QuickBooks Desktop Pro

Instructor:
Kirby C. Loberiza
 Goals with QuickBooks

• Prepare Financial Statements with

ease in virtually no time.
• Develop Better Management Practices
 Why Use QuickBooks?
• Strong Managerial Accounting System

• Most Accountants in the world want it

• Best for Business with Small to Large Scale
Operations
• Improve Communication with stakeholders
Advantages of QuickBooks
• Ease of use
• Manages accounts payable
• Manages accounts receivable
• Manages inventory
• Easy comparison of results of
operations
• Easy to produce & reconcile reports
All the Accounting You
Need to Know

• Assets • Cash
• Liabilities • Accrual
• Equity
Cash vs. Accrual
• Enter expenses • Enter a bill when it
when you pay is received, not
them. when paid.
• Enter income when
• Enter income when it is sold, not when
it is received. you receive the
money.
• Tax-based • Management
orientated
 Accrual Adjusted Entries
• Provides truer picture of current
state of business through:
– Performance measures
– Financial measures
– Financial position evaluation
 Measuring Business
Profitability

• Balance Sheets

• Profit and Loss Statement (Income Stmt)

Income - Expenses
The Balance Sheet
 The Balance Sheet Presents
• ASSETS - What the business has

• LIABILITIES - What the business

owes (debt)
• OWNER’S EQUITY - What the owner
is worth
 Balance Sheet Reports
• The financial position of the business which
shows:
– The ability to bear financial losses (risk)
– Business wealth or equity
– The collateral for lenders in case of liquidation to
meet debtors’ obligations
– Information to address issues of estate planning,
deferred tax obligation, generation transfer and
retirement
 Balance Sheet Components
• Assets
– Current
– Non-Current

• Liabilities
– Current
– Non-Current

• Equity (Net Worth)

 Balance Sheet Definitions –
Assets

• Current Assets are cash or items

expected to be converted to cash in less
than 12 months.
• Non - Current Assets are not expected
to be converted to cash during the
normal course of the business year.
 Asset Example

• Current Assets - cash, saving deposits,

inventory for sale and accounts
receivable.
• Non - Current Assets - breeding
stock, machinery, vehicles and land.
 Balance Sheet Definitions –
Liabilities

• Current Liabilities are financial

obligations due within the coming
fiscal year.
• Non-current Liabilities are long term
(greater than one year) financial
obligations.
 Liability Examples
• Current Liabilities - accounts
payable, accrued interest, operating
loan principle.
• Non - Current Liabilities - principle
due on a machinery or real estate loan.
 Most Important Accounting
Relationship

• Assets = Liabilities + Equity

• Equity = Assets – Liabilities

Understanding Debits and Credits

Debits
↑ - Assets, Expenses
↓ - Liabilities, Equity, and Revenue

Credits
↑ - Liabilities, Equity, and Revenue
↓ - Assets, Expenses
 Working with Accounts,
Customer, & Vendor Lists
 Why are lists important in
QuickBooks?

Most of what’s involved when you enter

transactions in QuickBooks is making
selections from various lists.
Let’s look at a check
for example:
You must choose an account, a vendor name,
possibly an item, and maybe a class. Each of
them comes from a different list.
 List Basics
• New list entries can be added at any
time.
• List entries can be renamed at any time.
• “In use” list entries cannot be deleted,
but they can be merged.
• List entries can be “hidden” by marking
them inactive.
• The best place to do list management is
in the list’s window.
 Chart of Accounts
“The Backbone of Your System”
• Let each account represent a broad category of
information.
• Resist the temptation to set up sub accounts for
farm enterprises.
• Let accounts represent categories of income
and expense that are meaningful to you.
• Before adding a new account, give it some
thought.
To display the chart
of accounts:
1. From the Lists menu, choose
Chart of Accounts (Ctrl A)
2. Scroll through the list.
To add an account:
1. In the chart of accounts, click the Account
menu button and then choose New (Ctrl N)
2. With the New Account window open, choose
the type of account (Bank, Expense, etc)
3. Name the Account, put in an Opening
Balance and Date
4. Enter a Description and Account number
if desired, then hit OK or Next
To add a sub account:
1. In the chart of accounts, click the Account
menu button and then choose New (Ctrl N)
2. In the Type field, select Expense from the
drop-down list.
3. In the Name field, type Herbicide.
4. Select the “Sub account of” checkbox, and then
select Chemicals from the drop-down list.
5. Click OK.
Creating Customer & Vendor Lists
• Customers refer to people who pay money to
the business
• Vendors refer to people whom the business
pays money
• Anytime you record the receipt of income
(deposit), or the payment of an expense
(checks), you must identify a customer or a
vendor
 Why Spend Time Entering
Names?
• Identifying the customer or vendor by
name in a transaction adds useful detail.
• Identifying customers and vendors by
name makes it easy to search for
transactions.
• Supplying a mailing address when you
add a name to the Vendors list lets you
mail out checks in windowed envelopes.
 Why Spend Time Entering
Names?
• You can do a customer mailing if
you’ve entered mailing addresses for
your customers.

