Topic 1: Creating Company File 4.

This Fiscal Year-to-Last Month date range

 This new date range spans the first day of your fiscal
Introduction year to the last day of the previous month.
 This option is available from date-related menus for
What’s new in QUICKBOOKS 2016
reports and graphs.
1. Updating a QuickBooks file to a new QuickBooks
version 5. Comment attributions in reports
 The steps to updating a company file have been  QuickBooks 2015 introduced the ability to add
streamlined in QuickBooks 2016. comments to reports, so you could provide feedback
 When you open a company file in a new version of or ask questions.
QuickBooks, you log in as usual, choose the location  But what if several people add comments to a report?
where you want to store you file, and click Update  In QuickBooks 2016, the Comments pane shows which
Now. QuickBooks user created or modified each comment
 QuickBooks takes over, backs up your file, and then on a report.
updates it.  That way, you know who to contact to answer
questions or clarify comments.
2. Bill Tracker
 The new Bill Tracker feature provides an expense- 6. Column-search feature in the Modify Report
oriented dashboard that shows what’s going on with
dialog box
unbilled, unpaid, and paid bills.
 When you want to customize the columns that appear
 As with Income Tracker, Bill Tracker’s table lists the
in a report, in the Modify Report dialog box’s Search
transactions that contribute to its dashboard’s high-
Columns box (on the Display tab), start typing the
level numbers.
name of the field you want to find.
 You can select transactions in the table to perform
 As you type, the drop-down list filters to display fields
bill-related tasks, such as converting purchase orders
that match the letters you’ve typed so far. When you
to bills, paying bills, and so on.
see the field you want, just click it.
3. Updated Insights tab
7. Removing multiple emails in the Send Form
 In the Home window’s Insights tab added three
window
graphs.
 In the Send Forms window (File → Send Forms), you
a. The Net Profit Margin graph compares your
can remove multiple emails from the queue.
company’s net profit margin for this year and last
 To do that, in the checkmark column (the leftmost
year for the date range you specify.
column in the table), you simply turn off the emails’
b. The Business Growth graph compares your total
checkmark boxes, and then click the Remove button
income over different time periods; on the graph’s
below the table.
right, you see the change in total income in dollars
 This book focuses on QuickBooks Pro because its
and as a percentage.
balance of features and price makes it the most
c. The Previous Year Expense Comparison graph
popular edition.
compares the current year’s expenses to those for
 Throughout this book, you’ll find notes about features
previous years. You can also save the Insights tab
offered in the Premier edition, which is one step up
to a PDF file by clicking the down arrow to the
from Pro.
right of the printer icon, and then choosing Save
As PDF.
QuickBooks Editions: 6. QuickBooks Pro
1. QuickBooks Online Simple Start  is the workhorse desktop edition.
 is a low-cost online option for small businesses  It lets up to three people work on a company file
with very simple accounting needs and only one at a time and includes features for tasks such as
person running QuickBooks at a time. invoicing; entering and paying bills; job costing;
 It’s easy to set up and use, but it doesn’t offer creating estimates; saving and distributing reports
features like entering bills, managing inventory, and forms as email attachments; creating budgets;
tracking time, or sharing your company file with projecting cash flow; tracking mileage;
your accountant, and you can download customizing forms; customizing prices with price
transactions from only one bank (or credit card) levels; printing shipping labels; and integrating
account. with Word, Excel, and hundreds of other
2. QuickBooks Online Essentials programs.
 QuickBooks Pro’s name lists—customers, vendors,
 allows up to three people to run QuickBooks at a
employees, and so on—can include up to a
time and lets you connect to as many bank or
combined total of 14,500 entries. Other lists, like
credit card accounts as you want.
the chart of accounts, can have up to 10,000
 As its name suggests, it offers essential features
entries each.
like automated invoicing, entering bills, and
controlling what users can access. 7. QuickBooks Premier
3. QuickBooks Online Plus  is another multiuser edition (up to five
simultaneous users).
 has most of the features of QuickBooks Pro, but
 It can handle inventory items assembled from
you access the program via the Web instead of
other items and components, generate purchase
running it on your PC. Up to five people can access
orders from sales orders and estimates, apply
your data simultaneously.
price levels to individual items, export report
4. QuickBooks Self-Employed
templates, produce budgets and forecasts, and
 is an online edition that’s designed for freelancers
work with different units of measure for items.
and independent contractors.
 Plus, it offers enhanced invoicing for time and
 It helps you pay estimated quarterly taxes,
expenses, and includes a few extra features like
categorize your expenses to match those on your
reversing journal entries.
Schedule C tax form, and track your self-
 When you purchase QuickBooks Premier, you can
employment income and expenses.
choose from six different industry-specific flavors
5. QuickBooks Online apps
(see the next section).
 let you run QuickBooks Online on your computer
 As with the Pro edition, Premier can handle a
and other devices. For example, you can run the
combined total of up to 14,500 name list entries.
QuickBooks Online Windows App
(http://quickbooks.intuit.com/accountants/resources/
features-quickbooks-app) or QuickBooks App for Mac
to run QuickBooks Online on your computer without
opening a browser window.
 Or you can download apps from iTunes or Google
Play to run QuickBooks Online on your iPad,
iPhone, or Android device.
8. Enterprise Solutions  In bookkeeping, an account is a place to store
 is the edition for midsized operations. It’s faster, money, just like your real-world checking
bigger, and more robust than its siblings. account is a place to store your ready cash.
 Up to 30 people can access a company file at the  The difference is that you need an account for
same time, and this simultaneous access is at least each kind of income, expense, asset, and
twice as fast as in the Pro or Premier edition. liability you have.
