively correct a date of birth marital status NI code or Tax Code If you submit payroll tax forms for the period covering a payroll payment then void the payment you may have to re submit your forms You may want to delete a payroll payment if it is a duplicate that has not been printed yet Retrospective changes If you have been notified of achangeor correction to be madein your information for an employee or director which affects NI or PAYE codes and that change became effective in a pay period for which you have already issued a payroll payment whether by cheque or BACS deposit you can make the change and QuickBooks automatically updates your payroll calculations See Help index for detailed instructions To learn about Search the Help index for Editing existing payroll payments payroll payments changing Voiding payroll cheques payroll cheques voiding Deleting payroll payments payroll payments deleting Deal
116. at you can enter the latest exchange rate on the fly without having to go to the Currency List You should when reconciling your current 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 changes in exchange rates that can affect the profits you make from foreign sales and your costs on foreign purchases Generally 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 unrealised gains and losses as well as the actual effect of the changes on transactions that have been completed referred to as realised gains and losses QuickBooks provides a report to help you track both types of gains and losses 154 Chapter 6 Doing business internationally Unrealised Gains and Losses When you create a foreign transaction the foreign currency is worth a certain amount in your home currency as determined by its exchange rate on the day of the transaction However the exchange rate is likely to change before the transaction is closed Until the transaction closes the difference between the value of the foreign currency when you created the transaction and its current value is your unrealised gain or loss For example say a US customer purchases an item from you for 50 US Dollars which is
117. ate of your payment For moreinformation about setting up user names and passwords see Users and passwords on page 112 Determining your VAT liability 139 To lock older transactions after remitting VAT 1 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 youdo 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 Work through the wizard until you reach the Changing or Deleting Transac tions screen Select No to the question Should this user also have the ability to change or delete transactions that were recorded before your closing date Work through the rest of the wizard for this user then any other usersin your user list or that you are adding At the bottom of the user list click Closing Date m If you closed the user list from the Company menu select Set Up Users Enter the date up to which your books are closed then click OK Click Close to close the user list Vv oO UW A M aking adjustments to your VAT liability account 140 From time to time you may need to adjust your VAT liability possibly to correct an error in your VAT return or to account for a discrepancy in a VAT payment or prepayment You cannot make adjustments to your VAT
118. atesthe difference for you automatically and lets you assign the transaction fee to an expense account fit Make Deposits Previous E Next print Payments E Journal Deposit To Second Bank gt Date 071272003 E Memo Deposit Click Payments to select customer payments that you have received List any other amounts to deposit below Received From From Account ChgNo Pmt Meth Tommy Sands Undeposited Funds Tommy Sands Undeposited Funds Sandy Preston Sales Merchandise Wilma E Nelson Sales Merchandise i 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 Ce ee Deposit Total 651 41 Save amp Close Save amp New Revert Chapter 4 QuickBooks basics Setting up online banking account access and payment QuickBooks online banking encompasses account access with Barclays Bank 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 current savings money market credit card at Barclays Ba
119. ax on to the P35 form To pay owners use an owner s drawing 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 Usually peoplein business for themselves are owners or partners not employees Always pay owners and partners with an owner s drawing instead of a payroll payment If you need to track commission sales for owners or partners add them to the Sales Rep list If your business is limited directors who work in the business are usually paid as employees but their NICs will be calculated differently You will need to decide whether to use the annual pro rata method of calculation or the alternative per period as employee method If you re not sure whether a person providing services for you is an employee owner or contractor contact the HM Revenue amp Customs or your accountant for advice To set up employees for payroll you need to m Optional but recommended Set up 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 Employee defaults help you set up payroll for several employees quickly You enter payroll information that iscommon to most employees These defaults then show up every time you create a new employee If the information is differ
120. axes that apply to your company i e Employee NI and Tax Codes Current tax tables covering payroll withholdings such as National Insurance premiums Your accountant or HM Revenue amp Customs QuickBooks downloads them automatically for you when you are subscribed to the Payroll Service Compensation benefits and other payroll items How you pay your employees and directors hourly wages Salaries and or commissions Things you add to employee payroll payments m Examples include bonuses statutory payments tax credits etc Things you deduct from employee payroll payments m Examples include union dues repayments of employee loans or advances health or life insurance paid by the employee deductions for personal pen sion plans collection of student loans Expenses your company pays that are based on employee payroll payments employer contributions m Examples include employer contributions to employee pension funds health or life insurance paid by the company etc Special information for company directors m Are you going to calculate the NIC deductions according to the annual or pro rata annual or the per period as employee method Your accountant or company records Your accountant or company records Your accountant or company records Your accountant or company records Your accountant or company records 166 Chapter 7 Payroll and employees Information you need to start
121. ayed on some windows such as Adjust Quantity Value on Hand and Change Item Prices m AUnit column is added to display an item s units of measure on reports to do with the item list and purchases sales and stock transactions Setting up items 35 Setting up different units of measure You can now keep track of how you purchase stock and sell your items with the units of measure feature Different units of measure can be set up for Stock Part and Stock Assembly type items The association between an item s units of measure cannot be changed once a transaction involving the item is recorded Therefore if you havea quantity on hand for an item you must set up its units of measure before entering an amount in the Quantity on Hand field 1 From the Lists menu choose Item List 2 From theltem menu button choose New 3 From the Type fied of the New Item window choose Stock Part or Stock Assembly and then click the Units of Measure button The Define Units of Measure window appears Type the unit of Enter the number of measure you use Brecng Unie oK selling units that to stock the item I stock this item in make up a stocking Cancel Help Sales Unit unit or vice versa Clear this box M Same as Stocking and type the unit alee S yo E use w hen Association to Stocking selling the item If the purchasing unit is the same as the stocking unit keep this box checked If the purchasing unit is differe
122. basis When you usethis option QuickBooks preparestwo reports onereport includes the VAT amounts and the other includes the net amounts for each item bought or sold You can tile or cascade the reports to see them both on the screen at the same time EC Sales List This report provides a summary of sales madeto VAT registered businesses in EC member states sorted by the business VAT registration numbers This report is always calculated on an accrual basis regardless of your usual VAT reporting preference Determining your VAT liability 133 To create a VAT report 1 3 From the Reports menu choose VAT then VAT Summary VAT Exception VAT Detail VAT 100 or EC Sales List QuickBooks creates the report for the appropriate period using the reporting preferences you specified in your VAT Preferences QuickBooks also uses the reporting basis accrual or cash basis you chose in VAT Preferences For example if you choose VAT Detail and you re VAT reporting preference was set to Cash QuickBooks prepares two reports Optional Customise the report QuickBooks allows you to run VAT reports for different periods You will need to customise the VAT reports if your VAT accounting periods are non standard If you want to print the report click Print Completing an accrual basis standard scheme VAT return The File VAT window lets you easily remit the VAT you ve collected to HM Revenue amp Customs 1 2 F
123. bet D User Guide QuickBooks 2006 for Windows Copyright Copyright 2006 Intuit Limited Intuit Limited All rights reserved P O Box 4944 First printing January 2006 Twyford Reading Berkshire RG10 9BF STATEMENTSIN THISDOCUMENT REGARDING THIRD PARTY STANDARDS OR SOFTWARE ARE BASED ON INFORMATION MADE AVAILABLE BY THIRD PARTIES INTUIT AND ITSAFFILIATES ARE NOT THE SOURCE OF SUCH INFORMATION AND HAVE NOT INDEPENDENTLY VERIFIED SUCH INFORMATION THE INFORMATION IN THISDOCUMENT IS SUBJECT TO CHANGE WITHOUT NOTICE Trademarks and Patents Important Intuit the Intuit logo QuickBooks SimpleStart QuickBase Quicken 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 subject 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 co uk for the latest information including pricing and availability on our products
124. c Click OK QuickBooks summarises your open foreign transactions and your potential gain or loss on them Exchange rates and how they affect your transactions 155 On reports foreign amounts are displayed in the home currency In this example the home currency is Pounds Sterling therefore these amounts are in Pounds fiji Unrealised Gains amp Losses Modify Report Dates All 12 16 PM 1311 00 Memorise Print Accrual Basis o Current balance Adjusted balance Account US AR gt US Accounts Payable TOTAL UNREALISED GAIN amp LOSSES Tick this check box to ensure these amounts are recorded as an adjustment to the home currency without affecting the foreign balance olx Excel Hide Header Refresh All Transactions gt From BIT Bi Total By Unrealised Gain Le 7 BRATS Landscaping Design Unrealised Gains amp Losses Gain Loss 349 99 4 360 35 449 400 99 35 2 Use the information in the report to create ahome currency adjustment in the General Journal 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 the report above the Unrealised Gains and Losses report shows a currency gain for the USA R account and a currency loss for the UK A P account Therefore the entries in the general journal should be recorded as follows General Journal Entry As
125. calculates the correct VAT applicableto them when they are used on sales and purchase forms If you are unsure of what VAT code to use for your goods and services items check with HM Revenue amp Customs or your accountant To learn about Search the Help index for Assigning VAT codes to items items assigning VAT codes to Setting up and using VAT codes 127 128 Assigning VAT codes to customers If you have regular customers who have special VAT status for example who are exempt from paying the VAT you can assign them a VAT code that when used on aform overrides VAT codes that have been set up for items This will save you time when creating your sales forms For example if you have a customer who isa charity organisation the organisation may be exempt from paying VAT for your services In this case you can assign this customer an E VAT code for exempt The E VAT code then appears on all invoices you create for this customer instead of the default VAT codes assigned to the service items To assign a VAT code to a customer 1 2 3 4 ul From the Edit menu choose Preferences Click VAT from the scroll box on the left and click the Company tab Tick the Allow customer VAT codes check box and select the VAT code you want to assign to this customer Open the Customer Job list from the Customer menu select Customer Job List then double click the name of the Customer to which you wa
126. categorised amounts these transactions will automatically be updated when you install QuickBooks 2006 Before you install QuickBooks 2006 you ll need to know the ending dates of your VAT return If you used the filing functionality in QuickBooks 2003 QuickBooks will not ask you for any VAT information In this case QuickBooks updates your VAT data automatically W hat will happen to uncategorised amounts QuickBooks will take the ending date you enter and mark all uncategorised amounts on or before that date as filed so they won t affect your VAT liability Uncategorised amounts after the ending date will be categorised as sales or purchases so that they correctly affect your VAT liability account The next time you filea VAT return QuickBooks will include these newly categorised transactions properly with all other unfiled transactions If you had uncategorised amounts in earlier versions of QuickBooks and didn t adjust your VAT returnsfor them consult your accountant to see if you should file an adjustment now Keeping VAT records 138 You are required by law to keep records and accounts of the taxable and exempt goods and services that you supply in the course of your business You must also keep a record of your VAT Control account and should track the taxable goods and services you receive too Normally you should preserve your VAT records for six years Check with your local VAT office for more information We recommend
127. ccountant 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 it 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 an AIF file You should return this fileto 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 82 Chapter 3 Importing and exporting data Chapter 4 QuickBooks basics Getting aroundin QuickBooks Using the Help system in QuickBooks Getting information about your company Customising your forms Backing up your company data Condensing data Reconciling bank and credit card accounts Setting up online banking account access and payment Working with multiple users Solving printing problems 84 92 98 100 104 107 109 111 116 Ls What do need to know to work in QuickBooks This chapter explains the basics of using QuickBooks so you can get up and
128. ch the Help index for Adjusting payroll liabilities payroll liabilities adjusting Creating a cheque to pay payroll liabilities A Most companies need to remit payment by the 19t of the month for the previous month s deductions Check with HM Revenue amp Customs to see what s right for your business You may want to set up reminder notes for yourself using the To Do Notes feature Always use the Pay Liabilities window to write cheques for your payroll and other 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 To pay your payroll liabilities 1 2 From the Employees menu choose Process Payroll Liabilities then Pay Payroll Liabilities In the Through date field enter the last day of the tax period for which you are paying your liabilities this is the 5th of the following month and click OK You do not need to change the date in the From field Even though it is set to April 6 the beginning of the tax year QuickBooks Knows to only include your outstanding payroll liabilities for the current tax period for which you are paying If you are qualify for Small Employer s Relief tick the Small Employers Relief check box then click OK QuickBooks will make a statutory payment recovery adjustment that reduces your total liability amount if statutory payments were made d
129. ch you print at the end of the payroll year and retain for your records You may need to provide this document during an audit and you may also wish to print it part way through the year as a reference guide The P11 is a special report and as such cannot be customised like other reports 1 From the Employees menu choose P11 Working Sheet 2 Select the employee for whom you are printing the P11 from the drop down list 3 Click OK 4 Click Print on the report button bar to print the P11 To print all the pagesin the P11 it has been separated out into four pages for on screen viewing you must click the Options tab in the Print window then tick the Print all linked documents box Alternatively you can view each page by clicking the links at the top and bottom of a page and print each page as required M premas Ltd Chae hte Pee Pamoa OR PII 30E Dotais her BLE Tire bermres tone Promiss Lid Deductions Working Sheet P11 Year to 5 April 2003 NIC Details TOWNSEND m70 LADDADE LA To see other pages of the P11 clickthese links Select the tax year of the P11 you want to see Processing your year end 211 Completing your payroll year end forms After 6 April you need to create P14 P60 and P35 forms for the last payroll year which are due by 19 May You can now file your payroll end of year forms online with QuickBooks To begin go to the Employees menu and choose Process Payroll Yea
130. chair Oak Welsh dresser Pine Welsh dresser Fitting Oak table and chairs Packaging l Item MI Activities Mil Reports 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 stock assembly items have a completely different purpose from subitems Group and assembly items allow you to enter a group of itens that is several different itens 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 asalesreceipt Foran example of entering a group of items see page 45 Assembly items available in QuickBooks Pro and higher Edition s are appropriate for indicating products you combine and sell as a unit such asa gift basket containing one wicker basket and three jars of homemade jam You can t group fixed assets or make them subitems of other items 34 Chapter 2 Setting up anew company Setting up different units of measure for your stock In QuickBooks Pro and higher you can set up different units of measure for stock and stock assembly type items For example you can buy soda pop in cases with 12 cans to a case and sell them by the can Then when you sell one can QuickBooks understands this transaction to mean 1 12 of your stock Turning on the units of measure preference Before you can set u
131. chever you used on the subcontractor s bill m f you pay a subcontractor owner or partner for time worked with the Write Cheques window you can make the service items on the cheque billable Then when invoicing your client open the Choose Billable Time and Costs window then 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 Chapter 8 Time and cost tracking When you record time or bill your customer for it you are not recording its cost to you To record the cost you have to take a second step The following table shows how you record costs for time worked and what you have to do to invoice customers for work The work is You record the cost of the To invoice other people done by work when you for the work Employees Pay the employees Make the time billable Subcontractors Enter bills from the subcontractors or On the bills cheques or credit card suppliers write cheques or enter credit card charges make the items or expenses charges for the work billable OR track the time and make the time bill able Owners or Payments to owners or partners for time Make the time billable partners worked are a draw against equity notan oR expense and th
132. cken and QuickBooks remember that you can only use online banking in Quicken at this time 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 Amortise 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 Importing from exporting to other softw are Importing from other softw are If you use QuickBooks Pro or Accountant with a few clicks you can import your contacts from Microsoft Outlook or Symantec ACT see page 79 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 Importing from exporting to other software 77 Note Note If you want to import data from other software programs you need to create an IIF file from scratch or reformat data you already use to conform to IIF standards Creating an IIF file from scratch requires knowledge of a sp
133. code From the Lists menu choose VAT Codes list Click the VAT Code menu button at the bottom of the VAT Code List window then choose New In the VAT Code field enter a unique code Type the VAT percentage represented by this VAT code Type a brief description for example Standard for this code If you will usethisVAT codeto track VAT on transactions with VAT registered businesses in EC member states tick the EC Code check box auRW NE For more information see Handling VAT for EC member states on page 130 7 Click OK Setting up a default VAT code for new items You can specify a default VAT code in QuickBooks With a default VAT code all new items you set up are assigned this code by default Even with a default VAT code specified you can still change VAT codes on the fly on most forms By specifying the VAT code you use most often as your default VAT you may not have to change VAT codes for individual line items very often To set up a default VAT code 1 From the Edit menu choose Preferences 2 Click VAT from the scroll box on the left and click the Company tab 3 From the Default VAT Code field select the code you use most often when buying and selling goods and services Assigning VAT codes to items To let QuickBooks know how to tax the goods or services items you buy and sell for your business assign each item a VAT code as you set it up in the Item List Onceyou havedoneso QuickBooks
134. connection when this application accesses the Internet Click Next In the Connection Setting window click Advanced Connection Settings The Internet Properties dialogue box appears To create a new dial up networking connection click Add ues PW N 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 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 Quick Books m 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 told QuickBooks that you havea direct connection you should be able to access QuickBooks Internet features by connecting to your ISP before opening QuickBooks 60 Chapter 2 Setting up anew company 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 Amaintenancerelease which Intuit creates when a problem isdiscovered and fixed after Q
135. contractor 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 and Sales Price fields 0 00 when you set up theitem If you pay owners or partners and suppliers 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 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 a non stock part item for each type of product or service Be sure to select the check box 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 amp New Item Ask a help question Ask ff w How Do I _ O x Type __
136. contractor and transfers the time worked during the previous week How much detail should I track for time activities 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 Describe an activity seu Comment by specifying Name of person who did the work Required 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 Should I track time 231 232 Describe an activity by specifying Customer and job the work is for Type of work described by a ser vice item from the Item list Whether time is billable Class Comment Required only if you plan to invoice for the time Even if you don t invoice for the time m Allows you to report on hours worked by cus tomer and job m Allows you to track payroll expenses by cus tomer and job Required only if you plan to invoice for the time Even if you don t invoice for the time m Allows you to report on hours worked by type of work m Allows you to track payroll expenses by type of work Time must be billable if you plan to invoice for
137. d cash receipts to arrive at a weekly cash flow projection Easily view your projected available to spend weekly cash balance in a printable report Also try out several what if scenarios to see how making changesto your receipts and disbursements could affect your weekly cash balance Specifically the Cash Flow Projector can m Help business owners project their business s cash requirements m Anticipate shortfalls of cash before they occur m Identify sources and uses of cash to better understand cash management m View the financial impact of supplier payments terms m Determine whether additional purchases can be made based upon your business s future cash needs To open the Cash Flow Projector m From the Company menu select Planning amp Budgeting and Cash Flow Projector or m From the Company Navigator click the Cash Flow Projector button QuickBooks Loan M anager TheLoan Manager lets you track loans and schedulefuture payments for any Long Term Liability or Other Current Liability account In order to use the Loan Manager aliability account must already be set up in QuickBooks To track aloan in the Loan Manager enter detailed information about your loan such as payment amount interest rate term etc and Loan Manager alerts you before a payment is due It calculates the principal and interest portions of your payment and posts these amounts to the proper liability and expense accounts respectively You c
138. data for the payroll period For information on setting up and using the Timer to track employee s time seethe online Help If customers or jobs service items or classes are assigned to an employee s time activities 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 non employees 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 aspecified date range to a payment to anonemployee That is it can fill in the number of hours worked and the rate for that type of work To pay a subcontractor or other supplier 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 To show payments for time worked on reports set up subcontractors as suppliers Always use the subcontractor s supplier name when you track time and pay him or her Then QuickBooks will report the amount paid correctly Chapter 8 Time and cost tracking To learn about Search the Help index for Setting up an owner or partner owners partners setting up Adding a name to the Supplier list supplier
139. ded several currencies in the Currency List It contains information about each currency such as its exchange rate currency symbol and whether they are from countries belonging to the EMU When a foreign transaction is recorded QuickBooks uses 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 or a currency that has been used in a transaction If you want to use a fixed foreign price for an item in other words the price is not multi plied by an exchange rate use the foreign pricing feature See Set up foreign prices for items sales items only on page 150 for more information To create a currency 1 From the Lists menu choose Currency List Hotkeys help you convert kikii Baa foreign amounts to your home Currency Exchange Rate Hotkey EMU Australia Dollar 358600 A cu rrency q ul ckly Canada Dollar 0 429200 Denmark Krone 0 082560 K P To use hotkeys on any form ee ana TOIA a n select the foreign amount you Japan Yen 0 005720 ji New Zealand Dollar 0 290600 N want to convert then hold Norway Krone 0 077710 SHIFT and type that currency S Sweden Krona 0 065280 soe itzerland Franc 0 420200 hotkey QuickBooks multipl les Uni ingdom Pound 1 000000 P United of America Dollar 0 6
140. delete or move columns unless you have purchased custom designed forms For each form you customise you 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 savethem 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 cheques and business stationery on page 260 To customise a form template 1 With any sales or purchase form open for example an invoice or purchase order click the Customise button located at the top of the form 2 Select the template you want to customise and click Edit The Customise window appears or If you want to customise an Intuit template select the one you want to cust omise and click New Don t forget to give your new template a name Chapter 4 QuickBooks basics 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 theinformation 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 Grangevrorth Kitchers Basi Ltd Description Invoice This information could include legal disclaimers or warranty information Printer Use the Printer t
141. dle of the sample form Determine the number that it points to Do not adjust your printer Solving printing problems 117 If the text does 36 Labour hours drywall installa not line up properly on the form determine the closest Fh number to the rn pointer line n rounding up ars In this example you d enter 81 lt lt lt lt lt lt POINTER LINE 9 Typethenumber 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 K that number and click OK Cancel If necessary the paper will automatically be moved and another sample will be printed gug Help Pointer Line Position fen If necessary QuickBooks advances the paper in the printer to correct the alignment and then prints another sample 10 Notethe 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 you can useit 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 lineup your forms for coarse alignment using a visual cue QuickBooks
142. does not 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 Finealignment process below 118 Chapter 4 QuickBooks basics Fine alignment adjustments This method of adjustment is available for all type of printers OOo N AUARWN FF Make sure your printer is turned on and is online with 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 a list of templates appears click the one you want and click OK If you are using a continuous feed printer QuickBooks displays a window where you can choose coarse or fine adjustments Click Fine Click Print Sample QuickBooks prints the form with asmall alignment grid on it made up of 1 10 inch squares Check the horizontal and vertical alignment of thetext in the alignment grid Enter amounts in the Vertical and Horizontal fields to move the printed text to align it The alignment values arein hundredths of an inch For example 25 means 0 25 of an inch m Forcontinuous feed printers if the printing is off to the left or right slide the paper over to correct the problem Use the Fine Alignment window for changes of less than 0 25 inch only Problem Solution
143. 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 and 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 165 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 entered all your historical transactions your current 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 Cheques or other payments you created before your start date but weren t cashed until after your start date for exa
144. e Reports 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 transactions in 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 current account but you keep track of what you spent the money on such as utilities advertising or office supplies 10 Chapter 2 Setting up anew company There are no registers for incomeand expense accounts but you can create reports to show totals for these accounts over a period of time To create a report on an income or expense account in the chart of accounts double click the account for which you want a report M Account QuickReport _ OT x Modify Report Memorise Hide Header Dates Custom hd From 04 06 2001 E To ERA E Sort By Default hii 10 19 PM BRATSS Ltd eye Account QuickReport Accrual Basis April 6 through September 20 2001 Type Date o Num gt Hame o Memo Split Amount Equipment Rental gt Bill 09 20 2001 Blitz s Cheapo Rentals Accounts Pa 365 00 4 Cheque 09 20 2001 Stewart Rentals Current Acco 6 467 00 umes Total Equipment Rental 6 832 00 P TOTAL 6 832 00 Cost of Goods Sold COGS account Many businesses that track stock have one cost of goods sold account A COGS account con
145. e To make the transition to QuickBooks as smooth as possible you may need to make some changes to your m Quicken Account list m Online banking accounts m Names of customers on accounts Memorised Transaction list receivable transactions Convert only the accounts you want to use in QuickBooks Before you convert to QuickBooks delete all accounts in Quicken that you know you won t want in QuickBooks In QuickBooks you can t delete accounts that have transactions but in Quicken you can So it s easier to delete the accounts that you don t need in QuickBooks before you convert your Quicken data 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 66 Chapter 3 Importing and exporting data Note 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 b
146. e amount or percentage of earnings payroll items in 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 tax 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 If you ve set up a payroll item properly you likely won t need to change the way it affects taxes even if you need to changeother information Also you don t have to create different earnings and other non tax items for each employee as you can customise amounts or percentages in his or her setup window You can t delete the payroll items for taxes and other government deductionsthat QuickBooks creates for you but you can hide them if you don t use them To learn about Search the Help index for changing payroll items payroll items editing hiding payroll items payroll items hiding How changes to payroll items affect QuickBooks Changes you make to payroll items affect new payroll payments you create and certain changes can also affect how past payments are classified historically on tax forms reports and payment details 194 Chapter 7 Payroll and employees Changing Note Employee information and existing payroll payments are affected when you change any of the followi
