When to use Classes or types in QuickBooks.
QuickBooks‘ standard reports are critical to understanding your company’s past, present, and future. But the program also offers innovative tools that can make them significantly more insightful and comprehensive.
QuickBooks offers two simple conventions that let you identify related data: classes and types.
- Classes are used in transactions.
- Types are assigned to individual customers, vendors, and jobs.
For example;you might use classes to separate transactions that relate to different departments, locations, or types of business. A construction company might want to track classes using New Construction, Remodel, andOverhead. Your customer types might help you isolate groups by characteristics like Industry or Geographical Location.
First, make sure that QuickBooks is set up to use classes. Go to Edit | Preferences | Accounting | Company Preferences. Make sure that Use class tracking is checked. If you want to be prompted for a class designation in transactions, check that box, too. QuickBooks already contains a Type field in customer, vendor, and job records.
It’s easy to build lists of options for both. To define classes, go to Lists | Class List. In the bottom left corner of the screen, click on Class, then select New from the menu. You’ll see this:
Figure 1: To create a class, just give it a name and click OK
Let’s say that you’re a contractor and you want to separate remodeling jobs into room types, like Bathroom or Kitchen. Go through the above steps again. Enter “Bathroom” in the Class Name field and click the box next toSubclass of. Open the list and choose “Remodel.” Click OK.
Tip:
If your class list grows lengthy and you want to tidy it up, you can make classes that you’re not currently using inactive by checking the box in this window. It will remain in your QuickBooks records and can be reactivated again.
Now you can use classes in transactions. Open a blank invoice and select a customer. The Class field will be next to the customer name. If the entire invoice will be assigned to the same class, click the drop-down list and select it. You can also assign separate classes to individual line items:
Figure 2: You can assign different classes to individual line items in transactions.
Not all invoice templates include a column for classes. You can add this by selecting the invoice form you want to modify and clicking Customize in the toolbar.
QuickBooks comes with two reports specially designed for tracking class-based transactions: Profit & Loss by Class and Balance Sheet by Class (both can be found in the Reports menu, under Company & Financial). Of course, you can filter other reports to include a class column. You can also create a QuickReport for individual classes. Go to Lists | Class List and select a report or graph.
Figure 3: You can filter by class in QuickBooks reports.
Warning!
The Balance Sheet by Class report is complicated and may produce unexpected results. Let your ProAdvisor help you work with this one. They can also help you set up a solid class structure.
Customer, vendor, and job types are a bit less complicated. Job types are especially useful; you can track, for example, profitability and time spent on individual projects. Customer and vendor types can produce output for things like targeted mailings and reports.
Creating types is very similar to creating classes. Go to Lists | Customer & Vendor Profile Lists, and select the type you want to work with. You’ll follow the same instructions here as you did for classes. Types do not appear on transactions; they’re designed for your own internal use, and they’re stored in records.
Figure 4: Customer, vendor, and job types are specified in their records.
Classes and types can be used very effectively in your bookkeeping, but they require a good deal of thought and planning upfront to get accurate, meaningful reports. Let your ProAdvisor (Need to find a QuickBooks ProAdvisor?) know if he/she can assist as you attempt to use these powerful forms of classification.
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- First Look: QuickBooks for Mac 2012
Bill Tracking in QuickBooks
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Next to payroll, paying bills is probably your least favorite task in QuickBooks. You don’t have to use this feature — you can keep stacking bills on your desk, scrawling the due dates on a paper calendar, and writing checks.
If you’re still operating this way, okay although, you’re missing out on the numerous tools that QuickBooks offers to track your accounts payable, including the ability to:
- Enter bills as they come in
- Set reminders for bills due
- Pay bills easily
- Locate a bill or payment quickly
- Enter bills as (or after) you receive items
- Link bills to purchase orders
- Have instant access to a bill’s status
Bill Tracking
Figure 1: Window for Entering a bill
Receiving the goods
Note: Dealing with incoming inventory is complex. Consult with us if you plan to use this feature.
If the bill came simultaneously with items, click Vendors | Receive Items and Enter Bill. When you select the vendor from the list, this box opens (if you have sent a purchase order):
Figure 2: Open order exist warning box
Click Yes. The Open Purchase Orders box opens, containing a list of open POs. Select the one(s) you want and click OK. The bill form opens, containing the details of that purchase order. Change quantities if they don’t match the shipment, and edit other fields as necessary. Save the bill.
