Blogs

Why QuickBooks?

You know about QuickBooks but you’re still hesitating. Here’s why you should make the transition.

How It Helps

There’s never a good time to make the transition to new software. Switching to QuickBooks is going to cut into your productive hours, and it will take some time to learn how it works before you can start using it daily. We can accelerate that process by helping you implement it and training you on its operations.

Once you get going, you’ll discover a whole range of benefits that you may not have even considered, like:

Once you’ve created an item record, for example, QuickBooks stores it for use in transactions.

Minimized errors. Once you’ve entered data in QuickBooks, whether it’s a customer’s address or a product/service price and description, the software stores it. It will appear in lists that you can access when, for example, you’re creating invoices. Not only does this improve accuracy, but it also makes duplicate data entry unnecessary.

Faster payments from customers. QuickBooks supports merchant accounts. Sign up for one, and you’ll be able to accept direct bank transfers and credit/debit cards from customers. You can automatically include a payment stub on invoices to speed up the remittance process.

Real-time account balances. Supply your login information for your online banks and other financial institutions, and QuickBooks can connect to them. It imports cleared transaction data regularly and helps you reconcile your accounts. You can even set it up to pay your bills electronically.

Instant data access. Got a customer on the phone who has a problem with an invoice or payment? QuickBooks’ search tools help you track down the smallest detail in seconds. 

Time-tracking. If you (or your employees) provide services that are billed back to customers, you can create time records individually or on a timesheet. These blocks of hours and minutes can be marked billable, so they’ll appear the next time you start an invoice for any affected customers.

If your company sells services, you can create individual timesheets and mark sessions as billable.

Improved customer relationships. Your customers want answers when they have problems or questions, and they want them quickly and accurately. QuickBooks lets you store all needed details about customers in records, including contact information, payment particulars, and transaction history. Nothing helps encourage future sales like a company that knows its customers.

A more contemporary image. Those invoices and statements you create in Word-or worse, write by hand-contribute to your customers’ impressions of you and your commitment to using state-of-the-art technology to better serve their needs. When you email professional-looking, carefully-customized sales and purchase forms, you’re likely to go up a notch in their eyes.

Feature flexibility. You can use a little of QuickBooks and still have it be worth your time and technology dollars, or you can stretch its capabilities to the limits. If the latter happens, you may want to expand the software’s reach by integrating it with one of the hundreds of add-ons available in areas like inventory, invoicing and billing, and CRM.

Time and money savings. This is actually the most compelling reason to use QuickBooks. Yes, you have to pay upfront for the software, but you’ll soon see that your investment will reduce the hours you spend on accounting. That means you’ll have more time to do what only you can do: make your business flourish by planning for its future and taking the actions that will move you toward greater success.

Have you installed QuickBooks but you’re having trouble using its features? Do you need some guidance, particularly in the area of advanced reports? Contact us at 256-337-5200. We’ll assess where you are with the software and devise a plan to complete its implementation. You may be surprised to learn what you can do and how easy it is when you’re taught how to customize and use it for your business.

The SBS Team
Intuit Premier Reseller
256-337-5200

5 QBO Reports You Should Review Weekly

There are numerous QuickBooks Online reports that you should be consulting at regular intervals.

QuickBooks Online’s Dashboard, the first screen you see when you log in, provides an effective overview of your company’s finances. It contains at-a-glance information about your recent expenses, your sales, and the status of your invoices. It displays a simple Profit and Loss graph and a list of your account balances. Scroll down and click the See all activity button in the lower right and your Audit Log opens, a list of everything that’s been done on the site and by whom.

Other Pressing Questions

The Dashboard supplies enough information that you can spot potential problems with expenses and sales, accounts, and overdue invoices. So…..How’s your inventory holding up? Are you staying within your budget? How about your accounts payable – will you owe money to anyone soon?

QuickBooks Online offers dozens of report templates that answer these questions and many more. If you’ve never explored the list, we suggest that you do so. It’s impossible to make plans for your company’s future without understanding its financial history and current state.

QuickBooks Online has many reports that can provide real-time, in-depth insight   into your company’s financial health

Comprehensive and Customizable

When you click Reports in your QuickBooks Online toolbar, the view defaults to All. The site divides its report content into 10 different sections, including Business OverviewSales and CustomersExpenses and Vendors, and Payroll. Each has two buttons to the right of its name.

Click the star, and that report’s title will appear in your Favorites list at the top of the page. This will save time since you’ll be able to quickly find your most often-used reports. Click the three vertical dots and then Customize to view your customization options for that report (you’ll have access to this tool from the reports themselves).