 The program’s database can handle more than  The chart of accounts is simply a list of all the
100,000 names in its Customer, Vendor, accounts you use to keep track of your
Employee, and Other Names lists. company’s money.
 It can track inventory in multiple warehouses or 3. Cash vs. accrual accounting.
stores and produce combined reports for those  Cash and accrual are the two different ways
companies and locations. companies can document how much they
 And because more people can use your company make and spend.
file at once, this edition has features such as an  Cash accounting is the choice of many small
enhanced audit trail, more options for assigning or businesses because it’s easy.
limiting user permissions, and the ability to  You don’t show income until you’ve received a
delegate administrative functions to the other payment (regardless of when that happens),
people using the program. and you don’t show expenses until you’ve
 And if you subscribe to Enterprise Solutions paid your bills.
Platinum, you can use Intuit’s Advanced Inventory  The accrual method, on the other hand,
subscription service to value inventory by using follows something known as the matching
first in/ first out (FIFO) valuation. principle, which matches revenue with the
corresponding expenses.
Accounting Basics: The Important Stuff  This approach keeps income and expenses
 QuickBooks helps people who don’t have a degree in linked to the period in which they happened,
accounting handle most accounting tasks. no matter when cash comes in or goes out.
 However, you’ll be more productive and have more  The advantage of this method is that it
accurate books if you understand the following provides a better picture of profitability
concepts and terms: because income and its corresponding
1. Double-entry accounting. expenses appear in the same period.
 The standard method for tracking where your  With accrual accounting, you recognize
money comes from and where it goes. income as soon as you record an invoice, even
 Following the old saw that money doesn’t if you don’t receive payment until the next
grow on trees, money always comes from fiscal year.
somewhere when you use double-entry  And you recognize expenses as soon as you
accounting. record a bill, even if you don’t pay the bill until
 For example, when you sell something to a the next year.
customer, the money on your invoice comes
in as income and goes into your Accounts
Receivable account.
 Then, when you deposit the payment, the
money comes out of the Accounts Receivable
account and goes into your checking account.

Financial reports
2. Chart of accounts.
You need three reports to evaluate the health of your  For example, if you've worked with an accountant to
company. set up your company, she might provide you with a
QuickBooks company file already configured for your
1. Income Statement
business so you can hit the ground running.
 The income statement, which QuickBooks calls a
 This chapter begins by explaining how to launch your
Profit & Loss report, shows how much income
copy of QuickBooks.
you’ve brought in and how much you’ve spent
 Then, if you need to create your company file yourself,
over a period of time.
you'll learn how to use the QuickBooks Setup dialog
 This QuickBooks report gets its name from the
box or the Easy-Step Interview to get started (and find
difference between income and expenses, which
out which other chapters explain how to finish the
results in your profit (or loss) for that period.
job).
2. Balance Sheet
 If you're converting your records from another
 The balance sheet is a snapshot of how much you
program, this chapter provides some hints for making
own and how much you owe.
the transition as smooth as possible.
 Assets are things you own that have value, such as
 Finally, you'll learn how to open a company file,
buildings, equipment, and brand names.
update one to a new version of QuickBooks, and
 Liabilities are the money you owe to others (like modify basic company information.
money you borrowed to buy one of your assets,
say). Opening QuickBooks
 The difference between your assets and liabilities Here are the easiest ways to open QuickBooks:
is the equity in the company—like the equity you 1. Desktop icon
have in your house when the house is worth more
 Double-click the desktop shortcut that
than you owe on the mortgage. QuickBooks created during installation.
3. Statement of Cash flow
2. Windows taskbar.
 The statement of cash flows tells you how much
 The fastest way to open QuickBooks is to click its
hard cash you have. icon on the Windows taskbar—but first you have
 You might think that a profit and loss report would to put it there.
tell you that, but noncash transactions—such as  To do that in Windows 7 and Windows 8.1, right-
depreciation— prevent it from doing so. click the QuickBooks desktop icon and then, on
 The statement of cash flows doesn’t include the shortcut menu that appears, choose “Pin to
noncash transactions; it shows only the money Taskbar.”
 If you're still using Windows 8 (not 8.1), pinning
generated or spent operating the company,
the QuickBooks desktop icon to the taskbar takes
investing in the company, or financing. a few more steps: Point the cursor at the screen's
upper-right corner to display the Charms menu,
Creating a Company File click the Search icon (the magnifying glass), type
 A company file is where you store your company's quickbooks in the Search box, and then press
financial records in QuickBooks, so it's the first thing Enter.
you need to work on in the program.  When you see the QuickBooks icon, right-click it,
and then choose “Pin to Taskbar.”
 You can create a company file from scratch or convert
records that you previously kept in a different small-
business accounting program, Quicken, or even
another edition of QuickBooks like QuickBooks for
Mac.
 If you're new to bookkeeping, another approach is to
use a file that someone else created.
3. Start menu a. The day you start your company
 You can also launch QuickBooks from the Start - If you just started your business, the start-
menu. date decision is easy: it's the day you start
 In Windows 7, click Start → QuickBooks Pro 2016 your company.
(or QuickBooks Premier 2016). b. The last day of the previous fiscal year
 If QuickBooks isn't already listed in the Start - If your business has been running for a while,
menu, choose: Start → All Programs the best approach is to fill in your records for
→QuickBooks → QuickBooks Pro 2016 (or the entire current fiscal year.