Settling your debts
It’s good to set reminders for bills. Go to Edit | Preferences and click Reminders. Make sure that theShow Reminders List…box is checked, then click Company Preferences. Find the Bills to Pay row and enter the advance notice you’d like. Indicate whether you want to see a list or a summary, then click OK.
When bills are due, click the Pay Bills icon or select Vendors | Pay Bills. A window opens displaying all outstanding bills. You can pare this down by selecting a date in the Due on or before field and filtering by vendors. The screen will look something like this:
Figure 3: You can select the bills you want to pay.
Enter a check mark next to the bills you’re paying, and change the amount in the Amt. To Pay field at the end of the row if necessary. At the bottom of the screen, you can set the payment date and type, use any discounts or credits, and make sure the correct payment account is selected. When you’re done, click Pay Selected Bills.
Tip: You can have credits and discounts automatically applied by going to Edit | Preferences | Bills.
After You’ve Paid Up
There are a number of places where your bills appear in QuickBooks, including:
- The Unpaid Bills Detail report
- The A/P Aging Detail report
- The Vendor Center
- QuickReports
- In the Recent Transactions pane of some forms
- On the bills themselves
- Figure 4: displaying the Paid status of bills.
QuickBooks also lets you void and delete bills, and copy and memorize them. Check with us before voiding and deleting, as this can make some complicated changes in your accounts.
You can just pay bills by using Banking | Write Checks or Enter Credit Card Charges. But the payoff for tracking bills is instant access to your accounts payable status, better relations with vendors, and a more insightful accounting of your company’s cash flow.
Related articles
- Intuit Announces QuickBooks 2012, Salesforce Add-on (pcworld.com)
- Job-Tracking – Precision for your QuickBooks Company (themotaxguy.com)
- Could Your Business Use Job Costing? (bjconquest.com)
Create a Statement using QuickBooks
Statements in QuickBooks
How do you let customers know they owe you money? Probably by sending invoices. And if your customers are conscientious and pay on time, that might be all you need.
But it might be helpful to do at least part of your billing by dispatching statements. These forms do have their drawbacks. For example, you can’t include sales tax or discounts on them; you can’t group related charges and subtotal them; and your customization options are weaker than in invoices.
Still, statements could be a good choice for you if you’re billing on a regular basis for services, or when a client has built up numerous charges, some of which are past due. Statements lay out the customer’s current financial obligation to you, including finance charges, should you choose to impose them.
Outline the charges
To get started, click on the Statement Charges icon on the desktop.
If there’s no icon and you want one, click Edit | Preferences, then Desktop View | Company Preferences, then click in the box next to Statements and Statement Charges.
Or you can just click Customers | Enter Statement Charges.
Figure 1: Click on Edit | Preferences to add Statement Charges and Statementsicons to your desktop.
The customer register opens. Select the customer you want to create a charge for by clicking the down arrow next to Customer: Job. If you are in the middle of more than one job for the customer, make sure you make the correct one active.
Go down to the first blank line and change the date if necessary. Tab to the Itemfield, and drop the list to select the relevant product or service. Tab and enter theQuantity. The Rate and Amt Chrg should be filled in (if not, go back to Lists | Item List and edit the record). QuickBooks will have entered STMTCHG in the Type field. Tab to the Description field and complete it if it’s blank, and select a Class if you’d like. Your window will look something like this:
Figure 2: It’s very easy to enter statement charges in QuickBooks.
If you have another charge for that job, go ahead and enter it. When you’re done with charges for that job, click Record.
Build a statement
When you’ve entered all of the charges, you can easily convert them to statements. From the Home page, click on the Statements icon. This window opens:
Figure 3: You’ll select options from this window when you’re building a statement run.
If the window contains an A/R field, that means that you have more than one receivables account. Be sure to select the appropriate one. Verify, too, that the date is correct. This will appear in the customer’s register as the Billed Date.
Here, too, you can choose a range of transaction dates for your statement(s), or simply opt to create forms for all customers with open transactions (in the latter case, you can limit it to transactions that are more than 30 days past due). You must also indicate whether you want statements sent to all customers or a subset. You can manually choose one or many customers, or select by Type (commercial, residential) or Preferred Send Method (E-mail or Mail).
QuickBooks gives you some control over your statements’ layout; click Customize if you want to explore this. Next, you can indicate whether you want to create one statement per customer or per job. The other options here are self-explanatory, but be sure to go through them every time you create statements.