147. e for a balance sheet account Arranging accounts and other lists in alphabetical or numerical order Reorganizing accounts within the same account type also reorganizing other lists that allow subentries for example customer ob list Remove accounts from your chart of accounts accounts managing adding accounts managing numbering accounts managing editing m opening balances changing for exist ing accounts m opening balances entering for existing accounts lists sorting entries lists reorganizing entries accounts deleting Final steps to complete your setup 51 Q 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 a numbering 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 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 52 AN If you ve decided on a start date that is before today s date you ll need to enter past transactions to have complete financial rec
148. e is automat ically calculated and entered 6 Click OK to save changes and exit the New Edit Employee dialogue BRWNE Setting up employees 185 QuickBooks automatically calculates and adds SMP to payments during the time specified and tracks the SMP amounts to the Statutory Payments Detail SMP amounts are also tracked to P14 P60 tax forms and SMP recovery and NIC compensation amounts are tracked to the P35 To learn about Search the Help index for Recording Statutory maternity pay smp Previous smp info smp previous info Statutory Paternity Pay SPP Asan employer you must pay Statutory Paternity Pay SPP to employees who are off work to help care for their newborn child or if adopting an adopted child that has been placed with them A employee entitled to SPP can take one or two whole weeks of SPP To pay an employee SPP you must first get him to fill out a Becoming a parent form SC3 or a Becoming an adoptive parent form SC4 To see if your employee qualifies for SPP visit HM Revenue amp Customs Web site at www hmrc gov uk and search for spp To set up statutory paternity pay for an employee 1 From the Employees list select the employee that is taking SPP and open his employee profile click the Employee menu button and select Edit 2 From theChangetabs drop down list select Statutory Pay Info then select the SPP tab 3 Select the reason for paternity leave What you sel
149. e now you can specify the date range the payment should cover Then QuickBooks pre fills the Items tab of the payment with the service item customer and job if any rate number of hours and amount To learn about Search the Help index for Writing a cheque to pay a time paying non employees for non employee for time worked Paying for time worked 237 Charging customers for time worked 238 You can transfer time data to an invoice for a customer as long as the time data includes the Customer Job name is recorded for a service item and is marked as billable As you create an invoice you can display the unbilled time for the job and select what to include When you record theinvoice QuickBooks marks the time you ve selected as billed so you won t bill for it again by mistake Search the QuickBooks Help index for To learn about Transferring time to invoices invoices time and cost Making time billable again if you time making billed time billable again billed for it mistakenly Recording the cost of the 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 makean invoice from a subcontractor billable you can invoice your client in turn for the subcontractor s charges When invoicing your client open the Choose Billable Time and Costs window then select the subcon tractor s bill from the Expenses or Items tab whi
150. e on the paper form If you are filing a paper P35 transfer the amount in Boxes 1 through 6 to the corresponding boxes of Part 1 on the paper form The amount in Box 1 C is the sum of NI Dee Samary Werkng sheet weigean wolmgSesta Contributions for Ingertirt You shoud modiy the date N each box an regared those first ten employees and directors on your list Total NCS from Pat 1 The amount in Box 2 ems is the sum of National Insurance Contributions for the employees and directors on the P35 CS Todta 64740 Combed Amounts TedMsandtax 349 o 50 7 10 Total Studert Loan dedactors n enf ann 12 The same split is observed for Income Tax in Boxes 4 and 5 If the amounts showing for Total If you received an advance from HM Revenue amp NICs from Part 1 Box 1 Totals Customs to refund tax enter the amount in Box from P35 CS Box 2 Total Tax 7 In Box 8 enter the amount from Box F or your from Part 1 Box 4 or Income Tax Contractor s Annual Return CIS36 if applicable Totals from P35 CS Box 5 are Box 11 shows the sum of Student Loan not correct review your payroll Deductions this year data and P14 P60s again Remember you can adjust and reprint these forms before you file online but using QuickBooks you can only file online once Once you file online amendments will have to be made manually and submitted on paper forms to HM Revenue amp Customs Chapter 7 Payroll a
151. e statement of cash flows report which details the net changein 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 business loan or at year end to get an account 16 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 current account m money you are owed Grangeworth Kitchens Ltd Balance Sheet As of March 31 2003 ASSETS Current Assets f it Current Savings 29 454 55 a urni ure Accounts Receivable 94 246 05 m vehicles Other Current Assets 93 19 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 VAT you owe Equity is the net worth of your company equity assets liabilities Total Current Assets 123 793 79 Fixed Assets TOTAL ASSETS 43 900 00 167 693 79 LIABILITIES amp EQUITY Liabilities Current Liabilities Accounts Payable 44 118 16 Credit Cards 1 129 36 Other Current Liabilities 2 655 72 Total Current Liabilities 47 903 24 8 470 96 56 374 20 Long Term Liabilities Total Liabilities Equity 111 319 59 TOTAL LIABILITIES amp EQUITY 167 693 79 Chapter 2 Setting up anew company The profit and loss statement A profit and lo
152. e the location where you want the export files to be saved 4 For each bank account you want to use to distribute BACS payments m Open the account From the Company menu select Chart of Accounts Highlight the account you want to edit and from the Accounts menu button select Edit m Click theBACSInformation tab and add theaccount name sort codeand account number 5 For each employee being paid with a BACS payment m Open the employee record From the Employees menu select Employee List Highlight the employee you want to edit and from the Employee menu button select Edit m Select the Payroll and Compensation Info tab click Bank Details then enter the employee s account name sort code and account number 6 For each supplier being paid with a BACS payment m Open the supplier record From the Suppliers menu select Suppliers List Highlight the supplier you want to edit and from the Supplier menu button select Edit m Click the BACS Information tab and add the supplier s account name sort code and account number When paying suppliers and or employees by BACS QuickBooks creates export files that contains the amounts and account details needed for successful transfer of funds These files are saved to a location on your computer that you specify in the Preferences section of QuickBooks When you pay with BACS you must send these files to the BACS software where they can be reviewed and approved for payment Chapter 7 Pa
153. e time of invoicing so that amount owed on invoice is reduced On sales receipts sum maries To show totals for each type of payment cash cheques credit card Usual effect on accounts Each item in the group affects the same account it affects when used by itself Either decreases income or increases expenses depend ing on item setup Increases the balance of either a specific current account or the account for undeposited funds depending on item setup Items that calculate Comments Available for either sales or purchases Available for sales forms only not available for statement charges or pur chase forms Available for sales forms only not available for statement charges or pur chase forms The table of items includes some items used to perform acalculation 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 chargeitem 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
154. earch for SAP for information on how to set up adoption payments If you want to see a breakdown of the amount of money you can recover create a Statutory Payments Detail report If you qualify for SER you ll need know the recovery amount including the NIC compensation for your P32 and P35 forms For more information on this report see To create a Statutory Payments Detail report on page 206 Note If you made statutory sick maternity or paternity payments SSP SMP and SPP to employees before you set up your company in QuickBooks you ll need to enter the Statutory Pay information from your previous accounting package or your accountant before QuickBooks can calculate further Statutory payments You can enter SSP SMP and SPP details in the Employee record on the Statutory Pay Info tab open the employee record from the Employee List select the Statutory Pay Info tab then click the Previous Info button 184 Chapter 7 Payroll and employees Statutory Sick Pay SSP Asan employer you must pay Statutory Sick Pay SSP to employees who are off work sick To see if your employee is entitled to SSP visit HM Revenue amp Customs s Web site at www hmrc gov uk and search for ssp To set up statutory sick pay for an employee Open the New Edit Employee window from the Employees list From the Change tabs drop down list select Statutory Pay Info On the SSP tab set up the working days patterns for the emplo
155. ecord thetimein QuickBooks It doesn t matter whether you have actually paid the employees for it yet Some businesses track time without making it billable For example if you agree to do ajob at afixed price you would not invoicefor time However you may 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 m On time reports you want to see all time for a particular job whether for an employee a subcontractor or an owner m Glenn s company has only one employee now By tracking time worked by subcontractors he ll know what to expect when he has employees doing this type of work in the future m You want to track subcontractor time independently of the time subcon tractors report on the bills they submit to you m Jill gives subcontractors copies of the Timer program and asks them to return time data to her weekly so shecan track how many hours have been spent on her project long before she receives the bills m You want to pay subcontractors based on time worked using the time infor mation entered in QuickBooks Erictrackstimefor subcontractors and paysthem within 30 days On a weekly basis Eric enters a bill for each sub
156. ecords of your most important payroll transactions before you condense your data and create an archive Chapter 4 QuickBooks basics Examples of transactions that w ould be deleted Ifan invoicehas been paid in full QuickBooks deletes the details and includes the amount in a summary transaction showing income accounts Neither the customer name nor theitems sold are retained However if an invoiceis not printed or is unpaid partially paid or marked as pending QuickBooks leaves the invoice in your file so you can apply payments to the invoice m If you have QuickBooks Pro 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 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 removeold transactions and unused itemsto further reduce the size of your data file Howe
157. ect P45 for leavers From the drop down list select the employee that is leaving and click Print P45 to start the printing process uk WNE Chapter 7 Payroll and employees 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 employee inactive QuickBooks keeps the information for the employee but hides the employee s name on the Employee list and removes it from most drop down lists that references employees However the employee s payroll figures still appear on payroll reports You do not need to change or delete any transaction that references the employee You 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 Merging employees is not reversible To learn about Search the Help index for Making employees inactive hiding employees hiding and showing them or showing them Merging employee names employees merging two names Deleting an unused employee employees deleting Contacting your employees by mail You can use your QuickBooks data in conjunction with prewritten Microsoft Word letters to mail your employees notices about such matters as accrued holiday and sick time Go to the Company menu and select Write Lett
158. ect here determines the names of the fields in the Current Paternity Info section 4 Under the Current Paternity Info section enter the details of the employee s parental leave See the online help for more information about Current Paternity Info fields 5 In the EmployeeJournal table under the Entry Type column select Paternity Leave then enter a Start Date and End date The end date must occur one or two whole weeks after the specified start date Employees cannot take partial weeks of paternity pay 6 Click OK to save changes and exit the New Edit Employee dialogue QuickBooks automatically calculates and adds statutory paternity payments to payments during the time specified and tracks the SPP amounts to the Statutory Payments Detail report SPP amounts are also tracked to P14 P60 tax forms and SPP recovery and NIC compensation amounts are tracked to the P35 To learn about Search the Help index for Recording Statutory Paternity Pay SPP 186 Chapter 7 Payroll and employees To learn about Search the Help index for Previous SPP info SPP previous info Recovering SPP payments SPP recovering Setting up and paying Attachment of Earnings Order You may receive a court order instructing you to deduct an Attachment from your employee s If so as an employer you are legally required to comply by deducting the amounts and making payments directly to the issuing authority usually on a weekly
159. ed from it The summary should cover the period from 6 April through to the day you started using QuickBooks In the summary include gross pay income tax NIC s and any other amounts you tracked on payroll payments You need to enter both the amounts you withheld from the employee s earnings andthe amounts that you paid asa result of the employee s earnings For example you must enter both the employee s and employer s parts of NI summaries Depending on how you ve kept your records you can enter amounts summarised 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 Chapter 7 Payroll and employees Filling in the Year to Date window If you want you can type a description about this adjustment In this area enter the totals for salary hourly wages and holiday and sick time paid out during this period Enter hours worked during the period if you want hours to appear on reports QuickBooks displays a message if hours are required In the Employee Salary and hourly wages totals area enter payroll itemsfor sick and holiday time taken during this period and their corresponding wage amounts Do not include them in your totals for regular salary or hourly wages In the Em
160. eed to track income and expenses by monies location department or busi ness segment Examples Religious and arts organisations retail stores with multi ple locations You have employees and need to see detail about payroll taxes and other payroll expenses Example Any company with employees You need to track cer tain details about your customers and suppli ers Example Payment terms customer s VAT customer s ship to address tax informa tion your account num ber with a supplier How to record in QuickBooks Set up jobs for the customer on your Customer ob list When entering any sales for a job enter both the job and cus tomer name in the Customer ob field If you don t have QuickBooks Pro or higher turn on the preference for tracking expenses by job When entering any expenses for a customer 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 monies On every transaction enter a class as well as an account where appropriate Use the QuickBooks payroll fea ture to track your payroll Find and fill in the appropriate field in the New or Edit Customer window or the New or Edit Sup plier window The field you want may be on the Additional Info tab Comments Reports by customer or by job give subto tals by job and thena total of jobs for the cust
161. efore you create a Payroll Liability Balances report For more information on creating a Statutory Payments Detail report see page 206 To create a Payroll Liability Balances report 1 From the Reports menu choose Employees amp Payroll then choose Payroll Liability Balances You will see all the payroll items including Income Tax and National Insurance contributions 2 Makesurethe date range accurately reflects the tax period for which you are remitting You should print this report for your records If you made any statutory payments to your employeesin a given tax period you must create a Statutory Payments Detail report before you create the Payroll Paying payroll liabilities 205 Liability Balances report The Statutory Payments Detail report shows a breakdown of the statutory recovery amounts and NIC compensation amounts To create a Statutory Payments Detail report 1 From the Reports menu choose Employees amp Payroll then choose Statutory Payments Detail You will see all the statutory payroll items including recovery amounts and NIC compensation if entitled to SER Make sure the date range accurately reflects the tax period for which you are remitting You should print this report for your records Adjusting a payroll liability In rare cases you may find that the amount for a payroll item tracking a liability doesn t match what is actually owed 1 From the Employees menu choose Pr
162. eign 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 this account is created automatically when multicurrency is turned on For example if you owe a supplier 500 Shillings and the Pounds Sterling Shilling exchange rate changes from 0 09 when you ordered the products to 0 08 when you pay the bill your realised gain would be 5 That is when you ordered the products you owed 45 but you actually paid only 40 because the Shilling fell relative to the Pound Sterling QuickBooks balances the transaction by assigning the 5 gain to the Exchange Gain Loss expense account To determine your realised gains and losses over time use the Realised Gains and Losses report This detailed report shows the original amount of each foreign transaction in your homecurrency the actual exchangerate when thetransaction was closed and the resulting gain or loss to you To print a realised gains and losses report m From the Reports menu select Multicurrency then Realised Gain and Loss fiji Realised Gains amp Losses OO x The amounts on Modify Report Memorise Print Excel Hide Header Reftesh eagle Dates ES From E Tof BI Total By Realised Gain Lose wni home currency 1 30AM BRATS Landscaping Design denomination of 137178 Realised Gains amp Losses the company file Accrual Basis All Transactions
163. eign money into ahome currency account the amount is converted using the currency s exchange rate or a foreign bank account as long as the currency of the bank account matches the deposit s currency 4 In the Exchange Rate field update the exchange rate to match the rate of exchange on the same day the deposit was made 5 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 customers 159 Dealing w ith foreign suppliers Working with foreign suppliers is much the same as working with suppliers in your home currency You still make purchases and pay bills in the same way but the currency of the transaction is the currency that you assigned to the supplier in his or her profile see Create foreign customers and suppliers on page 149 Creating purchase orders for a foreign supplier Before you can create a purchase order for aforeign supplier you must set him or her up in the supplier list create a foreign A P account and have the purchase order preference turned on Create a purchase order for a foreign supplier as you normally would As you do you ll also need to 1 Select a foreign supplier Because the currency of this supplier is Euro for example the currency of this transaction is in Euro
164. eland select euro as your home currency Preferences 4sk a help question x A My Preferences Company Preferences Account Numbers Multicurrency Use multicurrenc i Bs me currency Banking Use Foreign prices on items v Require accounts ajaja Foreign item Also See v Use class tracking currency General Prompt to assign classes Payroll and Rey as Employees Fomatically assian nener rnal entry num Setting up multicurrency 147 4 Click OK Multicurrency is now turned on and the home currency is set You can now Assign a foreign currency to a customer or supplier m Usethe currency list which includes many common currencies and the latest exchange rates as of QuickBooks release m Generate a report to calculate unrealised and realised gains and losses m Quickly convert foreign currency to Pounds Sterling or viceversa with the Currency Calculator m Usethe ExchangeGain amp Loss expense account to track gains and losses due to fluctuations in exchange rates m Setafixed foreign price for itemsthat you sell frequently to one particular country m Locate multicurrency transactions with two new filters in the find function 2 Set up foreign accounts You can choose a foreign currency for Bank Credit Card Accounts Receivable A R and Accounts Payable A P accounts You do not need to set up foreign Bank and Credit Card accounts in order
165. elected customer If one doesn t exist QuickBooks prompts you to create one In this case the customer is Canadian so a Canadian A R account is selected print Price VAT VAT AMT IJ 0 00 M VAT TOTAL 0 00 Total Can 10 00 Description Metal Push Cars 7 Customer Message Exchange 0 428199 Rate IV Tobe printed Memo Balance Can 10 00 Save amp Close Save amp New Clear I Amts inc VAT 2 Update the exchange rate if necessary Note customer including those customers that belong to the EMU The price of the item is converted into the customer s currency using an exchange rate In this example the price of the item car is 4 28 but when the item is added to the invoice the price is converted to 10 Canadian You can also setup a fixed foreign price for items See Set up foreign prices for items sales items only on page 150 VAT codes are not transferred to sales forms when the invoice is created for a foreign 158 Chapter 6 Doing business internationally Receiving payments from foreign customers You receive payments from foreign customers as you normally would As you do follow these steps 1 Select the foreign customer from The amounts on this form are in amp Receive Payments _ oy x Previous E Next Qh History E Journal Print Credit Memo
166. ell but do not track as stock items you enter on pur chase orders Examples Custom made slipcovers Property that will con tribute to the operating capacity of your com pany for several years Examples Vehicles Computers Heavy machinery Other charges on a sale or a purchase Examples Shipping charge delivery charge finance charge Calculating and printing a subtotal on sales forms Usual effect on accounts On sale Increases income increases cost of goods sold and decreases stock assets On purchase Increases stock assets On sale Increases income increases cost of goods sold and decreases stock assets On purchase increases stock assets On sale Increases income On purchase Increases expenses On sale Decreases assets On purchase Increases assets On sale Increases income On purchase Increases expenses Subtotal items have no effect on accounts Comments Available only if the stock feature is turned on Search the help index for stock turning on Price levels can be used with stock parts Search the help index for price levels You can set up different units of measure stock parts For information on units of measure see Setting up different units of measure for your stock on page 35 QuickBooks Pro and higher Edition s required to create and build stock assemblies Available only if the stock feature is turned on Appropriate for light
167. ell 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 theitemsthat 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 29 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 stock you buy and sell You also may need special calculating items that calculate subtotals and discounts and that apply specific VAT 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 from 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 E m Price per unit or rate per hour if applicable E 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 or stock on the Item list On the Item list items are in o
168. ems for 176 rounding of VAT eliminating 142 S salaries employee changing 195 employee entering 180 removing from bonus payroll payment 200 year to date entering for setup 188 sales commission tracking 183 foreign customers 158 forms described 87 sales orders ordering from Intuit 260 sales tax how QuickBooks tracks 122 sales tax for non EC countries 131 sample company 92 Scottish Variable Rate 181 search file 103 search for your backup file backup file 103 searching using 123 help 90 using the index 90 security passwords 112 114 254 Index If you don t find the topic you are looking for here try QuickBooks Help From the QuickBooks Help menu choose Help Index enter the keyword and press ENTER selecting an accounting period 124 selling units 35 service businesses benefits of setting up items 26 Service for Payroll 164 service items creating 40 description 31 tracking payroll expenses by QuickBooks Pro only 174 setting up an Internet connection 60 employee defaults 178 employee payroll information 178 179 employee year to date payroll summaries 188 foreign accounts 148 foreign customers 149 foreign suppliers 149 multicurrency 146 154 payroll 165 SPP 186 statutory payments 184 units of measure 36 your business 22 sharing QuickBooks on a network 112 shipper recharging VAT 131 shipping charges item for on invoice
169. en you and your customers including Receivable invoices payments from customers deposits of cus A R tomer payments refunds and credit memos QuickBooks automatically creates an A R account when you first create an invoice Other Current Assets that are likely to be converted to cash or used up Asset within one year such as the value of your stock on hand promissory notes due within a year prepaid expenses and security deposits Fixed Asset Depreciable assets your business owns that aren t liquid not likely to be converted into cash within a year such as equipment furniture or a building Other Asset Any asset that is neither a current asset nor a fixed asset such as long term promissory notes Liability What your company owes to other people Accounts Outstanding bills When you first enter a bill QuickBooks Payable A P automatically creates an A P account Credit Card Credit card transactions for your business expenses One account per credit card Other Current Liabilities that are scheduled to be paid within one year Liability such as VAT payroll taxes accrued or deferred salaries and short term loans Some businesses include the cur rent portion of long term liabilities in this kind of account Long Term Liabilities such as loans or mortgages scheduled to be Liability paid over periods longer than one year Equity Net worth of your company equity assets liabilities Equity A company builds equity fro
170. ense or a liability account To learn about Search the Help index for Payroll Liabilities account payroll liabilities account for Payroll Expenses account payroll expenses account for Customising payroll accounts 168 You can change the names of the payroll liability account and payroll expense account that QuickBooks provides by default And if you use numbered accounts you can change the default account numbers To see more detail of your payroll liabilities on your balance sheet break down your Payroll Liabilities account by using subaccounts Similarly use subaccounts for your Payroll Expenses to see more detail of your payroll expenses on your profit and loss statement For example a limited company may need to report expenses for directors separately from other 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 QuickBooks payroll system When you create any kind of payroll transaction in QuickBooks whether it s a payroll payment a liability payment or a payroll adjustment you use payroll items to do it in the same way that sales forms use service or stock items There are payroll items for enployee compensation sal
171. ent for a particular employee you can changeit for him or her This feature is also useful if you need to make sweeping changes to all of your employees For example if the pension deduction rate changes you can enter the change once in the Employee Defaults window as opposed to changing each employee record To create default settings for your employees 1 From the Employees menu select Employee List 2 From the Employee menu button select Employee Defaults 178 Chapter 7 Payroll and employees You can set up the following information as employee defaults Salary or hourly wage payroll items with or without rates Pay frequency Pay method Class if you re using classes to track your employees Whether you want to use time data for the employee and base payroll payments on it QuickBooks Pro and higher only m Additions deductions and employer contributions that appear on payroll payments for most employees Note The order you enter payroll items in the Addition Deductions and Employer Contribu tions table can affect the amount QuickBooks calculates for each item and for taxes m Payroll taxes and other withholdings m How employees accrue time such as sick and holiday time This count does not apply to statutory payments such as Statutory Sick Pay or Maternity Pay In QuickBooks The Class field is Pro or higher he queien ees available only if you have this check box c E anien pa L frenn weekly 5 class
172. ent invoices or statement charges have been paid by the payment Advance payment from customer Use one of the following options before work is done or sale is made Enter payment in Receive Payments window A 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 48 Chapter 2 Setting up a new company Changing prices or rates You can easily change the prices or rates of more than oneitem through the Changeltem Prices window You can get to this window on theltems list by click the Activities menu button In this window you can tell QuickBooks to raise or lower prices or rates by a specified amount or percentage 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 decrease to stock non stock 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
173. enundenicomen re and How Do foes msnm cr links appear y gepni Exar td clans here as well 88 Chapter 4 QuickBooks basics Context sensitive help In QuickBooks 2005 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 have an Invoice form open you will see help 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 Refer to page 91 for more details on the 1 2 3 Help window 1 2 3 Help window Back Next moves 1 barkwardaor forward a through help topics that have already been displayed in this El How Dol window E Handle VAT Create invoices Invoice for reimbursable time ar Topic content appears Edit an invoice here E Print invoices Receive payments and handle t Track sales information The H plus icon means that there is help content hidden When you click the plus icon the help topic expands so you can read it Search opens the search engine in the Find also referred to as Print prints the help topic Make sure the help you want printed is completely expanded i e click E to expand the text before printing Pin anchors a help topic or stops the window from following yo
174. eny users access to closed periods do not grant them permission to Change or Delete Transactions recorded before the closing date Then enter the closing date in the User List window from the Company menu select Set Up Users Chapter 4 QuickBooks basics Q To learn about Search the Help index for Using permissions to close your closing periods books Recording w ho changed w hat in the A udit Trail fiji 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 isturned on and kept on If the preference is turned off for a period of time QuickBooks does not keep a record of changes if any to thetransactionsin that period Mee Modify Report Memorise Print Choose the date range you Excel Date Entered Last Modified I Today want to see on the report 3 17 PM 20 03 00 Trans no gt Type o Entered Last m Date o Hame_ Num Account Amount VAT Am Turner Hardware amp Audit Trail All Transactions The Current Transaction entry shows what the Current Transaction gt 69 Invoice Previous Transaction 69 Invoice S transaction is like now 20 03 200 Admin 16 03 2000 Sandhur
175. er the payroll rates thresholds or forms change The Payroll Service also helps you make the most of your software investment by keeping it current After you subscribe you will receive all updates and upgrades that we release for your software at no additional charge To subscribe to the Payroll Service select Payroll Service from the Employees menu then click the Subscribe button and follow the instructions We will assist you in updating your QuickBooks user licence to show your subscription number Once you have subscribed you can get information about your subscription or your current tax table by selecting Payroll Service from the Employees menu You must subscribe to the QuickBooks Payroll Service once for each copy of QuickBooks whose payroll features you want to use To learn about Search the Help index for Subscribing to the QuickBooks Payroll QuickBooks Payroll Service Service If you don t use the payroll feature in QuickBooks If you are not subscribed to the QuickBooks Payroll Service paying employees is unavailable however you can still see and use the Employee list That s because you must still track your payroll expenses and liabilities in QuickBooks even if you usean accountant or payroll company to pay your employees rather than the QuickBooks Payroll Service Otherwise your accounts will not be correct With the payroll features turned off the Employee list allows only very basic information