QuickBooks Premier 2016). - To do that, use the last day of your company's
 In Windows 8, point the cursor at the screen's previous fiscal year (or December 31, if you
upper-right corner to display the Charms menu, use the calendar year) as the company file's
click Start, and then click the QuickBooks icon on start date.
the screen's right. - That way, the account balances on your start
 And in Windows 8.1, you can right-click the date are like the ending balances on a bank
QuickBooks desktop icon and choose “Pin to statement, and you're ready to start
Start” bookkeeping fresh on the first day of the fiscal
 The first time you launch QuickBooks, you're year.
greeted by the QuickBooks Setup dialog box, c. The last day of the previous fiscal period
whose sole purpose is to help you create a - The next best start date is the last day of the
company file in one way or another. previous fiscal quarter (or fiscal month, at the
 The rest of this chapter explains how to create a very least).
company file, and then how to open company files - Because your company file won't contain a full
you create. year's worth of detail if you go this route, you
 After that, you'll be ready to dive into might have to switch between QuickBooks
bookkeeping. and your old filing cabinets to prepare your
tax returns and look up financial information.
Choosing a Start Date
 To keep your entire financial history at your fingertips, Creating a Company File
you need to put every transaction and speck of  Keeping books requires accuracy, attention to detail,
financial information in your QuickBooks company file. and persistence—hence the customary image of
 But you have better things to do than enter years' spectacled accountants scanning row after row of
worth of checks, invoices, and deposits, so the numbers.
comprehensive approach is practical only if you just  QuickBooks can help you keep your books without
recently started your company. ruining your eyesight—as long as you start your
 The more realistic approach is to enter your financial company file with good information.
data into QuickBooks starting as of a specific date and,  If you want to practice with QuickBooks, you can
from then on, add all new transactions to QuickBooks. experiment with a sample file, as the box below
 The date you choose is called the start date. (The start explains.
date isn't something that you enter in a field in  QuickBooks makes it easy to create a company file
QuickBooks; it's simply the earliest transaction date in from scratch.
your company file.)  You can opt for a short and sweet process, which asks
 You should choose it carefully. you for the bare minimum of info before it creates
your file.
 Or you can use a wizard that guides you through the
 Here are your start date options and the ramifications process with a series of questions that takes about 15
of each one: minutes to answer.
 The questions cover the basics of creating and then choose this entry to launch the EasyStep
customizing a company file to fit your business. Interview window, which asks for more
 QuickBooks needs to know some company information on each screen than the Start
information, the industry you're in, and the features Setup approach does.
you want to use.  If you need help during the process, you can
 The program then sets your preferences and creates a always click the “Get answers” link at the top
few accounts (like basic income and expense accounts right of the window.
and your checking account).  You can also use Advanced Setup to go back
and modify info you entered previously,
Options for Creating a Company File whether you entered it using QuickBooks
 You can create a company file in several ways, and the Setup or the EasyStep Interview.
QuickBooks Setup dialog box—which opens 3. Other Options.
automatically the very first time you start QuickBooks  The other entries on this button's drop-down
—is your ticket to all of them. menu cover the rest of the bases.
 If you don't see this dialog box, choose File → New  Whether you use QuickBooks Setup or the
Company (or click “Create a new company” in the No EasyStep Interview, you tell QuickBooks the
Company Open window). basic 411 about your company, such as its
 The dialog box takes up most of the screen, so you can name and tax ID. (If any of the fields confuse
stay focused on creating your company file. you, try clicking the “Help me choose” links
 The three basic approaches to creating a company file or help icons (a white question mark within a
are covered by the QuickBooks Setup dialog box's two blue circle) to the right of the text boxes in
buttons: the QuickBooks Setup dialog box, or the “Get
1. Start Setup. answers” link in the upper-right corner of the
 This button is in pole position because it's the EasyStep Interview window.)
best option if this is your first time creating a  The next section has the full scoop on the
company file. information you need to provide.
 If you go this route, QuickBooks launches
QuickBooks Setup and asks for a few bits of Using QuickBooks Setup
info at a time before moving to each new  When you click Start Setup in the QuickBooks Setup
screen. dialog box, the program gets you going as quickly as
 If you stop filling in information before possible by asking for the minimum amount of info
QuickBooks creates your company file, the (you can fill in the details later).
program won't save any of the values you  To use it, choose File → New Company and then, in
entered. the QuickBooks Setup dialog box, click Start Setup.
 So, make sure you have at least 15 minutes to  The “Glad you're here!” screen appears, and you can
complete the first set of steps. begin entering info.
 This section explains what the program needs to know
to create your company file.
 On the “Glad you're here!” screen, you need to cough
up only a handful of answers, but these responses are
the foundation of many of the preferences that
QuickBooks sets:

2. Advanced Setup. Business Name

 If you've been around the QuickBooks block
before, click the Other Options button and
 Type the name you want to appear on invoices,  This box is for the federal tax ID number you use when
reports, and other forms. (QuickBooks also uses the you file taxes.
name you type here to name your company file.)  You don't have to enter it now, but you'll need it come
 Later on, you can specify your company's legal name. tax time.
 You'll use a federal EIN if your company is a
Industry corporation or partnership, you have employees, or fit
 Start typing your industry in this box and see if a few other criteria (go to www.irs. Gov to see if you
QuickBooks finds a match. need an EIN).
 If not, to the right of this field, click “Help me choose”  Otherwise, your tax ID is your Social Security number
to see all your options. or Individual Tax Identification Number (ITIN).
 If you don't see an obvious choice in the Industry list,  The Business Name, Industry, and Business Type boxes
scroll to the bottom and choose either General are the only ones that QuickBooks requires.
Product based Business or General Service-based  After you fill them in, the Create Company button
Business. becomes active.
