Chapter Processes:

A. Creating a New Company File using EasyStep Interview

1. Start QuickBooks Accountant.

2. Click New Company from the File menu. The QuickBooks Setup window appears.
3. Click the Detailed Start button.
4. Type information needed and click Next.
5. Scroll down the listing of industries, select Retail Shop or Online Commerce.
6. Click Next.
7. Select the Corporation option button and then click Next.
8. Select January in the My fiscal year starts in text box and then click Next.
9. Do not enter a password, and then click Next two times.
10. Click the Drop-down Arrow in the Save in text box to specify where you want your data file
saved and then click Save.
11. When EasyStep Interview returns, click Next, select the appropriate category for your
business and then click Next to move to the next window. If a “Customizing QuickBooks for your
business” window appears close it and continue.
12. Select Record each sale individually and then click Next.
13. Select Yes when asked if you charge sales tax and then click Next.
14. Select No when asked if you want to create estimates and then click Next.
15. Select Yes when asked if you want to track sales orders before you invoice customers and
then click Next.
16. Select No when asked if you want to use billing statements and then click Next.
17. Select No when asked if you want to use progress invoicing and then click Next.
18. Select Yes when asked if you want to keep track of bills and then click Next.
19. Select Yes when asked if you want to track inventory and then click Next.
20. Select Yes when asked if you want to track time and then click Next.
21. Select Yes when asked if you have employees and then click Next.
22. Click Next to setup your chart of accounts.
23. Select Use today's date or the first day of the quarter or month, click the calendar icon to select
the start date then click Next to continue.
24. Click Next to continue and accept the given income and expense accounts.
25. Click Go to Setup to end the EasyStep Interview.
26. Before you start the setup process, you need to establish some preferences. Click Start
Working.
27. Collapse the My Shortcuts pane.
28. Close so What’s New button by clicking the X next to the What’s New button

B. Set up Company Preferences

1. Click the Edit menu, and then click the Preferences.

2. Scroll to the top of the preferences list and click Accounting.
3. Click the Company Preferences tab. Check Require Accounts if it is not already checked.
Make sure the Use account numbers check box is unchecked. Uncheck the two Date Warnings
checkboxes.
4. Click Checking from the preferences list, and click Yes if i asked whether you want to save
your changes.
5. Click the My Preferences tab, and then click all the boxes specifying default accounts to be
used for different processes. To add a new bank account, select <Add New> from the dropdown
textbox.
6. Type the name of the account making sure that the Account Type is Bank.
7. Click the Enter Opening Balance button. Type the amount in the Statement Ending Balance
text box and the date of your preference in the Statement Ending Date. Click OK.
8. Click Save & Close to add the new bank account.
9. Select the name of the account as default accounts to use for all events specified.
10. Click Desktop View from the preferences list, click Yes when asked if you want to save your
changes.
11. Select the Multiple Windows option. Make sure the Show Homepage when opening a
company file and Switch to colored icons/light background on the Top Icon Bar check boxes are
checked.
12. Click General from the preferences list, and click Yes when asked if you want to save your
changes.
13. Check all the items according to your preference.
14. Click the Company Preferences tab, and uncheck the Always show years as 4 digits box.
15. Click Reminders from the preferences list, and click Yes when asked if you want to save your
changes.
16. Click OK if you see a warning message.
17. Click the Company Preferences tab, and choose the Don't Remind Me option button for all the
reminders.
18. Click Reports & Graphs from the preferences list, and click Yes when asked if you want to
save your changes.
19. Click the My Preferences tab, and choose the option to Refresh automatically.
20. Click OK to close the Preferences window.
21. Click the View menu, and then click Top Icon Bar. Right-click the Icon Bar and then select
Customize Icon Bar.
22. Click Client Review from the list of Icon Bar content and then click Delete button.
23. Follow the same procedure to delete all icons and space separators except Accountant, Home,
Customers, Vendors, Employees and Reports.
24. Click OK to close the Customize the Icon Bar window and the click Home.