176. erefore do not affect the net profit write a cheque to pay for the time worked and make the items on the cheque billable Charging customers for time worked 239 QuickBooks Pro Timer Reference Sheet The Timer and QuickBooks Pro or higher Before you can use it the Timer needs to import information from QuickBooks Pro or higher Starting the Timer Click Start Programs then QuickBooks Pro Timer Setting up the Timer Then use the Timer to time your activities 1 in the Open Timer File window displayed Finally export a file of time data for Quick Piet me you Start tie mme oer Books Pro or higher to import Create New Timer File then click OK 2 Typeanamefor the Timer file and the Installing from the QuickBooks location to save it then click OK Pro or higher CD ROM 3 From the File menu of the Timer choose I Insert the CD ROM in your CD ROM drive Import QuickBooks Lists 2 If the QuickBooks Installer starts automati 4 Select the name of the IIF file to import cally click No from QuickBooks You may have to If the Installer does not start automatically navigate to a new drive or folder Click display the Run window OK m Select Run from the Start menu The person who works with QuickBooks Typetheletter of your CD ROM drive then N o i ole timer setup exe and click OK yon 5 From theFile menu of the Timer choose 3 Follow theinstructions on your screen Preferences then Default Name Installing
177. ers 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 197 Paying employees Note Before you begin creating payroll payments be sure that your payroll system is set up completely and correctly see page 165 Also go online to receive the latest payroll update which includes the most current tax table or install it from CD ROM if you received one Selecting employees to pay If you print cheques tick this check box If paying employee by BACS clearthe To be printed check box and specify the BACS agency QuickBooks creates a payment for each employee you Select You can sort the list by either the employee s first or last name according to the setting in Payroll and Employee Preferences Tip To select which employees you want to pay m From the Employees menu choose Pay Employees If you enter hours worked commission basis sick or holiday time or other variations from pay period to pay period select this option If all your employees are salaried and receive a standard payroll payment for this pay period select this option Select Employees To Psy Ack a help question Aski w H fo 17 Mie E Create The Payment Paryment Ogor Date selected FF Tobe pentod a ae hours and preyjew payment eo y Bek Account j mR g
178. ership software can keep track of membership details such as donations W hat does QuickBooks mean by a job 24 In QuickBooks a job is a project done for a particular customer You must always associate ajob with acustomer Usejobsif you do or expect to do morethan one job for the same customer For example Michele does freelance writing for alarge company that supplies a separate purchase order for each job Richard s plumbing business has to keep track of the separate jobs it does for a general contractor On the other hand if your company never does more than one job per customer or you do not want to track individual jobs you don t have to enter job names For example Tracey s printing company refers to each customer order as a job However even though Tracey gets repeat business from customers all she cares about is whether the customer has paid so she doesn t need to set up jobs for her customers Besides using projects for jobs you can be creative For example m Ifyou manage several blocks or flats set up the addresses as customers and the individual flats as jobs Chapter 2 Setting up anew company If you invoice against purchase orders POs set up each PO number as a job If you havea practice or organisation 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 customer search the help index for
179. es wages or earnings The wages or earnings used to calculate the contribution is referred to asthe pension earnings base The pension earnings base is the employee s pay or the employee s pay combined with any additions Chapter 7 Payroll and employees Tip For example your employee has a wage of 1 000 per month and receives a bonus of 500 The employee s pension earnings base would be 1 500 Therefore if the employee s pension contribution is 10 of his or her pension earnings base the pension contribution would be 150 To set up pension contributions in QuickBooks 1 Create the payroll items you would normally use to pay your employees As you do indicate whether each payroll item should be included in the employee s pension earnings base In the Payroll Item wizard tick the Payroll item is pensionable earnings check box Create a Deduction payroll item for enployee pension contributions if the deduction payroll items provided by default don t meet your needs In the Payroll Item wizard tick the Pension Contribution check box Create an Employer Contribution payroll item for employer pension contri butions In the Payroll Item wizard tick the Pension Contribution check box Add pension contribution payroll items to an employee s record or if this pension is applicable to all or most of your employees add it to the enployee defaults For moreinformation on setting up employee defaults see page 178
180. et up subclasses of existing classes if you need to subtotal information about classes on reports Chapter 2 Setting up anew company 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 Should I use classes jobs or types Ask yourself Am 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 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 To do the follow ing Keep track of sales for sepa rate jobs or projects for one customer See income or expenses for one type of customer as distinguished from another type Example A PR writer wants to compare a restaurant with retail clients QuickBooks Pro and higher only See income or expenses for one type of job as distinguished from another type J obs of the same type can be for differ ent customers Example A construction contractor compares
181. evious bookkeep QJ Tip If you do not have an existing chart of accounts don t ing method worry The EasyStep Interview helps you choose an appropriate chart of accounts for your industry Names of the people in your company who will use Quick See Working with multiple users on LJ Books and which areas of your financial records you want page 111 them to have access to Balances for these types of accounts m Statements covering your start date Lj m credit card up to today for all bank accounts loan and line of credit and including current savings and fixed f term deposits m bank m All uncleared cheques deposits or other items credit card receipts for example m Balance sheet prepared by your accountant How much VAT you owe Accountant or HM Revenue amp Customs J 20 Chapter 2 Setting up a new company Information you need W here to find it List of types of items you Sell products and services including m item number or name m current sales price or hourly rates m the VAT code that is usually associated with the item and m income account for tracking sales of the item For stock only m Purchasing cost Quantity in stock m Total value of stock for the item Your company records List of customers including m Addresses m Contact names m Phone numbers m Outstanding invoices Your company records List of suppliers including m Addresses m Contact names
182. ex 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 item other charge items Should track customers and jobs 25 W hy you probably need to set up items Items for what you sell 26 Note 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 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 Estimates a
183. 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 minutes when you tab out of the field 5 Click OK to record the activity and itstime Shrinking the Timer m Click theResize button to theright of the Start button m Tomakethetimer full size again click the Resize button on the shrunken Timer Exporting Timer data for QuickBooks 1 From the File menu of the Timer choose Export Time Activities and click Continue 2 Inthe Export Activities window change the date through which to export all unex ported activities if the date is not correct 3 Click OK 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 TheTimer requires the following hardware and software m 486 PC or higher with a minimum of 9 MB megabytes of RAM random access memory 16 MB is recommended m Hard disk with at least 9MB of free disk space plus space for your data file Windows 3 1 or later VGA monitor or better Charging customers for ti
184. eys about your business To get to the Report Finder go to the Reports menu and select Report Finder Choose a report Repon Finds Ask a help question B amp fx Select at f t category and view Ebi ts These reports provide information about the financial position of View a thumbnail your company elect a report a general Select a report icture with sample inti Profit amp Loss Standard E Profit and Li i description of f Eo gloss tand S Sass data to get an idea of j Profit amp Loss YTD Comparison Income 1 you r choi ce Profit amp Loss Prev Year Comparisor Labour 4 252 00 a report S content Profit amp Loss by Job Construction rafk 8 Lose by Class caceererracters eat You can customise a Profit amp Loss Unclassified tec income By Clastomner Suniiiey oa some E report before or after Income by Customer Detail iiiki s i Expenses by Supplier Summary eit w you generate it Expenses by Supplier Detail Equipment Rental 550 00 igi Income and Expense Graph Job Materials 1 302 26 The specific Bae sheet onord Total Job Expenses 1 852 26 jalance Sheet Detail Total Expense 1 852 26 reports available wa Net Ordinary Income 11 232 12 Net Income in the category you selected are listed here Set the date range This Month to date From To 03 01 2003 E 03 31 2003 What you ll learn E ann eg Ne How much money did I make or lose over a specific period of time
185. foreign customers and suppliers and deal with the exchange rates of the foreign currencies you use Multicurrency isa Pro and higher only feature 145 M ulticurrency an overview Note In QuickBooks Pro and higher you can record transactions in many currencies With the multicurrency feature turned on QuickBooks tracks foreign transactions and accounts for them properly regardless of the currency that is used For example if you sell goods to Germany as well as within the UK you can enter some transactions in euro and others in Pounds Sterling Tracking these foreign currency transactions is as easy as selecting the foreign customer or supplier from your list QuickBooks takes care of everything else With multicurrency you can also set up a fixed foreign price for items or enter pricesin your home currency and then have QuickBooks calculate the foreign price based on the current exchange rate See Set up foreign prices for items sales items only on page 150 for more information on setting up foreign prices Thehome currency refers to the currency that isused in thecountry in which your business is located 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 yo
186. frame is based on these settings Tip If you haven t done so already through the EasyStep Interview you need to turn on the VAT preference for QuickBooks to begin tracking VAT To turn on the VAT preference 1 From the Edit menu select Preferences 2 Select VAT from the scroll box then click the Company Preferences tab 3 Set the preferences according to your business needs then click OK Doruk VAT G Yes C No If you have customers with special VAT status tick this box You can then assign a VAT Aogtration ID 392 4231 26 VAT Agency PMc d Ecis VAT Reetia ouste a j Retendvelis darla after the reporting period ands Enio VAT reperting barit Sales Figures VAT code to ganai bass Standord VAT accourting C net Exchsive of V him or her For N G Cah bais Cach Accounting Scherma C aos induse g more details a p p gt Dolah VAT Code eee peg 7 AbcicutonerVArcade Deta omomer vaT cose aa customers on page 128 For details on setting default VAT codes see Setting up a default VAT code for new items on page 127 Setting up VAT tracking 125 Entering VAT liabilities as of your start date If your business collected VAT before you began using QuickBooks you need to enter the amount you oweto HM Revenue amp Customsas of your QuickBooks start date These can be done by doing General Journal entries but you should consult with your acco
187. from other software 77 Exporting to other software 78 Give your accountant permission to access your QuickBooks file remotely 79 Exporting data for your accountant Accountant s Review 80 Chapter 4 QuickBooks basics 83 Getting around in QuickBooks 84 About the Resource Area 84 Navigating in the working area 85 Using lists forms and registers 86 Using the Help system in QuickBooks 88 Context sensitive help 89 Getting your questions answered 90 Learning with the QuickBooks Tutor 91 Exploring QuickBooks with asample company 92 Getting information about your company 92 Creating reports 93 Understanding QuickBooks file types 96 Cash Flow Projector 97 QuickBooks Loan Manager 97 Customising your forms 98 Backing up your company data 100 Recommended backup routine 101 Backing up to aCD R or CD RW 101 Backing up to a Zip drive 102 Searching for your backup file 103 Restoring your backup file 103 Condensing data 104 Reconciling bank and credit card accounts 107 Matching bank deposits and credit card deposits QuickBooks Card Solution users 108 Setting up online banking account access and payment 109 Going online for the first time 109 Reconciling online accounts 110 Working with multiple users 111 Users and passwords 112 Recording who changed what in the Audit Trail 115 Solving printing problems 116 When should reinstall my printer driver 116 Nothing happens when you try to print 116 T
188. g 117 files to disk compared to other methods of transferring data 78 margin issues 116 P45 forms 196 pay slips 203 payroll cheques 203 realised gains amp losses report 157 troubleshooting 116 unrealised gains amp losses 155 prior liability payments 192 problems printing solving 116 product lines tracking by 14 professional advisors 6 profit and loss statement described 17 projecting cash flow 97 Q quarterly accounting 124 quarters locking past VAT 139 questions getting answers with 123 help 90 using the index 90 QuickBooks Administrator 113 comparing with Quicken 74 dates changing format 64 file types 96 network sharing on 112 numbers changing format 64 Payroll Service 164 professional advisors 6 sample company 92 transferring data 77 updating 61 updating from a CD 63 updating multiple users 63 user s guides ordering from Intuit 260 QuickBooks file types 96 QuickBooks Tutor 91 Quicken 66 76 accounts payable converting 69 72 accounts receivable after conversion 71 categories equivalent of 74 comparing with QuickBooks 74 converted data differences 76 converted data fine tuning 69 70 converting to QuickBooks 66 70 setting preferences 70 QuickStatement for online accounts 110 R rates items changing 49 realised gains and losses 157 receiving VAT refund 136 recharged import VAT by shipper 131 reconciling accounts 107
189. g a pension contribution 176 payroll liabilities adjusting 207 Class 1A NIC 209 discounts for 208 how QuickBooks tracks 175 P11 forms 211 P14 P60 forms 212 P35 forms 215 P35 summary 215 paying 205 208 penalties 208 report 225 small employer s relief 207 year to date summaries for setup 192 payroll payments BACS using 203 creating 200 deleting 201 editing 201 historical entering 188 printing cheques 203 printing pay slips 203 reviewing and correcting 201 voiding 201 202 payroll reports 224 Payroll Service 164 payroll taxes employees setting up for 182 historical 188 on employee defaults 179 P35 summary report filing 215 paying 205 208 payments entering year to date summaries 192 refunds for overpayments 208 tax forms filing 205 pension contributions creating payroll items for 176 pension based earnings 176 phone numbers Intuit 260 261 ordering cheques and other supplies 260 ordering product 260 registering QuickBooks 260 PIN password for online accounts 109 252 Index If you don t find the topic you are looking for here try QuickBooks Help From the QuickBooks Help menu choose Help Index enter the keyword and press ENTER POs for foreign suppliers 160 preferences employee 165 multicurrency 147 payroll 165 using classes turning on 15 25 price levels setting up for items 29 prices of items changing 49 printing alignment adjustin
190. has set up a discount item with arate of 15 He must use a subtotal item because the discount is based on the entire amount For examples of how to useitems that calculate see page 45 for subtotals page 47 for discounts and page 121 for VAT Setting up items 33 In this example Dressers is a parent item with two subitems under it Chairs Oak chair Pine chair Dressers Subitems vs group and stock assembly items Just as you can set up an account with related subaccounts under it on your chart of accounts you can have an item with related subitems For example Cherril keeps the books for her club s gift shop which sells T shirts and other items She hasan 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 ay Jisyj bist Ask a help question B x Name a Description Type VAT Account On Hand Price Gross Price 0 00 50 00 30 00 0 00 0 00 E 58 75 35 25 0 00 Oak Welsh dresser Stock Part 470 00 Pine Welsh dresser Stock Part 423 00 Fitting kitchen Service Ss Labour Fitting J 5000o 5 58 75 Oak chair Pine
191. have full detail in QuickBooks for the current financial 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 information for the full financial year you may want to choosea 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 transactions you may be willing to enter several months of historical detail Information to collect W ho owns your business If you have not already done so start by determining what type of business ownership is right for you m Sole proprietorships A sole proprietorship isan unincorporated company owned by one person 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 m Limited Company A limited company is owned by its shareholders Unlike a sole proprietorship or a partnership a limited company can pay a working owner a Salary
192. he form is clipped on the top bottom left or right 116 Dates and the bottoms of letters are clipped on forms 120 Printing isslow 120 Chapter 5 Chapter 6 Tracking and paying VAT 121 Does your business need to be registered 122 How QuickBooks tracks VAT 122 Setting up VAT tracking 123 VAT accounting schemes 123 VAT reporting periods 124 Turning on VAT tracking 125 Setting up and using VAT codes 126 Handling VAT for EC member states 130 Handling import VAT for non EC countries 131 Handling fuel scale charges 132 Determining your VAT liability 132 Creating VAT reports 133 Completing an accrual basis standard scheme VAT return 134 Completing acash basis VAT return 136 Receiving a VAT refund from HM Revenue amp Customs 136 How QuickBooks handles late VAT accruals basis only 137 Keeping VAT records 138 Making adjustments to your VAT liability account 140 Doing business internationally 145 Multicurrency an overview 146 Setting up multicurrency 146 Using the Currency List 152 Using the currency calculator 154 Exchange rates and how they affect your transactions 154 Unrealised Gains and Losses 155 Realised Gains and Losses 157 Dealing with foreign customers 158 Creating invoices for foreign customers 158 Receiving payments from foreign customers 159 Dealing with foreign suppliers 160 Creating purchase orders for a foreign supplier 160 Paying bills from foreign suppliers 161 Transferr
193. he income taxes he or she owes and remits 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 money that you owe to someone else these types of deductions are liabilities Payroll items for liabilities are usually assigned to the Payroll Liabilities account When you run your payroll QuickBooks calculates how much you owe the government for each withholding tax deduction and employer contribution payroll item and records the amounts in the Payroll Liability account With each payroll payment you create the balance of this account increases When you pay your payroll taxes and other payroll liabilities with the Pay Liabilities window QuickBooks decreases the balance of the liability account Recovery of statutory pay also decreases the balance of the liability account Combinations of expenses and liabilities Some payroll items area combination of liabilities and expenses For example the portion of National Insurance NIC that you withhold from an employee s payroll payment isa liability while the portion that you pay as an employer isan expense Payroll items for employer paid taxes and employer contributions are usually assigned to both a liability account and an expense account How to set up common payroll items Follow this guide as you set up your payroll items 7 f 7 Eo a 4
194. his shows you the amounts you need to fill in your VAT return including your EC VAT amounts if any This is strictly a liability report and shows the VAT information as of the date specified in the As of field If you want the report to be as of a different date change the datein the As of field if your accounting basis is accrual or the To field if your accounting basis is cash VAT Summary This report provides a summary of transactions by VAT code It includes total inputs purchases total outputs sales and the balance due to or from HM Revenue amp Customs at the end of a reporting period If you choose alonger period than your VAT quarter the report splits the figures by VAT quarter VAT Exception This report shows unfiled VAT transactions up to the end of the previous VAT reporting period This accrual basis report isa good resource to find any outstanding VAT you may owe from previous VAT reporting periods This is strictly a liability report and shows the VAT information as of the end date of the previous VAT reporting period VAT Detail This report is an exploded version of the VAT Summary report showing the totals of inputs purchases and outputs sales and of input tax and output tax You can create VAT detail reports for accrual basis or cash basis reporting e Accrual basis When you use this option QuickBooks prepares a complete list of your VAT related transactions for a selected period e Cash
195. hoose Help Index enter the keyword and press ENTER year to date summaries 188 preferences for 165 removing from list 197 rises 195 setting up 180 sharing QuickBooks on a network 112 SMP 185 SPP 186 SSP 185 statutory payments 184 tax code entering 181 week 1 month 1 tax code 181 employer contributions employee template adding to 179 employees individual setting up for 182 payroll item for 172 envelopes ordering from Intuit 260 equity accounts 9 created by QuickBooks 57 setting up 56 balance sheet viewing on 16 redistributing during setup 56 retained earnings from 56 sole traders in 57 transferring from Opening Bal Equity 56 71 ES VAT codes 130 EU member states VAT for 130 exchange rates 146 see also multicurrency updating 154 exempt input tax record 142 exemption adjustment for VAT partial 141 expense accounts opening balances 56 uncategorised 55 expenses payroll 173 exporting data 77 79 vs other methods of transferring data 78 EZ VAT codes 130 F F1 key for help 90 FAQs 90 fields adding to forms 98 changing on forms 99 custom for employees 180 filtering reports with 95 file types 96 file types described 96 files backing up 100 backing up to Zip drive 102 condensing 104 restoring 103 filing payroll tax forms P30 205 payroll tax forms online P14 amp P35 210 filtering reports 95 find using 123 help to find answers 90 us
196. id the bill a gain or loss is generated QuickBooks accounts for it by making an entry in the Exchange Gain Loss expense account credit cards To learn about Search the Help index for Payments using your credit card Dealing with foreign suppliers 161 Transferring foreign funds You can transfer money from a home currency bank account to a foreign bank account or from a foreign account to a home currency account Money can also be transferred between foreign accounts of the same currency 1 From the Banking menu choose Transfer Funds 2 With the Transfer Funds Between Accounts window open Fill in this Transfer Money Between Accounts jO1x window as Previous Next E Journal you normally would Date 04 01 2001 E Transfer Money From UK Savings Account j Ending Balance GBP 25 329 75 Transfer Money Io Euro Chequing Account Ending Balance EUR Exchange Rate 0 611499 Transfer mt Transfer Currency Update the exchange rate to match the rate of exchange on emo Money Transfer SCS the day of the Ie ee transfer Select the currency denomination of the amount you want to transfer For example if you know the transfer amount in euro select Eur from the drop down list and then enter the amount you want to transfer in euro If you know the transfer amount in Pounds Sterling then select GBP from the drop down list to specify the transfer amount in UK pound
197. ign customers 149 158 foreign items 150 foreign suppliers 149 home currency adjustments 155 invoicing foreign customers 158 paying foreign suppliers 161 payments from foreign customers 158 realised gains amp losses 157 setting up 146 154 setting up foreign accounts 148 transferring money 162 unrealised gains amp losses 155 using 146 154 multiple users maximum number of 113 update QuickBooks for 63 multi user mode 112 names Quicken conversion and 70 National Insurance payroll items for 171 navigators 85 net worth 9 networks how QuickBooks works on 111 sharing QuickBooks on 112 NI code 181 NIC payroll items for 171 non inventory part items creating 40 description 32 non posting accounts on chart of accounts 8 number format in reports 94 number remaining field 124 numbers changing how numbers display 64 numerical accounts on chart of accounts 51 O online accounts downloading transactions 111 PIN password 109 reconciling 110 online banking converting from Quicken 68 going online 109 setting up 109 onscreen help 89 90 how do I menus 90 QuickBooks Tutor 91 Open Window list 85 Opening Bal Equity account 56 adjusting balance during setup 56 described 57 opening balance for accounts 54 opening balances 250 Index If you don t find the topic you are looking for here try QuickBooks Help From the QuickBooks Help menu choose Help Index
198. ilable by closing down programmes you don t need 120 Chapter 4 QuickBooks basics Chapter 5 Tracking and paying VAT How QuickBooks 122 tracks VAT How do I collect oa and pay the right Setting upand 126 amount of VAT using VAT codes Determining your 132 VAT liability Making 140 Thischapter explains how to set up VAT tracking adjustments to your VAT liability in QuickBooks It helps you determinehow much account tax to collect on sales you make how to record theVAT you pay on business purchases and how to remit your VAT to the government You are responsible for consulting with a tax advisor about the VAT regulations especially if you do business internationally For detailed information about collecting and remitting VAT please consult your local office of HM Revenue amp Customs If you upgraded from an earlier version of QuickBooks go to the Resource Area in QuickBooks for information on how the government name change affected VAT tracking in QuickBooks At the Resource Area window click Updates There you will find instructions on how to change your Inland Revenue and HM Cus toms amp Excise suppliers to HM Revenue amp Customs 121 Does your business need to be registered Although businesses with an annual turnover below 60 000 are exempt HM Revenue amp Customs recommends that most businesses register to collect value added tax VAT
199. ills window m Or youcan movethetransactionsin your Other Current Liability account to an Accounts Payable account see below 72 Chapter 3 Importing and exporting data To move your Other Current Liability transactions to the Accounts Payable account 1 in Quicken create a report that gives you the total balance you owe each of your suppliers Make sure the date range is set to Include all dates then print the report for reference Start QuickBooks From the Banking menu choose Make Journal Entry On the first line m In the Account field choose Accounts Payable from the drop down list m IntheNamefield choose the supplier s name m IntheCredit field type the open balance you ll need to do this for each supplier 5 On thesecond line m IntheAccount field choose the Other Current Liability account from the drop down list m Inthe Debit field type the same amount that you entered in the Credit field of the first line 6 Click Save amp New AWN Changing your payees to QuickBooks suppliers If you haven t already you need to move your Quicken payees from the Other Names list to the Supplier list See Edit your Other Names List on page 69 If a Quicken payee had a balance that was imported in to QuickBooks use the Write Cheques window until the balance of your old Quicken A P account equals zero in other words you ve paid off all your billsfor that supplier Enter any new bills into QuickBook
200. ime 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 programme Chapter 4 QuickBooks basics Note Note Setting up the Administrator and users About the QuickBooks Administrator QuickBooks may ask for a password even though you have not set up any passwords If this occurs leave the name Admin in the User Name field as is and leave the Password field blank You can still access your company file When you create a QuickBooks company file QuickBooks creates a user called Admin This user isthe 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 chosen 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 password you ll have to send your company file to Intuit there is a fee associated with this service The QuickBooks Administrator has unlimited access to the entire company file and isthe only person who can add additional users and change access privileges For each user he or she sets up the Administrator designates m A password The password can contain up to 16 letters and numbers a
201. ime over a computer network Sharing QuickBooks Pro or higher com pany files Using QuickBooks Pro or higher on a network is basically the same as using it on a single computer For most of your day to day tasks up to five users can access the company file at the same time When several users are allowed to work in the company file simultaneously the fileisin 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 Pro or higher Then the person who wantsto perform the activity must switch the file to 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 converting to euro or exporting data m Sometypes of changes to lists m Adjusting stock m Activities involving an Accountant s Review copy Thereisalso athird category of activities Although all the networked QuickBooks users with the correct permissions have access to these features only one person at atime can use them For information about restricting access to features see Setting up the Administrator and users on page 113 Working with multiple users 111 Q Feature locked activities include m Paying bills m Running payroll m Setting up new users or mai
202. 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 After you ve created an item you can edit information about it at any time subject to certain restrictions Changing item type In QuickBooks Regular Pro and higher you can change anon stock part or other chargeitem to aservice non stock part stock part or other chargeitem However you cannot change the item type of any other type of item Hiding and redisplaying items on lists You can hide an item on the Item or Fixed Asset Item list without deleting it by making the item inactive For example you may havea stock 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 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 Working with items 49 Deleting items You can delete an item only if it is not used in any transaction or group ite
203. increasing your VAT liability select the account that will provide money to the VAT Control account m Ifyou are not sure what type of account to use check with your accountant 10 In the Debit or Credit column enter the amount to adjust your other account by m If you decreased your VAT liability enter a positive amount in the Credit column m If you increased your VAT liability enter a positive amount in the Debit column The transaction must have a zero balance That is the total in the Debit column must equal the total in the Credit column 11 Leave the VAT code and VAT Amount columns clear 12 Enter anotein the Memo column about why this adjustment was needed 13 Click Save amp Close to record the adjustment M aking a VAT partial exemption adjustment We recommend that you make the necessary calculations in a spreadsheet before making the adjustment in QuickBooks You should check with your accountant or the local VAT office on the best method of calculation for your business If you make exempt supplies and are registered for VAT you may be required to make both periodic and annual adjustments to the amount of input tax you are entitled to recover in your VAT returns To prepare for making partial exemption adjustments complete the following m From the Lists menu select VAT Codes and create a new code called EX at 0 with the EC Code clear see Setting up and using VAT codes on page 126 m From the Lists me