Necessary Knowledge

You can, of course, run any report you’d like as often as you’d like. Most small businesses, though, don’t require this frequent intense scrutiny.

Here are five reports that you do want to consult on a regular basis:

  1. Accounts Receivable Aging Detail. Displays a list of invoices that haven’t yet been paid, divided into groups like 1-30 days past due, 31-60 days past due, etc.
  2. Budget vs. Actuals. Just what it sounds like: a comparison of your monthly budgeted amounts and your actual income and expenses.

Warning: Some reports let you choose between cash and accrual basis. Do you know the difference and which you should choose? Ask us – call 256-337-5200!

 You can customize QuickBooks Online reports in several ways.

3.  Unpaid Bills. Helps you avoid missing accounts payable due dates by displaying what’s due and when.
4. Sales by Product/Service Detail. Tells you what’s selling and what’s not by displaying date, transaction type, quantity, rate, amount, and total.
5. Product/Service List. An accounting of the products and/or services you sell, with columns for price, cost, and quantity on hand.

Customization, Complex Reports

Note that there’s a category of reports in QuickBooks Online named For My Accountant. The site includes templates for reports that you can run yourself, but that you’d have difficulty customizing and analyzing. These standard financial reports-which, by the way, you’ll need if you create a business plan or try to get funding for your business-include Balance SheetStatement of Cash Flows, and Trial Balance.

You don’t need to have these reports generated frequently, but you should be learning from the insight they provide monthly or quarterly. We can assist you with this part of your accounting, as well as any other aspect of financial management where you need assistance. Contact us at 256-337-5200 so we canhelp you make better decisions for the future of your business.

The SBS Team
Intuit Premier Reseller
256-337-5200

All About Sales Receipts in QuickBooks

Documenting every sale carefully helps ensure that your financial records and reports will be accurate. The sales receipt is the right tool for this in specific situations

A Simple Form

Here’s an example of a situation that illustrates the importance of really learning about and understanding QuickBooks before you start entering live data. Say you got a check from a customer on the spot for a house painting job you completed. When you look at the QuickBooks’ home page, which icon do you click?

You might be tempted to click Receive Payments, since that’s exactly what you’re doing. However, that screen is reserved for revenue that comes in to satisfy outstanding invoices and unpaid items on billing statements. Instead, you’d click Create Sales Receipts to open the Enter Sales Receipts window. Here’s a partial view of what you’d see:

When a customer pays you immediately for goods or services, you need to open and complete the Enter Sales Receipts window.
If you’ve already entered your customer and item/service records in QuickBooks, you can record your sale very quickly here. Even if you haven’t, or if you need to create a new record on the fly, you can select <Add New> when you open the drop-down option lists for the Customer:Job and Item fields.
 

Warning: Do you need to track inventory levels for products you sell? Have you created thorough records for these items? There is information that QuickBooks needs to help ensure that you don’t run out of stock or keep too much on hand. Let us walk you through the software’s inventory-management tools so you can take advantage of all the benefits they offer.

Once you’ve selected the appropriate customer, Class (if you use this feature), and Template (Here again, do you understand that you can either use the default sales receipt form provided by QuickBooks or customize it? We can help here), make sure that the Date and Sale No. are correct.  Next, click on the icon representing the transaction’s payment method, choosing from CashCheckCredit Card, or eCheck. Click the More button if your method isn’t listed there. Here, you can add new options by selecting Add New Payment Method. A small window will open allowing this. If you want to modify this list further by, for example. editing and deleting the default methods, clear and close the current sales receipt, open the Lists menu, and select Customer & Vendor Profile Lists | Payment Method List. This window will open:
Click the down arrow in the Payment Method field near the bottom of this window to see your modification options.

Once you’ve chosen the desired Payment Method (and entered a check number if necessary), you’ll complete the rest of the sales receipt much like you would an invoice, by selecting the correct products or services, the quantity you’re selling, and the transaction’s tax status. QuickBooks will fill in the rest if you’ve created complete item records.

When you’re done, save the sales receipt. Information about the transaction will be available in standard places like the Customer Information screens and various reports.

Whether your revenue comes instantly (documented by a sales receipt) or as longer-term payment on an invoice, your company’s income is just one element of the cash flow equation. Are you able to create and interpret the reports that can help you understand these complex calculations, like Cash Flow Forecast and Profit & Loss? You probably run some of QuickBooks’ more basic sales reports regularly, but consider bringing us in to do the deep analysis needed to make better business decisions. Call us at 256-337-5200 TODAY to set up an appointment and to save you time.
 