C. Set up Company Items

1. Click Items & Services from the Company section of the homepage. This opens the Item List
window.
2. Select the Consignment Item from the Item List.
3. Click the Item button in the lower left corner of the Item List window, and then select Delete
Item.
4. Click OK to confirm.
5. Click the Item button again, and then select Add/Edit Multiple Items.
6. Select Service Items from the List drop-down list.
7. Click the Customize Columns button.
8. Click Subitem from the Chosen Columns List.
9. Click the Remove button.
10. Now click the Sales Description from the available Columns List.
11. Click the Add button. With Sales Description selected, click the Move Up button so that Sales
Description appears just after Item name.
12. Click OK to close the Customize Columns window.
13. Type 20-Hour Service(for example) in the space bellow the Item Name column and then press
[Tab]. Click OK if a Time Saving Tip window appears.
14. Type Labor charge for 20-Hour service check(for example) in the Sales Description column
and then press [Tab].
15. Type 175(for example) as the Sales Price and then press [Tab].
16. Type Service as the Income account and then press [Tab].
17. Click Setup in the Account Not Found window.
18. Select Income in the Account Type drop-down list and then click Save & Close.
19. Select Tax as the Sales Tax Code and then press [Tab].
20. Type Engine Service(for example) as a new item in the Item Name column below 20-Hour
service and then press [Tab].
21. Type Labor charge for changing engine oil and filter(for example) in the Sales Description
column and then press [Tab].
22. Type 125(for example) in the Sales Price column and then press [Tab].
23. Select Service in the Income column and then press [Tab].
24. Select Tax in the Sales Tax Code column and then press [Tab].
25. Click below the Engine Service Item you just added in the Add/Edit Multiple List Entries
window.
26. Once you’ve entered all the service items above click Save Changes and then click OK.
27. Select Inventory Parts from the List drop-down list.
28. Click the Customize Columns button.
29. Click Subitem from the Chosen Columns List.
30. Click the Remove button. Additionally, remove Total Value, Preferred Vendor, Max and
Manufaturer's Part Number columns.
31. Click Purchase Description from the Available Columns List. Click the Add button.
32. Click the Purchase Description column title and then click the Move Up button multiple times
until the Purchase Description column title appears below the Item Name column title. Additionally,
add the As Of Date column to the end of the list.
33. Click OK to close the Customize Columns window.
34. Continue this process for other inventory items in your business.
35. Click Save Changes after you’ve entered all your other inventory items and click Close to close
the Add/Edit Multiple List Entries window.

D. Set up Customers, Vendors, and Accounts

 Set up Existing Customers

1. Click Customers from the Customer section of the home page. This opens the Customer
Center window.
2. Click New Customer & Job, and then click Add Multiple Customer: Jobs from the shortcut
menu.
3. Click the Customize Columns button.
4. Remove all the columns from the Chosen Columns List except Name and Company Name.
5. Add columns Customer Balance and Opening Balance as of Date and then click OK.
6. Type Orlando Water Sports(for example) in the Name and Company Name column, the
corresponding amount for the Customer Balance column, and the corresponding date for the Opening
Balance as of date column.
7. Continue this process for the remaining customers of your business.
8. Click Save Changes in the Add/Edit Multiple List Entries window. Click OK to acknowledge that
the added customer records have been saved and then click Close. Select All from the Date drop-
down list to view all invoices.

 Set up Existing Vendors

1. Click Vendors from the Vendor section of the home page to open the Vendor Center Window.
2. Click New Vendor and then select New Vendor from the drop-down list.
3. Type the name of the company in the Vendor Name text box and Company Name text box.
4. Type the corresponding amount in the Opening Balance text box and the corresponding date
in the As of textbox.
5. Click the Payment Settings tab and note that credit terms or credit limits were provided, you
would enter them here. Click OK to finish adding a new vendor. Close the Vendor Center.

 Set up Accounts
1. Click the Chart of Accounts from the Company section of the home page.
2. Click the Account button, and select New.
3. Select Credit Card from the list and then click Continue.
4. Type MasterCard in the Account Name text box.
5. Click the Enter Opening Balance button.
6. Type the corresponding amount in the Statement Ending Balance text box and type the
corresponding date in the Statement Ending Date text box. Then click OK.
7. Click Save & New to enter another account.
8. Select Long-term Liability from the Account Type drop-down list.
9. Type Loan Payable in the Account Name text box.
10. Click the Enter Opening Balance button, type the corresponding amount in the Opening Balance
text box and the corresponding date in the As of text box. Then click OK.
11. Click Save & Close.
12. Follow these process for the other accounts. Take note that on the case of contra-accounts, enter
the amounts in a negative number. Then close the Chart of Accounts window.