204. ined Field Box Description VAT due in this period on 1 Shows the VAT due on all goods and services you supplied sales and other outputs in this period VAT due in this period on 2 Shows the VAT due but not paid on all goods and related acquisitions from other EC services you acquired in this period from other EC Member Member States States Total VAT due the sum of 3 Show the total amount of the VAT due i e the sum of boxes boxes 1 and 2 1 and 2 This is your total output VAT reclaimed in this 4 Shows the amount of VAT deductible on any business pur period on purchases and chases including acquisitions of goods and related services other inputs from other EC Member States This is your input tax Net VAT to be paid to Cus 5 If this amount is under 1 you need not send any payment toms or reclaimed by you nor will any repayment be made to you but you must still fill in this form and send it to VAT Central Unit Total value of sales and all 6 Shows the value excluding VAT of your total outputs sup other outputs excluding any plies of goods and services Include zero rated exempt out VAT puts and EC supplies from box 8 Total value of purchases 7 Shows the value excluding VAT of all your inputs pur and all other inputs exclud chases of goods or services Include zero rated exempt and ing any VAT EC acquisitions from box 9 Total value of allsuppliesof 8 EC Trade Only Box 8 and 9 are only used if you have sup
205. ing balance if applicable Oncea transaction is recorded fora customer you cannot enter an opening balance in this window To create a new foreign Customer Supplier or Other Name Open anew profile and fill it in as you normally would with the following exceptions noted on the graphic below w New Customer MEEI Customer Opening Balance as of 10 11 2001 E OK Cancel Next Customer is inactive How do determine the opening balance Address Info Additional Info Payment Info J Job Info Currency United King gt Exchange Rate Job Status Start Date a Job Description Projected End a End Date a Job Type 2 Select the currency you want to associate with 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 supplier or other name If you deal with a customer or supplier in more than one currency you ll need to create an additional profile for him or her for each currency in which you do business To learn about Search the Help index for Creating new customers customers Set up foreign prices for items sales items only By default items in the Item List use the currency designated as your home currency What that means is when an item is used in a foreign transac
206. ing foreign funds 162 vi Chapter 7 Payroll and employees 163 Payroll before you begin 164 Subscribing to the QuickBooks Payroll Service 164 If you don t use the payroll feature in QuickBooks 164 Setting up payroll an overview 165 Collecting the information you ll need 166 Payroll expense and liability accounts 168 Customising payroll accounts 168 Setting up your payroll items 169 The importance of payroll items 169 About the default payroll items 170 Creating new payroll items 172 Setting up payroll items for pension contributions 176 Setting up employees 178 Employee defaults entering common employee information 178 Setting up employees 180 Setting up and paying Statutory Payments 184 Setting up and paying Attachment of Earnings Order 187 Summarising amounts for the year to date 188 Entering year to date summaries for each employee 188 Entering year to date summaries of liability payments 192 Making sure your payroll data is complete 193 Managing payroll and employee information 194 Changing payroll item information 194 Changing employee information 195 Paying employees 198 Selecting employees to pay 198 Previewing adjusting and creating payroll payments 199 Printing payroll cheques and pay slips 203 Using BACS to pay employees 203 Paying payroll liabilities 205 Determining how much to remit to the HM Revenue amp Customs 205 Adjusting a payroll liability 206 Creating a cheque to pay
207. ing the index 90 finding your backup file 103 firing an employee 196 printing P45s 196 fiscal year 101 adjusting for mid year QuickBooks start date 56 flowcharts 85 follow me help 89 closing 89 fonts forms 99 fonts changing on reports 94 foreign currency seemulticurrency Index 247 forms described 87 printing alignment 117 freight charges item for on invoice 32 fuel scale charges paying VAT for 132 G GAYE Give as You Earn payroll items for 170 Give as You Earn payroll items for 170 group items compared to subitems 34 creating 40 description 33 uses of 45 using to hide details 46 H hardware requirements for Timer 241 help 89 123 help 90 closing help window 89 F1 key 90 follow me help 89 how do I menus 90 index 90 onscreen 89 opening help window 89 QuickBooks professional advisors 6 QuickBooks Tutor 91 resetting help windows 89 hiding items in lists 86 hiding and showing details on sales forms using group items 46 employees 197 items 49 historical transactions 52 entering for payroll 53 locking after remitting VAT 140 HM Customs amp Excise receiving VAT refund 136 holiday time accrual period and hours entering on employee defaults 179 employees setting up for 180 entering 180 payroll item 170 year to date entering 189 hours worked entering on payroll payments 200 how do l menus 90 Icon bar 85 IIF file
208. ing with problems caused by ret employee retrospective changes rospective changes of employee infor mation Chapter 7 Payroll and employees Printing payroll cheques and pay slips Tip You can print all your payroll cheques at onetime but you must print them separately from other cheques Set up your printer for payroll cheques the same way as for other cheques in QuickBooks For information about aligning payroll cheques or pay slips see Solving printing problems on page 116 If you don t print payroll cheques with vouchers e g if you pay through BACS or Giro you can print pay slips for your employees instead from the same screen the Select Employee to Pay window Like payroll cheques pay slips provide all required legal information including m Employee s full name address and National Insurance number m Pay period start and end dates m Salary or hourly rate and hours and gross pay for the pay period Ci Deductions from and additions to the gross pay including income tax with holding or exemptions Net pay m Accrued sick and holiday time used and available if you have chosen to print them in the Payroll amp Employees preferences m Payroll year to date amounts for all items used to calculate payroll payments in the current payroll year m Current NI and tax codes To select what information appears in voucher payroll cheques and full page pay slips click the Printing Preferences button
209. ing your company file condensing data Chapter 4 QuickBooks basics Reconciling bank and credit card accounts You should plan to reconcile your bank current savings and deposit accounts and credit card statements on a regular basis to make sure your records agree with the bank s Situation You haven t reconciled these accounts for a month or more You added earlier transactions in Quick Books You are reconciling for the first time You cancel in the mid dle of reconciling 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 QuickBooks through your most recent statement 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 recon cile forward only that is reconcile months after your start date Use the previ ous months data for reporting only You need to mark all older transactions as cleared to reconcile future months 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 QuickBooks keeps track of the items you ve marked as cleared with an asterisk in the cleared column of the account
210. installed on it or you can download the update to one computer on your network and share it for example if one or more users don 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 exit the programme to install the new version To share updates you need to be sure that all your users can access the location on your network 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 Finally all QuickBooks Pro users on your network must complete the following steps To change the download location Open the shared company file From the File menu choose Update QuickBooks Click Options In the Options windows click ON for the Share Download option Click Save URWNE Updates from a CD ROM If you don t have Internet access you can have an update mailed to you on a CD ROM subject to availability and fees may apply For more information contact Customer Service see page 261 When you receive the CD install the update as you would install any other software Before installing from a CD 1 Ensure your QuickBooks licence key is recorded somewhere safe We ve provided a space for you to record your licence key number on the sec
211. it a GENJRNL summary transaction How condensing data affects your reports Account balances After you condense your data you can still create reports that summarise financial activity for the period of time you condensed For example if you condense the last financial 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 suppliers over that period of time Asaresult the totals for sales revenue on VAT liability reports will be incorrect As a precaution QuickBooks creates a backup file in 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 Thisis because QuickBooks has deleted the individual transactions that would have provided the information about whether transactions were paid Asa result the totals will be incorrect To learn about Search the Help index for Condens
212. item Deposit Partial Payment final 0 00 1 000 00 amou nt from amount due upon completion the invoice ome Thank you for your VAT TOTAL 366 63 total essa business Total 1 941 63 You can set up a payment item so that it automatically deposits the payment directly to a current 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 pay ments 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 is not the only way to record a payment For some types of payment you 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 QuickBooks assumes sale is fully paid Summary of payments by method for Use sales receipt to summarize the daily sales Enter a differ daily sales summary ent payment item for the summary of each payment method Payment from customer to pay out Enter payment in Receive Payments window Indicate which standing invoice or statem
213. iting our Web site http Awww QuickBooks co uk Note that to use QuickBooks payroll features an active subscription to the Payroll Service An Internet connection is strongly recommended Or ring Within United Kingdom 0845 606 2161 Monday Friday 9 00 a m 5 30 p m English bank holidays excluded Outside United Kingdom 44 870 609 0601 Renewing QuickBooks Small Business Payroll Renewing by fax 0845 601 1571 QuickBooks will remind you when you should renew your payroll subscription As this date approaches we will send you a form which you must complete and fax to us in order to renew your payroll subscription You can also renew by phone if you like Within United Kingdom 0845 606 2161 Monday Friday 9 30 a m 5 30 p m English bank holidays excluded QuickBooks Technical Support If about QuickBooks eXceed support To sign up for this support plan Ring Within United Kingdom 0845 606 2161 Monday Friday 9 00 a m 5 30 p m English bank holidays excluded Outside United Kingdom 44 870 609 0601 Intuit Contact Information 261 262 Appendix A Contacting Intuit
214. its area and enter the amount of the tax credit you paid this period Enter the remaining amount in the YTD summary for the next period e if youarestill paying thetax credit to the employee enter it in two places inthe YTD window select the Tax Credit payroll item in the Addi tions Deductions Employer Contributions and Tax Credits area and enter the amount of the tax credit you paid up to your QuickBooks start date Open theemployee record from the Employee list select the Payroll and Compensation Info tab and select the Tax Credit payroll item from the Additions Deductions Employer Contributions and Tax Credits table In the Tax Credit Details window that appears complete the Up to dateinfo section see Adding a tax credit payroll item to an employee s record in the online Help for more details m Employees only In the NI from P11 area break down the employee s earnings according to the NI Lower Earnings Limit LEL Earnings Threshold ET and Upper Earnings Limit UEL for each payment in this period The P11 form that you created for this enployee with your former payroll system should provide this information Check Columns 1a 1b and 1c in the End of Year Summary section If an employee changed NI codes during a payroll period prior to your Quick Books start date you need to enter a year to date entry for each NI code change For example if an employee s NI code changed from an A to
215. k a help question amp l5 x Date QE Previous BP Next BH Print 03 31 2003 m Entry No 9 Qh History Journal Z Reverse v Autofill Memo Show on VAT reports You need to specify a Account Exchange Gai Denmark A R Debit Credit 100 00 VAT 100 00 VAT Amount Memo Name Cranberry s customer name when a journal otals 100 00 100 00 transaction is Amounts In GBP Did you know that you can easily create invoices from estimates Exchange 1 Re United Kingdom 7 Home Currency Adjustment entered for an Save amp Close Save amp New Clear A R account or supplier name for an A P of that account account When making a home ET Debit rar Credit VAT VAT Amount Memo Name id currency adj ustment US A P 40 00 0 00 Exch Vendor create a fake customer oF supplier to which you can assign unrealised gains amp losses 4 Create your net worth reports 5 Reverse the General Journal entry to remove the unrealised gain or loss from your books 156 Chapter 6 Doing business internationally Realised Gains and Losses A gain or loss on a foreign transaction because of changes in the exchange rate becomes realised once the transaction is paid either partially or in full When you close the transaction QuickBooks compares the value of the for
216. ken After you have converted your Quicken XG data file to QuickBooks you ll notice the following changes m Thelnvoice Items list is converted to the QuickBooks Items list Each existing Invoice Receivables account is converted to a QuickBooks Accounts Receivable account of the same name Existing invoices are converted to QuickBooks invoices However they will appear in chronological order m Transactions linked to a customer remain linked AN About payments credit memos and refunds Converted Quicken payments are always applied to the customer s oldest out standing invoice so the payment links to invoices may be different after con version 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 76 Chapter 3 Importing and exporting data Should you continue using Quicken for some things QuickBooks does not change your original Quicken file in any way as it imports information from it in to QuickBooks nor does it create any connection between it and your new QuickBooks company file You can continue to use your original file with Quicken Onceyou re using QuickBooks for your business you ll probably want to continue using Quicken for your personal finances and investment accounts AN You cannot use online banking for an account in QuickBooks If you track the same accountin both Qui
217. kitchen remodels with office remodels Do this in QuickBooks Set up and use jobs for the customer on the Customer ob list When entering or editing a customer assign a customer type When entering or editing a job assign a job type Examples of reports to use Sales by customer summary which shows each job sepa rately 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 Decisions to make before you start 15 Do this in QuickBooks To do the follow ing Examples of reports to use The following reports always break down amounts by cus customer or job tomer If you have jobs they enter the customer also break down amounts by name or the cus job Sia lrg Profit amp loss by job name in the agii J ob profitability Customer ob field QuickBooks Pro and higher only Profit amp loss budget vs actual Assign expenses to a cus tomer or to a particular job for a customer On every expense transaction for that Reports that measure profitability The value and performance of your company can be summarised 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 th
218. ks copy for your files You can only print the P35 after you review and print your P14 P60 forms review the P35 form and complete the Checklist and Employer Declaration 1 On theProcess Payroll Year End screen click Print P35 Form 2 Ifyou are filing your P35 online use the P35 for your records only If you are still filing paper reports use the figures on the form you have just printed to fill in a blank P35 Employer s Annual Return form You are now ready to start filing your End of Year return online Chapter 7 Payroll and employees Filing your payroll year end online Filing online means sending information directly to the HM Revenue amp Customs computer instead of sending a paper return Filing PAYE year end returns P14s and P35 data online will soon be mandatory for all enployers From May 2005 employers with 250 or more employees are required to fileonline Employers with between 50 and 249 employees must start online filing by May 2006 but you can start in 2005 if you wish If you have fewer than 50 employees you do not have to start online filing until 2009 2010 but if you start earlier you can get a financial incentive from HM Revenue amp Customs You qualify if you send your P14 and P35 data online and the return meets the HM Revenue amp Customs Quality Standard You will not qualify if any part of your end of year return is sent on paper or using magnetic media The tax free incentive becomes available
219. l Help To learn about Search the Help index for Changing date ranges Customising a report Adjusting adding or deleting columns on a report Tailoring the data in the report filtering Changing headers and footers reports dates in report customisation report customisation columns reports changing the scope of report customisation headers Getting information about your company 95 W hat does Other refer to on reports If you use subaccounts subitems or jobs then sooner or later you will see the word Other on areport ae Profit amp Loss Accrual Basis March 2003 o __ March 2003 Ordinary Income Expense Income Labour Fitting gt 3 085 00 Plumbing 41 677 00 Labour Other 540 00 Total Labour 5 302 00 The 540 00 expense for Labour Other is for the Labour 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 thereis a transaction 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 Tip To remove the Other line or column on a report double click its monetary amount to see the transaction and adjust it When QuickBooks displays a report
220. l and to whom Each item that you sell is associated with an income account This association allows QuickBooks to provide useful sales and income reports ChBirs Oak chair Tables Oak table Oak table Customer ithank you For your N Message business VAT TOTAL 44 Chapter 2 Setting up a new company You ll have separate items not only for each service rendered and each product sold but also for discounts markups VAT 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 first subtotal line shows atotal for all materials The second subtotal shows a total for all labour The second subtotal also 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 Description Qty Rate VAT VAT AMT Amount Chairs Oak chair Oak chair Tables Oak table Oak table Rressers Oak ve Oak Welsh Work Tops Gra Granite worktop Work top The third nean subtotal line adds up the two 15 0 E l 149 25 j previous Message busines
221. l payment you can review it at any time Review ing a payroll payment 1 From the Lists menu choose Chart of Accounts 2 Select the current account you use to create the payroll payments 3 Click the Activities button at the bottom of the Chart of Accounts window then choose Use Register 4 Locate the payment in the register m Pay cheques have PAY CHQ in the Type field m BACSsupercheques have PAYROLL in the Type field 5 Select the payment then go to the Edit menu and m if paying by cheque select Edit Pay Cheque m if paying by BACS select Edit Payroll Cheque A BACS supercheque appears listing all enployees that were paid with this payment Click the View Payments button 6 QuickBooks displays the Payment window This window is similar to the Write Cheques and Bill Payments windows but has a Summary section instead of a voucher If viewing a BACS payment you may have to click Previous Next to scroll to the payment of the employee you want to view Window Pay Cheque Natwest Current Account ol xi previous Next lt YPrint Ty ristory E Journal The Payment Summary Bank Account B arclays Current Account gt Ending Balance 15 288 05 sectio n sum mare ses earnings additions No To Print i Date 31 03 2000 m taxes withheld and Pay to the Order of Carol L Walker 1 709 83 deductions One thousand seven hundred nine and 83 100 Dollars It also displ ays the pay Carol L Walker period end date and the The
222. l you have received a return dialogue indicating that your transmission has been successful has timed out or has failed This message does not indicate that your online return is without errors It simply means thereturn has been received by HM Revenue amp Customs s computer If HM Revenue amp Customs has your email address on file they will also send a confirmation email You can update or add an email address to your details by logging in to the HM Revenue amp Customs Web site At busy times the online confirmation messages may be delayed so HM Revenue amp Customs recommends that you provide an email address When you registered to use PAYE Online for Employers you were given a User ID a password and a secure mailbox You can get to your secure mailbox by going to lt https online inlandrevenue gov uk gt keying your User ID and password into theLogin boxes and clicking on View your noticesand reminders It isimportant to remember that unless you have opted out of using your secure mailbox HM Revenue amp Customs will send all messages regarding your account to the secure mailbox If you have made any errors you ll receive an error message Immediate error messages are displayed on your screen at the end of the onlinefiling process Print out these messages and make the necessary adjustments before re trying to file online Error messages from HM Revenue amp Customs may appear somewhat cryptic but they include the info
223. laying the navigators navigators Getting around in QuickBooks 85 To learn about Search the Help index for Displaying and using the Open windows list of open Window list Showing hiding or customising items on desktop the QuickBooks desktop Using lists forms and registers To re sort the list by name or type click the column header When you reworkingin QuickBooks you ll soend most of your timeusing aform alist or a register Since these are the basic elements to QuickBooks take a few minutes to become familiar with them Using lists Lists store information about customers suppliers employees items or services you sell and so on They save you time and help 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 CustomerJob list QuickBooks then fillsin the customer s name address payment terms and other information This list includes each A Customer Job List Ask a help question mex customer and job and LA Balance Notes Job Status their outstanding E EIR balances Name lt a oCranberry s Elizabeth Allen Franklin Guest House You Can create notes on An X beside SS iini Room i an item means Residents Dining Room many lists ARE ie e Hartley Furnishings Ltd it is
224. le a seure backup of your datafile hefore Fling Gniire This wil allow you tn resteer your file to this poirt F there are eny oroblems You can create a bachup by selecting Bach Up trom Uhe File menu Do you want to review your data or create backup before cortinuing with the Onine Ping D te He process Usethis checklist to ensure that you are ready to file You can only file once so it is important to ensure all your end of year data is correct m Ensure your P35 form is correct to the best of your knowledge If you need to review your data choose Yes in the Warning dialogue box and fix your data then back up your company file Click help for instructions on reviewing data m Make sure you have created an End of Year backup file of your company of payroll End of Year in aseparate place from your routine backups and or with a different explanatory filename If you have not created a backup choose Yes in the warning box and create End of Year backup then resume m If you have changed any data print your P35 form again and file it securely These safeguards are important because at present P35 amendments must be filed on paper If you adjust the figures in QuickBooks to create a new P35 form you will not have access to the figures used to create the form you are printing now You will need to compare the new data with the data in this form to create an amended P35 If you want to take maximum precautions it i
225. lify for SER also tracks the NIC compensation amount SSP Recovery Statutory Pay Tracks the Statutory Sick Pay recovery amount Recovery that is used to reduce the total liability payments If you qualify for SER also tracks the NIC com pensation amount Online Filing Rebate Online Filing Rebate awarded from HM Revenue amp Customs if Rebate you electronically file your 04 05 end of year pay roll forms before the mandatory date Setting up your payroll items 171 Creating new payroll items Payroll item type Wage As you set up your payroll system you will need to create new payroll items to match the way 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 Use for Use Salary Wages for compensation to employees or directors whose annual salary is independent of the number of hours actually worked Use Hourly Wages for compensation based on the number of hours worked Use Commission for compensation based on a percentage of another quan tity such as sales volume or a flat amount multiplied by another quantity such as units sold Add ition Any addition to gross or net pay such as a bonus Deduction Any deduction from gross or net pay Examples include union dues loan repayments employee deductions for pension schemes or e
226. lify for SER make sure you tick the SER check box because the calculation that QuickBooks uses to determinethe recovery amount is different Getting information about your payroll 225 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 employee and for the whole company for a single payroll period The gross pay includes commissions bonuses Geer bee qj Fem boar Sj te ween W eg he and additions to gross i cart oes Grangeworth Kitehens Basic Ltd This represents the nern Payroll Summary total payroll expenses Fobawsry 7009 P i mth om h Cette not including the tees T employer portion for employment taxes and other contributions The adjusted gross pay 1 equals gross pay minus deductions from gross paad issos Pa Alseta a oes Faw leses wate te ard b E gee yes ret saets maet an I tmgteyes Prite hta lane Withee a fet Pew iene impyn Tere mwi oem Saa For taxes and employer A n contributions the amounts are liabilities accrued during the period Vota Ceaptoyes Tasen ond Comme entoms eae Ue oe You can change the date range to cover this year to date last quarter or any period you want 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
227. 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 QuickBooks 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 suppliers transactions etc for your company QBB A compressed backup of your company file 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 80 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 books in the QBX file you provided You merge the information from this file back into your regular company file QBW 96 Chapter 4 QuickBooks basics Cash Flow Projector Use the Cash Flow Projector to prepare a six week view of all your incoming and outgoing cash to give you a detailed summary of any excesses and or shortages of cash The Cash Flow Projector guides you through a step by step process that helps you combine your existing QuickBooks data with additional cash flow information you provide such as future business expenses and projecte
228. ls from one currency at atime 1 From the Suppliers menu choose Pay Bills 2 Inthe A P Account drop down list select the A P account that matches the currency of thebill you want to pay For example if you are paying a bill from a Canadian supplier select your Canadian A P account You can only display Bees bills in one currency at atime The currency is determined by the A P that is selected In this case we ve selected a Canada A P account thus the bills listed here are from Canadian suppliers amp Pay Bills Sort Bills By Due Date x Exchange Rate 0 428199 Ref No Amt Due Credits Used Amt To Pa 759 00 6 0 00 1 852 80 2 611 80 p Credit Information for Highlighted Bill Number of Credits Vendor Canadian Toys Co 0 Bil Ref No Total Credits Available Can 0 00 U p date the _ Sotobil Set Credits exchange rate S el ae th e a ali i Payment Account Payment Method r Payment Date If th e exc h an g e rom which the Cumert Account gt Tobe printed I En z a oaroi2007 rate changes pay ment will be taken Ending Balance 25 004 75 a C Assign cheque no mele a between n e time If the bank account is not foreign QuickBooks calculates the amount in the home currency that is to be withdrawn using the exchange rate Q Clear Selections Pay amp Close Pay amp New Clear you entered the bill from the time you pa
229. m 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 items hiding and showing list and drop down lists in Item fields Making hidden items visible on the lists hiding and showing Item 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 accountsis completeand that it accurately represents how your business 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 Tip 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 54 AN 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
230. m three sources m Investment of capital in the business by the owners m Net profit from operating the business during the cur rent accounting period m Retained earnings or net profits from earlier periods that are carried forward into the current tax year and that have not been distributed to the owners Decisions to make before you start 9 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 One of the first things you should do when you open a business is open a business current account If you have multicurrency turned on the Chart of Accounts also shows the currency denomination of the account For more information on multicurrency see Doing business internationally on page 145 Current Account Accounts Receivable Accounts Payable Payroll Liabilities VAT Control Opening Bal Equity Retained Earnings Fee Income Design Drafting Mech Prep Photo Printing Production Reimbursed Expenses Bank Service Charges Books and Publications Activities Y Fu Chart of Accounts Oj x Name Type AT Balance Bank 34 215 00 a Accounts Receivable 4 826 90 Bl Accounts Payable 1 420 18 Other Current Liability 0 00 Other Current Liability 509 59 Equity 34 215 00 Equity Income ncome Income ncome Income ncome Income ncome Expense Expens
231. me worked 241 242 Chapter 8 Time and cost tracking Index If you don t find the topic you are looking for here try the QuickBooks Help From the QuickBooks Help menu choose Help Index enter the keyword and press ENTER Sym bo S accounts types AIF 96 QBA 96 QBB 96 QBW 96 QBX 96 Numbers 123 help 90 A account numbers chart of accounts 51 accountant s review feature 80 82 accounting accrual 7 annual 124 cash basis 7 quarterly 124 accounting period choosing 124 accounting software transferring data to and from QuickBooks 78 accounts affecting during payroll setup 191 creating 54 editing 52 foreign 148 numbering 52 opening balance for 54 payroll 168 Quicken equivalent of 74 accounts payable 9 accounts receivable 9 asset 9 balance sheet 8 bank 9 credit card 9 equity 9 fixed asset 9 liability 9 long term liability 9 non posting 8 other asset 9 other current asset 9 other current liability 9 accounts working with alphabetical order 51 automatically created accounts 8 items choosing for 28 names changing 51 numerical 51 opening balances changing 51 payroll 168 reconciling 107 reorganizing order of 51 accounts payable account for 9 converting from Quicken 72 foreign 148 historical transactions 52 accounts receivable account for 9 after converting from Quicken 71 foreign 148 his
232. mple cheques written afew months ago but not cashed until recently m Deposits you made before your start date but which didn t appear on state ments 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 Final steps to complete your setup 53 To learn about Search the Help index for Entering information in account regis registers entering transactions in ters Complete your customer supplier and item information Note Adjusting During the Interview you entered information about customer and supplier open balances Now you need to enter more information such as addresses phone numbers and credit limits though it s not necessary to enter thisinformation for all customers and suppliers at once If you use QuickBooks Pro or higher and ACT or Microsoft Outlook you can synchronise information about customers and suppliers such as addresses and phone numbers from your contact manager so that you don t have to re enter it To learn about synchronising contact information search the Help index for contact management synchronising The Customer Manager also does all this and much more Call Intuit to learn how the Customer Manager can save you time and m