Small Business Solutions LLC
Intuit Premier Reseller
256-337-5200

Don’t Have a Budget? QuickBooks Online Can Help

The hardest part of creating a budget is getting started. QuickBooks Online provides tools that can jump-start the process.

Creating the Framework

Before you begin, you’ll want to make sure that your fiscal year is set correctly in QuickBooks Online. Click the gear icon in the upper right, then click Your Company | Account and Settings | Advanced. If the First month of fiscal year isn’t correct, click the pencil icon over to the right and change it. Then click Save and exit out of this window.

Click the gear icon again and select Budgeting, then click Add budget in the upper right.

QBO asks you the questions that need to be answered before you start filling in your budget grid.

The first thing you’ll do is give your budget a descriptive name by entering it in the Namefield. Next, open the drop-down list under Fiscal year and select the correct 12-month period. You can create your budget in one of three intervals: MonthlyQuarterly, or Yearly. If you want to populate your budget with numbers from this year or last, make that selection in the Pre-fill data? field.

There’s one more option at the top of the Budgets Grid screen that’s not shown in the image above. You can Subdivide by CustomerClass, or Location. This can be useful if you want to view budget data specific to a subset of entries in each of those categories. You could, for example, choose three customers and view only their numbers in the grid individually, one at a time.

Providing Your Numbers

Once you’re satisfied with the selections you’ve made, click Create Budget in the lower right. The screen will refresh and display a grid that you can edit.

Let’s say you’re working on a budget for the second half of 2018. QBO brought in your numbers for January-May. You see that the numbers don’t vary much from month to month on one specific line item, so you’re going to assume that they will continue to be true (unless you know something that will affect it after May). You could enter a rough average of the first five months in the JUN field.

Hover your cursor over the arrow to the side of that field, and this sentence appears in a small bubble: Click to copy the value across on the row. QBO will then enter that number in the JUL through DEC fields.

QBO can save you some time as you enter data in your budget grid fields.

When you’re done entering data in all of the fields relevant to your business, click Save in the lower right and close the window. Your budget will now show up in the list.

Tip: If you have multiple blank rows and don’t want them to be displayed, click the gear icon in the upper right corner of your budget page. Click in the box in front of Hide blank rows to create a checkmark .

The Hard Part

QuickBooks Online simplifies the mechanics of creating a budget, but it’s up to you to supply the numbers. There’s a lot of common-sense advice that experts offer for this process, like:

  • Remember seasonal upswings and downswings.
  • Make your goals as realistic as possible. You might want to create separate budgets for “needs” and “wants.”
  • Track your expenses carefully for a period of time so you can estimate more confidently.
  • Create reports regularly that compare your budget vs actuals.

QBO can help you with that last piece of advice; it offers a report called Budget vs. Actuals.  You’ll find it in the Business Overview group.

We can help, too. Once we understand a little more about your business structure and goals, we can take a look at your income and expense history and make some personalized recommendations. Connect with us soon (call 256-337-5200), and we can start you on the path to a more focused financial future.

Small Business Solutions LLC
Intuit Premier Reseller
256-337-5200

Customize QuickBooks’ Forms to Polish Your Image

The invoices and other forms you send to customers and vendors should reflect your company’s image.

Improving What Exists

You can personalize your QuickBooks forms and make them consistent with any design themes your brand may use.

We’ll look at the modification options for an invoice, though, depending on what version of QuickBooks you’re using, you can also work with sales receipts, purchase orders, statements, estimates, sales orders, and credit memos. Start by opening the Lists menu and selecting Templates. Highlight Intuit Product Invoice in the list. Click the down arrow next to Templates in the lower left corner and choose Edit Template.

The above image displays part of the window that opens. Here, you can add a logo, change the color scheme, and change fonts for your company’s contact information and the labels that identify each field (like Bill To, Terms, and Quantity). The right pane of this window shows you what the form will look like as you make changes.

Nothing you’ve done so far will prevent you from using Intuit’s pre-printed forms. But when you click Additional Customization at the bottom of the screen, you’ll be warned that if you make modifications beyond this point, the forms may not print correctly. To be safe, click Make a Copy. You’ll be able to print this new version on plain paper.

Deeper Customization

The image below shows you part of the window that opens when you click on Additional Customization. The first two columns here are the most important; they let you specify the labeled fields that will appear on your invoices. When Header is the active column, you’ll be able to choose the content that will go at the top of your form, like Date, Invoice Number, and Terms.