 Choose your industry carefully.  However, you might as well fill in the remaining boxes
 QuickBooks adjusts its preferences and chart of with your business address and telephone number.
accounts based on your choice to match how your  Click Create Company to open the QuickSetup dialog
business operates. box, and then navigate to the folder where you want
 For example, the program creates income and to save your file.
expense accounts for your type of business and  QuickBooks automatically fills in the “File name” box
automatically turns on features like sales tax and with the business name you typed and sets the “Save
inventory if your industry typically uses them. as type” box to QuickBooks Files (*.QBW, *.QBA). Click
 If QuickBooks makes assumptions you don’t like, you Save to create your company file.
can alter your preferences and accounts later.  A Working message box appears to show
 QuickBooks' progress in creating your file; you'll know
Business Type
it's finished when the “You're all set!” screen appears.
 The tax form you use depends on the type of business
 Click the Start Working button at the bottom right to
entity you have.
open the file in QuickBooks.
 This dropdown list contains the most common types,
from sole proprietorships and partnerships to Using the EasyStep Interview
corporations and nonprofits.  The EasyStep Interview also guides you through the
 When you select a type, QuickBooks assigns the setup process, but it gives you more control over
corresponding tax form to your company file. setting up your company file than QuickBooks Setup's
 After you finish creating your company file, you can basic approach does.
see the tax form the program selected by choosing  For example, you can provide more info about your
Company→ My Company, which brings up the dialog company up front and choose which features to turn
box. on.
 The Income Tax Form Used box at the bottom of that  To access the EasyStep Interview, choose File→ New
dialog box lists the tax form for your company type. Company and then, in the QuickBooks Setup dialog
box, click the Other Options button, and then, from
the drop-down menu, choose Advanced Setup.
 The “Enter your company information” screen
appears.
 As you enter the following info, click Next to proceed
Employer Identification Number (EIN) to each new screen:
Name and contact info CREATING YOUR COMPANY FILE
 The first screen wants to know the name of your  After you set the administrator password and click
company, its legal name, its tax ID, and your contact Next, the “Create your company file” screen appears.
info. (If you're new to QuickBooks, click the “Where should
 The “Company name” field is the only one that's I save my company file?” link, which opens a Help
required—you can fill in the other fields later on. Article dialog box that explains the pros and cons of
storing company files in different places.)
Industry
 When you're ready to create the file, on the “Create
 On the “Select your industry” screen, choose the
your company file” screen, click Next to wrap up the
industry closest to yours.
creation process by specifying the filename and
 That way, most of the settings the program chooses
location.
will be what you want.
 QuickBooks opens the “Filename for New Company”
Type of company dialog box, which is really just a Save As dialog box.
 On the “How is your company organized?” screen,  Navigate to the folder where you want to store your
select the option for your business type. company file.
 This setting determines which tax form, accounts, and  QuickBooks automatically sets the “File name” box to
tax form lines you'll use to prepare your business tax the company name you entered, and the “Save as
return. type” box to “QuickBooks Files (*.QBW, *.QBA).”
 Here are some guidelines for naming and saving your
First month of fiscal year company file:
 When you start a company, you choose a fiscal year.  If you want to call the file something other than
 On the “Select the first month of your fiscal year” the company name you entered earlier in the
screen, QuickBooks automatically sets the “My fiscal interview, simply type a new name in the “File
year starts in” box to January because so many name” box.
businesses stick with the calendar year for simplicity.  For example, you may want one that's shorter or
 If you start your fiscal year in another month, choose that better identifies the company's records
it from the drop-down list. within.
 Consider storing your company file in a folder with
Administrator password the rest of your company data so that it gets
 The administrator can do absolutely anything in your backed up along with everything else.
company file: set up other users, log in as other users,  For example, if you're the only person who uses
and access any area of the company file. QuickBooks, you could create a Company Files
 Although QuickBooks lets you click Next and skip right folder inside your Documents folder.
past the “Set up your administrator password” screen,  When you click Save in the “Filename for New
this is no time for shortcuts, as the box below Company” dialog box, QuickBooks may take a
explains. minute or so to create the new file.
 Type the password you want to use in both the  In the meantime, a message box with a progress
“Administrator password” and “Retype password” bar appears.
boxes, and then keep the password in a safe but  When the company file is ready, the “Customizing
memorable place. QuickBooks for your business” screen appears.
Click Next to dig in.
CUSTOMIZING YOUR COMPANY FILE 5. The Using invoices in QuickBooks screen appears
 Click Next on the “Customizing QuickBooks for your only if you chose No on the “Do you want to
business screen” to see a series of EasyStep Interview create estimates in QuickBooks?” screen.
screens that ask questions about your business.  (If you chose Yes on that screen, QuickBooks
 Your answers to these questions help QuickBooks automatically turns on the invoicing feature.)
decide which features to turn on, what to include on  Select Yes to tell the program that you want to
your Home Page, and so on. use invoices, which you probably do because
 The interview displays “(recommended for your invoices are the most flexible sales forms.
business)” next to the options that are typical for a  If you answer No (if, for example, you own a
company in your industry. restaurant), QuickBooks jumps to the
 Here are some guidelines for answering the questions “Managing bills you owe” screen.
on the various screens: 6. If you answer Yes on the “Using invoices in
1. The What do you sell? screen is where you tell QuickBooks” screen, the Using progress invoicing
QuickBooks whether you offer services, products, screen asks whether you invoice customers based
or both. on the percentage you've completed on a job.
 When you choose one of these options, the 7. The Managing bills you owe screen asks whether
program figures out which types of income you plan to write checks to pay bills immediately
accounts you need. (select No) or enter bills in QuickBooks and then
pay them later (select Yes).
 If you select “Products only” or “Both services
8. The Tracking inventory in QuickBooks screen is
and products,” another screen later in the
where you tell the program whether you keep
interview asks whether you want to track
track of the products you have in stock.
inventory.
2. The Do you charge sales tax? screen has only two  This screen provides a few examples of when
options: Yes and No. to track or bypass inventory.