233. mployee paid insurance Employer Contribution Any employer paid benefit or expense that you want to track with each pay roll payment Examples include employer contributions to a pension scheme Attachment of Earnings Order A deduction from an employee s gross pay ordered from a court to pay down an employee s debt 172 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 be more than 2000 the amount of the loan As you create the item in the wizard you should Confirm that the expense and liability accounts assigned to it meet your needs and change them if you need to Choose whether to track the payroll item on P14 P60 forms if it s an addition deduction or employer contribution If you re not sure which taxes should be affected by a payroll item check with your accountant or HM Revenue amp Customs To learn about Search the Help index for Changing the name of payroll items payroll items editing Adding payroll items payroll items adding Chapter 7 Payroll and employees Payroll items and expenses An expenseis similar to a debt except that you pay the expenseas soon as you owe it Common employer payroll expenses include gross pay e g wages before taxes employer paid payroll taxes e g the employer s part of National Insurance
234. mprove the performance of QuickBooks When you condense data you specify an ending date for the period of time you want to condense Transactions dated after your selected ending date are not affected For example if your ending date is 31 12 03 all transactions dated 1 1 04 and later remain intact in your company file When you condense your company file QuickBooks deletes only closed transactions Open transactions are retained Therefore to give unpaid bills and uncleared transactions sometime to complete it is best to choosean end date that is six months or more in the past If you select Remove ALL transactions QuickBooks deletes all transaction regardless of dates 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 file in March 2003 QuickBooks would not condense payroll data from 2003 or 2002 It would condense payroll transactions from the date you started using QuickBooks through to 31 December 2001 You must keep the archive file the Condense function creates in case you need to refer to your payroll transactions during an audit As a business owner you are required to 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 r
235. n groups in Quicken look in your Quicken documentation Memorised transactions from Quicken accounts payable will not work properly in QuickBooks accounts payable You should delete these before you convert your data To learn about Search the Help index for Transactions group in QuickBooks memorised transactions grouping together Converting data from Quicken 67 M ake customer names consistent When you convert to QuickBooks the namesin 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 G Miller you should edit these names in Quicken before you convert so that the customer goes by only onename If you use online banking In Quicken you can bank online with participating financial institutions However online banking at this time is not supported in QuickBooks An account that was onlinein Quicken will not be online in QuickBooks When imported the account will become anormal bank account in QuickBooks Converting your Quicken file to QuickBooks 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
236. n the YTD Amount column Note The negative sign will not be displayed on screen regardless of whether you have paid them yet Enter separate amounts for the employee and employer portions of National Insurance QuickBooks uses the separate amounts to track totals for employee withholding it uses both portions to track your total payroll liability Enter all tax liabilities created because of compensation paid even if the amounts were paid later or were employer expenses If you have refunded an employee more income tax than you have withheld enter the difference as a negative amount If you track employer paid expenses such as insurance as a payroll expense for each pay period you must type amounts for the employee so far this payroll year in this window Later in the setup procedure you must also enter the amounts actually paid so that QuickBooks can keep track of how much you still owe Summarising amounts for the year to date 189 m If your employees have tax credits enter them as follows e if you both started and finished paying the tax credit in this period select the tax credit payroll item in the Additions Deductions Employer Contributions and Tax Credits area and enter thetotal amount of thetax credit e if you started paying the tax credit in this period but finished it in another period select the tax credit payroll item in the Additions Deductions Employer Contributions and Tax Cred
237. n to select everyone on the list Ticks appear in these columns as you review and print employees P14 P60 forms New legislation states that payroll End of Year forms P14 and P35 must be submitted online The date on which you must comply depends on the number of employees you have Small employers who choose this option early are eligible for financial incentives Complete information on filing online including incentives schedules deadlines and how to register is availablefrom HM Revenue amp Customs Registering takes time so begin this process well before the deadline Note If you began using QuickBooks to manage your payroll during this payroll year and you entered year to date information for any employees make sure that the YTD entries are complete before going on 212 Chapter 7 Payroll and employees Creating and review ing P14 P60 forms You must create a P14 form for HM Revenue amp Customs for all employees who worked for you in the year and P60 form for each employee who is still with you as of the end of the payroll year 5th April QuickBooks can now send your P14 and P35 forms through the Internet Note If you choose the filing online feature for the P35 and P14s the P14s for ALL your employees will be sent at once In the current implementation of QuickBooks you can only file once You cannot file in batches or by selecting individual forms and you cannot file your P14s without filing your P35
238. nd 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 automatically 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 auto matically 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 pound amount totals Chapter 2 Setting up anew company Items for If you re still not sure you need items Here are some examples of businesses or organisations that use items m Rebecca is the bookkeeper for a country club where members sign for meals drinks and fees and receive a statement at the end of the month Rebecca uses items in 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 contra
239. nd employees Working Sheet 2 tab Add data to each box if required Important You hadi modiy the data D each box as segaret Hatutery Papmerts Recovered mt thant fo eh NK compensation on SMP To oy te NK compensation on PP g oo Statutory Adoption Pay SP recowered 10 00 NEC compensation on SAP 0 00 NOC Pobhary dames fo oo Total of bones wwf ainas Rie Ey bay SPIP See Tax Credits Total tax Cred pado FT emphovees Funding recerved from 38 89 55 bay Tax IMPORTANT If you adjust these figures you will have to make a manual adjustment to the NICs and Tax Paid figure in Box 29 on next tab Working Sheet 3 Also if you received advance funding from HM Revenue amp Customs to pay statutory payments include the amount received in Box 22 Working Sheet 3 tab Click Help for comprehensive instructions on how to make sure that the amounts in Boxes 13 through 22 are correct They cover SMP SPP SAP recovery and amounts recovered through Small Employer s Relief Enter the recovery and NI compensation portions in the boxes shown Boxes 24 and 25 are for tax credits paid and funding received and Box 26 is the net On the next tab Box 27 will show the total amount of statutory payments recovered and net tax credits paid QuickBooks carries forward the totals from Working Sheet 2 but if you have made changes on Working Sheet 2 enter the differences manually where necessary Your tax payable am
240. nd is 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 customising 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 wish However only five users can access the company file at the same time in QuickBooks Pro and higher In Windows 2000 using the Users and Passwords control panel you can set up each of your employees with a log in profile All the people who will use QuickBooks must be set to Standard User Power Users Group or higher not Restricted User Users Group Otherwise QuickBooks will not run properly When the wizard finishes asummary screen for all your users appears Working with multiple users 113 114 Set up user password and access x Access for user Richard Page 9 of 9 You have finished setting this user s access rights and password Below is a summary of this user s access rights Click the Finish button to complete this task Area Sales and Accounts Receivable Y N N Purchases and Accounts Payable N N Current Account and Credit Cards Y N n a
241. nd other payroll overhead by job class and type of work 234 Chapter 8 Time and cost tracking Using the Timer Using the The QuickBooks Pro Timer is designed to track and record time data which you can then export to QuickBooks Pro or higher Use the Timer when you want to gather time data from people who don t have access to QuickBooks but do have access to a computer For moreinformation on using the Timer to track employees time seethe online help in QuickBooks and the help that comes with the Timer programme For information on installing the timer see Installing the QuickBooks Pro Timer from the CD ROM on page 7 You can also create Timer install disks to give to those employees who want to track their time using the Timer To create Timer install disks Create Timer 3 5 inch floppy install disks for those enployees who need to time their activities but do not havea copy of QuickBooks m FromtheWindows ister menu select Programs QuickBooks then Create Timer Install Disks Follow the on screen instructions Once you have created the disks give them to your employees along with the QuickBooks Pro Timer Reference Sheet on page 240 This sheet explains how to install the Timer Stopw atch in QuickBooks to track time The Stopwatch isa feature available within QuickBooksthat can also record timed activities Use the Stopwatch on the Time Enter Single Activity window in QuickBooks Pro when yo
242. ne payroll before or has not issued any payroll payments this year You are ready to start creating payroll payments If you re just starting to use QuickBooks for payroll and you ve already issued payroll payments for this payroll year you need to m Enter year to date YTD information to summarise your payroll transactions from 6 April the start of the payroll year through to your QuickBooks start date For an explanation of start dates see Determining a start date on page 18 You will need asummary of the payroll transactions for each employee and also one of any payments you ve made for your payroll liabilities to HM Revenue amp Customs Enter your payroll transactions payroll payments and liability cheques for the period between your QuickBooks start date and today A wizard helps you enter your year to date YTD information To start it go to the Employees menu and select Set Up YTD Amounts QuickBooks updates it as you issue payroll payments during the remainder of the payroll year to keep your payroll tax amounts correct The YTD wizard isnot meant for entering information from an employee s P45 form which belongs in his or her employee profile or record See page 180 for more information Entering year to date summaries for each employee 188 For each employee both current and former you paid during the current payroll year you must enter a summary of his or her earnings and the amounts you deduct
243. need to it s much eas ier to make changes before you start entering transactions 50 Chapter 2 Setting up anew company You can fine tune your chart of accounts at any time to do the following You can add subaccounts to balance sheet accounts for example fixed asset m Add new accounts or subaccounts 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 a number 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 same type 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 conversely move a subaccount 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 a new account QuickBooks places the new account above the other accounts of the same type To learn about Search the Help index for Adding new accounts or subaccounts Turning on account numbers Changing account names or numbers Changing or entering an opening bal anc
244. next set of forms select the correct type of form and click Print P60s again until you have printed all the copies you need f Note If you ordered forms from HM Revenue amp Customs photocopy either the PAYE or NI copy of all P14 forms for your records 4 Distribute the forms m Usually HM Revenue amp Customs receives the P14 sections and the employee receives the P60 section If amounts appear to be incorrect or missing on your P14 P60 forms check the alignment of the forms in the printer If the alignment is not the problem check that your payroll items are set up correctly for P14 P60 tracking Chapter 7 Payroll and employees Note Review ing the P35 form After you print your P14 P60 forms you also need to review and print a P35 to summarise the individual P14 P60 forms QuickBooks calculates the amounts for the P35 by adding up the amounts on theall of the P14 P60 forms It isimportant to remember that while you can adjust and reprint these forms before you file online you can only file online once successfully Once you successfully file your return online adjustments will haveto be made manually and submitted on paper forms to HM Revenue amp Customs That is why you need to take this opportunity to carefully review all the data in your P35 form 1 If you are not already in the Payroll Year End window from the Employees menu choose Process Payroll Year End Otherwise click Review P35 2 Review the four t
245. ng a P11 Deductions Working Sheet report below 4 Create and review a P14 for each employee who worked for you during the tax year and print a P60 for each employee who is still working for you at the end of the tax year See Completing your payroll year end forms on page 212 QuickBooks can only print on portrait format forms 5 Enter any annual calculations you need to make including directors end of year reassessments 6 Test the printing alignment by printing a sample form and make any adjustments that are necessary see Solving printing problems on page 116 if you have trouble 7 Print the forms see Printing P14 P60 forms below 8 Distribute the P60 section of the printed forms to employees and file your office copies If you are filing a paper return send HM Revenue amp Customs the P14s 9 Review P35 data see Completing your payroll year end forms on page 212 10 Print a P35 summary report for your files 11 Complete the Checklist and Employer Declaration 12 QuickBooks can now submit your End of Year P14 and P35 forms online to HM Revenue amp Customs see Filing your payroll year end online on page 219 If you are not filing online use the data in your printed P35 to fill in a paper form Chapter 7 Payroll and employees Creating a P11 Deductions Working Sheet report I Print all linked documents QuickBooks can create and print the P11 Deductions Working Sheet whi
246. ng information for payroll items m Payroll item name m Account s assigned to it liability or expense m Tax tracking type Changing the following information affects future payroll payments only m Whether it is calculated on Gross Pay or Net Pay m Payroll taxes affected for additions to or deductions from gross pay m How the item is calculated on the payroll payment for example ticking or clearing the Based on Quantity option To learn about Search the Help index for Changing payroll item payroll items editing information em ployee information You can change an employee s personal or payroll information whenever necessary The changes will affect all future payroll payments you create for him or her Changes you make to an employee s name address and National Insurance number are also reflected in previously written payroll payments but do not affect any of the amounts on those payroll payments The following types of information must be changed individually for each affected employee Changing the payroll item doesn t affect the employees who use it m Annual limits for a deduction m Rate or amount changes for a deduction addition or employer contribution 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
247. nk you ll need to open one online banking financial institutions Submit an application for online bank ing to Barclays Bank 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 Barclays Bank online banking setting up When you receive your confirmation and a PIN password from Barclays Bank 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 typethenameof 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 Setting up online banking account access and payment
248. nse account Ifyou do not havean Import VAT expense account select lt Add New gt to create one now Type S in the VAT code column Enter the entire amount of the VAT in the VAT Amount column Click Save amp Close Deferment arrangement If you havea deferment arrangement HM Revenue amp Customs will collect import VAT from your bank account by direct debit and send you a C79 certificate at the end of the month detailing the VAT they have collected To record import VAT paid by direct debit 1 2 3 4 From the Banking menu choose Write Cheques Enter a chequein your current account for the amount of the import VAT as shown on the C79 certificate Leave the account column blank Type S in the VAT code column and the entire VAT amount in the VAT Amount column Click Save amp Close Setting up and using VAT codes 131 Handling fuel scale charges QuickBooks can easily handle the VAT you must pay if you have employees for whom you provide fuel for business and private use For each VAT period you should calculate the output VAT that is due using the fuel scale charge table provided by HM Revenue amp Customs We recommend you use a spreadsheet to do this To record VAT on private fuel 1 From the Banking menu choose Make Journal Entry 2 Fill out the end date of your VAT period and an entry number 3 On thefirst line choose the account you use to track fuel benefits then enter the total inclusive of VA
249. nt clear the box and set up the purchasing unit the same way the selling unit was set up Purchasing Unit M Same as Stocking I purchase this item by Association to Stocking l E Once a transaction has been created using this item units of measure cannot be changed 4 Click OK 36 Chapter 2 Setting up anew company Using items that have different units of measure on forms Once units of measure are set up for an item the item 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 Bills When entering a bill an item s purchasing unit is shown If we were to cite the example shown above you d see that the purchasing unit for Soda Pop is a case QuickBooks understands this to mean 12 cans as defined by the item s selling units of measure F Amts inc VAT Expenses 0 00 Items 3 53 Cost _ VAT Net Amt VAT Amt Customer Job Ey 3 00 pa 3 00 osa ltem Q wit Dezenpbon Rate Amourk WAT Invoices a t50 150 15 When that same aon 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 of soda that you usually purchase by the case you could enter 0 5 or 1 2 a fraction value on your bill
250. nt to assign a VAT code Click the Additional Info tab Tick the Use customer VAT code check box then select the VAT code you want to assign to this customer Click OK To learn about Search the Help index for Turning on the Customer VAT Codes VAT codes turning on Setting up customers customers adding new Chapter 5 Tracking and paying VAT Using VAT codes on sales and purchases Once you have assigned VAT codes to the items you sell and buy and assigned customer VAT codes to customers with special VAT status QuickBooks automatically applies the correct VAT as you fill in forms If you need to apply a different VAT codeto an item you can still select the item s VAT code from the form G Create Invoices Accounts Receivable Ask help question Ask How Do I AmE Grens Poe G ea A R soola a oy E ours KG tmeicows Customer job Wholesale Temple Customise Anouk ctta Kachens gt kus ts Receivable xj Inbut Prodat Invoke Y Invoice Iervoice No 03 09 2008 2 The VAT code that is Inveciers To being applied to this item Offs Kechers Utd is shown here QuickBooks gets this code from the Item List where you can assign a default VAT code to your items 201 60 1 152 00 You can change this VAT zi code on the fly at any war TEAL 399 00 time Simply click on the _ ELAI VAT column and select a different VAT code from the drop down list To learn about Se
251. ntaining 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 Pro or higher 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 112 AN 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 delet ing your company file Some parts of your company s data are more sensitive than others You can 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 banking and credit cards stock timetracking 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 at the same t
252. nternet 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 Why 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 Payroll Service you can download the latest tax tables If you are a new user If you re new to 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 good idea to register 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 If you are an upgrader After you install QuickBooks you re prompted t
253. nu choose Memorised Reports then choose Memorised Report List 94 Chapter 4 QuickBooks basics We encourage you to explorethe extensive list of filters Your options here include filters for data you entered in your custom fields Changing the scope of 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 ii Collections Ask a help question a Be Modify Report Memorise Print Excel Hide Header Refresh Collection Services Dates Today E 03 31 2003 Past due 1 Sort By Default 10 40 AM Grangeworth Kitchens Basic Ltd ii Collections _As of March 31 2003 Medi ieuere Gollecnons Ask a help question x geing _Open Balance gt j Display Filters Header Footer Fonts amp Numbers Current Filter Choices 33 2 285 38 4 Account gt Filter Set to 13 117 50 J All accounts receivable D Account All accounts receivabld 2 187 88 al z Date Today Include split detail Ageing gt 1 no Due Date Custom O Yes Paid Status Open For detail accounts matching 1 4 099 20 4 099 20 Remove Selected Filter Account Filter Choose the types of accounts or a specific account from the drop down list Indicate whether or not you want split detail to appear in the report Balance Sheet 26 __ 376 00 accounts only 376 00 OK Cance
254. nu select Chart of Accounts and create a new expense account called Exempt Input Tax to account for disallowed input tax Making adjustments to your VAT liability account 141 142 To record exempt input tax From the Banking menu choose Make Journal Entry Fill out the end date of your VAT period and an entry number On the first line enter a debit to the Exempt Input Tax account On the second line enter a credit to the VAT Control account select the EX VAT code Also click the Input option under Show on VAT Reports as BWNE HE General Journal Entry _ oy x Previous PNext Print By History E Journal _ Input Purchase Date 2070372000 E Entry No 26 Show on VAT reports as C Dutput Sale Account Debit Credit VAT VAT Amount Memo Name Exempt Input 86 47 86 47 EX 0 00 Save amp Close Save amp New Clear 5 Click Save amp Close Eliminating VAT rounding for accrual accounting QuickBooks rounds each line to the nearest penny If you enter historical transactions this rounding may accumulate over many invoice line items and affect the total by a few pence To prepare for removing the rounding complete the following m From the Lists menu select VAT Codes and create two new codes A 100 and B 0 Don t tick the EC Code box for either From the Lists menu select Item List Click Item at the bottom of the Item List window and choose
255. ny programme m Your printer prints garbage from any programme m Your printer won t feed paper correctly QuickBooks Support also has information specific to some printers For more information look under the Help menu Nothing happens when you try to print The form There are several things you can try m Makesurethe printer is turned on and is online m Try printing from another application to verify that Windows can still communicate with the printer m 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 Select the stalled print job in the list From the Document menu select Cancel Printing 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 necessary for the standard forms that come with QuickBooks In this case you ll need to customised the form to have larger margins To adjust the margins for forms 1 In QuickBooks from the File menu choose Printer Setup 2 Choose the form you want from the Form Name drop down list 3 Click the Margins tab m If thereisno Margin tab you need to adjust the form s alignment instead See To adjust alignment of forms on page 117 116 Chapter 4 QuickBooks basics 4 5 Set the margin you want in the Left Right Top and Bottom fields Q
256. o 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 QuickBooks 2006 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 Connecting QuickBooks to the Internet 59 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 register your software QuickBooks automati cally 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 havea connection to the Internet 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 Select Use my computer s Internet connection settings to establish a
257. o that it can set up your company file Locating an advisor to help you w ith QuickBooks Tip Professional accountants and consultants can help set up your company file for you To help small businesses find these professionals Intuit manages a referral service through the Professional Advisor program The referral service connects small busi nesses working with QuickBooks with accountants or consultants who are knowl edgeable in QuickBooks The service is free you simply pay the advisors fee for specific services you need QuickBooks Professional Advisors possess the tools resources and knowledge to help you set up maintain and optimise QuickBooks so that you can manage your business better You can locate a Professional Advisor in your area by using our online referral service on our Web site at http www quickbooks co uk findanadvisor It is recommended that you select two or three advisors and ring each one to determine who would be right for your business The QuickBooks Professional Advisors Programme referral service is free The advisor you select however will provide you with information about their fees Intuit is not liable for any loss damage or expense arising in any manner out of or in connection with the Professional Advisors programme How many companies should you set up If you operate a business HM Revenue amp Customs requires that for each business you have you clearly show all sources of income and any
258. o y Done Income Tax 6 087 19 a NIC Employee not c 3 233 44 Cancel NIC Employer Accounts Affected 192 Chapter 7 Payroll and employees Entering YTD liability payments To learn about Search the Help index for year to date amounts liability payments M aking sure your payroll data is complete Because QuickBooks bases new payroll transactions on existing data it s very important that you enter all of your payroll data accurately After setting up your payroll system and entering your year to date information you should make sure that it is complete and correct Search the Procedure Comments Help index Jv for Review your The Employee list should include names of all employees reports g Employee list employees on your payroll at any time about during the current payroll year even if they have lists printing left Review your The Payroll Item list should list everything you need payroll reports g Payroll Item list to track on a payroll payment about lists printing Review an employee The report should include National Insurance num employees reports Lj contact list report bers addresses and phone numbers for all employ about ees Review your payroll You should be able to match the amounts for pay employees reports Lj summary for all roll items with the amounts for payroll accounts in about employees for this the payroll report from your fo
259. ob types 15 opening balances changing 25 payroll expenses tracking by 173 products and materials purchased for 42 L learning using the tutorial 91 leaving employees 196 printing P45s 196 lessons using the QuickBooks Tutor 91 liabilities accounts for 9 adjusting for payroll item 206 balance sheet viewing on 16 defined 16 payroll seepayroll liabilities VAT 126 VAT paying 132 limited company described 19 line items defined 44 see also items lists activating inactive entries 50 alphabetizing 51 described 86 exporting 78 item 30 reorganizing 51 sorting 31 loan amortisation only in Quicken 77 Loan Manager 97 locations tracking 14 locking past VAT quarters 114 139 login 113 long term liability accounts 9 M maintaining VAT records 138 Index 249 maintenance releases ordering from Intuit 260 manually update QuickBooks 62 margins adjusting alignment when printing forms 116 adjusting for reports lists and graphs 117 markup item prices 49 memorising reports 94 merging employee records 197 names after converting from Quicken 70 midyear setup 56 miscellaneous charges items for 40 reimbursable charges 43 modifying your Internet connection 60 mortgage amortisation only in Quicken 77 multicurrency creating a currency 152 creating POs for foreign suppliers 160 currency calculator 154 depositing foreign money 159 exchange rates 146 154 fore
260. ocess Payroll Liabilities then Adjust Payroll Liabilities Enter the date you want this adjustment to affect your payroll liability account Selecta payroll pay y Adprtmert is for C Company C Empioyee Tracey Stewart 9 Taxes ord Uebites Rab shel gehen Ask w How be I MVM wl Eilective Date 7101301 i Went Achustmert l Enter the amount of the adjustment A positive amount increases what you owe A negative amount reduces what you owe Fan Nare Aiast item to adjust noome Tax For example if the Liability by Payroll Item report says that you owe 450 but you know you owe 475 enter the difference 25 2 Optional Click Accounts Affected to select how the adjustment will affect your accounts m If your liability and expense accounts have the wrong totals as well as your liabilities the usual case you should choose to affect your accounts 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 accounts and you adjusted an amount withheld from payroll payments you need to adjust an expense account to offset the change in your liability account Type the name of the expense account you want to affect then click OK Most people choose Payroll Expenses 206 Chapter 7 Payroll and employees To learn about Sear
261. oks doesn t already track for customers suppli ers employees or the items you sell Examples Patient s insurance company item size or colour On your profit and loss statement you want to see subtotals for accounts that have something in common Example A construc tion company wants a subtotal for construc tion income for labour materials and subcon tractors How to record in QuickBooks When setting up a customer job or supplier assign a type J ob types are available only in QuickBooks Pro and higher 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 entering a sale or purchase of items Set up a custom field for tracking the particular kind of informa tion Fill in the custom field where relevant for new and existing customers suppliers employ ees or items To display and print the custom field on sales forms or purchase orders customise the form to add the new field Set up amain or parent account for the subtotal for example construction income Then set up subaccounts of the parent account for example labour materials subcontractors Use the appropriate subaccount when QuickBooks requires you to specify an account Comments You can filter a rele vant report to limit the transactions to those for customers job or suppliers of the type or types y
262. oll items see Setting up your payroll items on page 169 m Employee default setting see Employee defaults entering common employee information on page 178 m Your employees see Setting up employees on page 178 m Theemployees year to date amounts see Summarising amounts for the year to date on page 188 If you have not done so protect your company s payroll data from unautho rised access by setting up users and permissions For information about restricting access to your company file see Users and passwords on page 112 To learn about Search the Help index for Setting up payroll payroll setup required information Subscribing to the QuickBooks Payroll QuickBooks Payroll Service Service Getting the latest tax tables tax tables updating Setting payroll preferences preferences payroll Set user permissions for payroll permissions Setting up payroll an overview 165 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 to start Company W here to find it How often you pay your employees Your tax district reference number Start date for payroll Your accountant or company records Your accountant or company records Your company records Tax information The current payroll laws and t