Next to each default label, you’ll see boxes for Screen and Print. Click in these boxes to create or delete checkmarks; this will indicate whether each label will appear in the software itself and which will be printed for your customers to see. If you’d like to change the language QuickBooks uses to describe each, enter your preferred word or phrase in the Title column.

With the Header column highlighted, you can shape the appearance of the top section of your invoices.

Warning: As you’re checking and unchecking boxes, a dialog box may open telling you that your changes will cause some fields to overlap on your form. If you click the Default Layout button, QuickBooks will make automatic adjustments to fix this. Clicking Continue means you’ll have to use the software’s Layout Designer to make your own adjustments. This tool is not particularly intuitive, and it requires some design skills. If you must work with the Layout Designer, let us help.

When you click the Columns tab, you’ll see a list of the fields available for the main body of your invoices, like Description, Quantity, and Rate. This works similarly to how you just modified the Header, with one exception: You’ll be able to enter numbers in the Order column to specify the placement of each field. Here again, you’ll be able to watch a preview of your form change in the right pane.

If you want to start over, click the Default button to revert the form to its original state. When you’re done, click OK.

Neatness Counts

Whether you print and mail your forms or simply dispatch them electronically, we strongly encourage you to make them as professional and polished as you possibly can. Their appearance will enhance or detract from the image your customers and vendors have of your business. Let us know if we can help. We’d be happy to help you learn about and implement the customization options that QuickBooks offers.

Small Business Solutions LLC
Intuit Premier Reseller
256-337-5200

Using Product and Service Records in QuickBooks Online

Picking Products

Much of your accounting work probably consists of filling out forms. Whenever you create one of these invoices or sales receipts or purchase orders, you already know that you can open a drop-down list and select the name of a customer or vendor. QuickBooks Online lets you enter data about what is being bought or sold in the same way.

To see how this works, open an invoice form and complete and/or verify the fields at the top (customer, date, terms, etc.). Click in the first PRODUCT/SERVICE field, and then click the down arrow to see the list of items and services you sell.

When you create a sales or purchase form, you’ll be able to select the appropriate product or service from the drop-down list – or add a new one.

When you select an item, the description and price will fill in automatically. You’ll have to add the quantity and click in the box below the column labeled Tax (if applicable). QuickBooks Online will calculate the total cost of the product or service on that line. If you need to enter additional sales, proceed to the PRODUCT/SERVICE field in the second line and repeat those actions until you’re done and can save the transaction.

Working with Items

What do you do when you need more information about a specific product than just its description and price? Do you have to return to its individual record?

No. QuickBooks Online includes a great tool that provides real-time updates on your inventory items and lets you work with them. Click the Sales tab in the left vertical menu, and then on the Products and Services tab at the top. The table that opens displays numbers for every item’s quantity on hand and reorder point. Look at the end of each line, and you’ll see a drop-down list labeled Edit that looks like this:

QuickBooks Online’s Products and Services page provides real-time inventory updates, as well as item-management tools.

As you can see, there are a number of actions you can take here on individual products.

Warning: If you think there’s a reason you should Adjust quantity or Adjust starting value, please talk to us first. Your inventory records need to be precise. We can schedule a session to go over this and other concepts you need to understand in order to keep inventory counts accurate.

You can take some of these actions on multiple items simultaneously. Click the down arrow in the Batch actions field above this Edit menu. Click the boxes in front of the products you want to work with and select the desired activity (unavailable ones will be grayed out in the list). Take extra care with this mass modification tool.

Multiple Reports

QuickBooks Online’s Product and Services screen may be all you need in your daily work, but there will be times when you need more analytical assistance. You can turn to the site’s specialized reports for more in-depth scrutiny. Click the Reports tab in the left vertical pane. Make sure the All Reports list is active and select Manage Products and Inventory to see what’s available, including:

  • Inventory Valuation Detail.
  • Sales by Product/Service Detail.
  • Physical Inventory Worksheet.

Reports are easy to run but can be difficult to customize correctly and interpret. If we’re not working with you already on the complex standard financial reports that should be reviewed monthly or quarterly, please call us at 256-337-5200. The more you understand about the financial status of your company, the better your decisions will be.

Small Business Solutions LLC
Intuit Premier Reseller
256-337-5200

Accelerate Your Receivables

Are your customers slow about paying their invoices? QuickBooks can help accelerate your receivables.