9. Tracking time in QuickBooks is ideal if you bill by
 If you're one of the unfortunate souls who has
the hour or pay people based on the number of
to navigate the rocky shoals of sales tax, select
hours they work. In that case, select Yes on this
Yes.
screen to track the hours people work and create
 If you don't charge sales tax, select No.
invoices for their time
3. On the Do you want to create estimates in
10. The Do you have employees? screen is where you
QuickBooks? screen, choose Yes or No to turn the
specify whether you want to use QuickBooks’
estimate feature on or off.
payroll and 1099 features.
 If you prepare quotes, bids, or estimates for
 If you do, select Yes and turn on the
your customers and want to do so in
appropriate checkbox(es).
QuickBooks, select Yes.
 If you use non-Intuit services to run payroll or
4. The Using statements in QuickBooks screen is
to generate contractors' 1099s, select No.
where you tell the program whether you generate
statements to send to customers.  When you click Next on the “Do you have
employees?” screen, you see the “Using
 For example, your wine-of-the-month club
accounts in QuickBooks” screen, and the
might send monthly statements to its
progress bar indicates that you're almost done
members.
with the interview.
 Or if you're a consultant, you could send
 Click Next to set these final options:
invoices for work performed and then send a
statement that summarizes the fees,
11. The Select a date to start tracking your finances
payments, and outstanding balance.
screen summarizes what you learned about start
dates.
  To start at the beginning of this fiscal year  When you click the Add (or Add More) button
(which QuickBooks can figure out using the in this section, you first choose either the
current calendar year and the starting month Service or “Non-inventory part” option,
you select), choose the “Beginning of this because you fill in different fields for each
fiscal year: 01/01/15” option. (The year you type of item.
see listed depends on the current calendar  Select the Service option to set up services
year.) you sell or the “Non-inventory part” option to
 If you've decided to start on a different date, create products you sell, and then click
select the “Use today's date or the first day of Continue.
the quarter or month” option instead.  Fill in the names, description, and prices, and
 You can then type or choose any date you then click Continue again to save your items.
want in the box, such as the last day of the 3. Add your bank accounts.
previous fiscal period.  For bank accounts, you fill in the account
12. The Review income and expense accounts screen name, account number, opening balance, and
lists the accounts typically used by companies in opening balance date.
your industry.  Whether you finish or skip these additional
 When you click Next, you see a bright orange steps, click Start Working to jump to the Home
—but premature “Congratulations!” You still Page, which includes icons for the features
have a few more steps to complete before you that QuickBooks turned on during setup.
can open your company file.
 Click “Go to Setup,” and then read the next Converting from Another Program to
section. QuickBooks
 If you launched your small business from your
Adding Details to Your Company File basement and kept your records with Quicken Home
 After you create your company file with the EasyStep & Business, your accountant has probably
Interview, you'll see the “Get all the details into recommended that you make the leap to QuickBooks.
QuickBooks” screen, which is where you can perform  Or maybe you used another accounting program like
additional steps, such as adding people you do Peachtree or Small Business Accounting and have
business with, items you sell, and bank accounts. decided to move to QuickBooks.
 If you want to dive into your work without  Or perhaps you're switching from QuickBooks for Mac
QuickBooks' help on these steps, at the bottom right to QuickBooks for Windows.
of the window, click Start Working.  Whatever your situation, this section tells you how to
 If you want step-by-step guidance through these prep your file for a smooth conversion and bring it
processes, click the Add buttons in these sections (if over into QuickBooks for Windows.
your lists already contain people and items, you'll see
Add More buttons instead) Converting from Quicken Home & Business
1. Add the people you do business with.  Quicken doesn't report your business performance in
 Adding these folks is a snap. Click the first Add the way that most accountants want to see, nor does
button, and then you can import names from it store your business transactions the way
your email program (Outlook, Yahoo, or QuickBooks does.
Gmail), paste data from an Excel workbook, or  Bottom line: You have to prep your Quicken file before
enter info manually. you convert it to QuickBooks.
 If you select one of the import options and
then click Continue, you'll see a table with the CLEANING UP YOUR QUICKEN FILE
names from your email program.  To make the conversion proceed as smoothly as
2. Add the products and services you sell. possible, some cleanup of your Quicken file is in order.
 For example, record overdue scheduled transactions 4. Set up Accounts Payable in QuickBooks.
and send online payments before you convert your  If your Quicken file contained unpaid bills,
Quicken file. simply write checks to pay them in
 Also, in Quicken, delete accounts you no longer need, QuickBooks.
because after they're in QuickBooks, you can't delete  After your vendor balances are zero, you're
them if they contain any transactions. ready to enter new bills in QuickBooks.
 And make sure that customer names are consistent  When you record your first bill, the program
and unique. automatically adds a new account called
 QuickBooks doesn't support repeating online Accounts Payable to your chart of accounts.
payments, so you also have to tell Quicken to delete
any repeating online payments you've set up. In Converting from QuickBooks for Mac
addition, you need complete reports of your past  Moving a file from QuickBooks for Mac to QuickBooks
payrolls because for Windows is mainly about getting the file into a
QuickBooks for Windows format.
CONVERTING YOUR QUICKEN FILE  To do that, simply create a backup of the file in
When your Quicken file is ready for conversion to QuickBooks for Mac, and then restore that backup in
QuickBooks, you have two options in QuickBooks: QuickBooks for Windows.
1. Choose File → New Company.
 In the QuickBooks Setup dialog box, click Other Converting from a Non-Intuit Program
Options, and then choose Convert Quicken Data.  To convert files created in other accounting programs,
2. Choose File → Utilities → Convert → From Quicken like Peachtree or Small Business Accounting, you have
to download a conversion tool from the Intuit website.
FINE-TUNING YOUR CONVERTED QUICKEN  In QuickBooks, choose File → Utilities → Convert, and
DATA then choose the program you want to convert from.