Another decision
Will you be wanting to assess finance charges on the past due charges? This is a decision you may want to talk over with us. It’s a complex issue. Should you want to do so, though, clicking on Assess Finance Charges will open the Assess Finance Charges window.
When you’re satisfied with your choices, you can Preview your statements. Here’s an example:
Figure 4: Statements lay out all transaction activity within a given period.
Statements don’t take over the role of invoices, but they can be an effective way to let your customers – and you – get a comprehensive view of their financial interaction with you.
If you’re still unclear on how these forms can fit into your accounting workflow, contact our office.
Non sufficient funds – Handling NSF Checks in QB
Non sufficient funds
No-one likes it when their clients/customers payments come back as NSF (non sufficient funds).
When you receive notice that a check has bounced, you need to follow these directions for recording this into QuickBooks.
Create a transaction that records the funds coming out of your checking account, along with the fee the bank charged. You will need the following in order to create this transaction:
Accounts
• Returned Checks (Other Current Asset)
• Bank Service Charges (Expense)
Items
• Bounced Check (Service item linked to Returned Checks account)
• Bounced Check Fee (Other Charge item linked to Other Income account)
Write a check to record the transaction as shown.
When you receive a replacement check or re-deposit the original check, create a NEW sales receipt for the bounced check. DO NOT void or delete the original invoice. You can also record a fee that’s charged to clients for bounced checks, on the sales receipt.
Record the Sales Receipt as shown. In Date, enter the date of the re-deposit or the date the replacement check was received.
In “Deposit To” select “Un-deposited Funds”, or if you’ve deposited it by itself, select the account you deposited the funds into.
For more QuickBooks tips please visit my QuickBooks Tips page.
Memorize Repetitive Transactions
Filling out invoices the first time can be a pain, especially if they’re lengthy. But doing the same thing repeatedly if the identical invoice recurs regularly? No need.
QuickBooks can memorize a variety of transaction types, including invoices, purchase orders, and bills. After you’ve memorized them, you can edit, reschedule, and delete them, as well as group them if more than one will be dispatched on the same day.
Memorize Repetitive Transactions
Here’s how…
A Familiar Start
Let’s say you’re starting a new job providing regular training for a client; it’s always four hours, every Monday, for 12 weeks. First, find or create the invoice.
After you’ve found (or created) the invoice, then click Edit | Memorize Invoice. This window opens:
Figure 1: You’ll define the terms of your memorized transaction in this window.
The client’s name will already be filled in. You’ll first have to decide whether you want to just be reminded every week (the tickler will appear in your Reminders list) or whether you want QuickBooks to automatically enter the transaction. Click the appropriate button, or Don’t Remind Me if you have another way to remember.
Drop down the list next to How often, and select Weekly. Enter the first date of training. Put 11 in the box next to Number Remaining to represent the balance of the 12 weeks, and 0 next to Days In Advance To Enter. Click OK.
Retrieving Your Work
It’s easy to find your memorized transactions when you need to alter or delete them. Click Lists | Memorized Transaction List (or Ctrl+T). Highlight the entry you want to change in the list that appears. At the bottom of the window, click Memorized Transaction. This window will pop up:
Figure 2: This window displays your options for managing memorized transactions.
Click Edit Memorized Transaction. The window you used to specify the original options (as displayed above in Figure 1) will open. Make the desired changes and clickOK.
Tip: To save time, when the list of memorized transactions first appears, put your cursor on the targeted entry and right-click.The Memorized Transaction menu will appear.
Of course, if you want to remove an ongoing transaction, just highlight it, right-click, and select Delete Memorized Transaction.
Customizing Your View
You can change the way your list displays by right-clicking on an empty space in theMemorized Transaction List and clicking Customize Columns. A window like this will appear:
Figure 3: It’s easy to customize the screen that displays your list of memorized transactions.
To add a column to the Memorized Transaction list, highlight it in the box of available columns on the left and click Add. It will move over into the box on the right and be inserted into your table. Similarly, to get rid of a column, highlight it in the box on the right and click Remove.
You can also change the order in which columns appear by highlighting one and clicking Move Up or Move Down.
More Tools
If you’ve gotten a reminder that it’s time to pay a bill, you can go straight to theMemorized Transaction screen by right-clicking the item in the Reminders screen and selecting Recall Transaction. The correct transaction should be highlighted. At the bottom of the screen, click Enter Transaction (or right-click it) to display, edit, and/or save it.