Simplify the Payment Process
The single most effective step you can take to speed up customer remittances is to allow payment by credit card or electronic check. If you’re currently only accepting paper checks, you already know what problems that option can create, like mailing time, trips to the bank, and insufficient funds.

To establish this capability, you’ll have to sign up for a merchant account that will connect your bank to the financial institutions used by your customers. There are fees associated with this, and the initial setup will be unfamiliar to you. We can help with this.

Once you sign up for a merchant account, you’ll be able to accept payments from customers by credit card and bank transfer.

Having a merchant account will accelerate your receivables and improve your company’s cash flow, but it has other benefits, too. For example:

  • Your customers will appreciate the convenience, and may even be more likely to make a purchase.
  • In 2018, customers and prospects expect to be able to pay for items and services electronically. Not allowing this affects their perception of you as a forward-thinking, progressive business.
  • You’ll save time, which translates to money. Instead of chasing payments, you can be working on ways to meet your goals and help your company grow.

Always Know Where You Stand
If you’re conscientious about keeping your records and transactions updated, you’ll always have access to the most current data about your company’s financial status. You’ll be able to answer questions from customers and vendors quickly and accurately, and your daily accounting tasks will be much easier to accomplish.

There’s another benefit, though: reports. One of the five best things about QuickBooks is its ability to create dozens of reports using pre-formatted templates. You only have to choose the one you want to see, and the software will display it using your company’s data. You also have the option to customize these reports extensively, so they contain the exact cross section of data that you want to see.

QuickBooks contains dozens of templates for pre-formatted reports that you can customize and create very quickly.

You can see in the image above that several of QuickBooks’ reports are focused specifically on the status of your customers’ invoices and payments. We strongly recommend that you run these reports regularly. The more you know about who is behind and by how much, the more targeted your collections efforts will be.

You’ll also notice that there’s a category of reports called Accountant and Taxes. You can certainly create these yourself, but some, like Trial Balance, will be unfamiliar to you. There are others listed under Company & Financial that are quite complex, but quite important. We’d be happy to analyze these for you on a regular basis (monthly or quarterly) and provide insight that will help you make better business decisions.

Remind Late Payers
There are all kinds of reasons why customers pay invoices late. Their bills may have been lost in the mail. They may have ordered so much that they’re confused about which invoices haven’t been paid. And they may just be low on funds.

You can’t do much about the latter reason, but QuickBooks provides a way for you to update customers about their past due payments: statements.

Sometimes, customers just need a full accounting of what they owe in the form of a statement.
 
It’s not difficult to follow QuickBooks’ customization options for statements, but we’re here to help if you run into difficulties. In fact, we’d be happy to sit down with you and talk about these as well as other options for improving your company’s cash flow. It’s a multi-faceted problem with many solutions; we can go over the options with you. Contact us now at 256-337-5200 to work on making the rest of 2018 more profitable.

Small Business Solutions LLC
Intuit Premier Reseller
256-337-5200

Creating Product and Service Records in QBO

QuickBooks Online (QBO) is good at managing and tracking inventory – as long as you’ve created thorough records.

When you first started your business, you might have been able to keep track of your merchandise by counting manually. However, as you and your product list grew, this became impractical.Whether you sell products or services or both, you need records of specific items to use in transactions and reports. Those records are especially important if you have physical inventory, and they can store details that help you know, for example, when it’s time to reorder.

Detailed Templates

It’s easy enough to create your individual records. To get started, click the gear icon in the upper right corner of QBO and select Products and Services under Lists. A table will open that will eventually contain a comprehensive list of what you sell. Click New in the upper right corner, and the Product/Service information pane slides out. You’ll see your four options here:
  • Inventory: Products you buy and/or sell
  • Non-inventory: Products you buy and/or sell that don’t require tracking
  • Services: Services you sell
  • Bundle: Products and/or services that you sell together

We’ll focus on the first option. Click Inventory. Enter the product’s Name and SKU (if there is one) and click the pencil icon to upload a photo if you’d like. If this item is going to be a sub-product or service of another, you’d click the box in front of that option and select the “parent” product or service from the drop-down list.

To create an  Inventory item record in QBO, you’ll have to fill in several fields.
 
How many do you currently have of that item? Enter the number in the field to the right of Initial quantity on hand, and then enter the As of date in the next box. When your stock level hits a certain number, you’ll want to reorder more. Enter that number in the box to the right of Reorder point.

Your item needs to be assigned to an Inventory asset account for tracking and reporting purposes. This field should default to Inventory Asset. If it doesn’t, or if you want a more thorough explanation of this element of accounting, contact us (256-337-5200).