 Now that your Quicken data is resting comfortably in a  In the browser window that opens, scroll down to the
QuickBooks file, you might think you're ready to begin “Are you ready to convert your data?” section, click
using QuickBooks. the “Convert from Peachtree, Microsoft SBA, &
 However, there are some post-conversion steps you Microsoft Office Accounting” link, and then click the
should take to get your newly minted company file Download button that appears.
into shape:  In the File Download dialog box that opens, click Save
1. Enter your company information in QuickBooks. to download QuickBooksConversionToolSetup.exe to
 Info like your company's legal name and your computer.
address, federal Employer Identification
Number, and business type don't come over
with your Quicken data.
2. Set up your bank feeds in QuickBooks.
 You should know how to get your QuickBooks
bank accounts and your real-world bank
accounts talking.

3. Change Quicken names to QuickBooks

customers, vendors, and employees. Opening an Existing Company File
 When you convert from Quicken to
QuickBooks, QuickBooks adds all the
converted names to its Other Names List.
 After you've opened a company file in one QuickBooks 2. In the “Open or Restore Company” dialog box,
session, the next time you launch the program, it select the “Open a company file” option, and
automatically opens that same company file. then click Next.
 If you keep the books for only one company, you  QuickBooks closes your current company file
might never have to manually open a QuickBooks and then opens the “Open a Company”
company file again. dialog box.
 But if you're an irrepressible entrepreneur or a 3. Navigate to the folder with the company file you
bookkeeper who works on several companies' books, want and double-click the file's name.
you can open another company file in QuickBooks  You can also click the filename and then click
anytime, and the program automatically closes the Open.
previous one. 4. If the QuickBooks Login window appears (which
 Because QuickBooks stores data in a database, you it will if you've assigned a password to the
don't have to save a company file before you close it. Administrator user account or set up multiple
users), type your user name and password.
The following sections describe the different  If the Administrator is the only user, the
ways to open a company file. Password box is the only one that appears.
 But if you have more than one user for the
Opening a Recently Opened Company File company file, both the User Name and
 If you work on more than one company file, you may  Password boxes appear.
frequently switch between them. The easiest way to 5. Click OK.
open a recent file is to choose File → Open Previous  QuickBooks opens the company file, and
Company, and then choose the file you want to open. you're ready to keep the books.
 If the Open Opening a Recently Opened Company File
 If you work on more than one company file, you may Opening a Portable Company File
frequently switch between them. The easiest way to  A portable file is a special type of file that makes
open a recent file is to choose File → Open Previous QuickBooks company files compact so you can email
Company, and then choose the file you want to open. them more easily.
If the Open Previous Company submenu doesn't list  These files take up less space because they don't
the file you want, follow the steps in the next section contain other files related to your company file, like
instead. letters, templates, logos, and images.
 A portable file also doesn't contain a transaction log
Opening Any Company File (.tlg file), which Intuit Technical Support can use to
 Sometimes, a company file you want to open falls off restore transactions if your file is damaged in some
the recent-file list. way.
 Say your bookkeeping business is booming and you  Opening a portable file is similar to opening a regular
work on dozens of companies files every month. company file:
 Or maybe you want to update a file from a previous 1. Choose File→ “Open or Restore Company.”
version of QuickBooks.  The “Open or Restore Company” dialog box
 Here's how to open any company file, no matter how opens.
long it's been since you last used it: 2. Select the “Restore a portable file” option, and
1. Choose File → “Open or Restore Company.” then click Next
 If the No Company Open window is visible,  The Open Portable Company File dialog box
you can click “Open or restore an existing opens. QuickBooks automatically sets the
company” instead. “Files of type” box to “QuickBooks Portable
Company Files (*.QBM)
3. Navigate to the folder with the portable file and 6. When you see Hooray! in the Update Your
double-click its filename. Company File dialog box, click Done to open the
 QuickBooks opens the file. updated file in QuickBooks. Keep in mind that this
process could take a while if your company file is
Updating a QuickBooks File large.
How do I update a company file to the newest
version of QuickBooks? Modifying Company Info
 If you've used a previous version of QuickBooks, your  When you use the basic setup process or the EasyStep
company file is set up to work with that version. Interview, QuickBooks gets the basic facts about your
 When you upgrade to QuickBooks 2016, the program company in small chunks.
has to make some changes to your company file.  But after you create your company file, you can easily
 After you update a company file, your coworkers view and edit any of this information.
won't be able to open it until you install QuickBooks  Here's how:
2016 on their computers. 1. Choose Company→ My Company or click the My
 So, to prevent work disruptions, plan to upgrade all Company entry in the icon bar.
copies of QuickBooks and the company file during  The My Company window opens.
downtime.  Your company info appears on the left and
 Fortunately, updating a company file is easy: All you info about your copy of QuickBooks appears
have to do is open it in the new version of QuickBooks on the window's right.
and follow the onscreen instructions.  Apps, services, and subscriptions that you've
 Here are the steps: signed up for (like accepting credit cards,
1. In your new version of QuickBooks, choose File payroll, and so on) appear below your
“Open or Restore Company.” company info.
2. In the “Open or Restore Company” dialog box,  Other products that Intuit would like to sell
select the “Open a company file” option, and then you appear at the bottom of the window.
click Next. 2. To edit your company info, click the edit icon at
3. In the “Open a Company” dialog box, double-click the window's top right (it looks like a pencil).
the company file you want to update.  The Company Information dialog box opens
 If you see the User Name and Password box, with your company information grouped into
enter your user name and password. several categories.
4. In the Update Your QuickBooks Company File 3. To edit your company's contact info, in the
dialog box, click the “Change this default location” Company Information dialog box, click the
link if you want to save the backup copy that Contact Information category on the left, and
QuickBooks creates in a different folder. then make the changes you want.