Sometimes your memorized transactions will occur on the same day. To save time, you can group them. Open the Memorized Transaction list and right-click in an empty part of the screen. Select New Group. Enter a name for it in the Name box, and set your reminder and frequency options like you did with the transactions themselves (you’ll be seeing the same dialog box as you did then). Click OK.
Right-click on the first entry that you want to add to the group, then select Edit Memorized Transaction. Click next to With Transactions in Group, then drop down the list next to Group Name and grab the correct one. Click OK. Now you can use your group just as you’d use an individual memorized transaction.
Figure 4: Once you’ve named and defined a group, you can add individual memorized transactions to it.
Memorizing transactions in QuickBooks isn’t exactly rocket science, but you can find yourself with late bill payments, items not invoiced, and/or inventory not ordered if you don’t do it exactly right. Triple-check your work and consult with us until you’re confident. Once you are, you may find your financial ship sailing more smoothly than ever.
If you have any questions about memorized transactions in QuickBooks, give L & R Tax Preparation a call.
A look at QuickBooks 2011
Every year since its inception in the early nineties, Intuit has delivered an enhanced version of its desktop QuickBooks program. Each annual edition incorporates myriad of new and upgraded features designed to save you time, money, and frustration – and let you focus on your business, not your finances.
QuickBooks 2011 is no exception. The new version improves and accelerates interaction with your customers, and provides easier, more targeted access to QuickBooks data. If you take advantage of these new tools, your daily accounting tasks will become more productive and palatable. (Note: The new tools are not available in Simple Start.)
You won’t find the new features in Intuit’s online versions of QuickBooks, but you will get more frequent upgrades, easier collaboration, and better mobility. Granted, the Web-based line isn’t as powerful as desktop Pro and Premier. Still, it may be all you need. I can help you explore this. Here, or give me a call or send me you questions via email.
Zeroing In on the Right Data
QuickBooks provides numerous ways to focus on subsets of financial information, like Reports and Centers. The 2011 version debuted the Customer Snapshot; click its icon in the toolbar, then on Customer.
Figure 1: The new Customer Snapshot displays key numbers for each customer.
Select any customer from the drop-down list and you’ll see tables and graphs that spell out your financial interaction over a given period. This screen gives you an instant overview of transactions like invoices and payments, as well as providing details like Average days to pay and Open balance.
There’s another new way to track down specific information: the Search tool. Search will take a phrase and grab every related report, invoice, contact, and transaction detail.
Say you want to find all references to “exterior wood door.” Click Search in the toolbar (or Edit | Search) and type the phrase into the search box. A pane like this appears:
Figure 2: QuickBooks’ new Search tool tracks down a wide variety of program data.
Click on any item in the list, and the original item opens.
Stay in Touch
Interaction with your customers is critical; good communication can actually improve your cash flow. QuickBooks 2011 offers new ways to further develop this exchange.
For one thing, your email pipeline is expanded. You can now send invoices and estimates using your Yahoo, Gmail, or Hotmail account. To open this channel, click on Edit | Preferences. Click on Send Forms and make sure My Preferences is highlighted. Under Send e-mail using: click the button next to Web Mail. An empty box opens; click Add and fill in the details for your email account(s). If you enter more than one, be sure that your preferred account is designated as the default.
QuickBooks has always offered ways for you to keep track of delinquent accounts, like aging reports, but there’s a more automated tool for this task in 2011. Click the Customer Center icon in the toolbar, then Collections Center. A window like this opens:
Figure 3: Find out quickly who owes you and send email reminders to them using the new Collections Center.
You can toggle between past due and almost due invoices by clicking on the tab. Select a customer and click Select and Send Email. A completed email form appears, which you can edit before clicking Send. The original invoice is included.
Batch Invoicing also helps you stay current. Rather than sending forms individually, you can email them in a group, so long as each invoice contains the same line items.
Tip: before you do any batch invoicing, make sure you’ve set up each customer’s terms, sales tax rate, and send method correctly. (Again I can help you with this.)
Click Customers | Create Batch Invoices. If you might duplicate a mailing with the same customers someday, click Add New under Billing Group. Give it a name and click Save, and then choose customers. Click Save Group and Next. If you’re doing a one-time batch, choose the desired customers and click Next. A wizard will walk you through the process of sending the mailing.
Details Where You Need Them
For those occasions when you need to look up historical information while preparing transactions, QuickBooks 2011 saves you time and effort. Some of this information is now available in a pane adjacent to the form, like this:
Figure 4: Transaction forms now include a pane containing information related to that customer or vendor.