Enter a description of the item in the Sales information box; this will appear on sales forms. What will your customers be charged for it? This is the Sales price/rate. The Income account should automatically display Sales of Product Income, and you should click in the box in front of Is taxable if that’s the case.

If you buy the item to resell, enter a description in the Purchasing information box, and provide your Cost, the price you pay when you buy the item from another source. The Expense account should default to Cost of Goods Sold.When you’re done, save the record.

Viewing Your Records

Once you create a record for an item or service, it will appear in this table.

You don’t have to create records for absolutely every product or service you sell before you start using them. When you create an invoice, for example, and you open the drop-down list under Product/Service, the option at the top of the list will be + Add new. Select that, and the Product/Service information pane opens. You can create a record on the fly.

To get to the list of the product and service records you’ve created, click the gear icon in the upper right and select Products and Services, like we did early on here. You’ll see a screen similar to the one pictured above. You’ll also notice that you can link to several action screens from each entry.

If you maintain careful item records, you’ll be able to create a number of reports that can advise you on the state of your inventory. Click on Reports in the toolbar, and then All Reports | Manage Products and Inventory. These reports are fairly self-explanatory, but by customizing them, you can get even more focused insight. We can help you with this.

We’d also be happy to go over any other aspect of inventory-tracking and management that’s confusing. Just let us know when you want to get started.

Small Business Solutions LLC
Intuit Premier Reseller
256-337-5200

Tracking Time in QuickBooks-Part 2

Recording Employee Hours

There are two ways to enter hours for your employees who provide services to customers and are paid by the hour. The first is to create a work ticket for a single activity. Click Enter Time on the home page, and then Time/Enter Single Activity to open this window:

Single-activity work tickets for employee hours are especially useful if you need to set a timer.

First, check the date to make sure it displays the day when the work was actually done, not recorded. Click the arrow in the field next to Name and select the employee’s name from the drop-down list that opens, then do the same in the Customer:Job field below. The Service Item field needs to display the name of the service performed by the employee.

If you want to time a period of activity, use the Start, Stop, and Pause buttons under Duration. You can also replace the 0:00 that appears by default with the number of hours and minutes that were worked.

In the middle column, you’ll select the correct Payroll Item from the drop-down list. You can add a new employee if necessary without completing his or her entire record, but be sure to go back and complete it before your next payroll.

Hidden behind the drop-down menu is a field titled WC Code, which stands for Workers’ Compensation Code. It will only appear if you’re using QuickBooks Enhanced Payroll and have that feature turned on.

Tip: If these two fields do not appear, you’ve selected an employee who isn’t timesheet-based.

In the upper right hand corner, you’ll see a field labeled Billable. Be sure you click in the box to create a checkmark if you’ll be invoicing a customer for the work done.

Save the activity record when you’ve completed it.

Using Timesheets

You can enter employees’ hours directly on a timesheet instead of creating a single activity record.

QuickBooks offers a second option for entering employee hours: timesheets. You’ll notice that there’s a Timesheet icon in the toolbar of the Time/Enter Single Activity window. If you click on it with a completed record open, a new window opens containing a graphical representation of a paper timesheet.

If you enter employee hours in a single activity record, they will appear on a timesheet, and vice versa. There are two advantages to entering hours directly on the timesheet, though. The first is that it’s faster. And secondly, you can click the Copy Last Sheet icon if you’re just going to duplicate an employee’s previous pay period’s hours. If you want to go there straight from the home page, click Enter Time | Use Weekly Timesheet.

Billing Customers for Time

QuickBooks makes it very easy to transfer billable hours worked by employees to the corresponding customers’ invoices. After you’ve entered blocks of time spent on services, open an invoice form and select the customer. This window will open:

Once you’ve entered billable hours worked by an employee, simply open an invoice form and select that customer to open this window.

By default, Select the outstanding billable time and costs to add to this invoice? is checked. When you click OK, a new window opens displaying a grid that contains all of that customer’s billable time. You can Select All or click in front of each entry you want to include. You’ll notice here that there are also tabs on the grid for Expenses, Mileage, and Items that can be billed back to the customer.

If you choose not to carry billable hours over to the invoice at the present time, you can always add them by clicking Add Time/Costs in the invoice’s toolbar.

Questions? We’re always available to help ensure that you’re billing customers for all costs they incur – and to talk about any other element of your QuickBooks.

Small Business Solutions LLC
Intuit Premier Reseller
256-337-5200

Getting Ready for Payroll in QuickBooks Online

Taking on your company’s payroll with QuickBooks Online? Knowing what you’re up against ahead of time will make your setup tasks much easier.