E. Set up Payroll and Employees

 Payroll
1. Press the F1 key to start QuickBooks Accountant Help.
2. Type process payroll manually in the text box, then press the Enter key.
3. Click the Process payroll manually (without a subscription to QuickBooks Payroll).
4. Click the text manual payroll calculations.
5. Click the text Set my company file to use manual calculations.
6. Click OK and then close the Have a Question? window.
7. Click Payroll Setup from the Employees menu.
8. Click the Continue button after reading each windows until you get to the Add New window.
9. Make sure that only the Salary, Hourly wage and Overtime checkboxes are checked in the Add
New window and then click Finish.
10. Click continue to accept the Compensation list provided.
11. Click Continue again, check the My company does not provide insurance benefits checkbox,
then click Continue again and then click Finish.
12. Proceed in the same manner through the payroll setup process, as the company does not
provide retirement benefits, and paid time off or have any special editions and deductions.
13. Click Continue when you get to the Set up your employees section.
14. Enter the information for your employee, say for example Patrick Garcia.
15. Click Next and then enter the hiring information for Patrick Garcia.
16. Click Next and then enter the compensation information for Patrick Garcia.
17. Click Next two times and then enter the subject to tax information for Patrick Garcia.
18. Click Next and then enter the various tax information in various category for Patrick Garcia.
19. Click Finish to finish adding Patrick to the payroll system. Click Continue to carry on the
payroll setup process.
20. Click Continue two more times to accept the tax items set up for you.
21. Click Edit and then click Next, type of the corresponding company rate with details and then
click Finish.
22. Click Continue, set the payee for all tax payments and then click Next.
23. Type of the corresponding account number and then click Finish.
24. Click Continue twice and then click the corresponding year, say for example 2016, if you are
asked when you will start processing payroll in QuickBooks Accountant. If asked, select No to a
question about whether your company issued paychecks this year.
25. Click Continue and then click Go to the Payroll Center to finish the payroll setup process.

 Employee
1. Click the New Employee to open the New Employee window.
2. Be certain that the Personal tab is selected. Then fill the form with the needed information.
3. Click the Address and Contact tab and then type the corresponding information in the Home
Address section.
4. Click the Payroll Info tab, select Monthly as the pay frequency and Hourly as the Item Name in
the Earnings section.
5. Type of the corresponding amount as the Hourly/Annual Rate in the Earnings section.
6. Click the Taxes button and enter the needed information.
7. Click the State tab and identify the employee as working in your business and subject to
various taxes.
8. Click OK two times to finish entering the particular employee as a new employee.
9. Click Leave As Is when asked if you want to set up other payroll information and then close the
Employee Center window and click Home to return to the Home window.

F. Create a Backup File

1. Click Backup Company and then select Create Local Backup from the File menu.
2. Choose the Local backup option and then click Next.
3. Click a location to which you would like to backup your file. Click Browse to locate the drive
and location where you would like to backup your file.
4. Click OK, click Next and then click Save to begin the backup process.
5. Click OK again when QuickBooks accountant informs you that your file has been backed up
successfully. Choose No Thanks if a message pops up asking you to try the Online Solution.
6. To restore that same file from the external drive to your hard drive, choose Open or Restore
Company from the QuickBooks Accountant to File menu.
7. Choose the Restore a backup copy option and then click Next.
8. Choose the Local backup option and then click Next.
9. Identify the location of your backup file and then click Open.
10. Click Next to identify where the company file will be restored.
11. Once you've identified the location where the company file will be restored, click Save.
12. Click OK when QuickBooks accountant informs you that your file has been restored
successfully.

Chapter Processes:

A. Recording Cash-Oriented Business Transactions classified as Financing Activities

 To record the deposits received

1. Start the QuickBooks Accountant program.

2. Restore the file that you downloaded from the text website.

3. The newly restored files should now be open.

4. Click Record Deposits icon from the Banking section of our home page. The Make
Deposits window appears. Note that QuickBooks Accountant has automatically inserted
today’s date.

5. Enter the information for Karen and Donna’s(for example) stock purchase and be sure
to enter the correct date and add Karen Wilson to the employee list.