 Click the “Change this” button, and then, in  This category includes fields for your company
the Browse For Folder dialog box, choose the address, phone number, email address, and
folder you want to use. website.
 Click OK to close the Browse For Folder dialog 4. To change your company's legal name and
box, and then click OK to return to the main address, click the Legal Information category.
screen of the Update Your QuickBooks  Remember, your company's legal name and
Company File dialog box. address are the ones you use on federal and
5. Click Update Now. QuickBooks first creates a state tax forms.
backup copy of your company file, and then
updates the company file. A progress bar shows
how far it's gotten.
 5. To edit the tax identification number you use, Here’s what the entries in the middle section of the
click the Company Identification category. left icon bar do:
 This category includes the federal Employee 1. My Shortcuts
Identification Number (EIN) and Social  This category, which appears at the top of the left
Security Number (SSN) fields. Fill in (or edit) icon bar whenever you launch QuickBooks, includes
the one that you use for your company. features that most people use frequently.
6. To specify info for reports you generate, click the  But you can keep your favorites within easy reach by
Report Information category. adding other features you use all the time and getting
 You can specify the starting month for both rid of shortcuts you don’t use: simply click Customize
your fiscal year and your tax year. In addition, Shortcuts at the bottom of the My Shortcuts section
this category is where you set the tax form (you may have to scroll to see it) or right-click
you use for your company tax return. anywhere within the section except on the My
7. If you have payroll, click the Payroll Tax Form Shortcuts heading, and then click Customize
Information category and make the changes you Shortcuts on the shortcut menu.
want.  The top icon bar (View → Top Icon Bar) has been
 You can fill in the name, title, and phone around for years. If you haven’t graduated to a large,
number for the person who prepares and widescreen monitor, this icon bar is both convenient
signs your company payroll forms; this way, and space-saving.
QuickBooks can fill those fields in  It sits just below the menu bar and displays your
automatically when you use an Intuit payroll favorite features as icons with brief identifying labels.
service. Click an icon, such as Home, Calendar, or Bill, and the
8. When you're done editing, click OK. corresponding feature launches.
 The Company Information dialog box closes.
2. The Home Page
Click the X at the top right of the My Company
 The QuickBooks Home Page is a slick way to work
window to close it, too.
through your company’s bookkeeping tasks in the
right order. (If it isn’t visible, display it by choosing
Menus and the Icon Bar
Company → Home Page or clicking Home in the left
 The menu bar at the very top of the QuickBooks
icon bar’s My Shortcuts section.)
window is a convenient way to launch different
 Vendors, customers, and employees each have their
activities.
own panel on the Home Page, and the various arrows
 It’s handy because it’s always visible and serves up
show how bookkeeping tasks fit together so you can
every feature the program has to offer.
follow your money from start to finish.
 The View menu is the place to go to choose between
 The bookkeeping tasks for each group are laid out like
two versions of the icon bar: top and left.
breadcrumbs you can follow.
 After shortcut menus and keyboard shortcuts, the icon
 However, each company is different, so you don’t
bar is the fastest way to launch your favorite
have to use every icon you see.
features.
 This section outlines the tasks you can perform from
 You can customize the icon bar to add features,
each panel and where to find detailed instructions
memorized reports, and windows you open often—
elsewhere in this book.
and remove features you don’t use.
 The settings you chose when you created your
 The left icon bar (View → Left Icon Bar), appears the
company file determine what initially appears on the
first time you launch QuickBooks 2016.
Home Page.
 The categories in the middle section of this icon bar
 Depending on your choices, you’ll see several panels—
determine what’s displayed in its top section.
Vendors, Customers, Employees, Company, and
Banking— that each contain various icons.
 For example, if you told QuickBooks that you invoice (Or, if you like to record checks in a check
customers and send statements, the Customers panel register window, you might prefer to click the
includes icons for invoicing and preparing statements. Check Register icon instead.)
 Or if you run a one-person shop with no employees,  Similarly, clicking the Enter Credit Card
you won’t see the Employees panel. Charges icon opens the Enter Credit Card
 Here’s what each panel on the Home Page offers: Charges window, though you can also record
1. The Vendors panel has icons for accessing vendor- credit card charges directly in a credit card
oriented features like purchase orders, bills, sales account’s register.
tax, and so on.  Clicking the Record Deposits icon opens the
2. The Customers panel is the place for customer- “Payments to Deposit” window so you can
oriented features like invoices, statements, sales record bank deposits.
receipts, and so on.  The Reconcile icon opens the Begin
3. The Employees panel has icons for entering time Reconciliation dialog box so you can reconcile
and, if you turn on payroll in QuickBooks, your QuickBooks records to your bank
recording payroll. statement.
4. The Company panel is on the right side of the  And the Print Checks icon opens the “Select
Home Page. Checks to Print” dialog box so you can choose
 The two icons in this panel that you’ll the ones you want to print and send them to a
probably click most often are Chart of printer loaded with blank checks.
Accounts and Items & Services, which open 3. The Insights Tab
the Chart of Accounts and Item List windows,  Starting in QuickBooks 2015, the Home window has
respectively. two tabs at its top left.
 Click Calendar to review transactions and to-  Clicking the Home Page tab displays the Home Page
dos in the Calendar window. described in the previous section.
 If you track inventory, click the Inventory  Clicking the Insights tab displays a dashboard that
Activities icon and then choose a feature, such provides a 50,000-foot view of your company’s
as Adjust Quantity/Value On Hand, which lets financial status.
you change the quantity and value of your  You can change date ranges and click various parts of
inventory. the dashboard to get a closer look:
 If you use QuickBooks Premier or Enterprise, 1. Graphs. Initially, the tab’s top panel displays a
click Inventory Center to open a window Profit & Loss graph in which monthly income is
similar to the Customer Center except that it represented by green bars above the horizontal
focuses on the status of—and transactions axis and monthly expenses appear in blue below
involving—your inventory items. the axis.