263. ollowing payroll infor mation Chapter 7 Payroll and employees Employee record tab TaxJNt Detals Bank Detals Used to set up Click this button to set up how the employee accrues sick time and holidays This window tracks how much sick time and holiday time an employee has accrued and used This information on this win dow is not related to the Statutory Sick Pay or Advanced Holiday Payment information It is only related to the Sick Holiday accrual information Click this button to open the Taxes window where you can set up tax and NI information for an employee When entering tax and NI codes ensure that the Effective from date you enter is the date the code became effective usually the start of the payroll period and notthe date you first issued a payroll payment to the employee Refer to the following list for guidelines on setting up an employee s taxes m Tax Code if an employee starts working for you but doesn t know his or her tax code HM Reve nue amp Customs provides you with a temporary one which you can enter in the Taxes window You can find emergency tax codes under Employee gt Payroll Service gt click Tax Table If you need to enter an income tax code for an employee on a Week 1 Month 1 basis enter his or her tax code in the Tax Code field then put an X at the end for example 475LX or K325X m NI Code If an employee s NI code changes ina tax
264. omer You can track expenses by cus tomer alone if you don t use jobs The profit amp loss by job report lists both income and expenses with a separate col umn for each cus tomer and job The profit amp loss by class statement has a column for each fund monies class so you can see income and expenses by fund The payroll reports show all your payroll information If you set up custom ers and suppliers by using the QuickAdd option go back later to add missing information For more search the Help index for m jobs setting up search the Help index for m customers adding new m profit and loss reports search the Help index for m classes turn ing on in QuickBooks see Setting up payroll an over view on page 165 search the Help index for m customers adding new m customers editing infor mation for m suppliers adding add ing a supplier m suppliers editing infor mation for 12 Chapter 2 Setting up a new company Situation You want to see reports for a particular group of customers jobs or suppliers Examples Residential vs commercial custom ers remodeling jobs vs new construction sup pliers 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 infor mation that QuickBo
265. on these forms by clicking the Customise button on the forms 3 Click the Fonts tab 4 Choosethe font you want You can change to italic bold or acombination Choose the font Select Font Font Font Style Select oneor both of Times New Roman Regular 9 NewCenturySchlbk these check boxes to g NuptialS cript Italic 10 Choose a point size Most OCR A Bold 11 strikeout and Onyx MT Boarta f h2 f people prefer a size between 9 underline text Help and 12 points Effects Sample Choose a colour not I Strikeout available for T Underline AeBbYyZz You can see what the font cheques Ifyou have Color i looks like here a colour printer you EE E E eca OpenType font This same font will be used on both your printer and your screen A description for the selected can print any other font type appears here 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 Then click the Graphics tab and set a smaller number of dots per inch m 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 check box m Makemorecomputer memory RAM ava
266. on number fields blank When you complete a transaction with a business in an EC member state and select an EC VAT code on the sales form QuickBooks checks to see whether the business has a VAT registration number m If thereisaVAT registration number QuickBooks accounts for the VAT on your VAT return but does not charge it to the customer that is QuickBooks does not add VAT to the transaction total Chapter 5 Tracking and paying VAT If aVAT registration number is not present QuickBooks accounts for the VAT on your VAT return and adds the appropriate amount to the total Note If your business makes exempt supplies you may need to make a VAT partial exemption adjustment before filing your VAT return See page 141 Handling import VAT for non EC countries When you import goods from outside the EC they must be cleared through HM Revenue amp Customs before entering the UK Customs clearance usually involves paying import VAT as VAT is also a tax on the importation of most goods To record import VAT 1 2 3 4 From the Suppliers menu choose Enter Bills Enter the bill from your non EC supplier Type Z in the VAT code column The bill should not have any VAT on it Click Save amp Close If you are recharged import VAT by your supplier 1 2 3 aus From the Suppliers menu choose Enter Bills Enter a bill for the amount of the VAT In the Account column of the Expenses tab assign your Import VAT expe
267. on your hard drive that you can easily find again Quick Books may warn you that you are backing your data up to your hard disk Backing up your company data 101 Tip 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 Set Defaults Click to specify the defaults for backing up manually 8 Click OK QuickBooks creates a backup file of your company data 9 Start your CD writing software and use it 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 back company file backing up to CD Win up to CDs right from QuickBooks dows XP Backing up to a Zip drive 102 Tip To backup to a Zip disk 1 Insert the Zip disk into your Zip drive 2 From theFile menu choose Back Up and make sure the Back Up
268. ond page of this guide m To find licence key select About QuickBooks from the Help menu 2 Back up your company file s Update QuickBooks to the latest release 63 To install your QuickBooks update These instructions may change from time to time When this is the case you ll receive up to date install instructions with the Update package 1 au AWN Shut down all open programmes including QuickBooks and any virus protection software you may have Some virus protection programmes 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 Open the folder that matches the version of QuickBooks you are currently using Double click Setup exe and follow the instructions on your screen Review the Readme txt file on your CD ROM It contains important infor mation about how your software is affected by this update and what you should do next Set number currency time and date formats in QuickBooks 64 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 2 From the Windows Start button select Control Panel 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
269. oney 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 refine the information you ve already entered To learn about Search the Help index for Adding a new customer customers adding Adding a new supplier suppliers 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 on ablank entry at the end of the register Change today s date to your QuickBooks start date Leave the Ref and Payee fields blank Enter the opening balance amount m For bank accounts enter the amount in the Deposit column For asset liability or equity accounts enter the amount in the Increase column For credit card accounts enter the amount in the Charge column 7 In the Account field choose Opening Bal Equity from the drop down list OAUARWNE 54 Chapter 2 Setting up anew company Note 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 These accounts may al
270. open choose EasyStep Interview from the File menu The interview picks up where you left it and you can continue on AN 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 divided into six major sections A tick mark indicates that all the topics in the section have been completed The tabs along the E xj top show topics i Viem V Peme VAT stant Date within one section 4 ae a q You have completed the General section of the interview A tick markindicates cua Dick Nest to proceed to the nest snctinn that the topic has been completed General section completed Click Prev to return to a previous window in the Interview and click Next to move to the next window in the Interview Tel Me More Dol hawe to enter all my hittoncal transactions now Ugg ag ge ge ge gee ge ge ge When you see a More button click it to get specific information about the question being asked in the Interview 22 Chapter 2 Setting up anew company The EasyStep Interview is grouped into six sections After you complete all the sections your company
271. opy 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 If you need to reinstall QuickBooks on page 8 If QuickBooks finds a company file with the same name as the one you re restoring to a given directory it 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 be sure all required repairs are complete and consider reinstalling QuickBooks before you proceed To learn about Search the Help index for Restoring your company data restoring from a backup Backing up your company data 103 Condensing data 104 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 condense the transactions your company completed two or more years ago especially if your company file is quitelarge morethan 75 MB Condensing large company files can sometimes i
272. or Fixed Asset Item list Sorting the Item list and other lists Moving items and other list entries price levels items list of sorting list entries lists reorganizing entries 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 stock to track your products set up stock parts for them Otherwise set up non stock parts for your products Use for type Service Services you charge for or services you purchase Examples professional fees labour Usual effect on accounts On sale Increases income On purchase Increases expenses Comments In QuickBooks Pro and higher 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 ser vice items Setting up items 31 Item type Stock Part Stock Assembly Non stock Part Fixed Asset Other Charge Subtotal Use for Products you purchase track as stock then resell Examples Electrical out lets T shirts Assembled products you purchase or create and build track as stock then resell Examples Gift baskets Soaker hose starter kits Products you sell but don t purchase items you purchase and res
273. or monthly basis To deduct Attachment of Earnings Order from an employee 1 2 Create an Attachment payroll item See Creating new payroll items on page 172 for details Add the Attachment payroll item to the employee s record Open the employee record then add the Attachment payroll item to the Payroll and Compensation Info tab You will be prompted to enter all the court order information It is here that you enter the type of the court order and the details of the amounts Pay the employee as you normally would You will see on the employee s payslip the details of the Attachment QuickBooks automatically calculates theAEO amount and deductsit as well asthe Administrative Fee if selected from the employee s pay Send theAttachment to theissuing authority Depending on the details of the AEO you may have to send payment weekly or monthly a Go to the Employees menu select Process Payroll Liabilities then Pay Attachments b Ensurethedate range covers the period of time from which you deducted AEOs from the employee c Select the AEOs you want to remit to the issuing authority d Click Create e Review the cheque that appears then print it f Print apayroll liability voucher to send with your payment Go to the File menu select Print Forms then select Payroll Liability Voucher Setting up employees 187 Note Summarising amounts for the year to date Skip this section if your company has not do
274. or reimbursable costs QuickBooks Pro or higher 41 Chapter 3 Working with items 43 Using items saving time 44 Using items to subtotal on salesforms 45 Showing partial payments received at the time of sale 47 Changing prices or rates 49 Editing item information 49 Final steps to complete your setup 50 Fine tune your accounts 50 Enter your company s historical transactions 52 Complete your customer supplier and item information 54 Adjusting opening balances for balance sheet accounts 54 Setting up accounts to track equity details 56 Things to consider after your company file is set up 58 Create reports to check your setup 58 Maintain your previous accounting system 58 Set up other company files if needed 58 Connecting QuickBooks to the Internet 59 Update QuickBooks to the latest release 61 Set number currency time and date formats in QuickBooks 64 Importing and exporting data 65 Converting data from Quicken 66 Preparing your Quicken data for conversion 66 Converting your Quicken file to QuickBooks 68 Fine tuning your data after converting to QuickBooks 69 How QuickBooks converts accounts receivable transactions 71 Changing to QuickBooks accounts payable 72 Comparing QuickBooks and Quicken 74 New and renamed balance sheet accounts 76 When you convert from Quicken 76 Should you continue using Quicken for some things 77 Importing from exporting to other software 77 Importing
275. 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 learn about Search the Help index for QuickBooks items items about Using accounts receivable accounts receivable to QuickBooks accounts payable In many versions of Quicken the documentation explains how to set up your software 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 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 B
276. or the April June period Your VAT payment should be sent to HM Revenue amp Customs no later than the end of July Standard accruals basis VAT accounting If you account for VAT using thestandard scheme you treat incomeand expenses as having happened on the invoice VAT date In this case it makes no difference when you were paid your latest payment date for VAT on this transaction would be at the end of April If you change your VAT accounting scheme The accounting basis for VAT is usually accrual not cash If the annual value of your taxable supplies is below 660 000 you may find it to your advantage to use the cash accounting scheme This is because VAT is not liable to be paid until you have actually received the payment from your customer It is particularly beneficial if you give your customers lengthy periods of credit or if you havea high level of bad debts VAT Notice 731 Setting up VAT tracking 123 If the annual value of your taxable supplies is above 825 000 you must switch to accrual basis bookkeeping If you switch from cash basis to accrual basis accounting you cannot retrospectively apply the cash accounting scheme to your business If switching from an accruals schemeto cash scheme you must from the date you start to use the scheme identify and separate in your records any payments you receive or make for transactions already accounted for under the normal method of VAT accounting Exclude such pa
277. ords from your start date forward Then your QuickBooks records will be as complete as if you had started using the software on your start date 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 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 for these invoices 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 payments you ve made for things other than bills since your start date NOoRW NE Enter transactions in your bank account last because your accounts payable and accounts receivable affect your bank account By the time you enter all of your historical transactions your cheque register will be mostly up to date Chapter 2 Setting up anew company To learn about Search the Help index for Entering historical information historical transactions 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
278. ou make the Accountant s Review copy After the accountant has made changes you can merge the changes into your master file The table shows what an accountant can and cannot do while using an Accountant s Review copy of your file and any restrictionson you while this copy is out Your accountant can m View all existing transactions and lists m Add new items to the Chart of Accounts Item list Payroll Item Your accountant cannot m Edit foreign currency accounts You cannot Enter transactions other than gen eral journal transactions m Delete any items from lists m Reorganiselists move items make one item m Memorise transactions other than list To Do Notes list Memorised general journal transactions a subitem of another Transaction list general journal m Edit or delete existing transac wansactiornis only tions including payroll payments To add stock items you must m Reorganise lists move items have this feature turned on make one item a subitem of m Edit existing account names and another numbers m Rename accounts or items m Edit existing payroll items m Edit account and VAT information for existing items on Item list m Enter general journal transactions in home currency m Make items inactive Edit names of existing items on Item list m Adjust payroll liabilities m Enter or edit employee YTD pay account f roll setup transactions m Reconcile new transactions m Edit employee
279. ou specify You can filter a report of your Customer J ob list or Supplier list to limit the names to those for the type or types you specify On reports that sum marise amounts by item QuickBooks pro vides an amount for each subitem and then a subtotal for all subitems of the same item You can use the same custom field for cus tomers suppliers and employees if you choose Custom fields for items are only for items you sell or pur chase services parts and other charges You can filter a rele vant report to limit the transactions to forms that have specific text in a custom field On reports that sum marise amounts by account QuickBooks provides an amount for each subaccount and then a subtotal for all subaccounts of the same account For more search the Help index for m customer types m job types m supplier adding m report cust omisation search the Help index for m subtotals on sales forms search the Help index for m custom fields about m estimates customising search the Help index for m subaccounts then click the link Why use subaccounts Decisions to make before you start 13 14 Tracking income and expenses w ith classes Do you need to track income and expenses for separate parts of your business or organisation The following table has examples of what you can track by using classes in QuickBooks The word class has nothing to do wi
280. ount appears on this tab roortart Fou shoud modify the date N each box as roared From Working heti o gt 12 from Wot tenz TT 2 From Working Sheet 22 gt 28 z z Amst paydi latheyow ansa o NICs and tax pad shendy izes B NOW PAYABLE 28 mus 29 2 Deductions suffered Total of ool E on C25 132 00 zn Revised amast now peyahie J0 mews Jt aar 2 Mote Fil n bowes 31 and 32 ordy F you are a ited company that has had CIS deductions mada from payments recewed for work in the construction industry Your total payable to HM Revenue amp Customs is in Box 30 unless you had Construction Industry Scheme deductions in which case the total payable is in Box 32 Processing your year end 217 218 When you aresurethat all i figures are accurate click Lae 4 i You must amwe each querbon by teching the comect bor OK You will be returned 1 Have you completed an End of Year Summary P14 5 Hove you paid ary of the enchoyer s pay to to the Payroll Year End Amatera me ae Process dialogue box Fig Cw vad E ie papuato oo he 2 Did you make any Free of tax payments to arty emrctoryes s berm PIS Click Checklist and e te re rws Declaration to complete 3 Od hse pay ex or provide vouchers G Do the nies relating to serwees provided rouj the Checklist and ea e a io am mara ca enid out by ary wolar bed cn as Employer s Declaration Pe TF ves Pm Fws shown at right Tick the esi i tie Ekka oante iaoa a pat
281. our 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 whether this situation applies to you To learn about Search the Help index for Adjusting for Uncategorised Income m Uncategorised Expense account and Uncategorised Expenses m Uncategorised Income account Final steps to complete your setup 55 m Adjust for current income and expenses if your start date is not at the beginning of your financial 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 financial year to your start date you can enter adjustments for them Then when you create a profit and loss statement in QuickBooks it will be accurate from the beginning of the financial year to any date after your start date To get thisinformation have your accountant create a year to date profit and loss statement also called an income statement for your current financial year through your start date To learn about Search the Help index for Adjusting income and expenses for adjustments income and expenses midyear setup m Distribute earnings and equity from before your start date After you have entered all of your opening balances and made other adjust ments you may want to di
282. ow Begster O Lure Aiat Ostet ot Gordays Date Nunter Payee Payrert J Depost Balance Cx Rote Type Account Momo 150 2005 CERA IK MOORE SALARY IRANSPE 2 500 00 f 7 500 00 A w ya 16 01 2005 Arye s Bookstore WHF 7 115 05 on Books and Publicato 1602005 NICO D D WKIPAITRAMOOCRSA DOR men p 7 Oat 6 CHO Cash Discounts xz Add to register Record Restore Ending Palance 6 988 96 As 08 02 2000 Sart Stateeraet y Dite Y Bsance 665 90 Qeqe t Payee NCO O D Warner JE EFFERIES SEC Unmatched CB amp AS MOORE BLti gt Unmatched TF ILTO My24 D0200 Unmatched INTEREST CHAR Unmatched 201 CHARGES AU Unestched O PROTECTEC restr J urme E show thatched bune cone 3 When you receive your bank statement for the account use the Reconcile window Chapter 4 QuickBooks basics Note With QuickBooks you can reconcile only to the paper statement you receive from your financial institution Pi 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 W orking w ith multiple users In 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 112 In QuickBooks Pro and higher up to five people can work with your company file at the same t
283. p different units of measure for your stock parts items the units of measure preference must be turned on The units of measure preference cannot be turned off once it has been enabled You should only consider activating this feature if you purchase stock or sell in different units From the Edit menu choose Preferences From the scroll box on the left select Purchases amp Suppliers On the Company Preferences tab select Stock and purchase orders are active and then select Units of Measure are active Stock must be turned on in order to activate units of measure WNE W hat happens w hen units of measure is turned on With the units of measure preference turned on you ll see the following changes in QuickBooks m A Units of Measure button is added to the Stock Part and Stock 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 m A field is added to the Service and Non stock Part items window where you can assign a descriptive label that represents the unit of measure used when dealing with the item m AUnit column isadded to all forms Thisnew column displaystheitem s unit of measure 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 m A Unit column is also displ
284. paid Bills Detail Click M odify Report to customise As of March 31 2003 a report for your needs Type o Date _ gt Num o DueDate Ageing gt _Open Balance _ British Gas Bill 03 17 2003 03 27 2003 4 185 12 4 a 185 12 The Modify Report odity Reports Unpad His Vee Ask a help question Ask x window is divided up in Display Filters Header Footer Fonts amp Numbers 252 25 to tabs Each tab covers Report Date Range 265550 f hag 5 181 75 different customisation bates BEG Today oniy options for the report From 03 31 2003 To 03 31 2003 For example the Display tab allows you to choose the columns you want trans no visible on the report that EnteredjLast Modified you are currently working on Columns left margin Sort by Default i tv Ascending order ete SOE g sass order a O Last modified by He a Date Num ple 3 525 00 Name 3 525 00 Source Name Name Address Name City Name Count Name Posies Put a check mark next to each column that you want to appear in the report OK Cancel Help 9 803 69 After you have customised a report you can save thesettings for future use Saving report settings is called memorising The next time you run the report QuickBooks recreates the format of the report but uses your latest financial data When you memorise a report QuickBooks adds it to the Memorised Report List To display this list from the Reports me
285. payroll liabilities 207 Tracking and paying Class 1A NIC 209 vii Chapter 8 Appendix A Processing your year end 210 Creating a P11 Deductions Working Sheet report 211 Completing your payroll year end forms 212 Filing your payroll year end online 219 Making changes to your payroll year end forms 223 Getting information about your payroll 224 QuickBooks Payroll Reports 224 Time and cost tracking 229 Should I track time 230 Should track time for subcontractors 231 How much detail should track for time activities 231 Setting up QuickBooks Pro or higher to track time 234 Setting up to use time tracking with payroll 234 Using theTimer 235 Using the Stopwatch in QuickBooks to track time 235 Paying for time worked 236 Charging customers for time worked 238 QuickBooks Pro Timer Reference Sheet 240 Index 243 Contacting Intuit 259 Intuit Contact Information 260 Ordering QuickBooks cheques and business stationery 260 QuickBooks activation 260 QuickBooks delivery billing and account inquiries 261 QuickBooks Small Business Payroll 261 QuickBooks Technical Support 261 viii Chapter 1 W elcome to QuickBooks Welcome to QuickBooks This user guideis designed to help you learn how to use the most common features of QuickBooks The User Guide covers QuickBooks Pro and QuickBooks Accountant When the name QuickBooksis used it refers to any of these programs When
286. ployee and Employer YTD totals area leave the YTD Amount field blank if there was no amount for this payroll item during this period In the Employee and Employer YTD totals area add payroll items for one time only payroll amounts such as bonuses that occurred during this period You must enter anything that affects compensation or payroll taxes You do not have to enter non payroll adjustments such as reimbursements for office supplies S YTD Adjustment for Kamlesh Rajyaguru Lx To inserta payroll qes E gt gt Next Period item press CTRLHNSERT Prey Period No You can skip over Date 21 10 2002 To Kamlesh Rajyaguru 2 198 00 items not used in Memo Cancel this period Employee Salary and hourly wages totals this employment Accounts Affected Item Name YTD Amount Hours for Period Salary 6 000 00 j Summary In this area enter a 5 totals for all other R To a earnings Employee and Employer YTD totals this employment i Ttem Name YTD Amount NIcode fa withholdings and 2 100 00 38 00 128 00 Income Tax NIC Employee not contracted NIC Employer SMP Eamings Basis 6 000 mal 6 000 00 6 000 00 employer paid taxes or payroll expenses for this employee Include taxes NI from P11 1b ET 0 wn o f you have refunded an employee more Income Tax than you have m enter the difference as a negative amount i
287. position in a variety of ways For instance QuickBooks can prepare VAT reports on acash basis even if you re reporting income and expense on an accrual basis They can tell you if you owe money to HM Revenue amp Customs or if you are due a refund and also provide all the information necessary for filling out your VAT return Subject to going on the cash or standard VAT scheme 122 Chapter 5 Tracking and paying VAT Setting up VAT tracking VAT accounting schemes Note There are two main methods or schemes of accounting for VAT cash and standard The VAT dueis worked out differently in both cases so you need to know which one applies to you If you are not sure which scheme to use contact your local VAT office If you are registered under a VAT scheme other than cash or standard for example for retail fixed rate annual etc consult with your accountant on how to prepare your returns using QuickBooks At present QuickBooks supports the two most common VAT schemes cash and standard Cash VAT accounting With the cash VAT scheme you treat income and expenses as having happened on the date that the payment was received or made For example let us assume that you report quarterly and your return covers the months of January February and March If you invoiced a customer on 1st February for 1 000 00 plus 175 00 VAT and she paid you on 1st April the VAT would be reported in your return f
288. profiles m Adjust stock values or quantities m Create reports m Change preferences temporarily m Create adjust and print P60 and P35 forms m Export changes to preferences Memorise reports Importing from exporting to other software 81 For accountants only w orking with an Accountant s Review copy The Accountant s Review copy of a company file which your client should create from hisor her master company file isa 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 acompany 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 fileinstead of the Accountant s Review copy Note that the client cannot work on hisor her company file while you are editing the copy that they gave you Note 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 A
289. r End On the Payroll Year End Process window you can create and review P14 P60 forms review data for the P35 form complete a checklist employer s declaration and print the P35 form If you or your accountant or tax preparer are connected to the Internet you can then submit your end of year reports to HM Revenue amp Customs If not you must transfer the data to a paper P35 form Choose the previous payroll year which is the year for which you are preparing your End of Year reports Select the names for which you want to process forms You can select specific This indicates what you have done so far in the payroll end of year process and what you need to do next F2 Payroll Year End Process Use thes window to complete your statutory pirrol year end Forma tht mast be saibmitted to Inland Revenue Use the buttons on the right starting with the Revises P14 P00 Data to begin the Payrol Year End Process You can aso electronically submit your year end forms ron this window Rav PLAIN Osta Pret PLAINES Fors Review PI One edk amp Cocks aon Pret PIS Form The End of Year process must be done sequentially If you select a step out of sequence you re warned that you haven t completed the previous step Specifically the File Online button remains unavailable until you have completed all necessary steps employees or tick the Mark All butto
290. r hour to an hourly employee Sick Hourly Hourly Pay Amount paid per hour to an hourly employee for sick time Bonus Addition Bonus pay Statutory Adoption Pay SAP Addition Statutory Adoption Payments unlike SMP SPP and SSP SAP is not automatically calculated see the online Help for information on how to pay SAP Statutory Maternity Pay SMP Addition Statutory Maternity Payment Statutory Paternity Pay SPP Addition Statutory Paternity Payments Statutory Sick Pay SSP Addition Statutory Sick Payments SPS Employee Deduction Employee portion of a Stakeholder Pension SPS Employer Employer Employer portion of a Stakeholder Pension for an Contribution employee Pension payout Addition Only appears if you complete the payroll section of the EasyStep Interview Employer pension Employer Only appears if you complete the payroll section contribution Contribution of the EasyStep Interview Employee pension Deduction Only appears if you complete the payroll section contribution of the EasyStep Interview Additional Voluntary Deduction Only appears if you complete the payroll section Contribution AVCs of the EasyStep Interview Give as You Earn GAYE Deduction Only appears if you complete the payroll section of the EasyStep Interview 170 Chapter 7 Payroll and employees Payroll item name Collection of Student Loan Type Payroll Taxes Use for Student Loan repayments deducted directly
291. r last filed VAT return would be 31 Dec 2003 What will happen to uncategorised amounts QuickBooks marks all uncategorised amounts on or before the ending date as filed so they no longer affect your VAT liability Uncategorised amounts after the ending date will be categorised as sales or purchases so that they correctly affect your VAT liability account The next time you file a VAT return QuickBooks will include these newly categorised transactions properly with all other unfiled transactions If you had uncategorised amounts in earlier versions of QuickBooks and didn t adjust your VAT returns for them consult your accountant to see if you should file an adjustment now Where to start 3 W hat s new to QuickBooks 2006 The Resource Area makes it easy to find your way around in QuickBooks Link buttons located across the top quickly takes you to the areas you need more information on OP standard VAT scheme QuickBooks Accountant 2006 Intuit In Product Messaging QuickBooks 2006 Grow Your New User pi Wherever you want to go we ll point you in the right direction she your working life easier ard less tme deal wih the mast frequently asked questions Ease c use from start t k here for Contact Information Search Oich this button to open up the Help Search interface in the Find wedon Index Cick thes button to open up the Help Indes in the Find mrd Sf Are my accoun
292. rder of item type Within the same item type they are usually in alphabetical or numerical order but you can change this order Subitems are indented under the parent item Use the menu buttons to add edit sort or perform other activities on items i Item List lolx Painting Painting Plumbing Plumbing Roofing Roofing Cabinets Cabinets Cabinet Pulls Cabinet Pulls Light Pine Light pine kitchen Hardware Doorknobs St Standard Doorkno Lk Doorknobs Locking interior d Wood Door Doors Exterior Exterior wood dooi Interior Interior wood door Activities v Reports Name Description Type Account OnHand Price Subs Subcontracted ser Service Construction S Carpet Install carpeting Service Construction St Drywall Install drywall Service Construction S Electrical Electrical work Service Construction S Service Service Inventory Part Inventory Part Inventory Part Inventory Part Inventory Part Inventory Part Inventory Part Inventory Part Inventory Part Construction S Construction S Construction S Construction M Construction M Construction M Construction M Construction M Construction M Construction M Construction M Construction M t a A ome oono 30 Chapter 2 Setting up anew company This list shows the fixed asset items you ve set