6. Click Save & New to record the deposit. Do not close the Make Deposits window.

 To record the long term loan from the bank

 1. Select account Bank of Florida (for example) as the Deposit To account.

2. Type the 1/04/16 (for example) as the deposit date.

3. Type Bank of Florida in the received from text box and then press [Tab].

4. Click Quick Add in the Name Not Found window.

5. Click Other in the Select Name Type window and then click OK.

6. Select account Loan Payable as the From account.

7. Type the corresponding amount and then click Save & Close.

B. Recording Cash-Oriented Business Transactions classified as Investing Activities

 The create a new ledger account and record the purchase of money market funds

1. Click the Write Checks icon from the Banking section of the home page. The Write
Checks window appear.

2. Uncheck the Print Later check box if it is checked.

 3. Type 1001 in the No. Text box, type 1/8/16 as the date and type ETrade in the Pay to
the Order of section of the check and then press [Tab]. (for example)

4. Click Quick Add in the Name Not Found window.

5. Select Other in the Select Name Type window and then click OK.

6. Type 30000 as a check amount, and then press [Tab] three times or until the cursor is in
the account section of to check. Trouble? Near the bottom of the Write Checks window
are two tabs, one labeled Expenses and one labeled Items. The Expenses tab is
somewhat misleading because you can type or select any account to appear here
including assets, On the other hand used Items tab to enter inventory acquisitions only.
The main difference between them is that the Items tab has a column for quantities
purchased and the Expenses tab has a column for an account.

7. In the Expenses tab, select <Add New> from the drop-down arrow list of accounts. An
Add New Account: Choose Account Type window should appear.

8. Select Bank as the account type, and then click Continue.

9. Type Short-Term Investments as the Account Name.

10. Click Save & Close to record the new general ledger account.

11. Click Save & New to record this transaction. Do not close this window.

 To record the purchase of furniture and equipment

1. Type 1002 as the check number(if it is not already there). Trouble? If you previously closed the
Write Checks window, open it again by clicking the Write Checks icon on the home page.
2. Type 1/9/16 as the date of purchase in the Write Checks window.

3. Type Staples in the Pay to the Order of section of the check, and then press [Tab].

4. Click Quick Add in the Name Not Found window.

5. Select Vendor in the Select Name Type window and then click OK.

6. Type 7000 as the check amount and then press [Tab] three times or until the cursor is in the
account section of the check.

7. In the Expenses tab, select Furniture and Equipment from the drop-down arrow list of
accounts.

8. Click Save & New to enter another purchase.

9. Follow the same process and input the needed information.

10. In the Expenses tab, select Furniture and Equipment from the drop-down arrow list of
accounts and then press [Tab] twice.

11. Click Save & Close to complete this process.

C. Recording Cash-Oriented Business Transactions classified as Operating Activities

 To create a purchase order

1. Click the Purchase Orders icon from the Vendors section of the home page to open the
Create Purchase Orders window.

2. Select Malibu Boats from the Vendor drop-down list.

3. Type 1/12/16 as the date and type 4001 as the P.O No.

4. Select MW XTI as the item, type 1 as the Qty(quantity), and select Florida Sports Camp
as the customer for which we are ordering the boat. (You’ll need to add them as a new
customer)

5. Click on the Hide History to hide this information and then click Save & New. Note that
QuickBooks Accountant may identify a word it doesn’t know and, before processing this
purchase order, a Check Spelling on form window may appear to verify the spelling of
WakeSetter.