 If you’re interested in using QuickBooks’  The black line hopping from month to month
mobile app, click the QuickBooks Mobile icon, is your monthly profit.
and a browser window will open to the  To change the graph’s date range, choose the
QuickBooks Mobile sign-up page. range you want from the drop-down list at the
5. The Banking panel is a one-stop shop for banking graph’s top left.
tasks.  To view other graphs, click the left and right
 Whether you visit this panel frequently or arrows on either side of the top panel.
rarely depends on how you like to record
transactions.
 For example, you can click the Write Checks
icon to open the Write Checks window or
simply press Ctrl + W to do the same thing.
 2. Income. This section at the tab’s bottom left looks Switching among Open Windows
like the bars in the Income Tracker window—and
 If you tend to work on one bookkeeping task for hours
for good reason.
on end, you can set QuickBooks up to display one full-
 After you scan the open and overdue invoice
size window at a time by choosing View → One
totals, you can click one of these bars to open
Window.
Income Tracker, already filtered to show the
 That way, when you open additional windows, they
income category you clicked.
get stacked on top of one another so you see only the
 For example, if you click the red Overdue bar,
last one you opened.
Income Tracker opens and lists your
 If, on the other hand, you flit between bookkeeping
customers’ overdue invoices.
tasks like a honeybee in an alfalfa field, you probably
3. Expenses. The Expenses section in the tab’s
want to display several windows at a time.
bottom right shows where you spend the most
 QuickBooks can do that: just choose View → Multiple
money.
Windows.
 Choose a date range in the drop-down list to
 Either way, you have several ways to choose the
display expenses for that period.
window you want to see:
 To view the transactions that contribute to
 In the middle section of the left icon bar, click
expense totals, click an expense category in
Open Windows. Then, in the top section of the left
the Expenses list or click the corresponding
icon bar, click the name of the window you want.
section of the pie chart.
 If you use the top icon bar, you can see a list of
open windows by choosing View → Open
Working with Windows Window List. Then, in the list, simply click the
 You can have any number of windows open within name of the window you want to work with.
QuickBooks at the same time— whether you display  On the menu bar, choose Window, and then
only one full-size window at a time or keep several in choose the name of the one you want to see.
view simultaneously.  If you display several windows at a time and you
 This section explains how to work with multiple can see part of the window you want, simply click
windows, regardless how many you can see at once. it to bring it to the front.
 The main QuickBooks menu bar follows the classic  QuickBooks also gives you several ways to adjust
style that’s been around for years. the window you’re looking at. You can use the
 However, many of QuickBooks windows have buttons in its upper right to minimize, maximize,
switched to a ribbon (which is similar to the ribbons in or close it.
Microsoft programs).  You can reposition windows by dragging their title
 In this section, you’ll learn what ribbons offer in bars or resize them by dragging their edges and
QuickBooks. corners.
 You’ll also find out how to adjust the size of some
window elements like drop-down menus and table
columns.
Supermax View receipts and invoices or Refund/Credit for
invoices.
 When you want to see as much information as
2. Formatting tab. The Enter Sales Receipts and
possible in a transaction window, such as Enter Bills,
Create Invoices windows both include a
Supermax view is just the ticket.
Formatting tab where you can choose the
 To switch a transaction window to Supermax mode, at
template to use for the transaction; checkspelling;
the window’s top right, click the four-headed arrow.
and insert, delete, copy, or paste lines within the
 This view does several things so you can see more of
window’s table.
the data-entry lines:
3. Send/Ship tab. This tab comes in handy when you
o Hides the QuickBooks menu bar and (if you use
want to email info or choose the shipping
it) the icon bar.
company for products you’re sending to
o Minimizes the ribbon at the top of the
customers.
transaction window.
4. Reports tab. You’ll see different reports on this
o Fills the entire QuickBooks window with the
tab depending on the transaction window that’s
transaction window you Supermaxed.
open.
o Hides the transaction history panel on the
 For example, the Reports tab in the Create
window’s right side.
Invoices window includes reports like View
 To revert to regular window mode, click the icon that Open Invoices and Sales by Customer Detail,
looks like a square with an arrow pointing to its lower whereas the Reports tab in the Enter Bills
left. window has reports like Open Purchase Order
 When you revert to regular window mode, the menu Detail and Unpaid Bills Detail.
bar, icon bar, and feature panel at the top of the 5. Payments tab. The Enter Sales Receipts window
transaction window all reappear. includes the Payments tab. If you haven’t signed
up for credit card processing with Intuit, this tab
Transaction Window Ribbons has one icon: Add Credit Card Processing. Once
 You’re probably accustomed to the ribbons in you’ve signed up, you’ll see icons for recording
Microsoft programs as well as many others. your customer’s payment.
 Although QuickBooks doesn’t have a ribbon for its
main menu, many transaction windows include a ---- E N D ----
ribbon with two or more tabs.
 When QuickBooks switched to ribbons, it pulled
features that had been scattered throughout the
window up onto the ribbon, such as the Print Later
and Email Later checkboxes, so they’re easier to find.
 The tabs that appear depend on the transaction
window you have open.
 Here’s what the various tabs offer:
1. Main tab. This tab is the workhorse; it includes a
Find feature and icons for creating, saving,
deleting, and managing transactions in various
ways.
 You can also tell QuickBooks to print or email
the transaction now or later.
 You’ll find other handy features on the Main
tab, such as “Add time/costs” for sales