• Having complete Customer and Vendor

lists makes using QuickBooks faster
and easier.
Adding Customer, Vendor, and
Employee Names

To add a new customer:

 To add a new customer:
[Link] the Customers tab at the top of the main
menu window, choose Customer: Job List
(Ctrl J).

2. Click Customer: Job at the bottom of the list

menu.
[Link] New (Ctrl N).
To add a new customer (cont):
Type in relevant information:
Additional Info Tab
 To add a new vendor:
[Link] the Vendors tab at the top of the
main menu window, chose Vendor:Vendor
List.
2. Click Vendor at the bottom of the list
menu.
[Link] New (Ctrl N).
To add a new vendor (cont):
Type in relevant information:
 Vender List Example
• Add the Following Vendor
– Company: The Banana Fertilizers
– Contact: Tyler Johan
– Address: 123 La Verna Hills, Buhangin
– Fax: (082) 234-0001
– Credit Limit: $25,000
– Account: 123456
 Other Ways to Manage Lists
• Sort lists
• Combine (merge) list items
• Rename list items
• Delete list items
• Make list items inactive
• Print lists.
 Sort Lists
• Use arrows at the top of the list to choose the format
you wish to see:
– Name: A-Z  Z-A

– Balance: Minimum Balance  Maximum Balance

Maximum Balance  Minimum Balance

– Type: Income Statement Accnts  Balance Sheet Accnts

Balance Sheet Accnts  Income Statement Accnts
 Merge List Items
1. Highlight the account you want to be merged

2. At the bottom of the list menu, choose

Account:Edit (Ctrl E)

3. In the name box, type in the name of the

account you wish to merge with
4. The program will tell you the account name
already exists, and ask if you want to merge
them. Select OK.
 Rename List Items
1. Highlight the account you want to be
renamed

2. At the bottom of the list menu, choose

Account:Edit (Ctrl E)

3. In the name box, type in the new account

name and click OK
 Delete List Items
1. Highlight the account you want to be
deleted
2. At the bottom of the list menu, choose
Account:Delete (Ctrl D)
3. Remember that you can only delete
accounts that have never had any activity
against them
 Inactivate/Reactivate List Items
1. Highlight the account you want to be inactivated
2. At the bottom of the list menu, choose
Account:Make Inactive
3. To show all accounts, check the “Show All” box
at the bottom of the list menu
4. Accounts can be reactivated by highlighting the
inactive account and selecting Account:Make
Active at the bottom of the list
 Printing Lists
1. At the bottom of the chart of accounts, select
Account:Print List (Ctrl P)
2. To print a report on a certain account,
highlight the account, then select
Reports:Quick Report from the bottom of the
list
3. To print a whole farm report, select
Reports:Reports on all Accounts
QuickBooks Training
Lesson Two
Forms and Registers
• Forms • Registers
– Checks – Show all of the
– Deposits transactions entered
in a particular
– Bills
account
– Invoices
– Every asset, liability,
and equity account
has a register
Checks form