293. readsheet program Changing data from another accounting program into an IIF file is technically complex and is not recommended for those who do not 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 betw 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 suppliers 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 supplier you must enter an invoice or bill that at least tells the total amount owed 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 IIF 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 a file that another program can import Method What it does Advantages Disadvantages Print to disk Makes a
294. rmation necessary to find and fix errors in your forms Note particularly the two lines indicating the problem and the location of the problem Unless you have opted out of the secure mailbox service the failure message will also come to your secure mailbox Therefore please check your secure mailbox soon for feedback messages regarding your online filing It is also a good idea to provide an e mail contact address as a backup in case the secure mailbox is not working Immediately after filing online you should also back up your company file and keep the backup in a different location than your routine backups HM Revenue amp Customs uses a Quality Standard for returns filed online QuickBooks meets the Quality Standard in the area of Online filing Chapter 7 Payroll and employees M aking changes to your payroll year end forms If you alter certain payroll data after you have filed your End of Year forms you will see a warning screen which tells you that the data you are changing affects the P14 and P35 forms already filed with HM Revenue amp Customs Whether you filed online or on a paper form you will be required to file an amendment on a paper form If you are sure you want to amend your P14 P35 data please ensure that you have taken the following steps Have you printed out your own copies of your original P14s and kept them on file You will need them if the change affects an amount on the P14s Have you printed out your
295. rmer accounting sys entire payroll year tem Review your payroll You should be able to match the amounts for pay payroll reports Lj liabilities as of 6 roll items with the amounts for payroll accounts in about April of this year the liability report from your former accounting sys tem Print a balance sheet It should match the balance sheet from your former balance sheet Ly as 6th April of this accounting system as of 6h April of this year reports year Print a balance sheet It should match the balance sheet from your former balance sheet Ly as of 6 April of last accounting system as of 6 April of last year reports year Print a profit and loss It should match the profit and loss statement from profit and loss g statement for the your former accounting system for the entire pay reports entire payroll year roll year Summarising amounts for the year to date 193 M anaging payroll and employee 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 organised by payroll item type Earnings items for salaries hourly pay and commissions are at the top of the list To resort the list click a column header Remember that you can use the same payroll item for many employees For example you can customise th
296. rn on the VAT tracking preferences After you close the Preferences window you should confirm that the default VAT codes meet your needs To check from the Lists menu select VAT Code List Double click any VAT code you need to change For more information about tracking VAT see Setting up VAT tracking on page 123 m If you track stock or write purchase orders turn on the preference for stock and purchase orders See the Online help for information on tracking stock m QuickBooks Pro and Accountant If you deal internationally turn on the preference for multicurrency For moreinformation about multicurrency see Doing business internationally on page 145 If you plan to use QuickBooks to pay your employees you must sign up for the QuickBooks Payroll Service For information about payroll see Setting up payroll an overview on page 165 To learn about Search the Help index for Setting preferences preferences Tracking stock tracking stock 70 Chapter 3 Importing and exporting data Adjust your Opening Bal Equity account QuickBooks automatically creates an Opening Bal Equity account for you When you create 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 To learn about Search the
297. rom the Suppliers menu select VAT then File VAT Note the date in the Show VAT through field The default date is the last day of the previous month If you want to see your VAT liability through a different date change this field Click in the Pay column of the liability you are paying Select the account that the funds are to be paid out of from the Payment Account drop down list Select the To be printed radio button if you do not want to assign a cheque number to the payment until you print the cheque or Select the Assign cheque no radio button to assign a cheque number to the payment as part of this step Note the Payment Date This is the date that appears on the transaction in your VAT Control account Click Next to continue to the Value Added Tax Return form Complete the VAT Return form and click Next Clicking the next button does the following m Create a VAT return for the period date 1 to date 2 m Mark all the transactions that are included on this return as filed an F will appear beside the transactionsin the register m Create a cheque to pay your VAT liability or create an invoice to record your VAT refund Warning This step cannot be undone Click Cancel now if you still need to make changes to your VAT return Otherwise click Continueto permanently save your VAT return and liability payment or refund invoice 134 Chapter 5 Tracking and paying VAT File VAT window expla
298. running quickly Once you know how to get around in QuickBooks and where to go for more information you ll learn how to use the features of QuickBooks that require additional set up like backing up and restoring data allowing different users to access your company file collecting VAT and linking your accounts to tax lines 83 Getting around in QuickBooks About the Resource Area When you first open QuickBooks the Resource Area appears Use the Resource Area to help you get up and running in QuickBooks It tells you about updates when they are available support options product information where to go to get help when setting up your company as well as tools to help you grow your business OP standard VAT scheme QuickBooks Accountant 2006 Isbat In Product Messaging QuickBooks 2006 me Wout New User ont Foodbe Brees Ares Wherever you want to go we ll point you in the right direction amp here for Contact Information T Leet tor taip te Quictiionks Type your question hers al Pme br IEAS i ote Me ruo aaa PASIOA EA ad N g ird Pristis topis ce Click this button to open up the Heb Search nterface n the Prd mdo Index Oich ths button to open up the Help indies in the Find mareme 84 Chapter 4 QuickBooks basics Navigating in the working area Navigators are an easy way to work in one area of QuickBooks Each Navigator shows the tasks for one area of
299. s 162 Chapter 6 Doing business internationally Chapter 7 Payroll and employees Payroll before 164 you begin How do pay Sail an employees and overview create payroll Setting up your 169 payroll items f orms Setting up 178 employees QuickBooks helps you track employee information Summarising 188 amounts for the and compensation With the payroll features you year to date Managingpayroll 194 C N create payroll payments administer holidays ane Pmpinyag bonus payments and benefits and track data for information Paying 198 end of year payroll forms With QuickBooks you employees can also file your payroll end of year forms online Paying payroll 205 Hapiiice to HM Revenue and Customs Processing your 210 year end Getting 224 i 7 information To pay your employees with QuickBooks you must be a about your member of the QuickBooks Payroll Service payroll 163 Payroll before you begin Subscribing to the QuickBooks Payroll Service Q Before you can use QuickBooks to pay your employees you must have a subscription to the QuickBooks Payroll Service Note that although some QuickBooks products allow you to use the payroll features for a limited time without subscribing you must subscribe to pay your employees with QuickBooks when this trial period expires Your subscription to the Payroll Service ensures that you receive updated tax tables whenev
300. s changing for reports 94 changing on forms 99 combining names after converting from Quicken 70 commission payroll item for 172 quantity for 199 commissions employees on 183 company backing up 100 backing up to Zip drive 102 data file described 6 described 6 passwords 112 restoring data 103 sample 92 setting up 22 setup preparing for 21 condensing data 104 when using Payroll Service 104 connecting QuickBooks to the Internet 59 connection changing for the Internet 60 construction industry standard categories tracking 14 consulting see professional advisors contacting Intuit 260 261 context sensitive help 89 90 contributions to pension 176 converting Quicken data 66 70 creating standing orders 125 VAT codes 127 VAT reports 133 credit cards accounts 9 reconciling 107 current accounts historical transactions and 53 Index 245 current assets accounts for 9 custom fields filtering reports for 95 for employees 180 for items 40 customers foreign 158 opening balances changing 25 payroll expenses tracking by 173 products and materials purchased for 42 VAT codes for 128 customising reports 94 D data audit trail of 115 backing up 100 backing up to Zip drive 102 condensing 104 exporting 77 importing from other software 77 refreshing 112 restoring 103 transferring to and from QuickBooks 78 dates changing how they display
301. s adding Editing an employee name employees editing Service items for non employee time data If you plan to transfer time data for non employees to a payment it should have a service item assigned to it QuickBooks uses the rate for purchases of the service item when calculating how much to pay anon employee for the hours worked m Service items for subcontractors suppliers When you pay a subcontractor set up asa supplier the payment is an expense to the business You should assign the time to a service item set up to track costsin an expense account This service item should not be used for owners or partners m Service items for owners or partners When you pay an owner or partner the payment is a drawing against equity rather than being an expense to the business You should assign the time to aservice item set up specifically to track costsin that person s equity account The service item should not be used for any other purpose To learn about Search the Help index for Setting up a service item for service items billing work by services with both costs and income subcontractors or owners Transferring nonemployee time to a payment or bill When you pay a nonemployee 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 current time data for the payee If you want to pay for the tim
302. s that a markup 1 307 88 can be applied makes the third subtotal include all amounts on the invoice so to the entire a percentage markup can apply to the total sale sale 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 use a 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 Working with items 45 46 Using a group item to hide details on a sales form The more detailed you are in 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 supplier so the supplier will know what you want For example Stacy has a renovation 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 income from remodels
303. s accounts payable You also need to delete and re enter any memorised 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 memorised transactions memorised transactions deleting QuickBooks accounts payable accounts payable Converting data from Quicken 73 Comparing QuickBooks and Quicken 74 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 a current account QuickBooks uses a few terms that are standard in business bookkeeping and that reflect the increased power and convenience of QuickBooks for business This table lists the most important differences in terms It does not list the many completely new QuickBooks features and terms uicken uickBooks Pere Q Q Definition term term Account Balance sheet A grouping of records related to one kind account of asset liability or equity These accounts appear on a balance sheet Category Income or expense A grouping of transactions related to one account kind of income or expense These accounts appear on a profit and loss statement income statement Category and Chart of Accounts The QuickBooks Chart of Accounts is like Transfer List the Quicken Account list balance sheet plus acco
304. s also advisable to back up your company file also in a different location or with a different filename after you have finished filing online This will give you a snapshot of your company before and after filing Chapter 7 Payroll and employees Note If you have made backups of your company files and have paper copies of all your forms on file choose No in the dialogue box and you will go on to the next step of the online filing process I Click No to proceed The Online Filing for tax year data box will appear 2 Fill out the Employer Data Online Filing Access and Employer and Agent Contact Information in the Online Filing for tax year data box This information accompanies your online P35 It must be filled in correctly or your online filing will be rejected and you may incur a penalty for late filing Please check each area of the form carefully before submitting Enter your User ID and Password here If you have lost or misplaced your User ID or Password contact HM Revenue amp Customs immediately You will not be able to file online without them Your HM Revenue amp Customs Office PAYE Reference number and company s legal name appear in these fields as they were entered in your Company Employer One Online Fling Acces If you are an employer B Olfve and Part RA ee DB f ge filing on behalf of your Emekrrer Lega have Password company leave Contact Information tee a Employer the
305. s register This indicates that the items are still pending and reconciliation wasn t complete When you start reconciling again you ll need to re enter your ending balance and your bank s charges and interest earned You ll also need to tick off addi tional payments and deposits When you reconcile be sureto add any bank service charges interest earned and finance charges Reconciling a credit card account Adjusting for differences To learn about Search the Help index for Reconciling a bank account reconciling bank statements reconciling credit card statements reconciling adjusting for differences Reconciling bank and credit card accounts 107 M atching bank deposits and credit card deposits QuickBooks Card Solution users 108 Asa QuickBooks Credit Card Service user you can use QuickBooks to help match your customers credit card payments with the lump 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 dueto credit card transaction fees QuickBooks calcul
306. sembly m items non stock parts m items fixed assets m items miscellaneous charges items units of measure items stock items grouped together items subtotal types items discount types items payment types items VAT items subitems items subitems items custom fields on VAT setting up Chapter 2 Setting up a new company Items for reimbursable costs QuickBooks Pro or higher Note 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 is a general contractor who uses subcontractors and invoices for their costs at a higher rate than what they charge him Tinaisan interior designer who buys furniture at wholesale and sells it to the client at retail In QuickBooks Pro and higher only service items non stock parts and other charge items 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 stock part is This item is purchased for and sold to a specific customer job If you don t have QuickBooks Pro or higher use expense accounts not items for reim bursable costs To learn about Search the Help index for using expense accounts for reimburs reimbursable expenses a
307. so need adjusting If you collect VAT 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 VAT you collected is included on them Instead check whether you owe more than the invoices cover and if so adjust your VAT liability accordingly For more information see Setting up VAT tracking on page 123 To learn about Search the Help index for Recording the VAT you owed as of VAT historical data your start date Adjusting your VAT liability VAT adjusting m Adjust the Uncategorised Income and Uncategorised Expenses accounts if you re using accrual basis accounting When you enter unpaid opening balances for customers QuickBooks assigns theincome to an account called Uncategorised Income Similarly when you enter unpaid balances owing for suppliers QuickBooks assigns the expenses to the Uncategorised Expenses account If you keep your books on a cash basis you record income when you receive payment QuickBooks does not show these two accounts on your profit and loss statement until a customer makes a payment which is the expected behaviour 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 Y
308. ss statement also called an income and expenditure statement shows your revenue expenses and net profit or loss that is income minus expenses summarising the revenue and expenses of your business by category first income then expenses Profit and Loss Statement gt Oct Dec 03 Ordinary Income Expense Income Construction Labour p 2996575 Materials 35 540 21 Miscellaneous 3 002 20 Subcontractors 47 9456 63 ae Total Construction 116 454 79 LCAL Total Income 116 454 79 Cost of Goods Sold Cost of Goods Sold 5651 35 E Total COGS 5651 38 _ ee Gross Profit 110 803 41 Expense Automobile Fuel Repairs and Maintenance Total Automobile Bad debt Bank Service Charges Freight amp Delivery Insurance Disability Insurance 450 00 Liability Insurance 1 050 00 Auto 625 00 Total Insurance 2 025 00 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 Net income income expenses Page 2 Oct Dec 05 Interest Expense Finance Charge 5 65 Interest Expense Other 539 00 Total Interest Expense Job Expenses Equipment Rental 650 00 Job Materials 18 395 36 Permits and Licenses 700 00 Subcontractors 40 099 00 Total Job Expenses 60 044 36 Payroll Expenses 19 780 38 Professional Fees Accounting 250 0
309. ssigning to a able costs customer or job There are several advantages to using items for reimbursable costs in QuickBooks Pro or higher Editions Itis easy to associate the cost of an item with an expense account and the income with a separate income account when you set up theitem 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 customer for the item m When you enter a bill cheque or credit card charge QuickBooks Pro and higher Editions fill 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 and higher Editions fill 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 reimbursable expenses assigning to a costs customer or job Setting up items 41 42 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 sub
310. st some businesses or organisations probably don t need items Here are some examples m John is keeping the books for his church The church has members who donate 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 manufac turer that then invoices the customers directly Rick tracks the orders in a spreadsheet not QuickBooks because the sales are income for the manufac turer not Rick When Rick receives a commission 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 higher allow you to set up itemsthat you can usefor both purchases and sales See Items for reimbursable costs QuickBooks Pro or higher on page 41 On the other hand if you don t have QuickBooks Pro or higher and you don t track stock you should not use the same items for both purchases and sales Instead use
311. stribute 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 Equity carried over from previous equity retained earnings from financial periods Moving the amount in the Opening equity transferring from Opening Bal Bal Equity account to other equity Equity accounts Setting up accounts to track equity details 56 Your company s equity comes from two sources m Money invested in your company capital investments Profits of your company Of course the owner can also take money out of the company Such withdrawals called owner s drawings reduce the company equity Chapter 2 Setting up anew company Tip QuickBooks sets up two equity accounts automatically 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 opening balances decrease the equity m Retained Earnings If you have data for more than one financial year the QuickBooks balance sheet has a balance for the Retained Earnings account equal to the net profit from prior financial years The balance for the Retained Earnings account does
312. t URAN wet Pay nawe here determines Mester Bark Curent gt uring hours below and last quantities Pbk Pays the date of the payment and the Gro Cheque Payee Bacs Leave date the tele tate Dm wka employee Payment Owen OSa ial receives their payment J Exoloyee Pay Method Pay Frequency Hours Lax e Andrew G Turner RAC Merithty f2 Som Charin Walker BACS wehh i ORB Ganen T Curtis BACS IMorthby 1 000 09 ORIN Arms E Macd BACS hy 1 900 00 OZI If you have many employees you can sort them by When you create a payment payment method the date changes to the latest and by payment pay period end date for the frequency employee When you ve selected the employees you want to pay click Create to display payment information for the first employee You can pay employees in groups For example first select your salaried employees whose payments you don t need to review and tick the Create payment without preview checkbox Then click Create Next select your hourly employees and the Enter hours and preview option then click Create The payment of the hourly employees appears so you can enter their hours worked 198 Chapter 7 Payroll and employees Preview ing adjusting and creating payroll payments When you select the Enter hours and preview payment before creating option in the Select Employees To Pay window then click Create QuickBooks opens the Preview Payroll Payment window
313. t it what your expenses are for and how you pay them You track this flow 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 do not appear on your balance sheet Some of these accounts are created for you automatically For example the first time you create an invoice QuickBooks automatically creates an accounts receivable A R account You ll add other accounts such as your current account during setup using the EasyStep Interview And you can create and modify your accounts as needed at any time Types of accounts Balance sheet accounts Your chart of accounts includes balance sheet accounts These accounts track the following m What you have assets m What people owe you accounts receivable m What your company owes to other people accounts payable and other liabil ities m Thenet worth of your company equity 8 Chapter 2 Setting up anew company The following table describes the various types of QuickBooks balance sheet accounts Balance sheet account type QuickBooks account type Use to track Asset What you have and what people owe you Bank Transactions in current savings and deposit accounts You can also use this type of account for petty cash Accounts Transactions betwe
314. t later Do not overwrite this backup For instructionson making a backup file seethe instructions that came with your older version of QuickBooks 2 Verify your company file To verify datain most versions of QuickBooks from the File menu select Util ities then Verify Data In early versions of QuickBooks see your documen tation for instructions 2 Chapter 1 Welcome to QuickBooks 3 Create and print a Trial Balance for your company For instructions on printing a Trial Balance see the instructions that came with your earlier version of QuickBooks 4 Install QuickBooks 2006 Refer to the Getting Started Guidefor installation instructions When you have installed QuickBooks 2006 print a second Trial Balance and com pare the two reports to confirm that all your accounts converted correctly Don t forget to also activate your new software Refer to the Getting Started Guide for activation instructions or your in product Help If you are upgrading from QuickBooks 2003 If you previously had uncategorized amounts in your sales tax reports the transac tions causing these amounts will automatically be updated when you install Quick Books 2006 Before installing QuickBooks 2006 you ll need to know the ending dates of your last VAT return Not sure what the ending date is If today were 15 Feb 2004 and the last return that was filed for VAT was for the period 1 Oct 2003 to 31 Dec 2003 then the end ing date of you
315. tains the cost of goods or raw materials that you have sold QuickBooks automatically adds this account to your chart of accounts the first time you create a stock item Your chart of accounts list the type for this account as Cost of Goods Sold QuickBooks uses this account to track how much you paid for goods and materials held in stock that you eventually sold After a sale QuickBooks adjusts your costs of goods sold by multiplying the quantity sold by the average cost of each item 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 next table suggests the best way to track this detail in QuickBooks How to record in Situation QuickBooks Comments For more You need to track Set up items in the Item list for You can get reports search the Help details of services your services and products about the items for index for you re providing or Record the sale using the appro Services and products items Items products you re selling priate items On sales forms you that you have sold are important can edit the item descriptions to including quantities for every busi add detail you want the cus and pound amounts ness tomer or client to see by item Decisions to make before you start 11 Situation You need to track multiple jobs for the same customer You need to track expenses by customer or job You n
316. te or price optional Account or accounts Default VAT code Subitem status Custom fields optional 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 different type Displays this name or number on reports of items and in the drop down list in the Item field for example on sales forms Prefills the entire description in the Description field of 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 purchases 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 purchases 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 pur chases Some types of items for example payment items require a balance sheet account instead of an income or expense account Stock items require three separate
317. te your setup 57 Things to consider after your company file is set up 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 financial year through to your QuickBooks start date For example if your financial year began on 6 April and your start date was 1 September create reports that cover 6 April to 1 September Both reports should show the same balances for your accounts M aintain your previous accounting system If your business existed before you began to use QuickBooks make sure you keep your records and your previous accounting software in case the HM Revenue amp Customs requires prior year information Set up other company files if needed If you use QuickBooks with 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 58 Chapter 2 Setting up anew company Connecting QuickBooks to the Internet Note W hat you need Your PC must be connected to the Internet through an I
318. ter 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 23 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 or services from you A client of your consultant business or law firm A patient of your medical or dental practice A homeowner who buys your home repair or remodeling services A tenant who pays rent to your property management firm Some businesses don t need to keep track of the names of customers An example is a 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 aregular 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 organisation that receives money but doesn t really sell anything you likely don t need to set up customers For example a nonprofit or religious organisation with members making contributionsor paying dues can track the deposits without making the members customers Specialised memb
319. th teaching or learning instead it is a way of tracking income or expenses in addition to assigning an income or expense account For example you might use classes to break down your company data by department project or location Use classes to track the following Industry examples Account executives particularly useful if you planon Advertising using an employee incentive program linked to the m PR employee s business goals and profitability Consulting Construction industry standard categories General m Construction contractors Site Work Concrete Masonry and so on Departments m Businesses that budget by department m Retailers Monies General Building Outreach and so on m Nonprofit organisations You could start with two main classes for restricted m Religious groups and unrestricted funds and 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 Consulting m Any other partnerships Product lines m Distributors m Manufacturing reps m Sales agents After you set up classes you can enter them on any incomeor expense transaction including payroll transactions You can t assign classes to transactions that involve only balance sheet accounts for example transfers from current to savings setup of stock setup of fixed assets You can s
320. th you can file online but may be assessed a late filing penalty Any changes to your forms after they have been filed online have to be made manually Revisit the Payroll Year End Process and create amended documents then complete and send by paper asupplementary or amended return to your tax office You may need to consult HM Revenue amp Customs for instructions For detailed information about filing End of Year returns online including how to register consult HM Revenue amp Customs or go to the HM Revenue amp Customs Web site For a printable booklet go to lt www hnmnrc gov uk employers doitonline pdf gt Processing your year end 219 Note A 220 Note If your company has one or more employees who had more than four NI code changes during the last tax year you QuickBooks cannot file your End of Year reports online Getting ready to file online To preserve the integrity of your data you must be in single user mode to use the QuickBooks Payroll Year End Process The File Online button will not work until you have finished all the preparatory steps When you choose File Online you will see the Warning dialogue box Choose Yes to exit and make changes or a back up No to proceed with online filing Yuu rill onty be alowed to Fie Onine ance using QuickBouts It importat that you make sure oll your dota bs correct before you fie Once you data ic correct to Use best of your knowledge you should osa
321. that you regularly print out and keep all of your sales invoices that show VAT and VAT reports both Detail and Summary Chapter 5 Tracking and paying VAT You will want to keep your computer files as well Be sure to protect your data by making regular backups of your QuickBooks file Locking past VAT quarters If you report on acash basis we recommend that you set passwords and aclosing date to prevent unauthorised changes to your VAT account After you ve paid your VAT liabilities fora given period you likely won t want your employeesto change any of the transactions that affected your liability payment QuickBooks lets you restrict access to these older transactions to be sure they are not changed without your knowledge If you use the accrual basis reporting as you VAT scheme you cannot modify the amounts of filed transactions You can however change the account designation by going to the register VAT Control and right clicking on the transaction By requiring your permission to delete add or edit any transaction beforea chosen date you can discourage accidental or casual changes to closed accounting periods but you can 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 d
322. the exchange rate do it from the Currency List See Using the Currency List on page 152 for more information To learn about Search the Help index for Setting up accounts accounts Create foreign customers and suppliers After you ve set up foreign A R or A P accounts you can set up the foreign customers or suppliers who will be using these accounts To do so create the customer or supplier as you normally would and select their currency in hisor her profile Once a currency is assigned to a customer or supplier all future transactionsinvolving him or her are recorded in 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 suppliers that is ones you set up before turning on the multicurrency feature are automatically assigned the home currency The currency of these customers or suppliers cannot be changed if you have already recorded a transaction for them If you want to use a different currency for these individuals you ll need to create second profiles for them in the correct currency Once you record a transaction for a foreign customer or supplier you cannot change the currency that is assigned to him or her You cannot assign a foreign currency to the HM Revenue amp Customs and the HM Revenue amp Customs suppliers Setting up multicurrency 149 1 Optional Enter an open