Our Purpose Here

We’ll provide some step-by-step instruction, but initially, we just want you to see what information you’ll need to have available and how QuickBooks Online handles it. This is not meant to be a payroll setup tutorial.

Building a Backbone

There’s no particular order set in stone for your payroll preparation tasks, although you will need to provide some background information about your company and its policies before you can start creating employee records.

QuickBooks Online doesn’t walk you through the steps required. It does though display a page with links to all of the data you’ll have to enter. Click the gear icon in the upper right, and then click Payroll Settings. You’ll see this screen:

QuickBooks Online’s Payroll Settings screen displays links to the pages where you’ll manage your setup tasks.

You would have entered information about your Contact Information and Work Locations (under the Business Information heading) when you first signed on to QuickBooks Online. At the same time, you would have been exposed to the Chart of Accounts, which already has accounts designated for payroll. You can see them by clicking Preferences | Accounting, but please do not customize these. If modifications are needed, we’ll do them for you.

Payroll Policies

How often will you pay your employees? Go up to the Payroll heading in the upper left and click on Pay Schedules. Click Create and open the drop-down list next to Pay Period to select the frequency desired. Then enter the date for the first payroll you’ll run in QuickBooks Online and the end date for the period that it covers. Click the box below if you want this to be the default setting for all employees. Then click OK to return to the previous page.

Open the Vacation and Sick Leave Policies window. If you don’t yet have accrual rules for these paid days off, let us help you here. It’s complicated. When you’re done, click the back arrow to return to the Pay Policies window and select Deductions/Contributions. Are you offering benefits like health insurance? You’ll need to have your paperwork and information handy before you start completing this section.

Before you can pay employees, you’ll need to have entered information about the benefits you offer so you can withhold dollars for them.

Click the plus sign (+) in front of Add a New Deduction/Contribution and complete the fields here, then click OK. You’ll assign these deductions to employees on their individual records in QuickBooks Online. If there are any Employee Garnishments needed (like child support), click the down arrow next to Add Garnishment for and select the worker from the list. You’ll provide details for these in the window that opens. This information was most likely provided to you by the agency requesting it. When you’re done, click OK.

Taxes and More

If you’re new to payroll and have never dealt with payroll taxes before, you’re going to need our help getting this complicated element set up correctly. Even if you have, we’d recommend that you let us work with you. QuickBooks Online does a good job of providing guidance here, but failure to submit payroll taxes (or pay them incorrectly) can lead to penalties and fines – or worse.

There are other setup tasks you’ll need to complete, like:

  • Connecting your payroll bank account to QuickBooks Online.
  • Creating employee records.
  • Setting payroll production preferences.

Setup is by far the most challenging part of processing payroll in QuickBooks Online. Once that’s done, you’ll just be entering hours and making modifications. Please connect with us at 256-337-5200 if you’re planning to take this on, and we’ll make sure you get a good start.

Small Business Solutions LLC
Intuit Premier Reseller

256-337-5200

Tracking Time in QuickBooks-Part 1

Building the Foundation

We’ve discussed QuickBooks’ Preferences many times before. The software was designed to support small businesses with a wide variety of structures and needs, so it needs to be flexible. For that reason, we always recommend that you check in with your “Preference” options before you explore new features.

To get there, open the Edit menu and select Preferences. In the left vertical pane, click on Time & Expenses, then on the Company Preferences tab at the top. Here is a look at the top part of the window that opens:

The Company Preferences window for Time & Expenses displays multiple options.

To make sure that QuickBooks’ time-tracking features are turned on before you start, click the button next to Yes under Do you track time? Specify the First Day of Work Week by opening that drop-down list. If you know that all your time entries will be billable, click in the box in front of that statement.

There are other options in that window; we’ll talk about them next month.

Creating Service Items

Before you can start tracking billable time, you have to create a record for each service offered – just like you would for a physical product. Click the Items & Services icon on the home page or open the Lists menu and select Item List. The window that opens will eventually display a table containing all the items and services you’ve created.

To define a service item, click Item in the lower left corner, then New, to open a window like this:

You can create numerous types of items in QuickBooks; Service is one of them.

Click the down arrow in the field under Type to see your options here. There are many, ranging from Service to Inventory Part to Sales Tax Group. Select Service. In the field under Item Name/Number, enter a word or phrase and/or number that describes the service, and that won’t get confused with another.