• Use the Checks form when you pay an expense directly by check. Do
not enter a check to pay a previously entered bill.
How to Enter/Write a Check:
1. Choose Banking: Write Check (Ctrl W)
2. Fill in the check #, date, payee, amount and account #,
then click Save and Close
How to Enter a Bill:
1. Choose Vendors: Enter Bills
2. Fill in the fields as desired, then click Save and Close
How to Pay a Bill:
1. Choose Vendors: Pay Bills
2. Check the bills you want to pay, filling in the
information (make sure the Payment Account is
correct), then click Pay and Close
 Cash Deposit – The Easy Way
• The easiest way to handle a cash sale is to
record the receipt of income by making a
cash deposit. You can even add information
in the deposit form’s description field
concerning details of the transaction
 How to Enter a Deposit
1. Choose Banking: Make Deposit from
the main menu window
How to Enter a Deposit (Cont.)

2. Fill in the fields as desired.

3. Click Save & New or Save & Close

to save your check entry.
 Memorizing Transactions
1. Open the QuickBooks form in which you want to
memorize a transaction
2. Create a model transaction by filling out the form with the
details you want to memorize
 Memorizing Transactions
3. From the main menu, choose Edit:Memorize
Check (Ctrl M)
4. Select the options desired for memorizing the
transaction, then click OK
 Recalling a Memorized Transaction
• Choose Lists:Memorized Transaction List (Ctrl T)
from the main menu
• Select the memorized transaction to enter
• Fill out the rest of the form, correcting and adding
information as necessary
QuickBooks Reports
 QuickBooks Reports
• Summary reports
– Show a summary of transactions over a
specified period of time (Profit and Loss
Standard)

• Detail reports
– Show a list of all transaction that led to
each account summary (Profit and Loss
Detail)
Opening a Profit and Loss Report

1. Choose Reports, Company &Financial,

Profit & Loss Detail.
 Report Features
1. Filtering Reports
• Filtering involves specifying or limiting the
set of transactions a report includes. You can
use filters to limit transactions to a specific
customer, vendor, account, class, month,
week, day, dollar amount, and more.
Filtering Reports
1. Click on the Modify Report button at the
top of the report window.
Filtering Reports (Cont.)
2. Click on the tab labeled Filters.
 Report Features
2. Customizing Reports
• Customizing involves creating a specified
report format. You can select from a variety
of options, including date ranges, cash vs
accrual formats, year to date comparisons,
income/expense percentages, and more.
Customizing Reports
1. Click on the Modify button at the top
of the report window.

2. Select the Display tab.

Customizing Reports (Cont.)
 Report Features
3. Memorizing Reports
• After spending the time to customize your
report to the desired setting, it is a good idea to
have QuickBooks memorize it. Doing so will
save the report’s settings in the Memorized
Reports list, which can be recalled when
needed.
Memorizing a Report
1. Click on the Memorize button at the top of
the report’s window.
2. Enter a name for the memorized report in
the Memorize Report dialog.
 Exporting Reports to Excel
1. Create the report you want to export from QuickBooks.
For this example, choose Reports:Company &
Financial: Balance Sheet Standard
 Exporting Reports to Excel
2. Once the report is created, click the Excel
button at the top of the report window.
 Exporting Reports to Excel
3. A window will appear asking if you want to
send the report to a new or existing spreadsheet.
Select Send report to a new Excel spreadsheet
 Exporting Reports to Excel
4. When you click OK, Excel will open showing
your exported spreadsheet
 Creating a Budget
1. From the Company menu, choose Planning
and Budgeting, then Set Up Budgets
 Creating a Budget
2. Click Create New Budget
3. Choose the fiscal year for the new budget, then
choose Profit and Loss or Balance Sheet
4. If you choose Profit and Loss, you can specify
additional criteria of either Customer:Job or Class
5. Choose whether you want to create the budget
from scratch or from previous year’s data
6. Click Finish
 Creating a Cash Flow Projection
1. From the Company menu, choose Planning
& Budgeting, then Cash Flow Projector
2. Click Next on the welcome page
3. Select accounts for your beginning balance
4. Select the projection method to enter your
cash receipts
5. Enter your business expenses
6. Review and adjust your accounts payable
Contact Information
Kirby C. Loberiza

09429658089 (Sun)

Fb: Kirby Loberiza