6. Add Tige Boats to the Vendor drop-down list in the new purchase order form.

7. Type the date and the P.O No if it’s not already there.

8. Select <Add New> from the drop down Items list to display the New Item window.

9. Select Inventory Part from the drop-down Type list.

10. Type the Item Name/Number(T 22v) and the Description(Tige 22v) for both purchase
and sales transactions.

11. Type 63000 as the Cost.

12. Leave Cost of Goods Sold as the COGS.

13. Select Tige boats as the Preferred Vendor.

14. Type 75700 as the sales price.

15. Leave Tax as the Tax Code.

16. Add Boat Sales as a new Income Account.

17. Add Inventory Boats as the Asset Account.

18. Click OK to accept this new item and add Tige to the dictionary if necessary.

19. Type 1 as the Qty.

20. Select <Add New> from the drop-down Customer list to display the New Customer
window.

21. Type the corresponding Customer and Company Name as well as the Customer’s
Address.

22. Click Copy >> to copy the Bill To address to the Ship To address section. Click OK to
accept.

23. Click OK to add this new customer.

 24. Click Save & Close to add this new purchase order.

 To record the receipt of deposits on future sales

1. Click the Receive Payments icon located in the Customers section of the home page.

2. Select Florida Sports Camp as the customer from which the first deposit was received.

3. Type the corresponding amount received as well as the date.

4. Select Check as the payment method.

5. Type the corresponding number in the Check # text box.

6. Click Save & New to record another deposit.

7. Click OK to save the credit on the customer’s account and not print a credit memo.

8. Select Performance Rentals as the customer from which the second deposit was received.

9. Type the amount received as well as the corresponding date.

10. Select Credit Debit Card and then select MasterCard as a payment method.

11. Type the corresponding credit card number and expiration date. Click Done.
 12. Click Save & Close to exit, and then click OK once again to leave this credit balance for the
customer.

 Record cash collected on account

1. Click the Receive Payments icon located in the Customers section of the home page.

2. Select Buena Vista Water Sports from the Received From drop-down list.

3. Pay the corresponding amount received as well as the date received.

4. Select Check as the payment method and type the corresponding check number.

5. Click Save & Close to complete this transaction.

 To record cash sales

1. Click the Create Sales Receipt icon located in the Customers section of the home page.

2. Select <Add New> from the Customer job drop-down list.

3. Type the corresponding Customer Name and Company Name.

4. Type the customer’s address to the Bill To and Ship To address.

 5. Click OK accept this new customer.

6. Type the corresponding date of sale and the sale number.

7. Type the corresponding check number and select Check as the payment method.

8. Select MS LX from the drop-down list of items. Type 1 as the Qty.

9. Select the applicable tax from the Tax drop-down list if it is not already there.

10. Make sure the Print Later check box is unchecked.

11. Click the Hide History arrow and then click Save & New to record another receipt. Click Yes if
asked to have the new tax item appear next time.

12. Follow the same process in recording another sales receipt. Click Save & Close when done.
Click Yes to accept tax change.

 To record cash deposits made to bank

1. Click the Record Deposits icon located in the Banking section of the home page to open the
Payments to Deposit window.

2. Click next to the two 1/12/16 dates to place a check next to each and then click OK.
 3. Type 1/14/16 as the date of deposit. Note also that the From account is the Undeposited
Funds account, which is where the payments recorded when first received and accounted for.

4. Click Save & New.

5. Click next to the 1/15/16 and 1/16/16 dates to place a check next to each and then click OK.

6. Type 1/16/16 as the date of deposit.

7. Click Save & New.

8. Follow the same process in placing another check and click Save & Close when done.

 To record the receipt and payment of inventory

1. Click the Write Checks icon located in the Banking section of the home page.

2. Select Malibu Boats from the Pay to the order pf drop-down list. An Open POs Exist window
should appear.

3. Click Yes. An Open Purchase Orders window should appear.

4. Click next to the 1/24/16 to place a check mark on the purchase order 4001 line and then click
OK. If a Warning window appears then click OK and ignore the warning since, although you
owe funds to Malibu Boats from a previous purchase (for example) , you are not accounting for
that payment at this point.
 5. Type 1004 as the check number if it is not already present. (You may have to uncheck the
Print Later check box)

6. Type 1/29/16 as the check date.

7. Note that, because this transaction was treated as the payment for and receipt of inventory,
the transaction is recorded using the Items tab, and the item being received is that item
ordered under purchase order 4001 for 56,000. Click Save & New to continue for another
transaction following the same process or click Save & Close when done.

 To record the sales of inventory, application of advance deposits received and receipt of
payment for the balance due

1. Click the Create Invoices icon located in the Customers section of the home page.

2. Select Florida Sports Camp from the Customer: Job drop-down list. A Billable Time/Cost
window should appear indicating that this customer has billable costs.

3. Check the Save this as preference check box and then click OK.

4. Click the Items tab. Note that this window identifies that an item has been received for Florida
Sports Camp and is available for billing. Click next to the 1/29/16 date in the ✓column to place
a check mark there, indicating you would like to bill this customer for this item.