323. the maximum annual earnings limit for this tax the earnings basis equals the maximum earnings limit If you entered amounts for earlier periods this year QuickBooks counts the earnings basis from the earlier periods towards the maximum To learn about Search the Help index for Earnings bases earnings basis Entering year to date summaries of liability payments Note Skip this section if your company has not made any payments for payroll taxes or liabil ities incurred during this payroll year For this adjustment you ll need to know how much you paid from the start of the payroll year 6 April to your QuickBooks start date for each of the following m Each payroll tax whether withheld from employees or paid as an employer expense m Each deduction you withheld and then paid for example for benefits such as an employee paid dental plan m Each employer contribution you paid for example for benefits such as an employer paid health plan This adjustment is just for your payroll liabilities and your expenses for employer paid payroll withholding It is not for other expenses related to or paid to employees for example salaries wages and bonuses Prior Payments of Taxes and Liabilities Type the ending ia El Next Payment date of the period you are Type the date Taxes and Liabilities C Eein you made the liability payment summarising ltem Name Amount Mem
324. thereisan 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 Getting Started Guidethat came with QuickBooks It contains information on the following m installing QuickBooks hardware software and network requirements activating QuickBooks setting up multiusers introduction to some essential tasks such as adding customers suppliers accessing the in product help creating an account tracking VAT and setting up payroll to namea few Using this guide The User Guide is meant to help you get the most out of QuickBooks Once you have read the Getting Started Guideand you have become familiar with your software look to this 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 If you are upgrading to QuickBooks 2006 Note If you have an earlier version of QuickBooks installed on your computer and you are upgrading to QuickBooks 2006 you must complete these steps before installing your new software If this is the first time you ve purchased QuickBooks refer to the QuickBooks Getting Started Guide for comprehensive installation instructions 1 Back up your company file Ensure that the backup is labelled correctly and kept in a safe place in case you need i
325. tion the price of theitem iscalculated 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 150 Chapter 6 Doing business internationally Once the foreign pricing preference is turned on To turn on foreign pricing RPWNE From the Edit menu choose Preferences From the scroll box on the left select Accounting On the Company Preferences tab select Use foreign prices on items 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 Preferences A My Preferences BI Account Numbers Company Preferences Use account numbers Ask a help question x Help Multicurrency Home currency Banking Default v Use foreign prices on items v Require accounts zya Foreign item Also See Pa v Use
326. tock 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 is a report on your income and expense accounts You can see details of your sales such as number of units and pound 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 Cynthiahasasingleincomeaccount 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 theother 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 a second income account for all his non stock 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 use an item in a transaction you can never delete the item
327. topic you are looking for here try QuickBooks Help From the QuickBooks Help menu choose Help Index enter the keyword and press ENTER unrealised gains amp losses report 155 updating automatically turn off 62 exchange rates 154 QuickBooks 61 QuickBooks automatically 62 QuickBooks for multiple users 63 QuickBooks from aCD 63 QuickBooks manually 62 upgrading from a previous version of QuickBooks ordering 260 user s guides ordering from Intuit 260 users auditing 115 login 113 maximum number of 113 passwords 112 setting up 113 V VAT adjusting account for 140 amount owed as of start date 55 applying to sales 129 assigning to items 127 codes setting up 127 correcting an error 140 customer VAT codes 128 deferment arrangement 131 eliminating rounding 142 for EC member states 130 for non EC countries 131 generating a report 133 134 historical data 55 how QuickBooks tracks 122 keeping records 138 liabilities 126 locking after paying 114 139 locking past quarters 114 139 paid by direct debit 131 partial exemption adjustment 141 paying for fuel scale charges 132 paying liability 132 purchases including 129 recharged import by shipper 131 record exempt input tax 142 record import 131 record on private fuel 132 rounding eliminating 142 sales including 129 Zero Rated VAT code about 129 VAT codes creating 127 customer 128 ES 130 EZ 130 for items 127
328. torical transactions 52 accrual basis adjustment during setup 55 defined 7 Index 243 accrual time employees setting up for 180 entering 180 year to date entering 189 accrual vs cash choosing 124 activities detail how much to track 231 single recording 235 Additional Voluntary Contribution payroll items for 170 additions employee template adding to 179 payroll item for 172 adjusting income and expense accounts 56 item prices or rates 49 liabilities for payroll items 206 adjusting VAT control account 140 to remove rounding 142 administrator 113 AEO 187 alignment adjusting for printing 117 alphabetical order for accounts and lists 51 amortisation of loans only in Quicken 77 annual accounting 124 assets accounts for 9 balance sheet viewing on 16 current accounts for 9 defined 16 Attachment of Earnings Order 187 audit trail 115 autoload printer feature aligning forms with 118 Automatic Update turning off 62 AVC Additional Voluntary Contribution payroll items for 170 backing up to Zip drive 102 backing up data 100 backup file searching for 103 BACS paying employees with 203 balance sheet described 16 types of accounts 9 bank accounts description 9 reconciling 107 benefits for employees payroll item for 172 billable status deciding whether to make time billable 230 making billed time billable again 238 bills paying foreign suppliers
329. tracking turned on appears only if Hiyaa 29 Silpovtithed pacs You can turn class time tracking SN r np tracking on and off in the turned on a A ee Accounting section of You can turn Aadiions Oeductions and Employer Contreunens your Preferences located time tracking a a T S H in the Edit menu on and off in Working Days Pattes F the Time Click here to set up Tracking i common working days section of patterns for SSP Preferences located in the Edit menu Setting up the employee defaults employee defaults creating Determining the order in which you employee defaults order of payroll items add payroll items to the Employee in Defaults window Setting up employees 179 Setting up employees 180 Before setting up your employees in QuickBooks you should create the payroll items you need for your company see Setting up your payroll items on page 169 Also if you ve already set up your employee defaults if not see Employee defaults entering common employeeinformation on page 178 QuickBooks can prefill much of the information you need when you set up individual employees Each of your employees needs to tell you about which payroll taxes apply to him or her and which tax credits he or she will claim If he or she has a P45 from a former employer the employee should provide it as well The Employee list contains the names of all your employees A personal record or profile is
330. ts QuickBooks also provides a notepad in which you can record notes about an employee To learn about Search the Help index for Adding employees employees adding Setting up payroll information for employees payroll information about existing employees Categorising employees by class employees grouping by department or location Types of employees employees types How the order of payroll items payroll payments affecting amounts affects amounts on your employee s payroll payments How to decide whether to calculate NIC directors a director s NICs by the annual or per period method 182 Chapter 7 Payroll and employees If you pay on commission QuickBooks Pro and higher 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 sinitials 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 payroll payment not a regular non payroll cheque To track commission sales for owners or directors add them to the Sales Rep list like employees but pay them with an owner s draw instead of a payroll payment To learn about Search the Help index for Paying the owner s of
331. ts affected because of the HM Revenue amp Customs changing its name Inland Revenue and HM Customs amp Excise have merged to form a new department called HM Revenue and Customs QuickBooks will continue to track your payroll and VAT liabilities using two accounts However you may want to merge the two suppliers in your QuickBooks file and use one instead For more information and other news on your 2006 version of QuickBooks go to the Resource Area and click Updates Chapter 1 Welcome to QuickBooks Chapter 2 Setting upa new company Decisions to 6 make before you mak L How do Iset u p Sag upysun T my business in company in QuickBooks QuickBooks Should I track 24 customers and jobs Why you 26 Thischaptertellsyou what information you need probably need to set up items to gather to complete the EasyStep Interview It Setting up items 30 also helps you make good choices as you set up Worki ith 43 i i ea your company in QuickBooks and suggests Final steps to 50 things you can do after you complete your setup complete your setup Things to 58 consider after your company file is set up Connecting 59 QuickBooks to the Internet Update 61 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 s
332. u make a backup of your company file before turning multicurrency on A note about exchange rates Exchange rates 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 account see Exchange rates and how they affect your transactions on page 154 for more information The home currency is used to determine the value of all other currencies in relation to it For this reason the home currency s exchange rate value is fixed at one Once the home currency is chosen it cannot be edited or deleted Setting up multicurrency 146 Note If you deal in more than one currency you need to turn on the multicurrency preference This preference is turned off by default unless you specified otherwise in the EasyStep Interview After this preference is turned on you need to assign a currency to customers and suppliers with whom you deal on an international basis Customers and suppliers that were created before you turned on the multicurrency preference are automatically assigned your home currency Foreign accounts cannot be edited in an Accountant s Review file For more infor mation see Exporting data for your accountant Accountant s Review on page 80 Chapter 6 Doing business internationally Each foreign currency you deal in must havea matching Accounts Receivable or Accounts Payable account in the same
333. u want to time an activity simply start the Stopwatch work and stop it when you ve completed the work 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 activ Stopwatch ity Should track time 235 Paying for time worked 236 A Tip 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 data from the Timer QuickBooks does not track which time has been paid for and which has not AIl 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 submit ted all their time data for a period before you create a payroll payment cover ing 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 payroll payments for employees who are set up for time tracking It fills in the hours for each salary or hourly wage payroll item included in the time
334. uickBooks displays the marginsin inches but you can enter margin sizes in inches in millimetres mm centimetres cm points pt or picas pi 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 M any require margins no smaller than 5 or 67 inches Check your printer manual or contact the printer manu facturer if you have such a problem If you re using a continuous printer you may have to slide the paper clamps over to get the printer to start at the position you want Click OK to save the changes To adjust alignment of forms Coarse alignments This adjustment is only needed for continuous feed dot matrix printers Use it when the printed text on your form is off vertically by more than a line or two UAWN P ONO Make sure your printer is turned on and is online with 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 click the one you want and click OK QuickBooks displays a window where you can choose coarse or fine adjust ments Click Coarse Click OK to print a sample form Look at the pointer line that QuickBooks prints across the mid
335. uickBooks is delivered to customers m Anew feature or service m Timely information that is relevant to your business Some updates require you to exit QuickBooks before the new information goes into effect In these cases when you exit QuickBooks it displays a message asking if you want to install the update If you choose Yes QuickBooks closes and installs the update If you choose No QuickBooks closes without installing the update If you do not have a company file available but want to update QuickBooks open one of the sample data files included with QuickBooks then update the software as you normally would If you signed up for the QuickBooks Payroll Service 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 Connecting QuickBooks to the Internet on page 59 There are several waysto update your version of QuickBooks through the Internet Automatic Update This option prompts you when anew release is available for your version of QuickBooks If you choose to update when prompted QuickBooks downloads the necessary files to your computer via the Internet in the background with little impact on your computer s perform
336. 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 unique items or 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 Thomas has a men s clothing store Because his stock of styles changes so much he doesn t use QuickBooks to track stock To track his sales he has more general items such as Suit Sports Jacket Dress Shirt On the other 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 changethe 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 higher you can create price levels to increase or decrease stock non stock and service item prices Use them on sales forms to automatically adjust the price of an item Price levels can be created for any customer with whom you havea special relationship Finally if there are items you purchase but never s
337. untant on the best method for you Setting up and using VAT codes The VAT code list is the backbone of your VAT tracking QuickBooks uses VAT codes and their associated rates to calculate VAT on sales and purchases When you create an item you enter the appropriate VAT code to indicate what rate applies to it Default VAT codes are created when you set up your QuickBooks company For example VAT code Sindicates that an item will be bought and sold domestically at the standard VAT rate of 17 5 Each time you create an item to sell or purchase be sure to assign it a VAT code Then every time you enter a sale or purchase the item s VAT code appears automatically on the sales form To learn about Search the Help index for Creating an item items creating If you need a different VAT code for the transaction for example if you are selling an item to aVAT registered business in an EC member state just change the VAT code when it appears on the sales form VAN Be sure that your VAT codes are set up properly and that you use the correct one on each transaction particularly if you do business with companies located in EC member states QuickBooks uses VAT codes to track information for VAT reports If your VAT codes are not set up correctly or are not used properly the VAT reports and therefore your VAT return may be inaccurate 126 Chapter 5 Tracking and paying VAT Tip To create a new VAT
338. unts plus the Quicken Category list Account List income and expense accounts Chapter 3 Importing and exporting data 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 Enters most transactions in registers QuickBooks Enters most transactions in forms cheque window invoice window and so on In QuickBooks you can copy and paste a transaction from one register to another of the same type Write Cheques Displays a cheque that Displays a business cheque with looks like a paper voucher area so the split is part of cheque the cheque form Classes Uses a slash to sepa Enters classes in separate fields No rate a category froma need for a slash as a separator class in transactions 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 classifi cation Transfers Uses brackets to indi No need to use brackets QuickBooks cate a transfer to another handles transfers like any other balance sheet account transaction Passwords One password for enter Customisable password and permis ing and viewing data sion access for each person in your company Subaccounts Categories can have sub Most accounts even balance sheet categories but accounts
339. up Customer Thank you For your ost 18380 can be Message 5 PST applied to Total 427956 the entire sale 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 received at the time of sale 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 Working with items 47 Useapayment item when you receive a partial payment at or before thetime you create the invoice Description Qty Rate VAT VAT AMT Class Amount drawer Pine Kitchen Ca Pine double wall cabinet 2 150 00 5 52 50 300 00 Pine Kitchen Ca Pine single wall cabinet 3 70 00 5 36 75 210 00 QuickBooks Sinks Double sink Double sink 1 70 00 S 12 25 70 00 subtracts a Work Tops Gra Granite worktop 1 85 00 5 14 88 85 00 x Labour Cabinet amp Work top install 24 20 00 480 00 J payment
340. ur activities This tool is useful when you need to open several windows but want the help to remain on one topic The Follow Me Help window is located 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 close the Follow Me Help window altogether To close and open the Follow Me Help window m To close 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 m To rese the sidebar area to the default layout go to the View menu and select Reset Sidebar Windows Using the Help system in QuickBooks 89 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 workingin Thehelp topic is usually displayed in the Follow Me Help window 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 located on a window the help is displayed in
341. ur ae your QuickBooks accountant i company file Your Pci Reviews your data _ Saves the accountant Review copy in and makes adjustments to one QuickBooks 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 currency 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 To learn about Search the Help index for Setting up your accountant as a user permissions with all privileges if you have set up users Creating an Accountant s Review copy of your current company file accountant s review copy Merging the accountant s file into the master company file accountant s review copy Making the accountant s revised copy your master company file restoring data Cancelling an Accountant s Review copy accountant s review copy 80 Chapter 3 Importing and exporting data 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 y
342. uring the tax period for which you are remitting a payment In the Pay Liabilities window mark the payroll item liabilities you want to pay now and select options for the cheque Use the information on this window to fill in your P30 pay slip m Before you can pay aliability you must have a payee entered in the payroll item s Payable To field If you don t have one you ll be asked to add one here m Certain liabilities can be selected and paid only asa group such as National Insurance Select whether you want to review the cheque s 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 other reports may show the amount you owed for the period regardless of payments you ve made Send your payment and the pay slip to your Accounts Office Paying payroll liabilities 207 QuickBooks displays this date on the liability cheque as the paid through date If you use QuickBooks to print For abies Bie cheques tick this Pay By Cheque a is ann ys ow exeenibence ss a Payroll If you write cheques POEET PIER coe Liabilities by hand clear it zn r Oue many cage report for This is the date the peosani PER thespecified transaction affects sator Poyawtoe 5 EE period your bank account ri E ea FA iC Emoloyee cortracted out iriand Revene 5A sam Employee net contracted Inland Revenue 254
343. use on the payroll payment m Review all of your commission addition or employer contribution payroll items to make sure the check box for Track Expenses by Job is ticked m When you create a payroll payment for an employee select the correct customer job or jobs from the drop down menu for each salary or hourly wage payroll items you enter Setting up your payroll items 173 174 Tracking expenses by class Businesses often wish to track income and expenses by department or projects Similarly if you are a charity you may wish to track your income and expenses by project restricted and un restricted funds This can be done by using classes 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 entire payroll payment or to each of the payroll items you use on the payroll payment m Review all of your commission addition or employer contribution payroll items to make sure the check box for Track Expenses by Job is ticked m When you create a payroll payment either select the correct class or the payment or assign a separate class to each earnings payroll item on a payroll payment according to the Payroll amp Employee preference you chose Tracking expenses by service item QuickBooks
344. utomatically includes that transaction in your next VAT return In other words QuickBooks includes all transactions that are considered unfiled in your next VAT return Therefore when you update your old QuickBooks file pre QuickBooks 2003 you must make sure that you enter the correct date of your last submitted return When you were prompted to enter this date in to QuickBooks all transactions recorded prior to your last VAT end data were marked as filed We recommend that you reconcile your VAT account after upgrading your file Determining your VAT liability 137 Note Uncategorised transactions eliminated Previously amounts could appear as uncategorised in VAT reports and in the File VAT window QuickBooks labelled some transactions as uncategorised because some forms were used for purposes other than what they were originally created For example the Make Deposits window was used to enter a cash sale instead of using a sales receipt This type of transaction entry would result in an uncategorised amount Now QuickBooks categorises all transactions affecting your VAT liability account This means m you ll no longer have to manually categorise these types of transactions m when you generate VAT reports your VAT liability amount will now be accurate and m uncategorised amounts will no longer appear in the File VAT window or in your VAT reports Updating from QuickBooks 2003 If you previously had un
345. utomatically records a decrease in liability within your VAT Control account Submit this cheque with a completed VAT Return form to HM Revenue amp Customs VAT payments do not affect VAT reports at all After you pay your VAT for the quarter or for whatever accounting period you use your VAT reports for that period still show the amount you owed This lets you provide the necessary support in the event of a VAT audit Receiving a VAT refund from HM Revenue amp Customs Recording a VAT refund using accrual basis reporting a uu AW NE If you are owed a refund or acredit after you have submitted your VAT 100 for the reporting period QuickBooks will have already created an invoice as part of the File VAT process From the Customers menu select Receive Payments Select HM Revenue amp Customs Receivable from the Received From drop down list Enter the amount of the refund in the Amount field Tick the Applied To column in the row of the invoice you are making a payment against Complete the Receive Payments window thesameasif you were receiving any invoice payment Click Save amp Close 136 Chapter 5 Tracking and paying VAT Recording a VAT refund using cash basis reporting From the Suppliers menu choose Receive VAT Refund If the Payments to Deposit window appears click Cancel In the Deposit To field select the bank account to deposit the refund to Enter the amount of the refund in the Amount column
346. ver QuickBooks always retains transactions that meet the following criteria When QuickBooks retains atransaction Example of retained transaction w ith earlier date The transaction is linked to An undeposited customer payment that you applied another transaction thathas an to an invoice Even though the invoice is paid open balance QuickBooks retains the invoice because it has a link to an open transaction the undeposited payment The transaction is linked to a transaction in the current year Summary transactions Thesummary 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 GENJRNL summary transaction for each month in which QuickBooks deleted transactions The transaction amount isthe total of the transactions that QuickBooks deleted for the month Condensing data 105 106 Note For a given month the register may also show other transactionsthat QuickBooks did not delete These are transactions that could be affected by transactions you have yet to enter When opening aregister 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 summarised transactions for this month You cannot ed
347. which payroll payments had deductions for a dental plan Payroll Pension Detail Lists the payroll items that are marked as pension contributions Use this report to see a list of your company s pension contributions to a specific pen sion plan and the earnings base for each pension payroll item Statutory Payments Detail Lists the statutory payroll items used in any statutory payments throughout the specified payroll period You ll also see the amount of statutory pay you can recover from your payroll liabilities If you qualify for SER the recovery amount is further broken down to show NIC compensation Payroll Detail Review Provides detailed information about how QuickBooks calculates tax amounts on employee payroll payments 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 lay out Payroll Transactions by Payee Lists payroll transactions grouping them by payee For example you could use this report to create a listing of the payroll payments you paid to each employee Payroll Transaction Detail Shows the line item detail that appears on each payroll transaction Payroll Liability Balances Lists the payroll liabilities your company owes to tax agencies and labour unions for example
348. y if you make the time billable to a customer or job Be sure to create separate service items for subcontracted services m service items setting up m subcontractors service items for Set up the people whose time will be tracked Each name must be on one of the following lists m Employee m Other Name for owners and partners m Supplier for subcontractors If you plan to pay employees based on tracked time you must also set up their payroll informa tion See m Setting up employees on page 178 Also see the help in the Timer for instructions on using it m employees adding m other names list of m suppliers adding On the Payroll Item list set up salary or hourly wage payroll items to use when paying employees for time tracked Required only if you will track time for employees m hourly wages m Salaries On the Class list set up classes for the work to be tracked Class tracking is completely optional m classes adding Setting up to use time tracking w ith payroll When you set up your employees be sureto tick Use time data to create payments on his or her Payroll Info tab K Use time data to create payment Payroll payments will then automatically have the employee s time data including job class and type of work for the period covered by the payment QuickBooks keeps track of your payroll expenses for hourly or salaried gross pay employer taxes a
349. year you can change it here Scottish Variable Rate if the employee is affected by a varying tax rate in Scotland tick this check box QuickBooks adds an S to the front of his or her tax code m Collection of Student Loans if the employee is repaying a student loan tick the Subject to Col lection of Student Loans check box m Director s NI if the employee is a director of the company tick the Director check box then enter his or her appointment date and whether or not the director holds an APP Appropriate Personal Pension You will also need to choose whether to calculate the director s NICs according to the annual pro rata method or the per period as employee method Enter the employees s bank account information for BACS payments Setting up employees 181 Employee record tab Used to set up Enter the details of an employee s P45 form if the Previous Employment employee came to you from another employer part way through the tax year You can also enter the details from an employee s SSP1 L form if he has one Statutory Pay Info This window is broken down in to three tabs to rep resent the following statutory payments that Quick Books currently calculates SSP SMP and SPP For more information on how to set up statutory pay see Setting up and paying Statutory Payments on page 184 Refer to the online Help for instructions on how to set up statutory adoption paymen
350. yee See the online help for more information about working days patterns In the Employee Journal table under the Entry Type column select Sick Enter a Start Date and an End Date if known of the illness Click OK to save changes and exit the New Edit Employee dialogue OUA WNP QuickBooks automatically calculates and includes SSP on payments during the time specified and tracks the SSP amounts to the Statutory Payments Detail report and to the P35 and P14 P60 tax forms To learn about Search the Help index for Recording statutory sick pay ssp Setting up working days patterns working days patterns Previous ssp info ssp previous info Statutory Maternity Pay SM P Asan employer you must pay Statutory Maternity Pay SMP to employees who are off work pregnant or on maternity leave To see if your employee is entitled to SMP visit HM Revenue amp Customs Web site at www hmrc gov uk and search for smp To set up statutory maternity pay for an employee Open the New Edit Employee dialogue from the Employees list From the Change tabs drop down list select Statutory Pay Info Click the SMP tab Under the Current Maternity Info section enter the details of the employee s pregnancy See the online help for more information about Current Maternity Info fields 5 IntheEmployeeJournal table under the Entry Type column select Maternity Leave then enter a Start Date of the maternity leave the End Dat
351. yments from your scheme records The Accrual or Cash setting in the Reports and Graphs section of the Preferences window does not affect VAT Reports Werecommend seeking advice from your accountant for this procedure VAT reporting periods 124 When you set up your QuickBooks company you set up your VAT reporting period using information from the Certificate of VAT Registration you received from HM Revenue amp Customs Your reporting periods refer to how often you remit your VAT return If your VAT reporting period changes choose Preferences from the Edit menu click VAT in the scroll box click the Company tab and select your new reporting period from the VAT Reporting drop down list Quarterly QuickBooks defaults to a quarterly reporting period for VAT When you set up your QuickBooks company you entered the months when each of your VAT quarters ends This is normally every three months Annually If you have been registered for VAT for at least 12 months and the annual value of your taxable supplies excluding VAT is below 660 000 you may be able to use the Annual period With the annual reporting period you can make nine equal monthly payments by direct debit to HM Revenue amp Customs based on an estimate of the amount of VAT due These start at the end of the fourth month of your financial year Within two months of the end of your financial year you must send in your annual VAT return with a tenth balancing payment
352. yroll and employees Paying payroll liabilities When it s time to pay your payroll liabilities QuickBooks shows you how much you owe and to whom lets you choose which liabilities you want to pay and creates cheques for you It also helpsyou fill in the forms you need to send in with your payments Step Procedure 1 To see how much you owe to whom and for what create a Payroll Liability Balances report If you qualify for SER and paid out statutory payments you also need to create a Statutory Payments Detail report See Determining how much to remit to the HM Revenue amp Customs for more information on creating these reports 2 Adjust the amounts you owe if necessary It usually isn t 3 Create cheques for the amounts you owe by using the Pay Liabilities win dow 4 Fill in a P32 report and prepare your P30 slip to send to HM Revenue amp Cus toms along with your payment Determining how much to remit to the HM Revenue amp Customs AN To determine the amount you must remit each month to HM Revenue amp Customs you must complete a P32 Employer s Summary report Use the Payroll Liability Balances report to help fill out your P32 and P30 forms This report provides a summary of all the payroll liabilities you will be remitting for a given reporting period If you made any statutory payments to your employees in a given tax period you must first create a Statutory Payments Detail report b
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