If you need to dig deeper, you can locate the original data by clicking links.
QuickBooks 2011′s enhancements will save time – and by extension, money – as you zero in on details and interact with customers and vendors. Its new, well-implemented tools give you more freedom to build your business.
Accountant copy Transfers are easier too.
If you’re wondering how this new version could affect your business, Contact me.
Tax Time, How QuickBooks Helps You De-stress
The reasons for putting off tax preparations are endless – and understandable. But when we procrastinate on this tedious job, tax filing deadlines mean marathon sessions grappling with tax records. Not only is this unpleasant, but it also makes it more likely you’ll make potentially costly mistakes on your return.
Conscientious daily work habits – including a diligent eye on tax issues – can help prevent this painful scenario. QuickBooks offers many built-in tools to help you minimize the tax-time terrors.
Stay on Top of Your Receivables in QuickBooks 2011
Even if your sales are up, slow customer payments may be damaging your cash flow. If you often come up short when it’s time to pay your tax obligations, it may be that you’re not chasing down your receivables adequately.
QuickBooks Pro and Premier 2011 added a number of features to help with this. The new Customer Snapshot gives you instant access to key customer information – things like open balance, number of days to pay, and recent invoices and payments.
A new vertical pane next to transaction forms displays an overview of your interaction with the customer or vendor. Beyond saving the time you used to spend looking up historical information, this feature can alert you to collection opportunities. A new Collections Center also automates e-mailed collection notices.
Figure 1: QuickBooks Pro and Premier 2011 display vertical panes next to transactions to help you catch unbilled items and open balances.
If you’ve got any questions about these newer versions of QuickBooks, give my office a call.
Older Versions’ Cash Flow Tools
Previous versions of QuickBooks also help you maximize customer payments. Enter an invoice for a customer who has outstanding time charges and/or costs, and a dialog box reminds you of that.
Figure 2: If you’re invoicing a customer who already owes you money, QuickBooks will remind you – and include the past due balance in your current form.
Also, QuickBooks’ integration with Microsoft Word makes short work of collection letters. Open the Customer Center, then click Word | Prepare Collection Letters and follow the wizard. The Payment Snapshot (Company Snapshot | Payments) is a page you should visit daily; its tables and graphs spell out who needs nudging.
Intuit also offers solutions that let you accept payments online, so you don’t have to wait for checks to arrive in the mail. Talk to us about which one might be best for you and how to get started with it.
Keep Documents Close
However you store receipts and other tax-related paper, it can be frustrating to match paper to QuickBooks data. QuickBooks 2010 introduced the ability to attach scanned documents to any screen that has the Attach icon. Using this tool faithfully will reduce the time and frustration associated with your tax preparation. Prices start at $9.95/month for one attachment per list item or transaction; 30-day free trial.
Figure 3: Click on this icon to attach a scanned paper document to a QuickBooks item.
Use “Classes”
QuickBooks uses the accounts assigned to your transactions to categorize your tax-related data. You can also slice your data in additional ways by using classes to break out account balances by filters, like by departments, consultants, or locations. But you must use it faithfully for it to be effective.
To get started with classes, first make sure that you’re set up to handle them. Click on Edit | Preferences, then click the Accounting tab and Company Preferences. Click on the box next to Use class tracking if it isn’t already checked, and on Prompt to assign classes if you want QuickBooks to remind you before you save an unclassified transaction.
Figure 4: Make sure your Company Preferences are set to accommodate class tracking.
Next, go to Lists | Class List, and then click the Class tab in the lower left corner. Select New. Type your new class name in the field that appears and check the Subclass of box if you want to make this a subclass. Assign these classes in transactions where appropriate, and you’ll have neatly categorized data for the Profit & Loss by Class, Profit & Loss Unclassified, and (new in 2011) Balance Sheet by Class reports. Classes can also be displayed in other reports.
Built for Tax Reporting
Unfortunately, QuickBooks can’t prepare your taxes for you – but these tools help shape your data so tax deadlines are less stressful and your returns more accurate than in the days of pencil and paper.
QuickBooks organizes data in the background by, for example, assigning your transactions to the appropriate accounts, so your reports tell the right story. Another helpful feature includes the ability to print 1099s, W-2s, and W-3s.
QuickBooks’ design encourages you to look at tax-related issues every day, which can be a very good thing come filing time. Take advantage of this – along with our expert advice – and you can be more confident and less frantic during your periodic interaction with the IRS.
Prepare your taxes on-line With L & R Tax Preparation
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