5. Click OK.

6. Type the corresponding date for the invoice date and the corresponding number for the Invoice
#.
 7. Click the Hide History arrow, uncheck the Print Later and Email Later check boxes, and then
complete the invoice by adding a Tax code, a Bill To address and a Ship To address.

8. Click the Apply Credits button.

9. Click Yes two times to accept the changes you made to the invoice and customer. An Apply
Credits window should appear.

10. Note that the credit balance shown in deposit we recorded earlier this month and that it is
prechecked for application. Click Done to apply this credit to the balance owed on the invoice.

11. Click Save & New to record this invoice.

12. Select Performance Rentals from the Customer: Job drop-down list and then click the Items
tab.

13. Check the ✓column next to the corresponding date.

14. Click OK.

15. Click Apply Credits, click Yes to save your changes, and then click Done. You may have to
uncheck the Email Later check box to proceed.

16. Change the Tax to State Tax.

17. Click Save & Close, and then click Yes twice as before.

 To record the payment and deposit of funds (boat sale as example)

 1. Click the Receive Payments icon located in the Customers section of the home page.

2. Select the entity from the Received From drop-down list.

3. Types of corresponding amount received, date and the check number.

4. Click Save & Close.

 To record checks written for expenses and inventory parts

1. Click the Write Checks icon in the banking section of the home page.

2. Type the check number if it is not already there.

3. Type the corresponding check date.

4. Type Manchester Insurance in the Pay to the Order section of the check and then press [Tab].

5. Click SetUp in the Name Not Found window.

6. Select Vendor from the Select Name Type window, and then click OK.

7. Type Manchester Insurance in the Company Name text box.

8. Types the vendor’s address.

 9. Click OK in the New Vendor window.

10. Type the check amount and then press [Tab] three times.

11. Select Expenses tab and then select <Add New> from the account drop-down list.

12. Select the Other Account Types option and then select Other Current Asset from the drop-
down list in the Add New Account window.

13. Click Continue.

14. Type Prepaid Insurance in the Account section and then click Save & Close.

 To record checks written to pay bills

1. Click the Pay Bills icon in the Vendor section of the home page.

2. Click next to the corresponding date to select this bill for payment.

3. Click in the Assign Check Number option.

4. Click Pay Selected Bills.

5. Type the check number assigned to the payment.

6. Click OK and then click Done.

 D. Evaluate a Firm’s Performance and Financial Position

 To prepare a standard income statement and a balance sheet

1. Click the Report Center icon from the icon to toolbar and then click the Standard tab.

2. Double-click the Profit & Loss Standard view under the Profit & Loss section.

3. Change the From date to 1/1/16.

4. Change the To date to 1/31/16. And then click Refresh. Remove the Date Prepared,
Time Prepared and Report Basis fields from the header as you have done before.

5. Click the Print button from the toolbar, select Report, and then click Print in the Print
Reports window.

6. Close the Profit & Loss Report window, memorize the report in a group with your name,
and then minimize the Report center.

7. Expand the Report center, and then double-click the Balance Sheet Standard view from
the Balance Sheet & Net Worth section.

8. Change the As of date to 1/31/16, and then click Refresh. Remove the Date Prepared,
Time Prepared, and Report Basis fields from the header as you have done before.
 9. Click the Print button from the toolbar, select Report, and then click Print in the Print
Reports window.

 To prepare a Transaction List by Date report

1. Click the Accountant and Taxes section in the Report Center.

2. Double-click the Transaction List by Date view from the Accountant Activity section of
Accountant and Taxes.

3. Type 1/1/16 in the From text box.

4. Type 1/31/16 in the To text box.

5. Click the Refresh button. Edit the report to remove the Date Prepared and Time Prepared
information. Trouble? On occasion, you might accidentally enter the wrong date for a
transaction. If you’re pretty sure you entered a transaction but don’t see it in your transactions
list, it is likely that dates are your problem. To verify this, try entering 1/1/06 as the From date
and 12/31/20 as the To date. If your missing transaction appears, double-click it to correct the
date and you’ll be good to go.

6. Close the Report window, and then memorize the report in a group with your name, and then
close the Report Center window.