If you had already created an item like “New Construction Services” and you wanted “Carpet Installation” to appear as a subitem of it, you’d click in the box in front of Subitem of to create a checkmark, then open the drop-down list below it and select “New Construction Services.”

Ignore the Unit of Measure section. If this designation is important to your business, talk to us (call 256-337-5200) about upgrading your version of QuickBooks. Connect with us, too, if the service you’re defining is used in assemblies or is performed by a subcontractor or partner, as these are more advanced situations.

Enter a brief Description in that box and your hourly charge—to the customer—in the field to the right of Rate. Click the down arrow in the field next to Tax Code to select the item’s taxable status.

It’s very important that you get the next field right. QuickBooks wants to know which account in your company’s Chart of Accounts should be assigned to this item. In this case, it would be “Construction Income.” If you’re not yet familiar with the concept of assigning accounts, let’s set up a session to deal with this and other basic knowledge you should have. When you’re done, click OK.

Next month in Part 2, we’ll talk about entering time items in records and timesheets.

Small Business Solutions LLC
Intuit Premier Reseller
256-337-5200

Customizing QuickBooks Online (QBO)

You can start using QBO immediately; however, your tasks will be easier and faster, if you customize it for your company.

Click on the small gear icon in the upper right corner. The window that opens displays links to all of the site’s options – a collection of choices that’s called “Preferences” in desktop QuickBooks.

When you click on the small gear icon in the upper right corner of QuickBooks Online, this window containing the site’s many options will open.
 
Global Settings

The first screen you should visit is Account and Settings. This page is divided into five sections, accessible by clicking on one of the tabs below:

Company -Your company’s name and contact information appears here, as well as identifying details like the tax form you file, as well as your industry.

Sales -You can do a lot of customizing here that will affect your company’s selling activities. For example, you can specify preferred invoice terms and delivery method, and indicate whether to turn on features like:

  • Shipping
  • Custom fields and transaction numbers
  • Discounts
  • Quantity and price/rate
  • Inventory quantity on hand
You can also access the site’s tools for customizing the design and layout of your sales forms (invoices, receipts, etc.).
 
Expenses -You’ll toggle expense-related tools on and off here. You can choose to, for example, track expenses and items by customer and make them billable. Will you be using purchase orders? What will your default bill payment terms be?
 
Payments -Here, you’ll be able to set up a merchant account so you can accept credit cards and bank transfers from customers through QuickBooks Online. If you already have a merchant account, you can connect it here.
 
Advanced -There’s a good reason why this section is named “Advanced.” You may not be familiar with some of the concepts here, like “closing books” and specifying default accounts for items like Markup. We can go over these things with you and help you make decisions.
Other entries in this list are easier to complete, though you may still want some guidance. Will you support multiple currencies? Automatically apply credits and invoice unbilled activity? Make individually-tracked time activities billable to customers?
 
Other Preferences
There are many other areas in this window that you’ll want to explore before you start processing a lot of transactions in QBO. If more than one person will have access to the site (we’ll assume you’re the Administrator), you must click on Manage Users. Here, you can set limits of what other employees can access. Click New on the screen that opens to launch this mini-interview, and follow its instructions:

You can restrict users to specific areas of QuickBooks Online.

 

Other preferences you should look at include:
  • Chart of Accounts – only to familiarize yourself with the accounts that make up the backbone of your accounting data. You’ll use these in transactions. Please do not make any changes here without talking to us.
  • All Lists – to see what’s available here, like ClassesRecurring Transactions, and Payment Methods.
  • Products and Services – to start building records for the items and services you sell. If you carry inventory and have never worked with a website that helps you manage it, please let us go over these concepts with you.
  • Budgeting – if you plan to create a budget. QBO contains a tool that will accommodate this critical task.
  • Audit Log – if multiple people will be using QBO. It tracks all activity by date and user.

QuickBooks Online is easy to use, but there’s a lot to learn upfront about customizing it to meet your company’s accounting needs. It’s natural to feel a bit overwhelmed at first. Let us help you get through those early days of use.  Connect with us at 256-337-5200, so we can guide you through the basics.

 

The “QB Bob” Team
Intuit Premier Reseller
256-337-5200
Page 1 of 1012345...10...Last »

Latest Posts

  • Why QuickBooks?
    Why QuickBooks?
    You know about QuickBooks but you’re still hesitating. Here’s why you should make...
Intuit Premium Reseller

Sign Up for A Consultation

Contact Us

PO Box 10053
Huntsville, AL 35801
(256) 337-5200
info@thesbsteam.com

Privacy Policy